Port of Melbourne welcomes Federal commitment to intermodal terminals

Port of Melbourne aerial view. Image courtesy of Port of Melbourne.

Port of Melbourne has welcomed the $3.1 billion commitment from the Commonwealth Government to deliver the $3.6 billion Melbourne Intermodal Terminal Package to accommodate future Inland Rail services.

The 2022 Federal Budget allocates $3.1 billion in new commitments to the project, including $1.2 billion for the Beveridge Interstate Freight Terminal in Beveridge and $740 million for the Western Interstate Freight Terminal in Truganina.

“Both the Western and Beveridge freight terminals are critical over the long term to support economic growth and liveability by moving more freight on rail,” Port of Melbourne CEO Saul Cannon said, adding that the Western Intermodal Freight Terminal (WIFT) should be given higher priority.

With 37 percent of containers imported through the Port of Melbourne destined for the outer western suburbs, WIFT provides the most effective consolidation point for the majority of the Port’s international import and export containers that are located to the west and north of Melbourne, a 2020 Container Logistics Chain study by the Port had found.

“The port has always acknowledged the long term need for two intermodal terminals in the Melbourne metropolitan, however we believe the immediate priority should be WIFT,” Mr Cannon said.

“WIFT creates the most opportunity to shift more freight onto rail in the short to medium term.”

“More than one-third of Australia’s container trade comes through the Port of Melbourne, and with container trade expected to triple over the next thirty years it’s critical we get more freight movements on rail in the future, so this commitment to our national supply chain infrastructure is very welcome,” Mr Cannon said.

Port of Melbourne is also focussing on increasing use of rail to move freight, with the port committed to investing more than $125 million in the Port Rail Transformation Project (PRTP). The PRTP is designed to enhance existing and build new rail infrastructure within the port precinct to connect to metropolitan and regional intermodal freight terminals.

Mr Cannon said the Port will continue to invest along with industry and government to maximise the efficiency and effectiveness of the port supply chain.

“Inland Rail needs to connect efficiently with other freight infrastructure, including the Port of Melbourne and metropolitan and regional intermodal freight terminals,” Mr Cannon said.

“Connection of Inland Rail to the Port of Melbourne, including a direct freight connection to Webb Dock, is essential if we’re going to meet the long term demands of consumers and business,” he said.

The $3.1 billion commitment by the Federal Government in the 2022 Budget also includes the supporting infrastructure for the Melbourne Intermodal Terminal Package; including $280 million for road connections and $920 million for the Outer Metropolitan Ring – South Rail connection to the Western Interstate Freight Terminal.