More freight on trains in Melbourne's south-east

A $28 million investment in direct rail freight between the Port of Melbourne and Dandenong South will take trucks off suburban roads and make rail freight cheaper for businesses.

A new track connecting the main rail line with Dandenong South-based Salta Properties freight hub will bust congestion in Melbourne’s growing south east region.

The upgrade will connect to the Port of Melbourne’s $125 million on-dock rail project, allowing shuttles to run from Dandenong South directly into the port.

The Australian Government has invested $18.3 million in the project, and the Victorian Government is investing $9.7 million. The work is being delivered by the Level Crossing Removal Project as part of the $1 billion Cranbourne line upgrade.

The new connection is the next step in delivering the Port Rail Shuttle Network, which will remove congestion around the Port of Melbourne, cut transport costs for freight by as much as 10 per cent and reduce truck trips on the suburban Melbourne roads by up to 100,000 annually.

The improved rail connection will further unlock private sector co-investment, with Salta Properties to construct the freight terminal and build on the strengths of south east Melbourne as a freight and logistics hub.

The project is part of the Victorian Government’s work to continue supporting the Port of Melbourne, which contributes $6 billion to the Victorian economy each year and is a crucial part of the State’s supply chain.