The Victorian Government's freight plan, Delivering the Goods, will ensure Victoria’s freight and logistics system meets the needs of a growing population and economy.
On this page:
- Victorian Port and Coastal Shipping Industry Reform
- Mode Shift Incentive Scheme
- Intermodal terminals
- Terminal locations
- Victorian Heavy Vehicle Licensing and Employment Pathways Review
- Heavy Vehicle Training Program
- New intermodal freight precincts
- Port Rail Shuttle
- Murray Basin Rail Project
- Bridge strengthening for freight
- High productivity freight vehicles
- West Gate Tunnel
- North East Link
- Extractive Industries in South Gippsland Supply Chain Study
- Shepparton Rail Freight Planning Study
Victorian Port and Coastal Shipping Industry Reform
As part of the development of a Victorian port strategy, the Victorian Government requested a review of Victorian coastal shipping to augment the recent national inquiry into coastal shipping.
The Victorian Government appreciates the time taken by shipping industry stakeholders to respond to the terms of reference for the Victorian Coastal Shipping Review.
This work is in addition to the review underway into infrastructure pricing at, and access to and from the Port of Melbourne, brought forward following increases in stevedore infrastructure charges at the port.
Freight Victoria has consulted with and/or received submissions from freight customers and operators, shipping businesses, economic development organisations, unions, ports and channel authorities and port service providers to ensure their input helps shape the strategy and review.
A key focus of the Victorian Coastal Shipping Review was to examine the regional economic growth coastal shipping creates and identify ways to maximise the employment of
Victorian seafaring labour. A diverse range of issues were raised by stakeholders in the submissions, they included:
- the current regulatory regime
- uncertainty regarding the current regulatory regime
- reduction in availability of skilled maritime labour
- subsidisation of road transport
- operating costs
- the need for landside investment to support coastal shipping activity
- port planning requirements that facilitate coastal shipping
- identification of markets where coastal shipping can compete.
The submissions are available to download below:
- Australian Maritime Officers Union
- ANL Container Line
- Centre for Supply Chain and Logistics
- Cement and Concrete Aggregates Assoication
- Cement Industry Federation
- CSL Australia
- Gippsland Ports
- Port of Melbourne
- Maritime Union of Australia
- Rigby Cooke
- Shipping Australia Limited
- Victoria Regional Channels Authority
The terms of reference for the review have been released and are available to download below:
- Terms of Reference for the Victorian Ports Strategy - Coastal Shipping Review [PDF 104KB]
- Terms of Reference for the Victorian Ports Strategy - Coastal Shipping Review [Word 23KB]
Mode Shift Incentive Scheme
The Victorian Government is committed to getting trucks off local roads and giving exporters more options through the Mode Shift Incentive Scheme.
Over the past five years, we’ve invested more than $30 million to make rail freight more cost effective and allow exporters to get their goods to port sooner.
The Victorian Government will provide $3.6 million to extend the scheme until 30 June 2022.
Under the scheme, four freight operators will receive incentives to move up to a combined 42,500 containers by rail, taking the equivalent of 28,000 truck trips every year off regional and urban roads and reducing truck congestion at the Port of Melbourne.
Current recipients are:
- Shepparton corridor – Linx Portlink (Tocumwal)
- Horsham corridor – Wimmera Container Line (Dooen)
- Warrnambool corridor – Westvic Container Export (Dennington)
- Mildura corridor – Seaway Intermodal (Merbein)
We’re working hard to build better rail freight connections and get trucks off the local roads that Victorians use every day.
An intermodal terminal is a location for the transfer of freight from one transport mode to another: for example between road and rail.
Intermodal hubs can play an important role in easing the transport burden on the ports and neighbouring areas. They are also essential if rail is to increase its role in the freight transport and distribution system.
A range of initiatives that seek to increase the volume of freight carried on rail, focuses on Victoria’s three rail markets.
- Interstate, mainly inter-capital city freight, which operates over long distances on the ARTC standard-gauge network
- Regional, mainly export trade from regional Victoria and southern NSW, which generally operates over shorter distances on the V/Line controlled broad-gauge network although also uses the southern NSW regional rail network to get to the Port of Melbourne
- Metropolitan port-rail shuttles, which is a prospective market for rail and is currently handled almost exclusively by trucks on the arterial road network.
Terminal locations: metropolitan
|South Dynon||Pacific National|
|East Swanson Dock||Patrick|
|West Swanson Dock||DP World|
|Victoria Dock||Qube Logistics|
Terminal locations: regional
|Tocumwal||Gray's Container Terminal|
|Warrnambool (Dennington)||Westvic Container Handling|
Victorian Heavy Vehicle Licensing and Employment Pathways Review
The Victorian Heavy Vehicle Licensing and Employment Pathways Review will examine the heavy vehicle licensing system, driver competency and safety.
Commencing in March 2019, the review will also evaluate career pathways into professional heavy vehicle driving within Victoria.
The streams of work align with national and strategic priorities as well as heavy vehicle industry concerns with driver licensing and employment opportunities.
The review's first priority is to assess the heavy vehicle licensing framework from a Victorian perspective, which will inform improvements and initiatives for heavy vehicle licensing, assessment and training.
The review will then examine pathways for heavy vehicle drivers, identifying barriers and opportunities to address industry concerns about attracting and retaining drivers.
Victorian Transport Association President Peter Anderson is chairing the review group, supported by a panel of experts and representatives from Freight Victoria and VicRoads.
Heavy Vehicle Training Program
Safer, smarter and more capable drivers will be arriving on our roads as we continue to invest in heavy vehicle driver and safety training.
With an enormous amount of freight being moved in Victoria daily, we’re investigating and developing employment pathways for people into this growing industry.
In partnership with the Victorian Transport Association, and other providers, drivers will be put through their paces to improve their road craft, level of driving skill and development of safety-first attitudes.
The VTA received $1 million in the 2017-18 Victorian Budget to fund three heavy vehicle education and training programs.
The Cadetship and Driver Delivery programs were specifically targeted towards attracting and retaining younger employees in heavy vehicle driving and the transport sector.
Victoria’s new intermodal freight precincts
We’re planning to deliver new intermodal freight precincts at Truganina in Melbourne’s west and Beveridge in Melbourne’s outer north to service the state’s growing freight and logistics sector.
The role of the new precincts will be primarily to handle interstate freight, but also import and export container trade.
The Australian and Victorian governments are developing a joint business case for precinct development that will also help ensure the new precincts support the Inland Rail Project in Melbourne from the commencement of train services.
These intermodal freight precincts and their connecting transport infrastructure will be delivered to supplement, and potentially replace, the existing terminal at Dynon.
They will be planned and developed in consultation with industry with a focus on maximising opportunities for private sector investment and job creation.
The precincts will help grow Victoria’s economy and jobs, enhance the state’s role as a leading freight and logistics hub and improve Melbourne’s liveability.
Learn more and download the intermodal freight precincts fact sheet [PDF 339 KB].
Port Rail Shuttle
The Australian and Victorian governments are investing in projects to take trucks off local roads and connect the Port of Melbourne to major freight hubs using the existing rail network.
The Federal Government has committed $38 million to the initiative along with $20 million from the Victorian Government.
The Victorian Budget 2019/20 delivers an additional $4 million investment to encourage industry to continue to shift more containerised freight from road to rail.
In 2017, expressions-of-interest were invited from private industry to deliver a series of rail freight shuttle initiatives on the existing rail network by connecting the port to major freight hubs and businesses.
In March 2018, shortlisted respondents were invited to submit firm proposals by June so any grant allocations can be determined by late 2018.
Following a public, competitive request-for-proposal process, $16.2 million will be invested at Austrak in Somerton and $9.5 million at SCT Logistics in Altona to connect these major freight hubs to the Port of Melbourne by rail.
These are the first fully-funded Port Rail Shuttle network projects - further project funding will be announced.
Murray Basin Rail Project
The Murray Basin Rail Project will deliver important upgrades Victoria's rail freight network to meet increasing demand for freight services.
The project will drive economic growth, create jobs and provide a major boost to the transport industry, agricultural sector and regional communities.
A revised business case for the Murray Basin Rail Project has been completed.
In developing the revised business case, we have considered what work is needed to optimise Victoria’s existing freight lines.
The Department of Transport and Rail Projects Victoria (RPV) carried out a series of detailed work, including:
- Site assessments, walking the track to assess line conditions.
- Network modelling to ensure sufficient train paths for the needs of industry.
- Reviewed the original project drivers and objectives assessing demand forecasts and investment logic mapping.
- Consultation and feedback from primary producers and freight organisations.
A summary of the revised business case and the executive summary can be downloaded here:
The revised business case was completed and provided to the Commonwealth Government in May 2020.
Going forward, the Victorian and Commonwealth governments will jointly agree on the next steps.
The Department and RPV will continue to work closely with the Rail Freight Working Group and other key stakeholders as next steps are jointly progressed.
Bridge strengthening for freight
A program of bridge strengthening is designed to bolster the productivity of the freight network by increasing the capacity of the road and rail overpasses that dot the network.
Bridge strengthening delivers an immediate efficiency dividend by better connecting Victoria’s freight to its destination.
The program that is particularly beneficial to Victoria’s primary producers, who rely on road transport for at least the first leg - and often the entire journey - to port.
Bridges with access restrictions force road transport operators to use vehicles with less payload capacity to move freight less efficiently or use more circuitous routes to service their customers, adding cost and damaging Victoria’s export competitiveness.
Most Victorian bridges were built when the heaviest combination on the network was only 33 tonnes.
Even a number of freeways built as recently as the 1990s have overpasses unable to cater for the industry’s most efficient road-freight combinations.
Up to date information on current and proposed bridge strengthening projects can be found on the "HPFV B-Double" and "HPFV A-Doubles" maps on the VicRoads website.
High productivity freight vehicles
Vehicles designed to higher safety standards that emit fewer noise and exhaust emissions are moving more freight with less impact.
The community and the freight industry are sharing the benefits of the more widespread use of road-freight combinations that are quieter, cleaner and feature technological innovations that boost safety.
Industries involved in the freight and supply chain systems can access more information at:
West Gate Tunnel
The West Gate Tunnel will enable permanent curfews on parts of Francis Street, Moore Street, Somerville Road, Buckley Street, Blackshaws Road and Husdons Road, while providing high-productivity freight vehicles direct access to Swanson Dock at the Port of Melbourne.
North East Link
The North East Link will connect the freight-generating areas of the metropolitan south east with regional and interstate markets, while clearing residential areas of heavy truck traffic.
Extractive Industries in South Gippsland Supply Chain Study
The South Gippsland region has been identified as one of the top five strategic extractive resource locations in Victoria.
It is a critical location for hard rock, sand and gravel, driven partly by its proximity to markets in greater Melbourne.
The region includes Lang Lang, Nyora and Grantville through to Leongatha South and the primary transport routes westwards from South Gippsland pass through Cardinia Shire and the City of Casey before dispersing across greater Melbourne.
The scope of the study includes origin and destination of materials, annual volumes from South Gippsland, options to improve capacity and efficiency of the freight transport system, and implications in terms of investment and planning processes.
Read the study below:
- Extractive Industries in South Gippsland Supply Chain Study (PDF 1.32MB)
- Extractive Industries in South Gippsland Supply Chain Study (accessible Word doc 453KB)
Shepparton Rail Freight Planning Study
The Shepparton Rail Freight Planning Study will lead to enhanced freight capacity, ensuring we maximise the benefits for both freight and passenger services on the line.
Now underway, he $10 million study is jointly funded by the Victorian and Commonwealth governments.
It includes a $9 million package of rail freight infrastructure upgrades.
The Shepparton line upgrade has already delivered benefits for passengers, with 10 new weekly services introduced in April 2019 thanks to work completed on stage one.
Stage two of the $356 million project will deliver further upgrades to enable the more modern VLocity trains to run for the first time along the line.