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
- Western Interstate Freight Terminal
- 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
The Victorian Government is reviewing our coastal shipping arrangements as an early critical action supporting development of a Victorian port strategy.
The Victorian ports strategy will investigate and review the level of efficiency of Victoria’s port operations, and linkages to the broader transport and distribution networks, that allow Victorian businesses to trade and thrive in the global marketplace.
As part of the review of coastal shipping, the government is seeking submissions from industry and the community to feed into development of strategic responses that will be included in the upcoming port strategy.
The government will establish a stakeholder reference group to support development of a new port strategy, made up of industry stakeholders.
In particular, the coastal shipping review will examine the regional economic growth Victorian coastal shipping creates and identify ways to maximise the employment of Victorian seafaring labour.
The government is calling for industry and community submissions and enquiries can be forwarded to email or addressed to:
Victorian Ports Strategy - Coastal Shipping Review
c/o Freight Victoria
Level 8, 8 Exhibition Street
Melbourne Vic 3000
The terms of reference for the review have been released and are available to download below:
Mode Shift Incentive Scheme
The Mode Shift Incentive Scheme is an incentive program that encourages industry to shift more containerised freight from road to rail.
Its aim is to increase efficiency and cost effectiveness in the freight sector and reduce congestion on roads in and around freight and port precincts.
In the 2014-15 State Budget, the Victorian Government invested $20 million over four years to continue the scheme until June 2018.
The 2018-19 State Budget provided $4 million to extend funding until 30 June 2019, while the Victorian Government considers options for the scheme beyond that time.
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)
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.
Peter Anderson, President of the Victorian Transport Association is chairing the review group, supported by a panel of experts and representatives from Freight Victoria and VicRoads.
Western Interstate Freight Terminal
The proposed Western Interstate Freight Terminal will include the construction of an interstate rail freight terminal and warehousing precinct at Truganina in Melbourne’s west and a rail link to the interstate rail freight network.
At present, interstate containers bound for distribution in Melbourne are railed to terminals at Dynon, next to the Port of Melbourne, and then trucked to the outer suburbs. The Dynon terminals have limited space and capacity and can be difficult to access.
The WIFT will move freight more efficiently by providing modern terminal facilities closer to the warehouse precincts in Melbourne's west, reducing the time and length of truck trips. It will also reduce freight traffic through the inner west by removing the need for trains and trucks to bring interstate freight into the Dynon precinct.
The WIFT will be key to the success of the Commonwealth’s Inland Rail project, which is expected to accommodate longer trains with double-stacked containers, which cannot be efficiently accommodated at Dynon. Both projects are expected to be operational by 2025.
The 2018-19 State Budget included funding to commence the business case for the WIFT.
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 (EOIs) 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.
Together with Rail Projects Victoria, the Department of Transport will develop a business case to explore options to continue to improve freight outcomes.
Industry stakeholders will continue to be involved as the delivery strategy is finalised.
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 and Somerville Road while allowing 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.
Currently underway, the $10 million study is jointly funded by the Victorian and Commonwealth governments, and 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 along the line to enable the more modern VLocity trains to run for the first time.