Victoria's freight advantage

Many of Victoria’s key industry sectors have been built on the competitive advantage our freight infrastructure delivers.

An efficient freight network is a critical building block of Victoria's prosperity, connectedness and liveability.

Many of Victoria's key industry sectors prosper as a direct result of the competitive advantage our freight infrastructure delivers.

Industries that rely heavily on efficient freight connections – such as warehousing, forestry, mineral sands, and agriculture – make a vital contribution to the state's economy.

Victoria's manufacturing and food processing sectors are large suppliers to domestic markets and depend on efficient interstate links to maintain their competitive edge.

The Victorian supply chain and logistics sector is worth $21 billion to the state's economy each year, or 7 per cent of the state's gross state product. It employs 260,000 people.

Victoria's freight task

The total Victorian freight task is about 360 million tonnes per annum - and this is expected to more than double by 2050.

To break this down, every year, 40 million tonnes of freight is generated in regional Victoria and 230 million tonnes in metropolitan Melbourne. A further 90 million tonnes includes waste, quarry product and port movements.

The vast majority of the Victorian freight task occurs in the Melbourne metropolitan are - 74 per cent of this generated by manufacturing. Most freight moved through metropolitan Melbourne is intra-metro and, apart from steel moved between Hastings and Somerton, all is by road. The busiest freight routes are the M1 and the M80, which link the key freight-generating areas of Dandenong, Laverton and Somerton with the Port of Melbourne.

The food-and-fibre sector accounts for around half the state's total goods exports. Victoria exports the most dairy (83 per cent), fruit (57 per cent), nuts (54 per cent) and prepared foods (41 per cent) of any state in Australia.

Victorian freight is generally high in value. Dairy product exports are worth $2.3 billion and food exports $8.7 billion.

Freight volumes in regional Victoria are forecast to grow at an annual average rate of 1.5 per cent per annum between 2014 and 2051, reflecting growth in the industries that generate the majority of the freight task. Metropolitan freight volumes are expected to expand more quickly at 2.6 per cent, driven mostly by population growth.