Victorian government signs off on on-dock rail

The state government has approved the Port Rail Transformation Project (PRTP), which will see $125million invested in new rail infrastructure, over the next three years.

"The Port of Melbourne is a vital part of our multi-billion-dollar export sector, and agriculture supply chain and on-dock rail will make its operations more efficient for Victorian exporters," Victorian Ports and Freight minister Melissa Horne said.

"This will cut costs for regional exporters and increase the competitiveness of Victorian industry - creating local jobs."

Read more: Somerton and Altona hubs to be connected to Port rail shuttle network

Ms Horne said on-dock rail was part of the government's work to continue driving the economic success of the port, which currently contributed $6 billion to the Victorian economy each year and was a crucial part of the state's agriculture supply chain.

Improving rail access to the Port of Melbourne is a legislated condition of its lease - with its delivery part of a broader push to develop rail freight across Victoria.

Read more: Dramatic plans to increase rail freight into PoM

Ms Horne said the government was also supporting the Port Rail Shuttle Network connecting freight hubs in Melbourne's north and west to the port, new intermodal terminals for Truganina and Beveridge and automated signalling for faster rail freight to GeelongPort.

To make on-dock rail possible, the Port of Melbourne will introduce a $9.75 per twenty-foot equivalent unit charge on imported containers.

The funds raised from the charge will directly deliver new sidings and connections for the rail project.

Mr Jochinke said the VFF was supportive of projects that moved freight, from road to rail, providing efficiencies in delivering produce to market and ensuring Victorian producers remained competitive.

But he said the VFF remained cautious of the project, as other key rail infrastructure projects - such as the Murray Basin Rail Project - remained under a cloud of uncertainty.

"The government must keep their promise and deliver the project as per the original business case," Mr Jochinke said.

"Standardising and increasing the capacity of Victoria's regional rail freight lines is essential to the viability and success of the agricultural industry."

The true benefits of the on-dock rail project would not be realised unless the government delivered the Murray Basin Rail Project as promised.

"If Government can find the funds for on-dock rail, they can find the money to complete the Murray Basin Rail Project," Mr Jochinke said.

Port of Melbourne chief executive Brendan Bourke said the PRTP would reduce truck movements, improve productivity and further enhance Australia's premier port.

The port's rail solution will be developed over the next three years and would see more containers moved by rail more efficiently, by-passing roads in inner Melbourne.

"The port's rail solution is a critical and missing link in Melbourne's transport and supply chain network," Mr Bourke said.

"It expands the rail offering for freight and delivers environmental benefits by reducing truck movements, congestion and pollution."

Port rail shuttle trains would have a capacity of 84 Twenty-foot Equivalent Units (TEU) containers, in comparison to a B-Double truck having a capacity of three TEU.

"The port's rail solution is a vital piece of infrastructure delivered with no cost to taxpayers," Mr Bourke said.

"Our export market, especially farmers, will benefit from this project."

Mr Bourke said the additional $9.75 charge, per TEU, equated to less than five cents on the wholesale price on an average-sized television.