The $125 milion Port of Melbourne's Port Rail Transformation Project (PRTP) has passed another milestone, after preconditions for the project were met.
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The million initiative will involve significant infrastructure works and a reconfiguraton of rail, within the port, expected to shift containers from trucks to rail..
Port of Melbourne chief executive Brendan Bourke said the PRTP was a vital project for port users and the broader economy.
"A rail solution for the port will play a vital role in Victoria's post-COVID economic recovery with a large construction project supporting jobs as well as supporting the more efficient movement of freight and contributing to a more productive supply chain for decades to come," Mr Bourke said.
"The Port of Melbourne has listened to industry feedback and is responding with a solution that meets
the need for increased transparency in rail access arrangements, improved port access and greater capacity," Mr Bourke said.
"The project embraces these principles and supports the government's Port Rail Shuttle Network."
Mr Bourke said the PoM would work closely with users and other stakeholders to ensure the opportunities and benefits were realised by the industry.
The project will increase rail terminal capacity and improve rail terminal operations.
The PoM has identified moving freight by rail can increase the number of containers, which can be delivered.
For example, a 600 metre long train can carry 84 Twenty-Foot Containers (TEU) compared with a B-Double truck which has an average capacity of three TEU.
The PoM has said this would result in efficiencies in the rail supply chain, which would benefit both import and export markets.
The project is being funded by a small increase in the tariff on full import containers of $9.75 per TEU.
This equates less than five cents on the wholesale price on an average sized television.
Under the PRTP port rail land and assets within the Swanson Dock East precinct will be restructured.
A new on-dock rail terminal will also be developed next to the Swanson Dock East International Container Terminal.
The PoM also expects improved rail terminal operation arrangements and transparency to encourage competition between terminals.
"It's vital that we all stay focused on the bigger picture - delivering the right infrastructure and
operating environment to drive efficiencies in the supply chain so that we can continue to play our role in the state's economic future," Mr Bourke said.
After a strong Expressions of Interest process, Port of Melbourne will execute a Request for Proposal for the infrastructure works.
Construction is expected to start before the end of the year.
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