Port of Melbourne has welcomed the Commonwealth government's funding announcement to to upgrade Victorian infrastructure in the 2021-22 budget.
New funding includes a $2 billion initial investment for a new Melbourne Intermodel Terminal, along with $17.5 million for dairy supply chain road upgrades.
The Mallacoota-Genoa Road Upgrade has been allocated $10 million in funding.
Additional funding has also been allocated to existing projects, such as $20 millionfor the Green Triangle and $15 million for the Melbourne to Mildura Roads of Strategic Importance corridors.
The Hall Road Upgrade will receive $56.8 million and a further $30.4 million has been allocated for the Western Port Highway Upgrade.
Some of the funding is designed to reduce congestion, such as the additional $307 million for the Pakenham Roads Upgrade and a further $203.4 million for the Monash Roads Upgrade.
Prime Minister Scott Morrison said the projects would make Victorian roads safer, reduce travel times and support thousands of jobs across the state.
"From building the intermodal Melbourne needs for a better future for freight and productivity, to improving the key road connections in the outer suburbs and regional areas - these projects will support more than 3,000 direct and indirect jobs across Victoria," he said.
Deputy Prime Minister and Minister for Infrastructure, Transport and Regional Development Michael McCormack said the substantial injection of funding delivered in this year's Budget would help Australia bounce back stronger than ever from the COVID-19 pandemic.
The new Intermodal Terminal in Melbourne will create around 1,350 jobs during peak construction and a further 550 jobs during peak operation, he said.
Treasurer Josh Frydenberg said the Government would make an initial investment of $2 billion to build a new intermodal terminal to meet the country's future freight needs and to link up to the inland rail, taking up to 5500 trucks off Melbourne's roads every day.
Port of Melbourne chief executive Brendan Bourke said the funding was welcome news.
The organisation has been engaging with government on the importance of connecting Inland Rail to the port, which has included submissions to the Senate Inland Rail Inquiry and an appearance at the recent Senate hearing in support of the development of a Melbourne Intermodal Freight Terminal.
Mr Bourke said the Inland Rail needed to connect efficiently with other freight infrastructure, including the Port of Melbourne and metropolitan and regional intermodal freight terminals.
"Connection of Inland Rail to the Port of Melbourne, including a direct freight connection to Webb Dock, is essential to meeting the long term demands of consumers and business," he said.
"The proposed funding for a Melbourne Intermodal Terminal is a positive step towards that aim.
"As the manager of the port, we will continue to invest along with industry and government to maximise the efficiency and effectiveness of the port supply chain."
Port of Melbourne is the trade gateway for south-eastern Australia, facilitating more than one third of the nation's container trade and is a key driver of the Victorian and national economy.
As Victoria's population grows and interstate and international trade increase, the demand for access to Melbourne's port will continue to grow, he said.
"Port of Melbourne has played a critical role in keeping Australia moving during the COVID-19 crisis and will have an equally important role in enabling Australia's economic recovery," he said.
