Ground breaking ceremony for new port transformation project

The PRTP, expected to be operational from mid-2023, will enable more containers to be moved by rail more efficiently, by-passing roads in inner Melbourne.

The project is expected to increase rail terminal capacity and improve operations at the port.

PoM chief executive Saul Cannon said the port was committed to investing in rail infrastructure to move more freight by rail.

"We know that freight on rail has stagnated in the past ten years, we want to turn that around," Mr Cannon said.

"The PRTP opens up new opportunities for metropolitan freight movements on rail."

Around 94 per cent of Victoria's import containers are destined for metropolitan Melbourne, but no freight is currently moved on the metropolitan rail freight network.

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The PRTP involves the development and construction of a new rail terminal interfacing with the Swanson Dock East International Container Terminal.

The rail terminal will include two new sidings that can handle 600 metre long trains.

Common user rail infrastructure will also be upgraded.

A new road to facilitate an uninterrupted connection for movement of containers between the new rail terminal and the wider Swanson Dock precinct will also be constructed.

The PRTP will provide the port side infrastructure to welcome future metropolitan shuttles through the Victorian Government's Port Rail Shuttle Network.

The state government said the port had been working to ensure that the port supply chain was operating as efficiently as possible throughout the pandemic, following a 14.6 per cent increase in containers coming through the port in the 2020/2021 financial year compared to 2019/2020.

Improving rail access to the port is a legislated condition of the Port of Melbourne lease following privatisation in 2016 and is vital to improving freight efficiency and encouraging more freight onto rail.

WSP and Seymour Whyte Constructions undertook early project planning with site investigations earlier this year.

The government said it was also continuing to improve the efficiency of freight movement through initiatives including the $58 million Port Rail Shuttle Network.

Planning has already begun for the Western Intermodal Freight Precinct at Truganina that would take 2,000 trucks a day off Melbourne's roads.

"We know freight volumes are going to double by 2050 - the Port Rail Transformation Project is going to make a significant impact on moving trucks off Victorian roads and onto rail to ensure more efficient freight," Ports Minister Melissa Horne said.

"Both road and rail freight are key to getting goods where they need to go - this project is just one critical piece of the puzzle to improve efficiency across the supply chain."