Work has begun on a new $25 million interstate road-rail freight facility in Altona, after funding from the federal and state governments and investment from private provider SCT Logistics.
Both governments are putting in a total of $9.2 million, with SCT investing a further $16m into the facility, which will form a critical part of Victoria's Port Rail Shuttle Network.
The new cross-dock facilities, an expanded container hard-stand and rail-siding extension are expected to be operational by the end of the year.
SCT Logistics managing director Geoff Smith said the company was investing in the Altona facility, to improve and enhance the company's inland port capability, through a direct rail connection to the Port of Melbourne.
"Today our business is a group company specializing in interstate freight forwarding, running trains, building properties in our hubs, and now growing in the port logistics space," Mr Smith said.
"This is another company milestone for our Australian-owned business which continues to grow in service offering for long-term partners."
Along with other import and export freight, SCT brings agricultural products from its Dooen intermodal, near Horsham, to the PoM.
"In addition, Altona is a hub for our interstate services, which we bolt on Adelaide exports and Wodonga imports and exports," Mr Smith said.
"Currently, we are doing up to 200 boxes per week which get roaded from Altona to the port and we are keen to switch these from road to rail."
Last year's Australian Competition and Consumer Commission Container stevedoring monitoring report, released in November for the previous financial year, found there'd been nearly an eight per cent drop in rail freight to the PoM since 2013-14.
Read more: Freight rail into PoM drops again
"The lack of direct on-dock rail access at the port increases the cost of using rail and can limit the use of rail for containerised product to, and from, the port," the report found.
At the port, the West Swanson Rail Terminal was currently the only one able to move containers by rail to ships.
"This transfer via road between the rail terminal near the Port and the stevedoring terminal can cost up to $100 for each container," the report said.
The PoM planned to complete on-dock rail at Swanson Dock by mid next year.
It was also planning to develop the Webb Dock Freight Link in the next five years and was investing in the Port Rail Shuttle Network.
Ports and Freight Minister Melissa Horne said Altona was one of three key projects, which were part of the Port Rail Shuttle Network.
Works to link the Salta Properties terminal in Dandenong South to the Port of Melbourne are underway, while construction of the Austrak terminal at Somerton will commence later this year.
Ms Horne said Melbourne's west was home to thousands of jobs in transport, manufacturing and logistics.
"Projects such as the Port Rail Shuttle Network will further enhance the precinct's strategic importance in addressing the growing freight task," Ms Horne said.
"An expanded rail freight terminal in Altona will provide an alternative to truck transport for the logistics community and reduce truck traffic at the port, along the Princes Freeway and other key arterial and suburban roads."
Andrew Miller
I'm a general reporter with Stock & Land, with a special interest in irrigation issues. I completed my cadetship, with the Age, in 1980. Over my career, I've worked for ABC radio news (Mt Isa, Qld) and at provincial and suburban newspapers.
I'm a general reporter with Stock & Land, with a special interest in irrigation issues. I completed my cadetship, with the Age, in 1980. Over my career, I've worked for ABC radio news (Mt Isa, Qld) and at provincial and suburban newspapers.
