Proposed Somerton Intermodal road-rail terminal raises eyebrows

Somerton's developers, the Intermodal Terminal Company, claimed it would be the most cost-effective and efficient Melbourne "bookend" solution for the $145 billion Inland Rail project.

The $400 million terminal would be located at the Austrak Business Park, 12 kilometres from Melbourne Airport and 26 kilometres from the Port of Melbourne

But WestVic Container Export managing director Warwick Loft, Dennington, said original plans for a road-rail intermodal at Somerton had turned out to be a "white elephant".

"It seems what has happened is that the elephant has had a family," he said.

A proposal for a Somerton intermodal had first been floated about 20 years ago, with plans to containerise products there and rail them to the Port of Melbourne.

"Several companies had a crack at it, and it's just failed," he said.

"It's a shame it can't work, but we are dealing with road transport and they are fighters, they will survive."

He said Westvic would not use Somerton, as it already had a depot on the outskirts of the port.

"It won't affect us at all - it's been suggested we go into Laverton, but because of the distance of the Warrnambool train, the service is a shuttle in its own right.

"It's point-to-point, it's a two and a half hour turn around, and it doesn't get any better than that."

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ITC chief executive Mishkel Maharaj said when completed in 2025 the 45 hectare SIT would be Australia's largest intermodal terminal

It would be the first in a network of independently owned and operated terminals being planned across the country. he said.

At capacity, each year SIT was expected to process over one million twenty-foot Equivalent Units (TEU) and take 500,000 truck trips off inner-Melbourne's roads.

But industry sources also queried ITC's claims SIT was expected to be the closest terminal in Melbourne able to accommodate double-stacked 1,800 metre trains.

Industry insiders said double-stacking of containers would not be possible, due to a low bridge on the Hume Highway, at Craigieburn.

They also said the proposed siding at the site was also only 850 metres, hampering efforts to take 1800 metre trains.

Victorian Transport Association chief executive Peter Anderson said while he was not "canning" the proposal for the SIT, an intermodal in Melbourne's west was the priority.

"It's a very light hearted announcement, without a lot of depth," he said.

"One of the issues the industry is concerned about is what is it going to cost us, to drive to their facility, put a container on our truck, and drive it away?

"We still have to take the container back to the empty container park - they are not going to do that, they are not going to be railing empties back to the port."

The cost would be taken up by the transport industry, he said.

"If it's going to cost too much, we are not going to use it," he said.

"If it's going to be cheaper to drive to the port, and pick up from there, than drive out to Somerton, we are going to do that."

Read more: Inland Rail vital for PoM

Mr Anderson said an intermodal at Truganina was a more urgent priority.

"Most of the freight that comes into the Port of Melbourne goes to Truganina, because that's where the warehouses have been built." he said.

The north of Melbourne was earmarked for housing - "they are not looking to build warehouse estates there," Mr Anderson said.

The Port Rail Shuttle program, a key part of SIT's business plan, would only increase the volume of containers from six to 13 per cent.

"It's not going to be the answer to all our freight issues," he said.

He questioned the model used to justify the SIT - "if it's 'let's build it, and they will come' - that sort of thinking isn't very sound, in the investment environment.

"We thank them very much for their interest, but they have to get their customers on board, first.

"If they are going to start digging holes and pouring concrete, they want to make sure they have some opportunities for revenue in the future," he said.

A SIT spokesperson said SIT was the most viable end for Inland Rail, in Melbourne, given its proximity to "deep existing customer demand" in Melbourne's north.

"We are working with the relevant stakeholders to enable the full benefits of Inland Rail to be realised at SIT," the spokeswoman said.

"Inland Rail is due for completion in 2027/8 and SIT is well-placed, given its location and ITC's business model (of independence and open-access) to enable the maximum utilisation of Inland Rail for the benefit of the end-user; be it the producer or the consumer."