State government looks to impose levy on older trucks, entering the port

The Department of Transport and Planning is believed have prepared a proposal, imposing a new levy on containers carried by "older vehicles" to support decarbonisation."

The proposal also provides rebates for rail use: "a new rebate scheme for using rail for import and export containers and moving empty containers on rail."

Four rail operators, in Victoria and southern NSW, currently receive funding under the Mode Shift Incentive Scheme, which will not be renewed after June 30, this year.

It's believed the new charge would be on on a sliding scale of between $150-250 per container.

VTA chief executive Peter Anderson said the plan subsidised rail, at the expense of people who couldn't use that service.

"So, if I can't get my containers on rail, I still have to pay," Mr Anderson said.

"My customers want me to move their containers, but I can't get on rail because they won't let me on - I might not have the volume.

"Every one of my containers is going to cost more, because I have to move them by road."

He predicted an "uproar" from industry if the plan went ahead - "the logic is not there, it doesn't make sense".

It's believed part of the thinking behind the levy is to help fund the port rail shuttle, which aims to take trucks off the road by transferring containers to rail.

But Mr Anderson said even when the port rail shuttle was completed, only 13 per cent of containers would be moved off the road.

"So 87 per cent of containers will have to be moved by road and will have to pay this extra fee - all that mean is the cost of goods will be higher, 3-4pc higher, on this alone," he said.

"This is just a fee, a charge to accumulate more revenue, a bit like land tax, a bit like a fire levy, just another levy on the people of Victoria, to increase their cost of living."

He said there was not sufficient capacity to shift more containers to rail.

"You start factoring in the airport rail, on the same line, and all of a sudden you don't have any space for freight - you are going to have to build another line, next to it.

"They should have done that, in the first place."

But road and rail freight operator SCT, which is one of the four companies to receive the MSIS payment, said

SCT managing director Geoff Smith said he was not aware the government was reconsidering its decision on the MSIS.

"The Victorian government has invested significantly in both rail and road infrastructure, servicing our ports and importers and exporters, which will increase productivity and efficiency in and out of Melbourne port," Mr Smith said.

"The federal government has set aggressive targets around carbon reduction, which requires state governments to play a key role in achieving those objectives.

"This government initiative appears to encourage investment into more carbon friendly trucks, with a view to reducing carbon output."

SCT's Ports Development and Government Relations manager Matt Eryurek said rail operators had always paid their way on the freight network.

"Each week we help to move up to five, 100 B-double loads of freight trains from the Wimmera region to the Port," he said.

"SCT use the government owned rail and pay millions of dollars to help government maintain the network.

"Road carriers contribute to wear and tear on the roads and this tax could help to better maintain our roads."

He said Port of Melbourne received only six per cent of all containers on rail through the port and the tax would help to neutralise the cost of road versus rail.

It would also hopefully shift more volume, onto rail.