Full steam ahead for Victorian freight and logistics project.

Why Melbourne's Port Rail Shuttle project will be good for the freight industry.

News that the Federal and Victoria governments are to see expressions of interest in the Port Rail Shuttle project in Melbourne has been enthusiastically welcomed by the freight industry.

The $58 million plan has been designed to get trucks off local roads and ensure freight is transported to and from the city's port more quickly.

Darren Chester, the federal transport minister, described the project as a "great example of the state and federal governments working together to see further investments in infrastructure that will make a difference in people’s lives".

"This project will provide the ability to shift larger volumes of freight via rail compared to trucks, and reduce congestion on our roads," he commented.

The Australian Logistics Council (ALC) has consistently backed the Port Rail Shuttle plan and strongly welcomed this latest development.

Indeed, managing director Michael Kilgariff said it would represent a "significant enhancement" to the Port of Melbourne, producing major benefits for freight efficiency both in Victoria and across the country's supply chains.

"Moving more freight to rail, where it makes sense commercially, has the potential to significantly improve freight efficiency, while at the same time improving urban amenity, reducing road congestion and decreasing queuing times at ports," he said.

Mr Kilgariff pointed out that in New South Wales, the State Government has committed to doubling the amount of freight entering and leaving Port Botany by rail, which currently stands at 19.3 per cent.

Similarly, he said NSW Ports has also pledged to move three million TEU by rail over the longer term.

"There needs to be an equal focus on promoting greater use of short-haul rail services for freight movement in Victoria, and today’s announcement is a welcome step in helping to achieve that," he commented.

Mr Kilgariff went on to note that the Port Rail Shuttle will build on other significant investments being made in freight infrastructure, such as the Inland Rail project, which will link the Port of Melbourne with the Port of Brisbane when it is fully completed.

Furthermore, he stressed the importance of continuing planning work on the Western Interstate Freight Terminal, as this would also enhance Victoria’s freight network efficiency.

Mr Kilgariff added that creating a rail connection between the Port of Melbourne and inland ports in Victoria "is a crucially important aspect of improving the state’s freight network and driving greater supply chain efficiency and safety".

This could in turn reduce transport costs significantly and improve Australia's competitiveness.

Mitrefinch has proudly worked side by side with Australia's freight, transport and manufacturing industries for many years and this is a huge stepping stone for continued growth for our wonderful clients.

Speak to us for a free quote regarding what Mitrefinch can do for your organisation today!