New model of freight distribution for Melbourne

By Jennifer Perry

“Industries could progressively locate elsewhere domestically and overseas where more efficient distribution networks exist,” he said.
Presenting at the Victorian Infrastructure summit, held on May 27th-28th, McDonald enlightened delegates on the State Government’s new strategy for freight distribution in Victoria and their key policy of establishing a new network of major intermodal hubs around Melbourne in the long-term, and developing existing sites in the interim.
McDonald said the utilisation of the Dynon and port precinct for all types of intermodal freight – whether it has a relationship to the port or not – is at the heart of the need for a new model of port related freight distribution in Melbourne.
“Substantial growth predicted for intermodal freight in this precinct is likely to make it unworkable in the future,” he said.
“What’s needed is a smart solution for the next 100 years - a new paradigm that will profoundly change the way freight moves in Melbourne...”
A key plank of the State Government’s Freight Futures strategy is to unclog freight in the city precinct by developing a Melbourne Freight Terminal Network supported by high capacity road and rail links that decentralise the movement of freight to the urban fringe.
“That way freight will flow to and from Melbourne’s industry and distribution centres,” McDonald said.
A key element in the network is the Melbourne International Freight Terminal that will handle only port related freight and act as the hub for the new network for import/export trade.
“The terminals will be based on a 24/7 operation to create maximum operational flexibility and will provide ‘open access’ to create maximum competition in the freight sector,” he said.
The first phase of the network will involve improving access to and development of network links to existing freight hubs at Somerton, the Altona area and a new hub in Dandenong or Lyndhurst.
McDonald said departmental plans for the second phase of the hubs have already begun. These include the relocation of the south Dynon terminal to a suburban location; the development of the Donnybrook-Beveridge area that will have direct access to the Hume Freeway, the interstate standard gauge lines and most likely East link; a reconfigured port precinct; and a new hub in the Altona area with access to the Western Ring Road and potentially a connection to the standard gauge freight network.
He emphasised that it was critical to “get right up front” integrated land use planning for these precincts to ensure that they work well in terms of transport functionality, their relationship with the environment and abutting residential populations.
“Increasingly, as Melbourne grows the interfaces between land used and their compatibility become more and more critical,” McDonald said.
Victoria University’s Institute for Logistics and Supply Chain Management has been involved with conceptual work for the hubs and has suggested 'mixed use' hubs can be created that become a catalyst for local and regional economic development and major employers in their own right.
“The University... believes that these logistic cities could also house learning centres... medical, hospitality, financial services and recreational uses which would be clustered around the allied industries,” he said.
Government assistance will be needed to buy land and invest seed funding in the initial stages, and management of the terminals could be by Government, the private sector or a combination of both.
McDonald said that VicTrack is “well placed” to work with the department, port, local Government and the freight industry to help plan and deliver phase one and two, and has a role in potentially managing the new terminal’s operations.
With the Freight futures strategy outlining a broad roadmap for achieving the State’s freight vision, McDonald said there is now a “great opportunity” to plan the future freight network as an integrated system in which roads, rail and the port work together to move freight efficiently within Melbourne to and from overseas market.
“All the parties involved...now need to work together to put the detail on the map so that we make the most of the opportunity and create a brighter freight future for Victoria,” he concluded.