Freight Rail

Bring on Melbourne privatisation, release funding and let’s get rail happening!

Melbourne. Photo: Port of Melbourne Corporation

COMMENT: Victorian minister for ports Luke Donnellan recently outlined details of the Port of Melbourne privatisation.

In the mix of issues raised, the minister supported the need for rail shuttles to inland ports with a caveat that the government is not going to achieve this themselves; they need the private sector to drive it.

Both the state and federal government have allocated funds for the Melbourne port-rail interface, and we have private developers with intermodal terminals ready to go. So what is the delay?

The minister suggested that it is a simple matter of industry sorting out the detail … Really, Minister?

Perhaps there is a role for government to take the lead, facilitate reforms and release the funds.

Maurice James, managing director Qube Holdings Limited, suggested otherwise.

James commended NSW Ports and the NSW government for driving reforms. When questioned about a way forward for Victoria, James suggested that there may be benefit for the Port of Melbourne to be privatised as soon as possible to allow for the private operator to commence long term planning and avoid indecisiveness that tends to occur as a result of the political cycle.

Whilst NSW is clearly leading the way with existing intermodals and many more in the planning stage, Duncan Gay, NSW minister for roads, maritime and freight, put things into perspective, acknowledging that much still needs to be done.

The minister credited the work of the previous Labor government and port administrators in initiating the Port Botany Landside Improvement Strategy which has achieved significant efficiencies in the road interface.

The minister highlighted that it is now time for the next frontier with a comprehensive strategy for rail.

He also made two formal announcements:

  • an independent review examining strategic locations for rural intermodals; and
  • a high level working group focusing on rail interface issues at Port Botany.

Whilst Victoria appears to be fumbling through the port privatisation process with uncertainty on how to make rail a reality, NSW continues to lead the way.

Is all OK in Melbourne, or will Port Botany soon be crowned as Australia’s undisputed premier port?

Paul Zalai is the head of the Freight & Trade Alliance – www.FTAlliance.com.au

This article originally appeared on Rail Express affiliate Lloyd’s List Australia.