Freight Rail

Freight Victoria to drive state’s long-term plan

A specialist freight division of Transport for Victoria has been created by the Andrews Labor Government as part of its new long-term freight plan for the state.

Freight Victoria will become the state’s central point of contact for industry, local government and other stakeholders on freight and logistics, and will coordinate existing areas and forums of engagement with industry.

The body is to be supported by a panel of industry representatives.

“Industry has told us they want better coordination with government on the planning, management and delivery of Victoria’s freight and logistics network,” state transport minister Jacinta Allan said.

“That’s why we have established Freight Victoria as a single point of contact, a one-stop-shop for primary producers, the freight and logistics industry and local government to contact for information and assistance.”

Freight Victoria is to lead the coordination and delivery of the state government’s recently published freight plan, Delivering the Goods, which plots out the long-term aim of increasing Victoria’s gross product by $40 billion by 2040.

This aim, according to the document, will be achieved by addressing the issues that face the sector today and into the future, such as the state’s rapidly expanding population and the concomitant burgeoning freight task. This will involve investing more into freight rail and shifting more freight off trucks and on to trains, and by developing new inland freight terminals and a new freight precinct adjacent to the Port of Melbourne.

“Victorian freight volumes are forecast to nearly triple by 2051 – this plan is a road map to making sure that we move freight as efficiently as possible,” state ports and roads minister Luke Donnellan said.

“We’re backing primary producers and suppliers across our regions by having a state-wide plan that meets the needs of a growing population and economy – now and in the future.”

Five priority areas have been earmarked in the plan:

  1. Management of existing and future freight corridors in conjunction with urban form changes.
  2. Reduction of the impact of congestion of supply chain costs.
  3. Better use of rail freight assets.
  4. Boosting Victoria’s future port capacity.
  5. Prioritising the development and adoption of new technologies that enhance safety, reduce costs and better manage congestion.

For each priority area identified in the plan, short-term, medium-term and long-term goals have been established, which will guide the activity of Freight Victoria.

Actions in the short-term in the plan include delivering the recent state budget’s $137.6 million for the business case for the Western Interstate Freight Terminal the Freight-Passenger Rail Separation Project, as well as pursuing the extension of the Mode Shift Incentive Scheme, investigations into an integrated logistics hub at the Melbourne Markets and Dynon Road, and the review into heavy vehicle driver training and licensing.

Michael Kilgariff, managing director of the Australian Logistics Council – which was involved in developing the new plan through the Ministerial Freight Reference Group – called the establishment of Freight Victoria a significant move towards addressing industry concerns on policy and regulatory outcomes.

“Establishing Freight Victoria is a very positive step that will help to overcome one of the industry’s most enduring criticisms – unclear accountability and coordination between different government agencies when it comes to monitoring and measuring the performance of freight networks,” Kilgariff said.

The full Delivering the Goods report can be found here: https://transport.vic.gov.au/content/docs/delivering-the-goods.pdf