Freight Rail, Research & Development

Victorian Intermodal freight hub seeking a developer and operator

Development Victoria (DV) is seeking a developer and operator of the Ballarat intermodal freight hub terminal.

The Victorian Government is requesting expressions of interest to develop the intermodal freight hub on the Ballarat to Ararat railway line which is part of the Ballarat West Employment Zone (BWEZ).

Development Victoria said the BWEZ will allow freight and logistics enterprises to have exceptional access to road, rail, and aviation infrastructure. The freight network will link Melbourne, regional and rural Victoria, Adelaide and the ports of Melbourne, Geelong, and Portland.

It is proposed that the successful respondent will take on design and delivery risk, demand and operational cost risk, manage the commercial return based on these risks and the services provided.

Operational arrangements are likely to be effected through a lease agreement with VicTrack.

Federal government funding of $9.1 million was provided in the 2014 federal Budget for the development of the facility. Potential additional funding from the State via DV will be made available if required.

There is some flexibility around the physical configuration of the Facility to allow for rail siding (either linear or loop), and it is expected that the successful respondent will have operational access to the connected rail stub and associated signalling which will be delivered by the State up to the eastern boundary of the Facility connecting from the main-line.

The civil works for Stages 1 and 1B of BWEZ are complete with a large percentage of land having been sold. 

The head of Rail Freight Alliance has publicly said Victoria will only benefit from the proposed intermodal freight hub once the Murray Basin Rail Project is complete.

The Murray Basin Rail Project (MBRP) is improving key freight centres in Victoria and encouraging competition and private investment in the rail freight network.

MBRP stated that an increased axle loading will allow higher volumes of product to be safely freighted across the network, allowing trains to carry up to 500,000 more tonnes of grain each year.

The first stage was completed in 2016 and freight trains have returned to the Mildura line and to the reopened Maryborough to Ararat line. V/Line crews are working to finalise and bed in the track to complete stage 2 of 3 for the project.

Catherine King, federal member of Ballarat and shadow minister infrastructure, transport and regional development said the BWEZ facility is located alongside existing road and rail infrastructure, enabling the freight hub to connect with more locations.

“A truck will be able to come in straight off the Western Highway and either head in to a manufacturer or connect up with the rail line and deliver products further afield,” she said.

“The prospect of future infrastructure upgrades to the adjoining Ballarat Airport site will open up even more opportunities across the Ballarat region, but this will only come with support from governments at a state and federal level.”

Respondant registration closes on March 3 and EOI submission must be made by March 13, closing at 3pm.

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