Logistics News

Victorian budget investing in freight and ports

The latest state budget will focus on freight and port efficiency and safety

The Victorian government says its latest budget for 2022/23 is adding substantial investments into freight, ports and piers to support jobs and fund infrastructure projects.

According to the state government, $181 million will be invested in critical maintenance works on freight lines throughout regional Victoria to increase the safety and reliability of freight logistics services on rail while also improving its efficiency.

The government will add a further $3.5 million to continue the Mode Shift Incentive Scheme (MSIS), which supports more than 170 freight industry jobs and removes around 28,000 truck trips from Victorian roads every year.

State government officials say Victoria’s freight volumes will more than double by 2051, meaning it’s important for rail to take up more of a share of freight movement across the state.

Funding will go into the Port of Melbourne, which is Australia’s largest and busiest port and employs 260,000 workers while generating $21 billion annually.

MSIS funding will support rail freight companies to help make rail transport costs competitive with road-helping exporters to get goods to ports more cost effectively while also connecting local producers to Australia.


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The government says rail freight produces three times less carbon pollution than road freight, meaning its investments will help lower emissions across Victoria while removing trucks off the road to provide safer thoroughfares.

The funding also ensures freight from the Inland Rail will stay on trains all the way to the Port of Melbourne, with the state government investing $6.1 million into planning for a new Truganina intermodal terminal.

In the final stage of budget funding on the transport industry, rebuilding and safety works will begin on piers and jetties throughout Victoria as part of an $18 million package to help local communities and businesses move freight quicker and safer.

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