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A $28 million rail track connecting a Dandenong South freight hub to Port of Melbourne is expected to bust truck congestion on local roads.
The Federal ($18.3 million) and State ($9.7 million) funded project will be part of the $1 billion Cranbourne railway line duplication and upgrade works.
Rail shuttles will connect directly from the Salta Properties’ $50 million-plus freight hub to Port of Melbourne’s $125 million on-dock rail project.
It is expected to take up to 300 truck trips off South East roads each day and cut freight transport costs by up to 10 per cent.
The hub will be built on Salta Properties’ 180-hectare Nexus Dandenong South Intermodal Estate.
Works are expected to take 24 months from early 2021, including laying 800 metres of rail track on the private land and a working apron.
It’s expected to support 1000 direct construction jobs and on an ongoing basis, 1600 direct jobs and 4500 indirect.
Deputy Prime Minister and Infrastructure, Transport and Regional Development Minister Michael McCormack said the “vital freight rail connection” would help the post-Covid economic recovery.
“We are backing this …. to support Melburnians through the pandemic and unlock private sector investment and economic growth into the long-term.
“As part of the Port Rail Shuttle Network it will help cut the number of trucks on inner Melbourne roads by up to 100,000 each year and support hundreds of jobs during construction and as part of the terminal’s ongoing operations.”
Victorian Ports and Freight Minister Melissa Horne said the shuttle network was a “massive win for both motorists and industry”.
“We’re making rail freight a more attractive option for businesses, and this investment means containers can be transported by rail the entire way from the Port of Melbourne to Dandenong South.”
“It will reduce congestion at the port gate and cut the high cost of the last mile that so often disadvantages containers moved by rail.”
Dandenong MP Gabrielle Williams said the construction and operation of the intermodal freight hub would create hundreds of “needed” jobs in the South East.
“It will build on the strengths of Dandenong South as one of the largest manufacturing and employment hubs in Victoria.”
Salta founding director Sam Tarascio Snr said the government agreement comes after the company invested $200 million for land, road and infrastructure works in anticipation of the terminal.
“Over the past 15 years, Salta has developed plans to increase freight capacity in the outer Melbourne area.
“Operations at Port of Melbourne are limited by the availability and capacity of trucks to transport freight via road causing serious congestion in and around the (port).
“Salta’s new rail freight terminal will provide opportunities for operators to switch freight transport from road to rail.”
Greater Dandenong mayor Jim Memeti said the “much needed infrastructure” would provide many benefits for “years to come”.
“It will provide a welcome boost to our business economy.”
South East Melbourne Manufacturers’ Alliance chief executive Vonda Fenwick said it would take container transport vehicles off the Monash Freeway and arterial roads.
“The construction of the rail tracks and container terminal will generate employment in the area with a positive economic flow-on to the broader Dandenong community.”
