The federal and Victorian governments have committed funding to the “rail shuttles”, which aim to take trucks off local roads, and get freight quickly to and from the city’s port.
Expressions of interest will soon be sought to deliver the series of rail freight lines.
Federal Transport Minister Darren Chester said the proposal would take advantage of rail’s ability to shift larger volumes of freight than trucks, while also tackling congestion in Victoria’s capital.
“This is a great example of the state and federal governments working together to see further investments in infrastructure that will make a difference in people’s lives,” Mr Chester said.
“This project will provide the ability to shift larger volumes of freight via rail compared to trucks, and reduce congestion on our roads.
“The freight and logistics industry had identified rail’s potential to reduce transport costs by about 10 per cent, with the proposal potentially improving Australia’s competitiveness, which is why the Australian Government is investing $8.4 billion in the Inland Rail project connecting Brisbane and Melbourne.”
Victorian Roads Minister Luke Donnellan said the initiative would take trucks off local roads in Melbourne’s inner west.
“The Port of Melbourne will remain our primary freight hub for a generation,” Mr Donnellan said.
“With container numbers expected to double over the next two decades we need to act now to share the load between road and rail.
“Alongside the West Gate Tunnel, 24-hour truck bans in the inner west and the Port’s rail access plans, this project will help shift containers from residential streets onto dedicated routes to the port.”
The Turnbull Government has committed $38 million to the initiative, while the Andrews Government has committed $20 million.
