Industry leader alliance supports Western Freight Terminal for Truganina
Global and national logistics and supply chain companies are lobbying for a new freight terminal in Melbourne’s west to significantly improve productivity and efficiencies.
In May 2021, the Federal Government committed $2 billion towards construction of an intermodal freight terminal in Melbourne to complete the Commonwealth Inland Rail project. Both the State and Federal government business cases clearly identified Melbourne’s west as the most suitable location for a terminal. However, the Federal Government is yet to commit funding to a terminal in Truganina or the alternative in Beveridge.
Executive representatives from the major supply chain and logistics companies have come together to voice their strong preference for the Western Intermodal Freight Terminal (WIFT) in Truganina and, together with key stakeholders, have formed a new group, the WIFT Alliance.
The alliance had declared the WIFT as the preferred location for its ability to deliver the freight efficiency the industry needs to support more freight on rail – something the terminal in Beveridge cannot deliver to the same level.
The WIFT Alliance is calling on governments to prioritise and invest in the WIFT in Truganina as the preferred industry option, and to invest in the Outer Metropolitan Ring (road and rail corridor).
Together with major companies, representatives from WoMEDA, LeadWest, Melton City Council and Wyndham City Council also form part of the WIFT Alliance.
Linfox CEO Mark Mazurek said the WIFT is the option industry needs.
“We’re working to ensure the governments understand the value of intermodal freight terminal in Truganina for increasing productivity and delivering a better supply chain outcome benefiting both customers and the community,” he said.
“A freight terminal in the west will not only benefit industry, but it will drive better outcomes for the community, lowering the cost of delivering everyday items, delivering local jobs, easing traffic congestion, improving road safety and reducing greenhouse gas emission for the freight sector.
“It will mean easier connections and save significant transport time. A freight terminal in the west means we can be confident we’ll continue to meet customer demand, grow stronger, and create more local jobs too.
“We’ve all come together to advocate to the State and Federal governments for what we need in logistics and freight.”
SCT Logistics Chair Mark Stone said it would be detrimental to have a new freight precinct built anywhere else, but the west.
“It’s critical that governments consider the best long-term choice for industry,” he said.
“In business, and especially in logistics, the value of increased productivity and efficiencies cannot be overestimated.
“With proximity to about 50 per cent of existing interstate freight rail customers and easy access to rail freight connections, a new freight terminal in the west is the best option for critically needed efficient logistics in Victoria.”
Government business cases have confirmed the best location for a major Victorian interstate rail terminal is west of Melbourne’s CBD and port, in Truganina, rather than to the north in Beveridge, according to Pacific National CEO Paul Scurrah.
My Scurrah said a proposed terminal at Beveridge 55 kilometres north of Melbourne’s CBD and port would derail government plans to shift more freight from trucks to trains.
“Containers picked up by trucks and hauled from the port or a warehouse in Melbourne’s western freight zone will simply travel up the Hume Freeway (M31),” he said.
“It will always be cheaper for those large trucks loaded with freight to keep going, drive past the gates of a terminal in Beveridge and deliver their goods by road across the state border into NSW.”
Meanwhile, LeadWest Chair Cr Peter Maynard predicted the WIFT will provide great prosperity for the Victorian and National, economies and would be a jobs multiplier.
“This is an economic development opportunity that will attract valuable commercial investment close to where people live. That’s good for industry, good for the economy, and good for workers in Melbourne’s west.
“It’s critical that the State and Federal governments continue to invest in Melbourne’s West as the population booms and the jobs gap widens. Projects like this will also encourage commercial investment that will create thousands of local and regional jobs and a significant return to the state’s economy.”
City of Melton Mayor Cr Goran Kesic welcomed the comments from business leaders, adding that more than 70 per cent of the City of Melton’s existing workforce leaves the municipality every day for work.
He said a freight precinct in the outer west will create 2000 direct jobs and unlock 39,000 diverse, quality jobs through commercial investment over the next 30 years.
“Already, the City of Melton is attracting globally and nationally recognised companies. Leading businesses like Amazon, Myer, and Hello Fresh see the value in our prime location, abundance of commercial and industrial land, and highly skilled local workforce.
“In an area with such a high demand for local jobs, employers will have an available and skilled workforce ready and waiting.”
How the WIFT will enhance productivity and efficiencies:
Located close to approximately 50 per cent of existing interstate freight rail customers
Will remove up to 2,000 daily truck movements from Melbourne’s inner west
Easier access to rail freight connections for the significant existing warehousing and logistics companies in the west
Will play a critical role in the success of the Commonwealth Inland Rail Project
Capacity to enable 1,800-metre-long, double stacked trains to operate along the corridor without the need for double handling through the existing low tunnel structures
Lower the door-to-door costs for getting regional Australian produce to market
Create 2,000 direct jobs and 39,000 indirect jobs
Beveridge would generate more than 400 extra daily north–south B-Double truck movements on Melbourne freeways and roads and add to the costs of picking up and returning containers to the freight demand zone (Truganina).