Federal Treasurer Josh Frydenberg has found a spare few billion dollars or so tucked down the back of the National Accounts for priority projects, two billion of which is earmarked for a new freight terminal in the north west of Melbourne. The budget papers specifically state:
“…Up to $2.0 billion for the Melbourne Intermodal Terminal, with specific funding arrangements, including an option for equity investment, to be settled at a later date, with an equivalent contribution to be provided by the Victorian Government”.
Readers may note the conditional language “up to” and “to be settled at a later date” along with “an equivalent contribution”.
So it is not exactly clear to what the “settled at a later date” refers, nor exactly how much money will be committed and when and what happens if the Victorian Government does not in fact decide to make a contribution nor what is going to happen in respect of the “equity contribution”.
The Deputy Prime Minister, Michael McCormack, commented: “An intermodal terminal in Melbourne will help to boost the productivity of the nation by helping businesses get their products to domestic and international markets faster following the completion of inland rail.”
Where will the terminal be?
That reference to the Inland Rail is interesting. Clearly, if the new intermodal terminal is effectively the main, or only, link to Inland Rail in Melbourne then it will become a vital piece of infrastructure… especially for the main container port in its hinterland.
Freight Victoria is considering two spots – Truganina (about 13.6km to the west of the Port of Melbourne) and another at Beveridge (about 42 km to the north of the Port of Melbourne). A quick eyeballing of both spots via Google Maps appears to show that both spots are undeveloped scrubland. If a terminal is built at either site, then clearly the Port of Melbourne is going to benefit from either investment.
From Truganina there are good road links to the Port of Melbourne via the B94 and the M1 roads. Meanwhile the M32 (Hume Freeway) runs right through Beveridge and connects to the Melbourne motorway system via the Metropolitan Ring Road in the North of the city.
The Port of Melbourne welcomed the announcement. Port of Melbourne CEO Brendan Bourke said Inland Rail needs to connect efficiently with other freight infrastructure, including the Port of Melbourne and metropolitan and regional intermodal freight terminals.
“Connection of Inland Rail to the Port of Melbourne, including a direct freight connection to Webb Dock, is essential to meeting the long term demands of consumers and business. “The proposed funding for a Melbourne Intermodal Terminal is a positive step towards that aim,” Mr Bourke said.
Other freight related funding
Other freight related funding announced in the budget includes:
- $2.03 billion for Great Western Highway Upgrade – Katoomba to Lithgow – Construction of East and West Sections in New South Wales;
- $400 million for Inland Freight Route (Mungindi to Charters Towers) Upgrades in Queensland;
- $160 million for Agricultural Supply Chain Improvements – Package 1 in Western Australia
- $150 million for National Network Highway Upgrades (Phase 2) in the Northern Territory
- $80 million for Bass Highway Safety and Freight Efficiency Upgrades in Tasmania
- $24 million for the Port of Burnie Shiploader Upgrade
