Proposed $400m intermodal freight terminal set to be built in VIC

A significant private sector investment of $400 million for an intermodal freight terminal in Melbourne’s north has been welcomed by the Victorian and Australian Governments. 

The Somerton Intermodal Terminal is going to be built by Intermodal Terminal Company (ITC) and this project is set to become a key element in the $58 million Port Rail Shuttle Network. 

“This investment will create opportunities for the people of Melbourne’s north and will also help ease congested roads with the benefit that people can get home from their work quicker and safer,” Federal Member for Calwell Maria Vamvakinou said. 

“This is a fantastic announcement for our freight and logistics precinct and will create new jobs for Melbourne’s northern suburbs,” State Member for Greenvale Iwan Walters said. 

The proposed intermodal terminal is expected to not only create jobs, but it will also remove thousands of trucks from suburban roads as well as help reduce carbon emissions and increase efficiency and safety for farmers, producers, freight operators and exporters. 

The Somerton Intermodal is projected to take up to 500,000 truck trips off Melbourne’s roads once it is operational. The terminal is also expected to save up to 451 million litres of fuel as well as help reduce carbon emissions by 189,000 tonnes annually. 

“The Somerton Intermodal Terminal is a city-shaping project – this private investment will supercharge job creation and support our commitment to move more freight by rail to port. 

“These direct rail connections will get trucks off roads, increase safety, reduce emissions and cut the cost of doing business for producers, farmers, exporters and operators,” VIC Minister for Ports and Freight Mlissa Horne said. 

Both levels of government are aiming to move more freight by rail by 2050. The Port Rail Shuttle Network is expected to move 30 per cent of the region’s containers by rail from Somerton, Altona and Dandenong South to the Port of Melbourne. 

The Port Rail Shuttle Network allows trucks to move containers from these hubs in outer metropolitan Melbourne instead of driving to the Port of Melbourne. This, in turn, will invest $125 million towards the delivery of on-dock rail infrastructure that will cater to the shuttle trains. 

“The Port Rail Shuttle Network will not only enhance the strategic importance of local freight and logistics operators – it will also deliver efficiencies and cost-savings for businesses. 

“The shuttle network will also deliver a huge safety boost for motorists by moving freight off the roads and onto rail. I’m thrilled to see this private sector backing for the landmark project,” Federal Minister for Transport and Infrastructure Catherine King said. 

The new Somerton Intermodal Terminal is going to be built at the Austrak Business Park and the project is expected to create 190 jobs during its construction phase and about 50 permanent local jobs once it is operational in 2025. 

“This investment in Melbourne’s north is great news for our community – supporting jobs on the ground, while also supporting our state’s busy freight industry,” State Member for Broadmeadows Kathleen Matthews-Ward said. 

The Intermodal Terminal Company was launched in December 2022 and it is backed by Aware Super – one of the nation’s leading super funds. 

“ITC is delighted to announce the Somerton Intermodal Terminal as the first independently constructed, maintained and operated terminal in our portfolio. 

“We’re especially pleased that once operational, the terminal will deliver additional benefits to the people of Melbourne every single day of its operation – through reduced carbon emissions and air pollution, reduced road congestion and improved road safety,” ITC Founder and CEO Mishkel Maharaj said. 

Source: Premier of Victoria – Media Centre; Minister for Infrastructure, Transport, Regional Development and Local Government; Infrastructure Magazine