VIC Govt rolls out $104m upgrades to regional rail freight network

The Victorian Government is rolling out $104 million worth of regional rail freight network upgrades to get more freight on rail and give the industry confidence to make investments in new high capacity rolling stock. 

The significant funding commitment from the State Budget 2024-25 will deliver new rail, a crossing loop extension, three grain terminal rail extensions as well as line-speed and axle-load increases between Korong Vale and Manangatang – one of Victoria’s busiest grain corridors with a growing intermodal service from Ultima. 

In addition, a total of 75,000 concrete sleepers have been ordered and will be installed on the standard gauge Yelta Line. 

The State’s rail services hauled approximately 390,000 tonnes of grain, container freight and crushed rock in October of this year – an increase of 51 per cent compared to October 2019, reducing the equivalent of 3,000 monthly truck trips on regional roads and curbing transport sector emissions. 

“We’re making major investments in the rail freight network, supporting industry to get freight moving and boosting the economy,” Minister for Ports and Freight Melissa Horne said. 

Bendigo Rail Workshops, operated by Southern Shorthaul Railroad (SSR), is a key maintenance hub that employs about 100 skilled staff to perform critical tasks to keep freight and passenger rolling stock moving all year round. 

In August of this year, SSR took delivery of 22 new broad-gauge high-capacity grain wagons, which is a $5 million investment. This is also SSR’s first new-build broad gauge rolling stock in the company’s 21-year history. 

From September 2024, SSR increased its broad-gauge volume for LDC from 20 to 40 wagons, doubling capacity from 150,000 tonnes to 300,000 tonnes annually and removing the need for another 3,400 annual truck trips. 

“Southern Shorthaul Railroad’s investment is a massive vote of confidence in the Bendigo economy,” Member for Bendigo East Jacinta Allan said. 

Another major indication to industry that the Victorian broad-gauge freight network is growing is the construction of a new grain terminal for rail about 15 kilometres north of Echuca at Barnes, with new connections at Tocumwal and Geelong to follow. 

The new grain terminal at Barnes will be the first to be connected to rail in a generation. It will be operated by an independent grain trader, which helps make rail freight a compelling logistics option. 

Surplus V/Line Passenger N Class locomotives that are currently on short-term lease to SSR will also move product to port as volumes increase and customers embrace the efficiencies delivered through moving bulk goods by rail. 

“This government’s investments in rail freight are delivering more local jobs and getting trucks off regional roads,” Member for Bendigo West Maree Edwards said. 

Source: Premier of Victoria – Media Centre; Infrastructure Magazine