The Victorian government and Port of Melbourne have urged the commonwealth to make the development of a new intermodal road-rail terminal in the west of Melbourne a priority, rather than building a second hub at Beveridge.
The federal budget will commit $1.2 billion toward an intermodal terminal at Beveridge, including $280 million for road connections, and $740 million toward's Truganina's Western Intermodal Freight Terminal.
Spending also includes $920 million for a rail connection to the WIFT.
But Victorian Freight Minister Melissa Horne said with just 18 per cent of infrastructure spending, for a quarter of Australia's population, it was clear the state had again been 'dudded.
The Victorian Parliament's Economy and Infrastructure Committee released a bipartisan report into commonwealth funding this month, noting "that in 2020-21, Victoria received 18.3 per cent of total commonwealth infrastructure payments to the states despite its population share of 25.9pc.
"Industry has been clear that they won't use the Beveridge terminal, and we need to see the Western terminal delivered first," Ms Horne said.
"On top of that: $2 billion from this freight announcement was already announced a year ago - that's not good enough."
The government has previously said transport operators, primary producers and exporters have said a terminal in Melbourne's west would deliver better outcomes for business and the community.
The state government's business case also showed the west was the best location for an intermodal freight terminal.
Victoria's freight volumes were expected to grow to around 900 million tonnes annually by 2050, up from around 400 million, with much of that traffic expected to be handled or generated by businesses in the west.
Government studies showed the WIFT proposed location, at Truganina, was close to around 50 per cent of existing interstate freight rail customers and was well connected to the west of Melbourne.
But they also showed an intermodal at Beveridge would generate longer truck movements on the road network, moving freight from the west to the north and back again.
It was estimated by 2051, WIFT would save more than 600,000 truck kilometres a day, compared with Beveridge, which would see 30 per cent less interstate rail demand.
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Meanwhile, the Port of Melbourne said while both the western and Beveridge terminals were critical, over the long term, to move more freight to rail, it saw the WIFT as the most "effective consolidation point" for most of its international import and export containers.
"With 37 percent of containers imported through the port destined for the outer western suburbs the Port supports the Western Intermodal Freight Terminal (WIFT) as the immediate priority," a port spokesman said.
With 37 percent of containers imported through the port destined for the outer western suburbs the Port supports the Western Intermodal Freight Terminal (WIFT) as the immediate priority.
- Port of Melbourne spokesman
"The port has always acknowledged the long term need for two Intermodal terminals in the Melbourne metropolitan, however, we believe the immediate priority should be WIFT," Port of Melbourne chief executive Saul Cannon said.
"WIFT creates the most opportunity to shift more freight onto rail in the short to medium term.
"More than one-third of Australia's container trade comes through the Port of Melbourne, and with container trade expected to triple over the next thirty years it's critical we get more freight movements on rail in the future, so this commitment to our national supply chain infrastructure is very welcome."
Port of Melbourne supported the increased use of rail to move freight, as evidenced by its investment of more than $125m in the Port Rail Transformation Project.
The PRTP is designed to enhance existing and build new rail infrastructure within the port precinct to connect to metropolitan and regional intermodal freight terminals.
Mr Cannon said the Port would continue to invest along with industry and government to maximise the efficiency and effectiveness of the port supply chain.
"Inland Rail needs to connect efficiently with other freight infrastructure, including the Port of Melbourne and metropolitan and regional intermodal freight terminals," Mr Cannon said.
"Connection of Inland Rail to the Port of Melbourne, including a direct freight connection to Webb Dock, is essential if we're going to meet the long term demands of consumers and business," he said.