THE VICTORIAN state government’s budget for 2022-23 includes $3.5 million for the Mode Shift Incentive Scheme, which, the government says, will remove the equivalent of 28,000 truck trips from Victorian roads every year.
Freight volumes in the state are forecast to more than double by 2051, meaning it is important that rail take up a greater share of freight movement.
The government said funding for the Mode Shift Incentive Scheme will further support rail freight companies to make rail transport costs competitive with road – helping exporters get their goods to port more cost effectively and connecting farmers and local producers to the rest of Australia and the world.
The state budget has also allocated a $6.1-million investment in planning for a new intermodal terminal at Truganina.
Additionally, the state is to invest $181 million in critical maintenance works on freight lines in regional Victoria to increase safety, reliability and improve rail freight logistics.
Along Victoria’s coastline, a critical $18 million package of works will be a boon for local communities and businesses that rely on Victoria’s piers and jetties.
Victorian ports minister Melissa Horne said the rail freight investments would boost network capacity and keep Victorian producers competitive nationally and internationally.
“Whether you’re a dairy farmer in south west Victoria or harvesting stone fruit in the north, our rail freight investments mean more dollars back into the pockets of farmers, local producers and regional communities,” she said.
The Victorian Transport Association welcomed the measures in the state budget that will improve the state’s road and rail infrastructure.
In welcoming the measures in the budget, VTA CEO Peter Anderson congratulated the Victorian government for continuing to invest in new road and rail transport infrastructure, and for decisive steps that will help to increase the appeal of careers in the freight transport industry.
“The freight industry hasn’t stopped or missed a beat during the pandemic despite a shortage of workers that has added to supply chain pressures felt right throughout the economy,” he said.
“We applaud the government for recognising and acting on the supply chain headwinds our industry is facing, particularly the need to reform our licencing system to be able to attract and retain new and highly skilled and qualified people to the industry.”
Mr Anderson said road and rail investments were vital for the health of the transport industry and welcomed measures to support a truly intermodal transport industry.
“The budget contains a raft of measures to improve infrastructure, with all operators set to benefit through productivity and efficiency gains made possible by investments in new roads and rail and stronger bridges,” he said.
“We commend the government for listening and acting on the needs of our industry.”
