SOUTHERN Shorthaul Railroad has entered an agreement to provide haulage services to and from the $400-million Somerton Intermodal Terminal.

The above-rail freight operator is to deliver interstate, regional and port shuttle haulage services under a new agreement with terminal developer Intermodal Terminal Company (ITC).

The terminal is currently under construction at a 45-hectare site in Melbourne’s north. It is positioned to be an important hub in the Victorian government’s Port Rail Shuttle Network.

Initial capacity of the future ITC open-access terminal at Somerton is set to be around one million TEU each year.

SSR owner Jason Ferguson described the terminal as “a critical piece of productive rail freight infrastructure” for both the Victorian and national supply chains.

“I’m delighted a 100% Australian-owned and operated rail freight operator like SSR can partner with a company like ITC,” he said.

“Over the past 20 years, SSR has grown into an above-rail operator which now operates more than 110 freight locomotives and 1300 container and bulk wagons to deliver approximately 170 weekly rail services for customers in interstate and regional supply chains.”

ITC chief executive officer Mishkel Maharaj said the company is delighted to have entered an agreement with SSR.

“Over the past two decades, SSR has developed a strong reputation with customers in the intermodal and bulk freight sectors for safe, cost-efficient and reliable above-rail haulage operations,” he said.

ITC was launched by Australian super fund Aware Super in December 2022 as an investment platform for intermodal terminals.

In August this year Aware Real Estate and global investment partner Barings acquired the Austrak Business Park in Somerton – where the intermodal terminal is being built – for $600 million.

“A billion dollars has now been privately invested to deliver a fully integrated large-scale freight and logistics precinct in Somerton, with supply chain customers having the benefit of being able to access interstate, regional and port shuttle rail freight services at one central location,” Mr Maharaj said.

Construction of the terminal is now 65% complete, according to Mr Maharaj, with rail haulage operations and logistics services due to commence in late 2025.