Logistics, Ports & Terminals

Intermodal Terminal Company to build $400M freight terminal

Freight transport improvements at Port Botany are one step closer, with major firms shortlisted to design and build the Botany Rail Duplication and Cabramatta Loop projects.

The Intermodal Terminal Company (ITC) will soon start construction of a $400 million intermodal freight terminal in Melbourne’s north.

The Somerton Intermodal Terminal is expected to create jobs, remove thousands of truck movements from suburban roads, reduce carbon emissions and increase efficiency as well as safety for producers, farmers, freight operators and exporters.

Victorian Ports and Freight Minister Melissa Horne said 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,” Horne said.

When at capacity, ITC expect the Somerton Intermodal Terminal to take 500,000 truck trips off Melbourne’s roads – equivalent to 454 million truck kilometres. Each year, it aims to save 451 million litres of fuel and reduce carbon emissions by 189,000 tonnes.

The facility will be a key node in the Australian and Victorian governments’ $58 million Port Rail Shuttle Network.

Federal Transport and Infrastructure Minister Catherine King said 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,” she said.

ITC was launched in December 2022 and is backed by Aware Super, which last year also entered into a joint venture operation with the Victorian Government to operate the Registration and Licencing and Custom Plates businesses for VicRoads.

ITC Founder and CEO Mishkel Maharaj said the organisation is delighted to announced the terminal as the first independently constructed, maintained and operated terminal in its 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,” Maharaj said.

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