Freight terminals on the way but state must contribute

Two giant freight terminals are the centrepiece of the Morrison government’s $3.3bn spend on Victorian ­infrastructure in Tuesday’s budget.

TWO giant freight terminals will be built in Melbourne’s north and west, creating thousands of jobs and taking 5500 trucks off arterial roads every day once finished.

However, the $3.1bn commitment – the centrepiece of the Morrison government’s $3.3bn spend on Victorian ­infrastructure in Tuesday’s budget – includes $2bn that was announced a year ago.

That leaves Victoria worse off than other states and territories, with $3.9bn promised for road and rail projects in Queensland, $3.3bn for NSW and $2.8bn in South Australia.

The federal government unveiled the intermodal terminal project in last year’s budget, but while it was pushing for a site at Beveridge, the state government and leading freight providers wanted the new hub at Truganina.

Scott Morrison on Monday will announce support for both sites conditional on contributions from the Andrews government.

The commonwealth will commit $1.6bn to the Beveridge terminal and $280m for nearby road upgrades, ­including the Camerons Lane interchange at the Hume Fwy. Another $740m will be allocated to the Truganina terminal, plus $920m for a rail connection.

More freight terminals on the way but the Victorian government must also contribute to the project.

“Victoria is the freight and logistics capital of Australia,” Urban Infrastructure Minister Paul Fletcher said.

“To maintain this advantage, the delivery of two modern and advanced intermodal terminals in the north and west of Melbourne to support inland rail, as well as east-west freight rail flows, is a priority.”

Deputy Prime Minister Barnaby Joyce said the projects were crucial to maintaining Australia’s success as an exporting nation, ensuring “we have the right infrastructure in place at the end of the line to get these products to their local and global destinations”.

The terminals will support 1350 jobs during construction and 550 positions once they are operational, with another 5455 jobs stemming from the associated road and rail works.

Tuesday’s budget will also announce $109m to upgrade Mickleham Rd and $18m to reboot the cancelled commuter carpark project at Kananook station, plus $45m for road ­improvements between Ballarat and Ouyen and $23m to ­upgrade Canterbury Rd.

The Hampton commuter carpark – which has no start date three years after it was promised – will have its budget expanded from $4m to $12.5m.

Overall, $17.9bn will be pumped into new and existing projects nationwide, creating about 40,000 jobs and taking the government’s rolling 10-year infrastructure pipeline to more than $120bn.

“By investing in these projects we are delivering the infrastructure that the Australian economy needs to grow, to get Australians home sooner and safer, and generate thousands of jobs and new opportunities for small businesses,” the Prime Minister said.

The coalition has invested $35.5bn in almost 300 Victorian road and rail projects since 2013, with 99 completed.

The Australian Local Government Association said the budget needed to include a $2bn, four-year extension to the $2.5bn local roads and community infrastructure program. Its president Linda Scott said $500m a year would deliver libraries, community centres, sporting facilities, bike paths and playgrounds.

“The last two years have been expensive for all governments but cutting this program now would be selling our communities short,” Ms Scott said.

“Many of our councils and communities are still reeling from the cumulative impacts of droughts, bushfires, Covid-19 and flooding, and need ongoing support.”