New report shows Victoria at risk of failing key target to get more freight on to rail

Shifting more freight to Victoria’s rail network has been a key focus of the state for eight years, but new figures reveal little change has been achieved.

Victoria could fail a key target to get more trucks off local roads after a report found millions in government funding had so far failed to increase the share of freight going by rail.

A new report by the Victorian Auditor-General’s Office has criticised the Andrews government’s efforts since 2014, including slow progress on a key project that was announced eight years ago.

Putting more containers on to the rail network, particularly through the Port of Melbourne, has been a key focus amid massive growth in demand from Victoria’s soaring population.

To reduce rising traffic congestion the state wants to have 30 per cent of freight travelling on trains by 2050, compared to about 5 per cent now.

A report found millions in government funding had so far failed to increase the share of freight going by rail. Picture: AFP

The office found the government’s effort so far had kept this proportion steady but failed to increase the figure.

This made the 2050 goal of 30 per cent unlikely.

To reach the target, there would need to be 215 return train trips a week, or 31 per day, between the port and hubs at Dandenong South, Somerton and Altona.

But over the next three decades there will be increasing competition for spots on the railway as passenger services rise and lines have limited capacity.

“The share of rail freight going in and out of the Port of Melbourne by rail is now less than half its 2013–14 peak,” VAGO wrote.

“The volume of freight carried by train has stayed static over this time.

“This means that trucks have carried most of the 30 per cent growth in the port’s container freight trade.”

The two key government policies explored were the Mode Shift Incentive Scheme, which offered a rebate for using regional terminals, and the Port Rail Shuttle Network which aims to set up at the three rail hubs in Melbourne’s suburbs.

VAGO said neither of these had been effective at moving more freight by train, with most of growth in container numbers happening at Webb Dock where there are no rail connections.

Progress for the rail shuttle network was also described as slow, with the project funded eight years ago and concerns over the availability of “rail paths” for services to run.

Putting more containers on to the rail network, particularly through the Port of Melbourne, has been a key focus.

Metro Trains flagged particular challenges for the Dandenong line which has limited options for freight trains.

VAGO called on the department to assess the commercial viability of the project and provide an action plan by the end of 2023.

Opposition ports and freight spokeswoman, Roma Britnell, said delays to the program would make cost of living worse.

“The longer local freight is on trucks instead of trains, the higher everyday prices will be for Victorians,” she said.

“The Andrews government’s freight failure is a missed opportunity to deliver lower prices at the checkout and safer, less congested roads across the state.

Over the next three decades there will be increasing competition for spots on the railway. Picture: Mark Stewart

A government spokesman said the report acknowledged that the Mode Shift Incentive Scheme had helped keep freight on the rail network instead of moving to trucks.

“We’re getting on with delivering the Port Rail Shuttle Network, with services from Altona SCT Logistics Hub and the Port of Melbourne already underway, taking trucks off local roads and boosting our exporters,” he said.

“We will continue to work with the rail freight industry to move more freight by rail, boosting our economy and supporting our state’s growing population.”