Port of Melbourne push for import levy to fund rail project

The Port of Melbourne are pushing the Andrews Government pushing to introduce a levy on every container imported through the city’s docks. Here’s what it may cost to you.

Hundreds of trucks would be taken off our roads by 2021 under a radical push by the Port of Melbourne to get freight on trains, with Victorians to help foot the bill through an import levy.

Executives at the Port of Melbourne have lodged a request with the Andrews Government to introduce a $15 charge on every container that is imported through the city’s docks in return for major infrastructure investment.

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Under the agreement, the port would go it alone in building a series of major train terminals that would carry truckloads of goods along suburban and regional railway tracks.

The project, understood to cost about $300 million, would be funded through the permanent import fee and the cost would be likely passed on to consumers by suppliers.

Estimates from the port state the charge would add 50c to the cost of a refrigerator.

About 1.6 million containers were imported into the Port of Melbourne in the last financial year.

Independent modelling of the plan shows it would take 755 trucks off Victorian roads on an average weekday and could be finished within the next three years.

Exports would excluded from the charge to ensure Victorian farmers and producers remain competitive with global suppliers.

Port of Melbourne chief executive Brendan Bourke said rail was needed because of the city’s massive growth.

“Moving more containers on rail makes sense to everyone we talk to — and not just for today’s road congestion, but also Melbourne’s growth over coming decades,” he said.

“Our project will remove over 700 trucks a day from Melbourne’s busy roads.

“Port of Melbourne has submitted our proposal to the state government and is hopeful that a positive outcome can be achieved.”

The Andrews Government is currently considering the ­application.

“The Port of Melbourne recently submitted a proposal to upgrade rail infrastructure at the Port and create rail terminal facilities which are fully integrated with stevedore terminals,” a government spokesman said.

Independent modelling of the plan shows it would take 755 trucks off Victorian roads on an average weekday Picture: Ian Currie

“Freight Victoria is assessing the viability of the Port’s proposal and whether it will shift significant freight volumes onto rail.”

The port is also expected use income from the levy to make marine improvements that would allow for larger ships.

The annual amount of container trade coming through the Port of Melbourne is expected to nearly triple from three million in 2018 to 8.7 million in 2050.

Victorian Transport Association chief executive Peter Anderson said the transport industry was supportive of the push. We’re supporting the fact the port is willing to say they want to get involved and they want to spend some money,” he said.

BY THE NUMBERS

— $15 levy on all imported containers

— 1.9 million containers imported in 2017-18

— Windfall of $24 million if introduced

— Added costs to consumer items (estimated by Port of Melbourne):

5c per television,

1c on a pair of shoes,

50c on a refrigerator.

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