A $5 billion private-sector plan to build a giant rail terminal west of Werribee – a project that promised to remove thousands of trucks a year from Melbourne’s roads – has been abandoned.
The Little River project, which was opposed by community groups and the local Wyndham Council, was planned by Pacific National, Australia’s largest private rail freight company.
Pacific National’s proposed Little River rail freight terminal would have claimed 595 hectares of farmland and native grassland west of Melbourne.Credit: Jason South
But on Wednesday night it informed stakeholders, including the state government, that it would withdraw planning and environmental applications and approvals for the site known as the Little River Logistics Precinct Project.
“Pacific National has made the decision given the changed timeline for associated freight and infrastructure projects and broader economic factors at this time, which have impacted on the project business case,” a spokesperson said on Thursday.
The company said it would focus on operations at its South Dynon depot in West Melbourne. The Allan government in May extended its lease at that site by 20 years, to 2051.
“As the country’s largest intermodal freight operator, we remain focused on ensuring a terminal solution in Melbourne’s west is secured to keep critical freight volumes on rail and reduce road congestion and emissions,” the spokesperson said.
“The business will continue to assess alternative terminal site options as they emerge to support efficient freight transport connectivity.”
Community groups in Little River protested against the project in August, including a demonstration with a 25-metre crane to show how high shipping containers would be stacked on the site.
They opposed the facility’s proposed footprint of 595 hectares – some of it farms, some native grassland – and argued it would transform the small township by handling as many as 2 million shipping containers a year.
Pacific National proposed the project – valued between $3 billion and $5 billion – partly because the inner-city rail network is incapable of handling the double-stacked trains that will be used in the Inland Rail project between Brisbane and Melbourne.
Local councils and freight companies in Melbourne’s west have advocated for almost a decade for a dedicated rail hub to service the region, arguing that 50 per cent of all customers for interstate freight are based in the area and a large facility would reduce truck movements across Melbourne and create local jobs.
But they have favoured a proposed government-run hub in Truganina – the Western Interstate Freight Terminal (WIFT) – as the fastest way to address this, rather than developing land in Melbourne’s green wedge zone.
The Allan government had also supported the Truganina project as a priority – until May, when it announced the project would be indefinitely postponed. At the time, it pointed to the Commonwealth’s decision to prioritise a similar hub in Melbourne’s north – the Beveridge Interstate Freight Terminal – and private investments that could potentially meet demand in the shorter term.
Wyndham Deputy Mayor Josh Gilligan said Pacific National’s decision meant the government should bring forward the WIFT development and secure the land required.
“There is no doubt Pacific National’s backflip was driven by our council’s intervention to support residents in Little River and Wyndham amidst a policy vacuum by the state and Commonwealth governments on rail,” he said.
“The state now needs to come clean on when they will fix the planning mess at the preferred Truganina terminal site because a generation of jobs and industry depend on better policy security and certainty”.
The Allan government’s freight strategy, however, will not change because of the Little River decision. While the WIFT remains on the backburner, it is already examining how to secure land at Truganina for it.
“We’ve been clear that our priority is to see a new terminal built in Melbourne’s west,” a spokesperson said.
“This remains the case, but it will be deferred until additional terminal capacity is needed after the Commonwealth government prioritised the Beveridge Interstate Freight Terminal.”
Little River Action Group president Adrian Hamilton said he was delighted by the news.
“It’s a good outcome for the environment and Victoria’s green wedges,” he said.
“With some reservation, I’m still looking forward to seeing their official announcement.”
Legalise Cannabis MP David Ettershank, who campaigned against the Little River site, said the decision was sensible.
“The tide has turned at Little River,” he said. “It’s a win for common sense, it’s a win for the local community, and it’s a win for the environment.
“This was absolutely without merit, and it’s great to see that the Pacific National have done the right thing and decided to walk away from the project with their dignity and the public’s respect in place.”
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