Federal budget: $2 billion to accelerate regions, $2 billion plus for rail terminals

Plans to fast track large regional economies in Victoria and NSW have scored a $2 billion boost in the federal budget. Find out which cities could benefit.

Four Victorian regional cities stand to benefit from a $2 billion investment by the Federal Government in an “accelerator program” designed to fast-track regional economies.

Shepparton, Mildura, Warrnambool and the Latrobe Valley have previously been identified as regional centres “prime for growth” with the cash injection confirmed in the federal budget last night.

The funding to be rolled out over five years will be used in part to attract private sector investment in manufacturing, industry support, infrastructure, skills and training, research and development and education.

The Regional Accelerator Program has been championed by the National Farmers Federation for more than 12 months.

It also has the backing of the Business Council of Australia, Regional Australia Institute, Australian Food and Grocery Council and Regional Capitals Australia.

The NFF last month identified 20 regional development precincts including the four in Victoria and others in the Central West-Orana, Riverina, New England and Northern Rivers regions of NSW.

It is banking on the program creating local manufacturing capability to reduce reliability on international imports of critical agriculture inputs.

Funding for two Victorian big-ticket infrastructure projects supporting agriculture were also announced in the budget.

The Pacific National Freight Terminal at Dynon is earmarked for closure in 2031. Picture: NCA NewsWire / Daniel Pockett

They are a $1.62 billion interstate freight terminal at Beveridge and another costing $740 million at Truganina, with the two projects to offset the planned closure of the Dynon terminal in 2031.

Federal Infrastructure, Transport and Regional Development Minister Barnaby Joyce said the investments with connections to Inland Rail were critical to building a strong economy.

“As an exporting nation, Australia relies on our commodities reaching international markets to generate the wealth that underpins our standard of living and prosperity,” he said.

“Our commitment to delivering new intermodal terminals in Melbourne will ensure we have the right infrastructure in place at the end of the line to get these products to their local and global destinations.”

The two projects when completed will remove about 5500 truck movements a day from Melbourne roads.

Speaking ahead of the budget, Shadow Infrastructure, Transport and Regional Development Minister Catherine King said there was a “sense of deja vu with re-announcements of existing projects”.

“It’s the same story every year, with big sounding announcements that promise a better future but in the end amount to nothing more than pork barrels, cost blowouts, project delays or cancellations,” she said.

The Federal Government is also investing $7.1 billion to create “next generation export hubs” in the Northern Territory, north and central Queensland, Western Australia’s Pilbara region and Hunter Region of NSW.