Rail freight hub gets green light

Greater South East Melbourne has welcomed the signing of an agreement between Salta Properties and the Victorian Government to develop the proposed Dandenong South Intermodal Terminal, also known as a rail freight hub.

The Victorian and Commonwealth Governments’ investment of $28 million will make freight cheaper for businesses and take trucks off suburban roads through the construction of a new track connecting the main rail line with Dandenong South-based Salta Properties freight hub.

The upgrade will help bust congestion in Melbourne’s growing south east region by directly connecting the hub to the Port of Melbourne’s $125 million on-dock rail project, allowing shuttles to run from Dandenong South directly into the port.

The Australian Government has invested $18.3 million in the project, and the Victorian Government is investing $9.7 million.

The work is being delivered by the Level Crossing Removal Project as part of the $1 billion Cranbourne Line Upgrade.

Salta Properties said it has spent about $200 million on land for the freight rail hub and estimates construction will cost a further $155 million.

Including the $28 million invested by the state and federal governments brings the total investment to an estimated $383 million.

Greater South East Melbourne Chair Simon McKeon said:

“This project is a win for the environment, for all of us who use the road system and for businesses in the south east.”

“This project has been a priority for GSEM right from the start – this has been a long and important campaign.”

“It will, every year, take more than 500,000 twenty-foot equivalent units (TEUs) off our roads, cut transport costs by up to 25 per cent and slash truck movements by 175,000, which will reduce congestion and is good for the environment.”

“GSEM congratulates Sam Tarascio and the team at Salta for persisting with the project over many years.”

“GSEM will continue to be a strong voice advocating for projects that improve the liveability and productivity of our fabulous region,” Mr McKeon said.