The Government of the state of Victoria, Australia, has approved the new on-dock rail construction at the Port of Melbourne. Credit: Gary Houston

The Government of the state of Victoria, Australia, has approved the construction of a new on-dock rail at the Port of Melbourne.

The proposal was approved by the Minister for Ports and Freight Melissa Horne. It outlines an investment of A$125m ($84m) for the new rail infrastructure.

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This project forms part of the government’s plan to improve the economic progress of the port. It currently contributes A$6bn ($4bn) to the state’s economy. It also acts as a major part of the agriculture supply chain in the state.

The government will also aid in the development of the Port Rail Shuttle Network and the construction of new intermodal terminals at Truganina and Beveridge.

It will also deliver new automated signalling for quicker rail freight to GeelongPort, as well as regional rail freight network improvements.

Through the on-dock rail, Victoria aims to reduce the ‘last mile’ cost and truck congestion. This will increase Victoria’s accessibility for exporters.

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Customers can use the rail for moving cargo to distribution centres in the city.

The port also plans to implement an A$9.75 per 20ft equivalent unit charge on imported containers.

It expects to complete the project in 2023.

Minister for Ports and Freight Melissa Horne said: “The Port of Melbourne is a vital part of our multi-billion-dollar export sector and agriculture supply chain and on-dock rail will make its operations more efficient for Victorian exporters – removing congestion at the port gate.”

“This will cut costs for regional exporters and increase the competitiveness of Victorian industry – creating local jobs.”

Last month, the government awarded two contracts to remove five level crossings on the Frankston line and one at Clyde Road on the Pakenham line.