Patrick Terminals and the Port of Melbourne have agreed to construct a new rail terminal to enable more freight to be delivered by rail to East Swanson Dock.

The new rail terminal, expected to be completed by mid 2023, will handle up to 200,000 TEUs annually, and provide a direct rail connection between the Port of Melbourne and suburban intermodal terminals, enabling more freight to be transported to and from the port via rail.

“The new facility will provide a direct interface with Patrick’s East Swanson Dock Container Terminal, reducing cost of last mile between the rail terminal and quayside for rail based container movements,” said Patrick CEO Michael Jovicic.

The announcement of the rail terminal is part of a wider push to get more freight onto rail at the Port of Melbourne. The Port of Melbourne is investing $125 million in on-dock rail as part of the Port Rail Transformation Project (PRTP) and this project is a significant part of that, said Brendan Bourke, CEO of the Port of Melbourne.

“The PRTP is a key project of our Port Development Strategy and Our Plan for Rail and is vital to successfully accommodating future growth at the port.”

In August, the Victorian and federal governments announced funding for a new freight rail connection in Melbourne’s South East.

The Victorian government is also providing funding for the Port Rail Shuttle network, which aims to reduce truck movements in metropolitan Melbourne by linking the port with intermodal facilities on the urban fringe.

“This new on dock rail terminal supports the introduction of the government’s Port Rail Shuttle Network, which will reduce truck trips on the Melbourne road network,” said Bourke.

The Patrick rail terminal will be constructed at the Coode Road site and is co-funded with the Port of Melbourne. Patrick is contributing $15m to the project.

Construction is expected to begin in early 2021 and the Port of Melbourne is currently undertaking a request for tender profess for the infrastructure works associated with the Port Rail Transformation Project.

Once complete, the terminal will include two dual gauge 23 tonne axle load sidings of 600 metres and interface with the Patrick international container terminal options.

The agreement is part of the extension of Patrick’s tenure at the Port of Melbourne to 2066. Maurice James, managing director of Qube which owns 50 per cent of Patrick, said in a statement to the ASX the project will enable more freight to be moved via rail.

“The development supports Patrick’s landside efficiency focus and is expected to facilitate the development of metro-based rail shuttle services over the medium term.”

Once complete, the Swanson Dock Rail Terminal will be an open access facility, in line with the Port of Melbourne rail access protocol, allowing Qube and other rail operators to use the facility.

Jovicic said that the terminal will be a key node in the Melbourne freight rail network once new intermodal facilities are completed.

“Over time, it is expected that rail modal share for will increase, with metro rail being a major driver of growth alongside the development of metropolitan inland terminals. Rail modal share and volumes on rail will be dependent on the take up of rail, particularly for metro container movements – which today are dominated by trucks.”

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