Truck-busting, job-boosting freight hub for west at risk from rail line closure

A massive logistics hub that would have employed thousands of people and removed 125,000 trucks from roads in Melbourne’s west every year is now in doubt because of a state government decision to close a key rail freight corridor at Sunshine.

The impending removal of the freight junction as part of the $4 billion Sunshine Superhub upgrade has already caused concerns about worsening pollution and congestion in the western suburbs by pushing freight off trains and onto trucks.

Building materials giant Boral has also confirmed that a “nationally significant” logistics and warehousing precinct it was planning at its Deer Park quarry may not be feasible without the direct rail connection to port.

Freight trains from Ballarat will be forced to travel an extra 47 kilometres via Geelong to get to the Port of Melbourne if the Sunshine route is closed as planned, which rail operators and their customers say will make many services uncompetitive with trucks.

The Boral project was set to help tackle two of the most severe issues facing the inner west: a shortage of jobs, and an ever-growing number of trucks causing air pollution and congestion.

Over coming weeks The Age is increasing its focus on the western suburbs with a special series examining the positives and challenges the region faces. In October, our reporters will moderate a West of Melbourne Economic Development Alliance (WoMEDA) summit to discuss a vision for the western suburbs’ success.

The move to remove the freight junction has prompted crisis talks between Freight Minister Melissa Horne and Transport Minister Gabrielle Williams and the industry, and documents reveal that the Victorian government has ignored planning proposals for a workaround that would preserve the vital freight route.

Boral said it estimated its future Ravenhall Logistics Precinct would have created 15,700 direct jobs and 7400 indirect jobs – making it a rival to Melbourne Airport as an employment hub – while saving more than 300 trucks trips a day.

“This precinct was planned to be directly connected to the Port of Melbourne via the site’s existing rail siding, with projections it would eliminate 125,000 truck movements annually,” a Boral spokesperson said.

“The freight precinct would support a development projected to contribute $14.9 billion annually to Victoria’s economy.”

The Boral spokesperson said the removal of the Sunshine crossover “presents a challenge to our project”, but said the company aimed to work with the government on a solution.

However, documents seen by The Age show that the Commonwealth government-owned Australia Rail Track Corporation (ARTC) warned Victoria in 2020 that closing the Sunshine corridor would more than double the cost of moving freight on rail between the Port of Melbourne and an interstate freight terminal planned for Truganina.

An ARTC presentation prepared for Victorian transport department officials says that travelling 42 kilometres further via Werribee would push up costs from $10.50 to $25 for every 20-foot train container.

The ARTC, which owns and manages most of the country’s interstate railway network, proposed a workaround by building a new track connection just south of Sunshine station to preserve access for freight trains.

Rail Projects Victoria, a unit within the state transport department which has subsequently been shut down, developed detailed plans to implement the same solution in 2021, according to the leaked documents.

The proposals from both ARTC and Rail Projects Victoria was to build a short section of track 1.5 kilometres south-east of Sunshine station and complete a missing link between the existing freight corridors.

The 400-metre curved link would have allowed trains from the port to access tracks to Bacchus Marsh via an existing rail bridge which clears Sunshine Road and the Metro and V/Line passenger tracks.

The Allan government did not answer questions about why the proposed alternative connection was not progressed or included in the $4 billion rebuild of Sunshine station.

Rail Freight Alliance chief executive Reid Mather said the local government areas his group represents were “extremely concerned” that the impending Sunshine closure would push more trucks onto roads in Melbourne’s inner west and rural roads not designed for such heavy traffic.

“In western Melbourne, this is really concerning for them that potentially they could see a dramatic increase in trucks. You can’t have a liveable city without supporting rail freight,” he said.

Mather said the closure would affect train services set to serve the mineral sands industry in Victoria’s north-west, as well as meat and dairy exports from Warrnambool.

“It takes a long time to build up a rail service, but it’s quick for a truck to come along and take it away. And once you lose it, it’s difficult to get back,” he said.

A spokesperson for Horne and Williams said rebuilding Sunshine station was the government’s first step towards electrifying trains to Melton and building the rail line to Melbourne Airport.

“We know that the removal of the Sunshine crossovers will change the way rail freight will move around the network which is why we continue to work closely with industry,” the spokesperson said.

An ARTC spokesperson said the corporation was “continuing to work collaboratively with the Victorian government on freight options around the Sunshine Superhub” to ensure it would “drive freight productivity and balance the needs of passenger services”.

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