Intermodal Terminal Company (ITC) and Aurizon have signed an agreement to manage containerised freight for up to nine years at Melbourne Intermodal Terminal, Victoria’s newest and largest intermodal freight facility.
ITC, owned by Aware Super, is Australia’s only privately funded and independent owner-operator of intermodal terminals. The company is investing AUD 400 million (approx. USD 262.2 million) in this open-access terminal. Construction has been launched in 2023 and the terminal is scheduled to begin operations in October 2025.
Located within the Somerton Business Park in northern Melbourne, the terminal is part of the Melbourne Intermodal & Industrial Exchange. It connects directly to Victoria’s interstate rail links and the Port Rail Shuttle Network, and is designed to accommodate double-stacked 1,800-metre freight trains.
Just 22.5 km from the Port of Melbourne, 15 km from Melbourne Airport, and a 45-minute trip via the Port Rail Shuttle Network, the terminal will receive multiple high-capacity freight deliveries daily from all stevedores at the port.
The facility spans 45 hectares, including 10 hectares dedicated to empty container parks, and has an annual handling capacity of over 1 million TEUs. Upon completion of a second development phase, it will be able to process up to 2 million TEUs per year.
The terminal includes nine rail sidings supporting 1,800-metre, double-stacked trains. The inner terminal comprises six sidings—two standard gauge and four dual gauge—served by Konecranes electric-powered rail-mounted gantry cranes. The outer terminal includes three sidings—two standard gauge and one dual gauge.
Melbourne Intermodal Terminal is expected to remove up to 500,000 truck trips from Melbourne roads each year, saving approximately 451 million litres of fuel and reducing carbon emissions by 189,000 tonnes annually.
By alleviating congestion around the Port of Melbourne, the terminal enhances scheduling reliability and speeds up freight processing for import/export businesses across the metropolitan area. It also allows for bulk container transfers, eliminating delays caused by port slot bookings.
Victoria’s new freight terminals
By 2051, freight volumes in Victoria are projected to triple, with rail transport set to become the backbone of the state’s freight movement, absorbing much of the road freight demand.
The Government of Victoria is committed to delivering new intermodal freight terminals to boost rail freight and encourage both public and private sector investment in the freight network.
To meet future demand, the State has proposed constructing two new intermodal terminals in Melbourne, designed to handle interstate freight as well as import/export container traffic. These facilities will significantly expand Melbourne’s capacity to manage forecast freight volumes over the medium term.
- The Western Interstate Freight Terminal (WIFT), located in Truganina (west Melbourne), was proposed in 2021 as a strategic solution to ensure future interstate rail freight capacity in the city’s western corridor.
- The Beveridge Intermodal Freight Terminal (BIFT), located in Melbourne’s outer north, is being developed by the Commonwealth Government to support Inland Rail operations. The private sector is also expanding intermodal capacity throughout Melbourne. BIFT is expected to become operational in December 2029.
These new freight terminals are aligned with Victoria’s climate goals, aiming to shift more freight from road to rail and contribute to the state’s net zero emissions target.
Both projects were recommended in an independent review of the Inland Rail programme, which was accepted by the Australian Government in 2023.
These terminals form a core component of Victoria’s freight strategy, Delivering the Goods, which identified the need for new intermodal precincts in Truganina and Beveridge to reinforce Melbourne’s position as Australia’s premier freight hub. The strategy promotes shifting freight to rail and leveraging public and private investment to expand the capacity and sustainability of the state’s logistics network.
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