Victoria extends incentive scheme to boost rail freight transport

Mode Shift Incentive SchemeThe Victorian government has extended the Mode Shift Incentive Scheme (MSIS) designed to shift road transport to railways.

Extended until June 2021, the Minister for Ports and Freight Melissa Horne announced a further AUD 4 million (USD 2.66 million) in the scheme which had a AUD 20 million (USD 13.3 million) investment over the past five years. The investment has removed the equivalent of 28,000 truck trips off Victorian roads each year.
The programme is providing support for railway freight operators to make rail transport costs competitive with road freight and allows exporters to get faster their goods to port.

“We’re moving more freight more efficiently and keeping our state connected by reducing rail costs and making it easier to get Victorian products to our ports. This scheme benefits the community by getting trucks off roads which locals use every day and supporting industry through cost-effective movement of freight,” Melissa Horne said.

The Mode Shift Incentive Scheme is one of the governmental projects to increase rail freight transport share including through the Port Rail Shuttle and new intermodal terminals planned at Truganina and Beveridge, near Melbourne.

The MSIS current recipients are:

  • Shepparton corridor – Linx Portlink (Tocumwal)
  • Horsham corridor – Wimmera Container Line (Dooen)
  • Warrnambool corridor – Westvic Container Export (Dennington)
  • Mildura corridor – Seaway Intermodal (Merbein)

To promote rail freight transport, the Government has also approved the Port of Melbourne’s AUD 125 million (USD 83.2 million) investment in building new on-dock rail at Swanson Dock East, which will reduce costs for exporters.




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