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New rail terminal set to streamline freight

Intermodal Terminal Company is building a railway terminal at Somerton which will offer agribusinesses in regional Victoria and southern NSW the option to better consolidate freight movements.

Victorian primary producers and regional exporters will enjoy more streamlined and cost-effective rail freight transport services from late 2025.

The $400 million Somerton Intermodal Terminal in Melbourne’s north is 65 per cent complete and on track to welcome freight train services by the target date.

Intermodal Terminal Company chief executive officer Mishkel Maharaj said the terminal would offer agribusinesses in regional Victoria and southern NSW the option to better consolidate and stage containerised freight movements.

“Future customers of the Somerton precinct will also be able to co-locate warehousing and related logistical services at what will be a custom-bonded intermodal terminal,” Mr Maharaj said.

The SIT will have a direct link to Victoria’s extensive broad and standard-gauge networks and dual-gauge port shuttle network.

The terminal is 22km by rail from the Port of Melbourne, which is Australia's largest containerised and general cargo port.

One billion dollars has been invested into the terminal by Aware Super, Aware Real Estate and Barings.

The SIT will boast nine working rail sidings to facilitate the decoupling and loading and unloading of 600-metre port shuttle services and 1500 and 1800-metre interstate freight trains.

“These longer trains can fit into Somerton but are too long at the port,” Mr Maharaj said.

The terminal will also feature several empty container parks spanning about 10 hectares and fully electric-powered machinery, including seven remotely controlled rail-mounted gantry cranes.

“Customers in the Victorian and national supply chains will enjoy access to a state-of-the-art intermodal terminal both in terms of operational and emissions reduction technology,” he said.