The Allan Labor Government's failure to secure federal funding for the Outer Metropolitan Ring (OMR) freight rail corridor is a direct hit to Victoria's freight productivity and economic future.
Despite spending $350 million on land acquisitions, Labor ditched the long-promised Truganina freight hub and has failed to deliver the infrastructure needed to support efficient freight movement across Melbourne's booming western and northern corridors.
The decision to indefinitely defer the Truganina Western Intermodal Freight Terminal (WIFT) shows a complete disregard for industry advice and economic logic.
In 2022, the Government said the WIFT would take thousands of trucks off the road. The Premier even said: "Melbourne's west needed the facility immediately, and it has to be the first cab off the rank."
Industry data shows that freight transport costs have risen by more than eight per cent nationally in the past year, with full truck load rates in Victoria increasing by up to 12 per cent due to congestion and fuel price pressures.
The lack of dedicated freight infrastructure means more trucks on the road, longer delivery times, and higher costs for consumers and Victoria's producers and exporters.
Infrastructure Victoria's modelling warns that by 2051, the M80 Ring Road and West Gate Freeway will be overwhelmed, with an additional 1,800 trucks expected during morning peak hours alone. Without the OMR, freight will continue to compete with passenger traffic, further eroding productivity.
The Allan Labor Government clearly knows the importance of this project, but its Federal Labor colleagues have yet again withdrawn funding support due to State Labor's mismanagement and incompetence.
Shadow Minister for Ports and Freight, Roma Britnell, said: "Labor's mismanagement is again costing Victorians dearly. Freight costs are rising, congestion is worsening, and businesses are being forced to absorb inefficiencies that could have been avoided with diligent infrastructure planning.
"Every extra kilometre a truck travels due to poor infrastructure planning adds to the cost of living.
"It hits regional producers hardest especially in agriculture and manufacturing, who rely on timely, cost-effective access to ports and markets.
"Labor can't manage money, Labor can't manage projects and Victorians are paying the price."
