Australia: Behind the scenes of Intermodal Terminal Company 17/03/25
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Behind the scenes of Intermodal Terminal Company’s new multi-million-dollar facility
The recent Covid pandemic and associated constraints in global and domestic supply chains, and the related cost of living crisis, have placed a spotlight on the need for Australia to enhance the productivity and cost efficiency of its freight and logistics networks, operations and facilities.
In a boost to both the Victorian and national supply chains, the Intermodal Terminal Company (ITC), backed by Aware Super, is investing $400 million to deliver a state-of-the-art intermodal terminal and IMEX facility in the heart of Melbourne’s northern industrial zone.
Aware Real Estate, in partnership with global asset management firm Barings, is also investing $600 million to develop a major integrated industrial and logistics precinct to surround ITC’s terminal. In doing so, for the first time in Victoria, it will give tenants the benefits of co-location.
In total, this equates to a $1 billion privately-funded investment in the Victorian freight and logistics sector – one of the largest in recent history.
Kicking goals
ITC Chair and industry leader John Fullerton said the intermodal terminal being constructed in Melbourne’s north is progressing well, with interstate intermodal and IMEX (port shuttle) operations due to commence in late 2025.
Fullerton said intermodal terminals play a critical role in the efficient consolidation, storage and transfer of freight between rail, road and shipping, resulting in improved productivity and cost efficiency for customers in the supply chain.
“Intermodal terminal capacity that’s located where the freight is can reduce traffic congestion and road damage and improve road safety, while offering customers cost efficiency and reduced emissions,” he said.
The ITC intermodal terminal will be open to all third-party customers – including above-rail freight operators, freight forwarders, and regional shippers – in accordance with a best practice open access regime.
Fullerton said this is a great example of the private sector directly responding to industry and government needs in a timely and efficient manner.
“Better still, this major development for both the Victorian and national supply chains is being undertaken at no cost to either state or federal taxpayers,” he said.
Key to Inland Rail success
Fullerton added that the future ITC terminal at Somerton is ideally located to bring Inland Rail into the heart of an existing large industrial and logistics precinct in Melbourne.
“As someone who has been deeply involved in rail freight networks and operations for decades, I’m a firm believer that a large part of the success of the future Melbourne-Brisbane Inland Rail will depend on utilising ITC’s intermodal terminal at Somerton,” he said.
“A key premise of the future Inland Rail is to connect freight demand and volumes where they are concentrated.”
Major milestones
ITC Chief Executive Officer Mishkel Maharaj said the company had achieved major construction and commercial milestones in 2024, including completion of 70 per cent of the entire project, of which 85 per cent of the future Inner Terminal is now built.
“The Inner Terminal features approximately 15 hectares of terminal hardstand and six rail sidings – two standard and four dual gauges (standard and broad) – to seamlessly provide ITC customers with the flexibility to transfer freight volumes between the Victorian and Australian Rail Track Corporation (ARTC) rail networks,” he said.
Once construction of the 45-hectare intermodal is complete, there will be more than 30 hectares of concrete terminal hardstands (equivalent to 14 Melbourne Cricket Ground AFL fields), including 15 hectares at the Outer Terminal.
“The terminal is being built to the highest quality to ensure excellence in safety, reliability and next-level efficiency in both operations and emissions,” Maharaj said.
Installation of Konecrane rail-mounted gantry cranes – which are fully electric and can regenerate energy while lifting and loading containers – at the Inner Terminal is due to start in May 2025. Electric-powered Kalmar reach stackers and specialised empty container handlers will arrive in the same month.
Workshops to service and maintain the gantry cranes and reach stackers have already been built.
Maharaj said that on the commercial front, ITC was delighted to have received strong interest from tier one organisations. It recently entered into an agreement with respected and experienced rail freight operator Southern Shorthaul Railroad (SSR) for the provision of interstate, regional and port shuttle haulage services at the future terminal in Somerton.
“Over the past two decades, SSR has developed a strong reputation with customers in the intermodal and bulk freight sectors for safe, cost-efficient and reliable above-rail haulage operations,” he said.