ADVANTAGES in technology and interstate access are features of an agreement struck between rail company Aurizon and Melbourne Intermodal Container Terminal (MIT).
The two businesses have signed a contract for the use of the facility for the handling of containerised freight for up to nine years.
Intermodal Terminal Company chief executive Mishkel Maharaj said the services agreement related to the $400 million terminal would provide Aurizon and its customers with interstate freight train services from Melbourne’s north.
“Aurizon’s supply chain customers will benefit from the intermodal terminal incorporating the latest technologies in safety and operational efficiency as well as being large enough to accommodate Aurizon’s interstate growth plans,” Mr Maharaj said.
“Aurizon and its customers also have the added benefit of the terminal being centrally located in Melbourne’s fast growing northern industrial and logistics precinct with efficient access to other major industrial zones in the greater metropolitan area.”
Aurizon Bulk & Containerised Freight group executive George Lippiatt said the new MIT “has opened up new opportunities for Aurizon as it continues to grow national container volumes and enhance service offerings for customers”.
“Intermodal terminals are critical to the growth of freight supply chains in Australia and ensuring rail can do the heavy lifting for interstate rail linehaul services across the nation,” Mr Lippiatt said.
L to R: Luke Scanlan (Aurizon), Andrew Adam (ITC),
George Lippiatt (Aurizon), Leigh Cook (ITC). Image: ITC
“This terminal is strategically located and provides efficient connections to the national rail network and the Port of Melbourne creating opportunities for rail to support new markets across Australia.”
Mr Lippiatt said he had seen the investment being made in the MIT to create a high-capacity efficient terminal for both interstate and import-export rail services.
“Aurizon welcomes the opportunity to utilise MIT which provides an alternative to the current footprint of Melbourne for rail freight,” he said.
“We are excited by the future of the freight and logistics investments and developments in the northern Melbourne suburbs and will be working with existing and potential customers to realise the benefits of the MIT.”
Backed by Aware Super, the MIT is part of a broader development by Aware Real Estate and global asset management firm Barings to establish a significant integrated industrial and logistics precinct at Somerton called the Melbourne Intermodal & Industrial Exchange (MIIX).
The total investment of these terminal and precinct developments is $1.6 billion.
Construction of ITC’s 45ha MIT is currently 90% complete.
Mr Maharaj said connecting and integrating rail networks, terminals and services to existing precincts of “concentrated freight demand” was “fundamental in helping to stimulate customers in the supply chain to better utilise the economic, environmental and social benefits of hauling large volumes of freight by rail”.
“MIT customers will benefit from co-located warehousing from the surrounding MIIX, while end customers in the supply chain like supermarket chains and big box retailers will have the added bonus of using rail in their transport operations to help reduce Scope 3 carbon emissions,” he said.