AN $8 million Freight Sector Innovation Fund, to to assist small and medium heavy vehicle operators trial and transition to low-emission equipment, is a centrepiece of the state government’s Victorian Freight Plan, launched today by ports and freight minister Melissa Horne.
The fund will also expand electric-charging infrastructure to provide operators with greater access to low-emissions fuels which will create new tools for industry to assess and track their carbon emissions to encourage decarbonisation.
Ms Horne today met with more than 100 freight and logistics industry leaders at the launch of the new plan, which has been warmly welcomed by the Victorian Transport Association.
The government is progressing further work in pursuit of becoming the first Australian state to be a sub-national endorser of the global Memorandum of Understanding for decarbonising freight transport, giving the state access to a global network of expertise and data to cut heavy freight transport emissions.
The VFP will support targeted investments in new road, rail and port infrastructure to support freight combinations that can move more cargo with fewer emissions.
The Plan includes shared government and industry goals to grow a freight system that protects and strengthens our competitive advantage and enhances Victoria’s livability and economic prosperity – with consultation shaping potential actions to the plan.
“Our plan will support operators to cut carbon emissions – making the industry most sustainable and ensuring freight can move around Victoria efficiently,’’ Ms Horne said. “This will protect and strengthen Victoria’s competitive advantage, maintain our status Australia’s freight and logistics capital and support our workforce of 260,000 who keep our supply chains moving every day.’’
The government says the sea-freight industry will benefit from Ports Victoria’s representation in the Green and Digital and Shipping Corridor agreement signed by the Australian and Singapore governments in 2024 to cut emissions.
The Port of Melbourne has already undertaken work that aligns with the GDSC to cut down on emission, including progressing a feasibility study on green methanol bunkering and working to establish Green Shipping Corridors with key trade partners – which will pave the way for regional decarbonisation.
The VTA said the plan sets a clear direction for decarbonising the freight sector, improving infrastructure, and supporting smarter, more sustainable freight movements across the state. It comes at a time when the industry is undergoing rapid transformation driven by climate targets, community expectations, and technological innovation.
VTA CEO Peter Anderson congratulated the Department of Transport and Planning and Freight Victoria for their collaboration with industry in producing a visionary and practical strategy.
“The Victorian Freight Plan is not just a policy document—it’s a strategic roadmap that gives freight operators the confidence to plan their investments and allocate resources in anticipation of a decarbonised future,” Anderson said.
“The team at Freight Victoria and the Department deserve recognition for their engagement with industry and their commitment to delivering a plan that reflects real-world challenges and opportunities.”
The VTA acknowledged key initiatives including:
The VTA looks forward to working closely with government and industry partners to implement the plan and ensure Victoria remains a national leader in freight innovation, safety, and sustainability, Mr Anderson said.
For more information on the Victorian Freight Plan, visit vic.gov.au/freight-victoria.