VTA CEO Peter Anderson welcomed the extension of the Scheme.
VTA CEO Peter Anderson welcomed the extension of the Scheme.

Mode Shift Incentive Scheme to help boost productivity

Victorian Minister for Ports and Freight Melissa Horne has this morning announced an extension to the Mode Shift Incentive Scheme (MSIS) to June 30, 2021, along with a commitment of an additional $4 million to fund rail infrastructure to support Victoria’s growing freight task.

The announcement builds on the Andrews Labor Government’s $20 million investment in the scheme over the past five years, which was initiated to support rail companies to make rail transport costs more competitive and to help Victorian exporters get their goods to the Port of Melbourne and beyond, faster.

Victorian Transport Association chief executive Peter Anderson welcomed the extension of the Scheme, saying initiatives that created greater capacity and efficiency in the supply chain was good news for all freight operators.

“For Victoria to remain the freight capital of Australia it is essential we have significant investments in road, rail and sea infrastructure that enables better management and the seamless and efficient movement of freight from paddock to port,” Mr Anderson said.

“For every rail movement of freight there are at least one or two movements involving a heavy vehicle which demonstrates how operators throughout the supply chain benefit from rail investments like the Minister has announced today.

“As I often say, ships, trains and planes carry freight but only trucks deliver, so we welcome the extension of the Scheme, which will improve intermodal connectivity on our freight network and create productivity and efficiency gains for operators.”

The Scheme is just one of several initiatives the VTA has advocated for so that Victoria’s freight network can handle the tripling of freight volumes that is expected over the next 30 years.

Other key projects include the $125 million On-Dock Rail project at East Swanson Dock, Port Rail Shuttle and intermodal terminals at Truganina and Beveridge.

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