Future Farming Action 7
Transporting products to market
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Farm businesses rely on access to reliable and economical transport options to deliver their products to domestic and international markets in the best condition, in the most efficient manner. An efficient and competitive rail network is in the best interests of Victorian farmers, exporters and industry. Under the FFS, the Brumby Government will invest $42.7M in rail network upgrades, providing farmers with greater options to get their products to market. These improvements will provide speed, efficiency and access to the Victorian rail network and help to ensure the future of the network.
Regional rail review
Funding: $42.7 million
In December 2007 the Victorian Government released the Rail Freight Network Review, which identified a number of priorities and levels of investment to upgrade Victoria’s rail freight network.
The Government will invest $42.7 million, including $23.7 million to enable the upgrade works to start progressively on the priority Gold lines.
This means the most important lines will be upgraded in priority order to ensure they continue to provide a competitive transport alternative and are capable of carrying the harvest when better seasons return.
A further $19 million has been allocated for maintenance works on the freight network in 2009.
Regional Rail Freight review website
Channel Deepening in Port Phillip Bay
The Channel Deepening project is part of a broader freight strategy of the Victorian Government. The economic benefits of channel deepening have a direct effect on Victoria’s farmers.
On average $90 million worth of exports leave the Port of Melbourne every day. The project will result in better economies of scale in shipping, ultimately leading to reduced costs for farmers in exporting Victorian goods overseas.
Exports will improve after completion of the project and the long-term effect of this will be great economic benefit to rural and regional Victoria. Significantly, regional Victorian GDP is expected to be boosted by $50 million between 2010 and 2020 as savings are felt throughout the supply chain.
Economic studies suggest the channel deepening project will create 1,107 jobs, with a flow-on of 905 jobs, in Victoria. The total economic impact of the Channel Deepening project on regional Victoria is estimated at $248.8 million.
The Port of Melbourne is expected to complete the Channel Deepening project by the end of 2009.
