New partnership to propel Victoria’s supply chain with Somerton Intermodal Terminal

ITC’s CEO, Mishkel Maharaj, expressed enthusiasm about the partnership, highlighting SSR’s strong reputation in the rail freight industry for safe and reliable operations. “ITC is delighted to have entered into an agreement with the highly respected and experienced rail freight operator SSR for the provision of interstate, regional and port shuttle haulage services at the forthcoming open-access intermodal terminal in Somerton,” Maharaj stated. The terminal, which has already seen 65% of its construction completed, is scheduled to begin operations in late 2025.

The Somerton Intermodal Terminal is designed to improve logistics efficiency, enabling customers to utilise rail freight shuttle services directly to the Port of Melbourne, as well as access interstate and regional services. Key infrastructure projects, including the Western/Metropolitan Ring Road (M80) and the North East Link, are expected to facilitate better access to the terminal from various regions of Melbourne.

Maharaj noted that the terminal will feature over 30 hectares of hardstand area and nine rail sidings to support a wide range of operations. Additionally, on-site facilities for container washing, repairs and fumigation will enhance service offerings for customers.

The terminal’s scale will support the efficient decoupling and loading/unloading of 600m port shuttle services, alongside longer interstate freight trains. With direct access to Australia’s extensive rail network, the terminal aims to serve as a pivotal hub for freight movement in the region.

SSR’s owner, Jason Ferguson, expressed excitement about the project, stating: “Over the past 20 years, SSR has grown into an above-rail operator which now operates more than 110 freight locomotives and 1,300 container and bulk wagons to deliver approximately 170 weekly rail services for customers in interstate and regional supply chains. I’m proud to say SSR has developed a strong reputation in the sector.”

The overall investment in the Somerton precinct, including ITC’s $400 million terminal and an additional $600 million investment by Aware Real Estate and Barings for an adjacent industrial site, totals approximately $1 billion. This integrated freight and logistics precinct will enable customers to co-locate warehousing and logistics services, enhancing cost efficiency in their operations.

Further emphasising the environmental benefits, Maharaj indicated that the terminal will utilise electric-powered handling equipment, thereby helping reduce the carbon footprint associated with freight operations. The facility will also be customs-bonded, facilitating smoother operations for international trade.