MELBOURNE, AUSTRALIA — One of the busiest grain corridors in Victoria, Australia, will be getting upgrades as part of an A$104 million ($67.1 million) investment to the broad-gauge rail network in the 2024-25 state government budget.

The plans call for new rail, a crossing loop extension, three grain terminal rail extensions, and a line-speed and axle-load increases between Korong Vale and Manangatang, a bustling corridor with a growing intermodal service from Ultima, the Victorian government announced Dec. 6.

Rail services in Victoria transported about 390,000 tonnes of grain, container freight and crushed rock in October 2024, up 132,000 tonnes, or 51%, compared to October 2019. Victoria’s major crops include wheat, barley, canola and lentils. 

The Victorian government pointed to several signs of increased activity along the network that are spurring the investment plan and potential growth:

  • Bendigo Rail Workshops, a maintenance hub run by private rail operator Southern Shorthaul Railroad (SSR), took delivery of 22 new broad-gauge high-capacity grain wagons in August. The $5 million investment is SSR’s first new-build broad gauge rolling stock in the company’s 21-year history.
  • From September 2024, SSR increased its broad-gauge volume for LDC Grains Australia from 20 to 40 wagons, doubling capacity from 150,000 tonnes to 300,000 tonnes per annum and removing the need for 3,400 annual truck trips.
  • A new rail grain terminal is being opened 15 kilometers north of Echuca at Barnes, with additional connections at Tocumwal and Geelong expected. The Barnes grain terminal is the first to be connected to rail in a generation and will be operated by an independent grain trader.
  • Surplus V/Line Passenger N Class locomotives currently on short-term lease to SSR are also moving products to port to meet increased demand for moving bulk goods by rail.
“The Victorian government’s investment in rail freight infrastructure not only supports local industries but also enhances Melbourne’s global competitiveness through improving supply chain efficiency and connectivity,” the state government said. “With better access to ports including Australia’s biggest and busiest — Port of Melbourne, Melbourne is positioning itself as a strategic hub for global trade, offering streamlined pathways to domestic and international markets.”