The head of Victoria's key road transport association says there's still uncertainty over the final site of Melbourne's main intermodal rail terminal, following a federal funding announcement for options in both the city's north and west.
This week's federal budget will commit a further $3.1 billion to a rail-road freight plan for Melbourne
The government will put $1.2 billion toward an intermodal terminal at Beveridge, including $280 million into road upgrades, and $740 million toward a freight terminal at Truganina, with another $920m for the rail connection.
Victorian Transport Association chief executive Peter Anderson said the industry welcomed the funding.
"The feds are saying they are giving us $3.2 billion to complete the projects, which is a pretty good hand up - you have to pat them on the back for that.
"They always had $3 billion allocated to the Inland Rail connection in Victoria, it was just a matter of how it was allocated and who was able to take advantage of that," Mr Anderson said.
He said it was hoped the opposition would match the funding, otherwise Victoria might lost out.
"It's good to see they have acknowledged the fact the Western Industrial Freight Terminal is the real connector between the port and the rest of the state - as much as Beveridge would suit a number of stakeholders, the one with the greatest benefit is the WIFT.
"It is able to create a true, intermodal connection - the more freight on rail, the more freight on road."
The state government prefers Truganina, while the federal authorities want Beveridge, near the Hume Highway, resulting in a budget compromise.
In May last year, the government committed $2 billion towards construction of an intermodal freight terminal in Melbourne, to complete the Inland Rail project.
At that time, it didn't pick either Beveridge or the WIFT.
Mr Anderson said it was not a question of road over rail freight transport.
"It's how do we better utilise the infrastructure, to get better outcomes for the industry and the community - it isn't just about industry."
But he said putting an extra link in the supply chain would cost money and he was concerned governments would apply cost recovery measures to recoup the expense of building the terminals.
"To be able to access these satellite hubs is not going to be free - they are going to charge the industry to enter, to pick up and to leave.
"It's an extra cost to industry - I would hate to think the state government, who will take the revenues, will turn around and say 'we have to recover $3 billion', when they were gifted $3b."
He said infrastructure costs at the Port of Melbourne currently stood at $140 a container.
"If it cost us $140 to access the WIFT and get a container, then hang on a sec, there is no change - and we are talking about a million containers
"Within a year they will be ringing in profits."
He said he hoped the government would apply the same system as for the West Gate Bridge, which was originally tolled.
"Once it was paid for, they took the toll off."
He said the other issue was the timeline for completing the projects.
"The port rail shuttle is not due to be completed until the end of next year, its go nowhere to go, they have land by no development.
'This will certainly allow them to start turning the soil."
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He said was waiting to see what was going to happen.
"Is it Truganina or is it Beveridge?
"We want to invest, we want to buy land, we want to build warehouses, we want to get out of the inner west, but we can't, because we don't know where we are going to go.
'There is no point going to Truganina if all my boxes (containers) are going to be going to Beveridge - you can't take a bet each way, the industry is waiting for a decision, to invest accordingly."
Rail Futures Institute president John Hearsch said the main driver for Beveridge was its connection to the future Inland Rail, "even though there's every chance the site will become a white elephant".
"As far as I know, QUBE is the only organisation interested in any development there."
"Logistically it's not in a good place, there is absolutely no industry close to there."
"All you see in that area are cows grazing - but if you have organisation and deep pockets you can put in some warehousing and see how it goes."
He said the biggest problem with Beveridge was that it was a long way from customers.
That could be overcome by building the outer metropolitan ring road.
"The only way freight will get to customers is by using the freeway and the Western Ring Road and the ring road is chocka-block already."
He said funding Beveridge was "purely a timing issue.
"It's certainly being driven by the federal government and the Australian Rail Track Corporation, who realised, to their embarrassment, some time ago, the Inland Rail would not have a terminal in Melbourne.
"They can get Beveridge up and running a good five years ahead of the WIFT - the problem with the WIFT is that it's an ideal site, it's where most of the industry is and where the customers and the rail industry wants it.
"But you have to build the whole of the outer metropolitan ring road, to activate it."
The money set aside in the budget would help purchase land for the WIFT.
"It's not a small project, and the best estimate for it to be up and running would be in the early 2030's.
"It's largely been designed, it's in all the planning schemes and the corridor is protected."