Improving track access for Victoria’s freight network

Victoria’s freight trains share a network with more than 7000 weekly passenger services – a scale that brings competing demands for track access.

With passenger services granted legislative priority under the Rail Management Act 1996, freight locomotives are at risk of delays, detours and curfews, costing both the operator and broader state economy.

It is estimated that national carriers incur costs of up to $100 for every delayed hour - or more than $1000 per hour for intermodal cargo – due to crew expenses, idle capital and inventory holding costs.

How does Victoria’s largest state-owed infrastructure manager, V/Line, balance these demands and maintain supply chain performance?

Ahead of the Rail Freight Conference, Informa spoke with V/Line’s Director of Freight & Third Party Access, Anjum Khan, to find out.

Two key access frameworks

To maintain equitable access between passenger services and freight, V/Line’s access is governed by two key frameworks. The first is the Service Level Agreement - a contract with the Department of Transport and Planning, which sets out responsibilities, performance standards, and operational requirements for regional transport.

The second is the Victorian Rail Access Regime Guidelines, which provides the foundation for freight access, between accredited freight operators and access providers.

“It’s a highly regulated operating environment, where access, capacity and performance are carefully managed to support both passenger and freight services. We have formal access agreements with freight operators that determine how services are accommodated on the network,” said Anjum

“Some services are planned well in advance and built into the master timetable, while others are seasonal and operated on an ad hoc basis. Managing these competing demands requires careful planning and coordination. It’s all about striking the right balance and ensuring everyone can succeed on a network that could quickly become constrained without effective planning.”

Messaging is key

For Anjum, access also rests on how freight is perceived, in the broader context of national productivity. She says there is an ongoing need to highlight the importance of freight services.

“Often the criticality of what is being carried by freight trains is overlooked. For example, one loaded grain train (22 wagons) from regional Victorian to Kensington mill yields approximately 2.2 million loaves of bread. This train is responsible for our domestic supply of flour and grains across Victoria. If that train doesn't run or misses connection, there are significant ramifications to Victoria’s supply chain.

“So, where we can and where information isn’t commercially sensitive, we engage with the freight forwarder to share the value of the goods being moved. By sharing information about freight volumes and export values, we can build a clearer picture of the economic contribution that rail freight makes to Victoria’s regional industries and supply chains”.

Making the value of freight services visible in the eyes of the public can also help put the notion of freight priority on equal footing with passenger services. Anjum says this is becoming more important as Victoria’s population grows.

“You want to have reliable passenger services that can get from A to B efficiently and freight customers expect their goods to be moved efficiently and on time. The key is balancing those priorities. When we get that right, we not only support better passenger outcomes but also help business and regional industries thrive.”

Equally, it is important to stress the role of freight in supporting Victoria’s regional supply chains and economy, Anjum said.

“The key thing we need to understand here is that regional freight supports regional jobs. It also connects regional industries with domestic and global markets, so there are significant economic, social, environmental, and fiscal benefits.

“It reduces freight costs, road congestion, emissions, and future infrastructure liabilities, all while improving safety and supply chain redundancy. So, in all, it supports a more productive, sustainable, and resilient Victorian economy.”

Innovations in access management

As well as lifting freight’s profile, V/Line has come up with various access management innovations.

The V/Line Locomotive Repurposing Program has transformed surplus passenger locomotives into productive freight assets, supporting competition, mode shift, and industry investment.

The initiative was the product of a major data analysis which found a link between rolling stock age and hauling capacity.

“We looked at more than twenty years of data – everything from train lengths to wagon/locomotive ratios - and how these factors relate to the condition of the network and freight operator utilisation.

“We then did lots of due diligence and narrowed that data down to the last five years to try to get the most relevant picture of what was happening in the network.

“One thing we found was that the age and availability of the rolling stock played a key role in how much could be moved.”

In response to that finding, and with the support of other agencies, V/Line set up a program and ran an EOI process where it put retired passenger diesel locomotives out to tender to the freight industry. At the time, the average age of freight locomotive fleet was around fifty years, creating challenges for capacity, reliability and maintenance.

The program is still running and will close soon. So far, the organisation has leased 17 locomotives to the freight industry, enabling them to secure new business.

“The additional rolling stock has enabled freight operators to expand their services, secure new business and move more freight,” Anjum said.

“It has also improved service reliability and fostered a more competitive rail freight market. Ultimately, we wanted to give operators the confidence to invest and grow, while supporting a greater shift of freight from road to rail.”

Alongside this program, the Grain Access Planner, is another V/Line initiative designed to help coordinate grain movements across Victoria’s rail network. Using forecasts of grain production and demand, the planner, in collaboration with the grain handlers analyses expected freight volumes and identifies the most efficient operating arrangements to move grain from regional storage sites to domestic and export markets.

“It supports more efficient network utilisation, improved reliability for freight operators, and better coordination of freight grain movements across the Victorian rail network,” Anjum added.

Join the conversation

Join V/Line and other major industry players for more discussion on how the industry is navigating access challenges at this year’s Rail Freight Conference.

This year’s themes are efficiency, sustainability and innovation.

The event will be held 29-30 July at the Park Hyatt Melbourne.

Learn more and register your tickets.