Infrastructure investment has always been one of the most important enablers of economic growth, supply chain efficiency and transport industry sustainability.
For freight operators, the quality of the roads, rail lines and intermodal connections we rely on every day has a direct impact on our productivity, emissions profile and business viability. As operating conditions become more complex and the freight task continues to expand, the ongoing commitment of both the Victorian and Commonwealth governments to maintaining, renewing and rebuilding our transport corridors could not be more important.
Funding that goes beyond basic maintenance is critical for lifting capacity, improving safety and future‑proofing our transport network. Victoria’s freight volumes continue to grow, driven by population, consumption and industry expansion.
A rising freight task means more heavy vehicles, more rail demand, and more pressure on existing networks. When governments invest strategically in these corridors, the benefits extend far beyond transport businesses: efficiency improvements through reduced delays, smoother journeys and reduced incident risk flow into every sector that depends on reliable freight.
Nowhere is this more evident than in the southwest of Victoria, where recent announcements from the Albanese and Allan Labor governments highlight the profound difference targeted upgrades can make. Significant works are underway across key freight routes that underpin Australia’s largest dairy production area, including six kilometres of upgrades along Cobden-Stonyford Road, Bullaharre and sections of the Princes Highway West at Pirron Yallock. These upgrades include new road surfaces, enhanced safety barriers, and improved signage and line marking — simple interventions that collectively deliver safer, more resilient and more productive freight lanes.
The southwest region is not only home to some of the nation’s most productive dairy operations — with 392,000 cows producing over two billion litres annually across more than 1000 farms — it is also a crucial corridor for timber, agricultural commodities and regional manufacturing.
When roads in these regions are improved, it lifts the productivity and safety of entire supply chains. Fewer breakdowns and delays, reduced vehicle wear, and improved access for High Productivity Freight Vehicles all contribute to stronger, more competitive primary industries.
These upgrades also support expected growth in passenger and freight vehicle volumes, with projections indicating that freight volumes alone could rise by 20 per cent over the next 25 years across Victoria’s southwest. That level of growth simply cannot be supported by ageing infrastructure. The investments being made today are foundational for meeting tomorrow’s freight needs efficiently and sustainably.
Infrastructure spending is also one of the most powerful tools we have in reducing transport emissions and advancing our transition to cleaner freight operations. Better‑designed and better‑maintained roads reduce fuel burn by minimising stop‑start conditions, smoothing gradients and eliminating deteriorated surfaces that increase engine load. Rail infrastructure upgrades — such as enhancing intermodal connections and increasing train lengths and axle loads — further support the shift of appropriate freight tasks from road to rail, where emissions intensity can be significantly lower over long distances.
For transport operators, whose margins remain under sustained pressure, these productivity and emissions gains are not abstract concepts — they translate into lower operating costs, more reliable scheduling, better workforce safety and improved competitiveness. When operators spend less time stuck in congestion or navigating degraded surfaces, they spend more time moving freight. Infrastructure is, in effect, one of the most important levers we have to keep transport businesses viable and sustainable.
It is important to acknowledge the leadership shown by both the Victorian and Commonwealth governments in continuing to fund these major upgrades, including the $37.7 million Dairy Supply Chain Road Upgrades jointly backed with near‑equal contributions from both levels of government. These investments demonstrate a clear recognition of the freight sector’s importance to the Victorian economy and the communities it serves.
As the freight task grows, the VTA will continue advocating for long‑term, coordinated infrastructure planning across both road and rail networks. A strong transport system is the backbone of a strong economy and the work being done today will help ensure Victorian operators remain productive, competitive and sustainable for decades to come.
- Peter Anderson is CEO, Victorian Transport Association