Aurizon, MIT Partnership: Boosting Australia Rail Freight Capacity

Aurizon and Melbourne Intermodal Terminal Forge Strategic Partnership for Enhanced Freight Operations

In a move poised to reshape Victoria’s freight landscape and bolster the national supply chain, Australia’s largest rail freight company, Aurizon, and the state’s newest and largest intermodal terminal, the Melbourne Intermodal Terminal (MIT), have finalized a significant services agreement. This agreement, announced on July 14, 2025, grants Aurizon access to the $400 million MIT facility for containerised freight handling for up to nine years. Located in Melbourne’s rapidly expanding northern industrial and logistics hub, the MIT, backed by Aware Super and developed in conjunction with Aware Real Estate and Barings, promises enhanced operational efficiency and capacity for Aurizon’s interstate freight operations. This partnership underscores the growing importance of rail in meeting Australia’s freight demands and highlights the strategic investment in infrastructure needed to support this shift, particularly in a burgeoning logistics precinct. The article will explore the benefits this partnership will provide, detailing how the integration of advanced technology and strategic location will enhance the entire freight supply chain.

Boosting Operational Efficiency and Capacity

The agreement with MIT is set to provide Aurizon and its customers with a significant boost in operational efficiency and capacity. Mishkel Maharaj, CEO of the Intermodal Terminal Company (ITC), emphasized that the terminal incorporates the latest technologies, ensuring both safety and efficiency. These innovations are essential for accommodating Aurizon’s interstate growth plans. The terminal’s strategic location is key. Situated in the fast-growing northern industrial and logistics precinct of Melbourne, it grants Aurizon convenient access to other major industrial zones across the metropolitan area. The hardstand areas of the future MIT, combining the inner and outer terminals, will equal approximately 14 MCG AFL fields. This size underscores the terminal’s capacity to manage large volumes of freight, supporting Aurizon’s ambition to grow national container volumes and enhance service offerings.

Strategic Location and Network Integration

The MIT’s strategic location is a critical component of the partnership’s success. George Lippiatt, Group Executive of Aurizon Bulk & Containerised Freight, noted that the terminal’s location opens up new opportunities for Aurizon to enhance its service offerings. The MIT is strategically positioned to provide efficient connections to the national rail network and the Port of Melbourne, creating opportunities for rail to support new markets across Australia. The focus on integration is paramount. Connecting and integrating rail networks, terminals, and services to existing precincts of concentrated freight demand and consolidation is fundamental. MIT is located within seven kilometres of approximately three million square metres of warehousing, with the investment into the Melbourne Intermodal & Industrial Exchange (MIIX) set to expand this. This close proximity allows for better coordination and efficiency.

Sustainability and Supply Chain Benefits

The partnership is designed to bring significant environmental and supply chain benefits. MIT customers will benefit from the co-located warehousing facilitated by the surrounding MIIX. Furthermore, end customers in the supply chain, such as supermarket chains and big box retailers, will be able to utilize rail in their transport operations to help reduce Scope 3 carbon emissions. This is in line with a broader industry trend toward more sustainable freight practices. By facilitating the movement of freight by rail, the agreement directly contributes to reducing carbon emissions and promoting environmentally friendly transportation. The ITC’s focus on sustainability demonstrates its commitment to aligning operational practices with environmental goals.

Investment in the Future of Freight and Logistics

The entire MIT and MIIX project represents a $1.6 billion investment, the largest privately funded enhancement to the Victorian freight and logistics sector in a generation. Aurizon, in turn, welcomes the opportunity to utilize MIT, providing an alternative to its current Melbourne footprint for rail freight. Construction of ITC’s 45-hectare MIT is 90% complete, with the 15-hectare Inner Terminal due to commence operations in October this year. This investment signals a commitment to the future of freight and logistics in the northern Melbourne suburbs, with both Aurizon and ITC poised to work with existing and potential customers to realize the benefits of MIT. The project sets a new standard for integrated industrial and logistics precincts, setting the stage for future growth and development in Victoria’s freight sector.

Conclusion

The agreement between Aurizon and the Melbourne Intermodal Terminal marks a pivotal moment in the evolution of Victoria’s freight sector. The long-term commitment to the MIT underscores the strategic importance of rail in meeting the growing demands of the national supply chain. The partnership is designed to leverage advanced technology, a prime location, and a focus on sustainability. The combination of Aurizon’s operational expertise and the MIT’s state-of-the-art facilities promises to enhance efficiency, capacity, and environmental performance. By integrating rail networks, warehousing, and supply chains, this initiative provides a blueprint for future freight infrastructure investments. The $1.6 billion project is not just about infrastructure; it’s an investment in a more efficient, sustainable, and robust national freight system, creating opportunities for new markets and reducing carbon emissions. This partnership could potentially serve as a model for similar initiatives across Australia, highlighting the critical role of rail in the future of freight and logistics.

Company Summary

Aurizon: Aurizon is Australia’s largest rail freight operator, transporting bulk and containerised freight across the nation. Its network supports key industries, including coal, agricultural products, and consumer goods. Aurizon focuses on providing integrated logistics solutions, including rail and road transportation, terminal operations, and supply chain management.

Intermodal Terminal Company (ITC): Backed by Aware Super, ITC is a developer and operator of intermodal terminals. Its focus is to provide leading-edge intermodal infrastructure which facilitates the efficient transfer of freight between different modes of transport.