Victoria launches $36 billion freight plan to drive growth and cut emissions

The fund will also expand electric-charging infrastructure, improve access to low-emissions fuels, and develop new tools for industry

The Victorian Government has unveiled the Victorian Freight Plan 2025–30: Victoria Delivers, a transformative roadmap to decarbonise and accelerate growth in the state’s $36 billion freight sector.

Designed to manage rising freight volumes driven by population growth, the plan aims to protect Victoria’s competitive advantage, attract investment in freight infrastructure and logistics services, and support the state’s liveability and long-term economic prosperity.

Central to the plan is an $8 million Freight Sector Innovation Fund that will help small and medium heavy vehicle operators trial and transition to low-emission equipment.

The fund will also expand electric-charging infrastructure, improve access to low-emissions fuels, and develop new tools for industry to track and reduce carbon emissions, bolstering wider efforts to decarbonise the sector.

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Victoria’s sea freight industry will benefit from Ports Victoria’s role in the Green and Digital Shipping Corridor agreement, signed in 2024 by the Australian and Singapore Governments to cut emissions.

The Port of Melbourne is progressing projects under the agreement, including a feasibility study on green methanol bunkering and the establishment of Green Shipping Corridors with key trade partners, paving the way for regional decarbonisation.

The state is also working to become the first in Australia to be a sub-national endorser of the global Memorandum of Understanding for decarbonising freight transport, gaining access to a worldwide network of expertise and data to help reduce emissions from heavy freight.

The plan further supports targeted investment in new road, rail and port infrastructure to enable freight combinations that can move more cargo with fewer emissions, improving supply chain efficiency and capacity while providing investors with a stable, growth-oriented environment.

Minister for Ports and Freight Melissa Horne said, “The Plan includes shared government and industry goals to grow a freight system that protects and strengthens our competitive advantage and enhances Victoria’s liveability and economic prosperity – with consultation shaping potential actions to the plan.”

“This will protect and strengthen Victoria’s competitive advantage, maintain our status as Australia’s freight and logistics capital and support our workforce of 260,000 who keep our supply chains moving every day.”

She added.

With the Port of Melbourne handling more than a third of Australia’s container trade, the freight and logistics sector is a cornerstone of the state’s economy, contributing $36 billion annually and supporting 260,000 workers. It is also a vital enabler of Victoria’s agricultural exports and advanced manufacturing industries, ensuring the state retains its position as Australia’s freight and logistics capital.

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