Rail Access Maximum Prices
The Department of Transport and Planning is proposing new rail access maximum prices so that rail line providers such as Metro Trains Melbourne and V/Line can charge operators using their rail lines for freight services.
The new access pricing is proposed to align with current costs, reflecting an increase in CPI.
The Notice of Rail Access Maximum Pricing will be available for public consultation from 27 March until 4 May 2025. Anyone can ask questions or comment on the proposed new maximum pricing.
Rail access maximum pricing will form part of the Victorian Government’s Rail Access Guidelines.
Consultation for new guidelines for Declared Freight Terminals is currently open at the Rail Access Guidelines Engage Vic webpage.
You can provide feedback on the proposed rail access prices until 4 May 2025 by emailing Freight Victoria.
Notice of public consultation for proposed rail access maximum prices
Section 38K of the Rail Management Act 1996 (Act) allows the Minister for Public and Active Transport and the Minister for Ports and Freight to specify new maximum prices for declared rail transport services provided by an access provider using a declared rail network.
Before doing so, section 38N of the Act requires the responsible Minister to prepare a draft of the notice specifying the maximum prices (consultation draft) and invite submissions and comments from the public on that draft.
This notice summarises the content of the consultation draft and invites feedback on the proposed rail access maximum prices.
The consultation draft is attached at the end of this notice.
Submissions and comments
Submissions and comments on the consultation draft can be emailed by 4 May 2025. All submissions and comments will be considered in finalising the notice under section 38K, specifying the maximum rail access prices.
Copies of this notice and the consultation draft are available at the Department of Transport and Planning’s offices at 1 Spring Street, Melbourne.
Overview of the Victorian Rail Access Regime
The Victorian rail access regime is set out in Part 2A of the Act. The Act allows the responsible Ministers to set rail access maximum prices and establish rail access guidelines, which replace the previous access regime administered by the Essential Services Commission.
To fulfil its policy commitments, the Victorian Government has reformed the rail network's access regime for freight services. The reforms are designed to regulate rail access in Victoria in the interests of competition and economic efficiency.
Proposed rail access maximum prices
Rail access pricing is a charge imposed on those who want to run a train on the declared rail network (called “access seekers” in the Act) by providers of declared rail transport services (“access providers” e.g. Metro Trains Melbourne (MTM), V/Line).
The declared rail network means the rail infrastructure used to provide declared rail transport services.
In 2020, the Department studied freight rail access pricing to support reform of the rail access regime. This included developing a new maximum pricing structure for rail freight access.
The new pricing structure was initially implemented for 2024/2025. The notice specifying the maximum prices must be published before 1 June 2025. It is proposed that the notice commence operation on 1 July 2025.
Consultation draft – proposed rail access maximum prices notice
Rail Management Act 1996
NEW RAIL ACCESS MAXIMUM PRICES FOR THE FINANCIAL YEAR 2025 TO 2026 UNDER SECTION 38K
We, Gabrielle Williams, Minister for Public and Active Transport, and the Hon Melissa Horne, Minister for Ports and Freight, responsible for administering Part 2A of the Rail Management Act 1996, having regard to the matters specified under section 38K(2) of that Act, specify the maximum prices for declared rail transport services provided by Metro Trains Melbourne (MTM), V/Line and Victorian Rail Track (VicTrack), by means of a declared rail network, contained in the Schedule to this notice for the financial year 2025 to 2026.
Where a term used in this notice is defined in the Rail Management Act 1996, it has the meaning given to it in the Rail Management Act 1996.
This notice comes into operation on 1 July 2025.
Maximum prices for declared rail transport services
For the purposes of this consultation draft, the prices below display the maximum prices that would apply to the financial year 2025/2026.
These prices have been adjusted for inflation based on the December 2024 Consumer Price Index for Melbourne.
Maximum prices for services provided by V/Line
| Services | Maximum prices | Unit |
|---|---|---|
Services Grain loop (fixed fee) | Maximum prices $109.09 | Unit Per train |
Services Variable (non-grain) | Maximum prices $3.23 | Unit Per ‘000’ Gross Tonne Kilometre (GTK) |
Services Variable (grain) | Maximum prices $5.86 | Unit Per ‘000’ Gross Tonne Kilometre (GTK) |
Services Cancellation charge, total planned path ? 100km (fixed fee) | Maximum prices $200.00 | Unit Per cancellation |
Services Cancellation charge, total planned path >100km (fixed fee) | Maximum prices $350.00 | Unit Per cancellation |
2This is a flat rate and not subject to CPI increase.
3This is a flat rate and not subject to CPI increase.
Maximum prices for services provided by MTM
| Services | Maximum prices | Unit |
|---|---|---|
Services Variable | Maximum prices $7.92 | Unit Per ‘000’ Gross Tonne Kilometre (GTK) |
Maximum prices for V/Line’s access to MTM’s network
Variable | $8.89 | Per Kilometre |
Maximum prices for services provided by VicTrack
| Services | Maximum prices | Unit |
|---|---|---|
Services Locomotives | Maximum prices $20.71 | Unit Per locomotive per 24-hour period |
Services Wagons | Maximum prices $20.71 | Unit Per wagon per 24-hour period |
Services Carriages | Maximum prices $31.07 | Unit Per carriage per 24-hour period |
In the Schedule to this notice:
Cancellation Fee is a fee payable by an access seeker to compensate the access provider for its administrative costs and loss of amenity in reserving a path for an access provider. It is imposed if a booked train path is subsequently cancelled by the access seeker and not used. This includes scheduled paths that are not used and cancellation of ad hoc paths.
Grain loop means the North Geelong Grain Loop, a balloon loop that provides access to the GrainCorp grain rail unloading facility at the Port of Geelong.
Services means the declared rail transport services for which maximum prices are specified.
Variable Non-Grain means a charge per 000 Gross Tonne Km for all trains other than bulk (hopper wagon) grain trains.
Variable Grain means a charge for hopper wagon trains carrying all forms of grain.
Notice of public consultation - Rail Access Guidelines
Rail Management Act 1996
Section 38H of the Rail Management Act 1996 (the Act) enables the Ministers to prepare the Rail Access Guidelines (the Guidelines), which assist Access Providers and Access Seekers regarding the terms and conditions of rail access arrangements.
The Guidelines are a pivotal part of the Victorian rail access regime, providing strategic direction and a benchmark for freight access to the Victorian rail network. Access Providers must consider the Guidelines when preparing final access arrangements.
The Guidelines were first published on 1 July 2024 and are being amended to include a new section about Access Arrangements for access to terminal services at declared freight terminals.
After engaging with relevant stakeholders and experts, the Ministers have prepared a draft of the guidelines for consultation.
Submissions and comments
The Ministers invite submissions on the consultation draft, including those related to the section on declared freight terminals.
Submissions and comments can be provided by visiting Rail Access Guidelines Engage Vic webpage until 4 May 2025.
All submissions and comments will be considered when finalising the Rail Access Guidelines.
Copies of the consultation draft will be available at the Department of Transport and Planning’s offices at 1 Spring Street Melbourne.
Overview of the draft Rail Access Guidelines
The Ministers have prepared a consultation draft of the Rail Access Guidelines, which gives an overview of the Victorian rail access regime and guides access providers and access seekers about the requirements of rail access arrangements.
The consultation draft proposes amendments to the existing Guidelines by adding a new section about access arrangements for access to terminal services at declared freight terminals.
The consultation draft has a high-level principles approach, allowing more flexibility in commercial negotiation.
In preparing the consultation draft, the Minister has taken into consideration:
- The requirements of the Act
- The multi-product nature of rail operations
- How to best provide open access at declared freight terminals
- The need to make rail freight a competitive option compared to road freight transport
- How to best provide greater certainty for rail freight operators and
- Improvements to data collection and sharing.
Rail Freight Network Capability Statement
We’ve developed the Statement of Freight Network Capability (Statement) to clearly state the rail network’s capability and when it's available for carrying goods.
This statement is meant to make things clear for both customers and the operators who run the trains and helps achieve the goals we set in the Government ‘s 2018 Freight Plan - Delivering the Goods.
If there are any material changes in the rail network's standards, capacity, use, or availability, a new Statement will be made.
It's important to remember that the information is just a guide, we encourage everyone involved to check with the network managers for the most accurate information.
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