One of the world’s largest logistics companies is set to take over part of the former Melbourne Market site in West Melbourne as the Victorian Government looks to reduce truck traffic on inner suburban roads.
MEDLOG has signed on as a major tenant of the 29-hectare site, partnering with the Port of Melbourne to redevelop land for container storage and freight activity closer to the port.
The project is expected to reduce the number of truck trips through Melbourne’s inner west by bringing container storage nearer to shipping terminals. Areas such as Yarraville, Tottenham, Brooklyn and Seddon could see fewer freight vehicles travelling through local streets as a result.
The former Melbourne Market site, which is roughly the size of more than 14 Melbourne Cricket Grounds, is expected to attract about $500 million in private investment across the wider precinct.
The Victorian Government says placing freight infrastructure closer to the port will improve efficiency across supply chains while easing congestion on roads used by residents and local businesses.
Ports and Freight Minister Melissa Horne said the redevelopment would help goods move more efficiently while reducing the impact of trucks on nearby communities.
“This is about keeping goods moving while taking pressure off local streets, cutting truck traffic, improving safety and strengthening Victoria’s supply chains,” she said.
“By bringing freight closer to the port, we’re making the system more efficient and delivering real benefits for communities, the freight industry and businesses right across the state.”
The announcement builds on existing transport changes in Melbourne’s west, including the West Gate Tunnel project and No-Truck Zones, which were introduced to keep heavy vehicles away from residential streets.
Member for Footscray Katie Hall said the project would improve safety and liveability for people living in Melbourne’s inner west.
“This project will reduce truck movements on local roads and make a real difference for families in the inner west, with safer streets and better connections for our community,” she said.
The Port of Melbourne remains Australia’s busiest container port, handling more than one-third of the country’s container trade. Victoria’s freight sector contributes more than $36 billion to the economy each year and supports around 240,000 jobs.
Port of Melbourne chief executive Saul Cannon said the redevelopment would strengthen supply chains while creating jobs and attracting new investment.
“With approximately $500 million in private investment planned across the whole precinct and a strong uplift in jobs and economic activity, this redevelopment is a strategic investment in Victoria’s future that will help deliver a stronger and more resilient supply chain for the state,” he said.
MEDLOG SA chairman Giuseppe Prudente said the company saw the site as an important part of future freight operations.
“This investment reflects MEDLOG’s long-term commitment to building resilient, port-connected infrastructure that supports global trade and local economies,” he said.
Victorian Transport Association chief executive Peter Anderson said transport operators would benefit from improved access and fewer delays.
“By utilising this site for freight activity, transport operators will benefit from reduced congestion, improved access, and fewer avoidable delays that often lead to additional costs and compliance risks,” he said.
While the redevelopment is expected to reduce truck movements on local roads, some residents may still watch closely to see how traffic patterns change once the site is fully operating. Freight volumes are expected to continue rising in coming years, placing pressure on both road and rail infrastructure across Melbourne.
The project forms part of a wider push to prepare Victoria’s freight network for future demand while reducing the impact of heavy vehicles on residential areas.
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