MELBOURNE M1 TOLLS TO SIGNIFICANTLY INCREASE CONTAINER TRANSPORT COSTS

Melbourne M1 Tolls to Significantly Increase Container Transport Costs

As Victoria prepares for the official opening of the upgraded West Gate Tunnel and West Gate Freeway (M1) infrastructure in December, the state's container transport industry is bracing for a substantial rise in road transport costs due to new heavy vehicle tolls along the M1 corridor west of Melbourne.

The new tolling point for heavy vehicles will be located east of Millers Road on the M1. Heavy vehicles will be required to pay a toll both inbound and outbound, regardless of whether they use the new Tunnel, the West Gate Bridge, or the new Hyde Street ramps.

This marks the first time since November 1985 that vehicles—specifically heavy vehicles—will be tolled to cross the West Gate Bridge. A costly case of "Back to the Future" indeed.

No Truck Zones to Funnel Traffic onto the M1

At the same time, the Victorian Government will introduce No Truck Zones across Melbourne's inner west, including:

• Francis Street and Somerville Road, Yarraville
• Buckley Street and Moore Street, Footscray
• Blackshaws Road, Altona North
• Hudsons Road, Spotswood

These restrictions will funnel heavy vehicles onto the M1 (the only authorised east–west route) and onto north–south arterials such as Williamstown Road and Millers Road, which provide key access routes to the Port of Melbourne from the industrial precincts of Tottenham and Brooklyn.

Tolling Impact on Transport Costs

Modelling by the Container Transport Alliance Australia (CTAA) indicates that container transport costs to and from the Port of Melbourne will increase by approximately 13% to 30% compared with current base market rates.

The impact will vary depending on:

• Customer location
• Permitted heavy vehicle routes
• Time of day
• Vehicle utilisation ratios
• External factors such as the designated empty container park location for import dehire or export pickup

As around 60% of empty container park capacity servicing the Port of Melbourne is located in the western industrial suburbs, transport operators will frequently incur multiple tolls per container movement.

A Typical Example – Up to 8 Tolls per Container

A typical container logistics cycle for a transport operator based in Melbourne's west could involve up to eight tolls (or more) for a single shipping container:

1. Travel to Port of Melbourne terminal to collect full import container – 1 toll
2. Return to transport yard with full container – 1 toll
3. Deliver full container to customer – 1 toll (or more)
4. Return to yard – 1 toll (or more)
5. Travel to customer to collect empty container – 1 toll (or more)
6. Return to yard with empty container – 1 toll (or more)
7. Deliver empty container to designated park for dehire – 1 toll
8. Return to yard – 1 toll

Initial Transurban toll rates for a Heavy Commercial Vehicle (HCV) one-way trip through the Millers Road tolling gantry will be:

• $19.78 (day rate) for standard HCVs
• $29.67 (day rate) for Long Heavy Commercial Vehicles (LHCVs) such as 26m+ A-doubles

Based on the example above, total tolling costs for one complete container cycle could reach up to $158.24.

Notice of Toll Commencement

Neither the Victorian Government nor Transurban has issued a formal notice confirming the official opening date for the new infrastructure. However, indications suggest it will occur in December 2025.

CTAA has requested at least one month's notice prior to commencement, so transport operators can update their customers on toll cost recovery timelines.

Our best estimate for the opening date is Sunday, 14 December 2025 (CTAA speculation only).

Potential Future Curfews and Network Impacts

Following the M1 opening and the enforcement of No Truck Zones, it appears likely that night and weekend truck curfews will also be introduced on Williamstown Road, possibly before the November 2026 State Election.

Community opposition to increased heavy vehicle traffic on Williamstown Road has been strongly voiced by local residents, the State Member for Footscray, and Maribyrnong City Council.

Should these curfews be imposed, CTAA questions whether the Government has made adequate investment to strengthen alternative feeder roads, particularly Millers Road, to handle increased freight volumes.

Significant heavy vehicle queuing between the M1 and Geelong Road is anticipated, potentially causing transport delays and frustration for all road users.

Network Limitations – The Need for Freight Route Upgrades

CTAA has raised with the Department of Transport & Planning (DTP) the urgent need to assess and address principal freight network deficiencies that currently limit heavy vehicle access at full design weights. Examples include:

• Grieve Parade Bridge over Kororoit Creek, Altona North (68.5t GVM limit)
• Bridges on the Princes Freeway west of the M1 (69t GVM limit)
• Multiple bridge structures on the M80 Ring Road

CTAA urges the Government and DTP to conduct a comprehensive freight task origin-and-destination study, focused particularly on containerised import/export flows, to identify infrastructure bottlenecks and prioritise targeted investment.

Only with these improvements can Victoria unlock the payload productivity gains currently restricted by network limitations.