HORSHAM Rural City Council wants the State Government to terminate Qube Logistic's lease of the Horsham rail freight terminal in Mill Street.
Mayor David Grimble said council would request a meeting with Victorian Transport Minister Terry Mulder in an attempt to decommission the site.
"A report will go up to council next week to seek a deputation to talk with Minister Mulder," he said.
"We have had some correspondence with the Federal Government and now we can proceed with discussions with the State Government."
Cr Grimble read a letter from federal Minister of Infrastructure and Transport Anthony Albanese to Member for Mallee John Forrest at a public meeting on Wednesday.
"Because the Horsham terminal is owned by the Victorian Government, I understand that the state has the option of terminating any leasing arrangements for the site," Mr Albanese wrote.
"The government supports the closure of the old Horsham terminal to allow the redevelopment of this site for the benefit of the community."
The Australian Rail Track Corporation provided a short-term sublease to Qube until it could negotiate access to the Wimmera Intermodal Freight Terminal at Dooen.
A State Government spokesman said the lease proposal was approved to ensure freight transport did not move from rail to road.
"If the site is no longer required for transport purposes, discussions between State Government bodies and the Horsham council can take place on possible options for the future use of the land," the spokesman said.
Cr Grimble said pressure was on Qube and Wimmera Container Line, which has operated from the Wimmera Intermodal Freight Terminal since September, to share the new terminal.
“This letter will improve negotiations between the two companies because there is political pressure on them to close the Mill Street site,” Cr Grimble said.
“My discussion with John Forrest is that federally they are going to push hard to have the issue resolved.
“I spoke to Member for Lowan Hugh Delahunty on Wednesday and he supports that as well.”
More than 100 people, including Wimmera Container Line and Qube employees, attended the meeting at Hamilton Lamb Memorial Hall.
A petition with 96 signatures calling for the Horsham terminal’s closure will be sent to the federal and state governments and Horsham Rural City Council.
Horsham North residents Jenny Delaney, Peter Potter, Elizabeth Cochrane, Leigh Andressen, John Vandyk, David Bowe, Mick Farrell and Rae Nelson volunteered to form a committee to represent the community.
Mrs Nelson said the group would meet for the first time on Tuesday before starting discussions with council.
“This is a big issue and we have a battle on our hands,” she said.