A poor grain harvest last year has lead to more than 20 job losses at the site due to historically low freight volume.

However, an expansion of the site could open up new opportunities for domestic markets and exporters.

Rupanyup farmer and Grains Producers Australia chairman Andrew Weidemann is behind a bid to lobby the federal government for $24 million to expand the freight terminal.

The site has exceeded its original design capacity and now has ongoing congestion issues.

However, the expansion push has so far failed to gain support from the government.

Mr Weidemann said Grain Producers Australia had applied for funding through the Building Better Regions Fund but was unsuccessful.

"We've been through two rounds of funding, both times the project was highly recommended by Horsham Rural City Council for funding, but it missed out," he said.

Mr Weidemann said the expansion project would create 178 new jobs at the site.

"I'm really keen to get this project funded - we are still continuing to work with the federal government through other programs and we will also look at state funding," he said.

"We are trying hard to get it across the line."

Mr Weidemann said the plan would expand the capacity of the rail network.

He said it would benefit the region in creating more opportunities to export products.

"Job creation will also have a flow on affect to surrounding businesses," he said.

"This has an enormous potential to benefit and uplift the region.

"This is one of the great things we can do to drive new innovation in agriculture in the Wimmera."

A BUSINESS case for the Wimmera Intermodal Freight Terminal was put together in 2006, before the site was built.

The document projected that by 2021, there would be more than 22,000 containers going through the site each year.

The site reached the projections in 2017, four years ahead of schedule.

Horsham Rural City Council technical services director John Martin said after exceeding the projects, the site ran at very high volumes for about 18 months.

"That fact that it exceeded the projections is really healthy and reflects the viability of the site," he said.

A FUNDING shortfall when the site was built has also contributed to congestion issues.

Wimmera Container Lines general manager Tim Guidera said significant compromises were made to get the site up and running because of funding

"The intention was to build something for $32 million, but in the end there was less than $18 million available," he said.

"Once the site exceeded its design capacity, we ran into real operational constraints."

Mr Martin said because of the funding shortfall, the terminal was built to what the money would allow for.

He said this meant the site was now getting congested.

DRY conditions and a poor harvest has meant Wimmera Container Lines is now running at its lowest volume ever.

The company, which operates out of the Wimmera Intermodal Freight Terminal at Dooen, employed 42 staff this time last year.

But increasing challenges from domestic and international markets has meant now they can employ only 20 people.

Wimmera Container Lines general manager Tim Guidera said the company was running rail services six times a week, at it's peak.

"We were requiring trains that were almost two kilometres long, with containers double-stacked for a significant portion of these interstate routes," he said.

"Now we are running 560-metre trains, twice a week. Historically, volumes tend to fall to the worst from July to October or November because of the season."

Mr Guidera said a poor harvest in the region had contributed to the drop in volume.

He said an increased domestic demand for feed for stock in drought-affected areas of Australia and challenging international market conditions were also affecting Wimmera exporters.

"Several packers in the regions are now running at below 10 per cent of the export volumes they have achieved in past season," he said.

"As a result of this decline in activity, we have halved our permanent workforce in the past 12 months."

Mr Guidera said upgrades in rail and terminal infrastructure in the region would help the situation.

"The immediate trading outlook appears very subdued," he said.

He said there were emerging opportunities for freight with new mineral sand mining and food packing operations mooted in the region.

However, he said the Wimmera Intermodal Freight Terminal would need more cost effective rail options, along with expanded rail and terminal infrastructure to service the new ventures.

Wimmera Container Lines also hopes to expand into domestic rail services.

The company operates as part of SCT Logistics, which runs rail freight services throughout Australia.

"SCT services many major clients throughout Australia, including dry and refrigerated rail freight services," Mr Guidera said.

"This initiative will allow food producers and manufacturers based in the Wimmera and neighbouring areas direct access to a rail supply chain that extends to many parts of Australia."

A NEW master plan for the Wimmera Intermodal Freight Terminal will look at how the site can improve and expand.

Horsham Rural City Council technical services director John Martin said a draft master plan for the freight terminal was now being developed.

"It is in the final consultation stages and it will be presented to council in the near future," he said.

"This reflects the growth of the region and will look at the future of the site."

Mr Martin said while volume at the freight terminal was down at the moment, overall the base level it operated at was still strong.

"The volume will continue to grow in the future," he said.

Horsham Rural City Council is also pushing for changes to ongoing rail freight issues, which will benefit the Wimmera Intermodal Freight Terminal.

The state government's mode shift incentive scheme provides subsidies for container traffic at a number of sites across the state, including the Wimmera freight terminal.

Mr Martin said it was a good program that helped offset the costs freight.

"However, the government hasn't committed to it long term," he said.

WIMMERA transport groups believe the more freight that goes on rail, the better for the region.

Wimmera Container Lines general manager Tim Guidera said moving freight by rail offered many advantages to the community.

"By getting trucks off the road, it reduces road maintenance costs, reduces road trauma, reduces congestion and delays and lowers carbon emissions," he said.

"Rail has the capacity to handle major uplifts in seasonal demand, however, consistent activity levels are required to justify running regular rail services."

Horsham Rural City Council technical services director John Martin said overall the region's road network would benefit from more freight being exported by rail.

"There are about 2000 trucks that go through Horsham everyday on the highway, but 20,000 containers can go through Dooen on rail, which is 10 days worth of traffic," he said.

"So much more freight can go onto rail."

A PLAN to establish new industrial lots at the Wimmera Intermodal Freight Terminal will stimulate development at the site.

The state government previously announced $1.25 million for stage one of the Wimmera Intermodal Freight Terminal Precinct in August 2017.

This funding was matched by a commitment from Horsham Rural City Council for the $2.5-million project.

Stage one of the precinct includes developing 20 new industrial lots at the Wimmera Intermodal Freight Terminal site at Dooen

The funding also went ttowards street lighting, bitumen road access, and water resources to allow tenants to move into the surrounding area.

The project aims to attract new and existing agribusinesses and food and fibre processors to the precinct and set up operations.

Horsham Rural City Council planning and economic director Angela Murphy said the project was ticking along, and council was now close to completing the design work for the precinct.

"It is anticipated that power and water will be connected by the end of June," she said.

Ms Murphy said there had already been interest from Wimmera businesses wanting to establish a site at the precinct.

She said more businesses at the precinct would increase the productivity and efficiency of the terminal, which would benefit the wider region.