Leading Asia-Pacific logistics specialist LOGOS and its partners have signed a binding agreement with Qube to buy Australia’s largest intermodal logistics facility at Moorebank in south-western Sydney for c.$1.67 (A$1.79bn).
By acquiring the Moorebank Logistics Park (MLP), the consortium will establish a new benchmark for logistics development in the Asia-Pacific and contribute to ongoing further innovation in the sector globally, the company said in a media statement.
The site includes approximately 243 hectares of land which will be developed into high quality industrial property and infrastructure including potential for up to 850,000sqm of warehouse opportunities directly adjacent to Australia’s largest rail intermodal facilities with direct linkage to Port Botany.
When finished, the site has an estimated value of $4.2bn.
“This acquisition positions the LOGOS consortium at the heart of a logistics revolution that will capture powerful economic benefits as the MLP’s intermodal terminals ramp up, increasing the efficient transfer of goods from Port Botany to customers around Australia,” said a spokesperson.
“Our collective vision for MLP represents a fundamental shift in east coast logistics, as a fully automated port-to-site rail link. The high levels of automation across the intermodals and warehousing will drive significant long-term cost advantages and improve supply chain predictability which will offer important labour efficiency and stock availability. The scale of a logistics site with this range of benefits, within a 30-minute drive of a major global CBD, has not been seen in Australia before.”
Changes in consumer behaviour and expectations, especially since the emergence of Covid-19, have driven significant impacts on supply chains. This has forced distributors and retailers to look for longer-term solutions to meet customer demand in food, cold storage, pharmaceutical, freight and distribution as a whole, added LOGOS.
“Connectivity, efficiency and intermodal capability are critical components of a pre-eminent logistics site, and no site is better equipped to facilitate market-leading levels of scale and automation than the Moorebank precinct,” said LOGOS head of Australia and New Zealand Darren Searle.
“The demand from global and domestic customers for high-quality, larger, automated distribution warehouses and fulfilment centres has continued to grow, and the LOGOS Consortium is delighted to be advancing NSW’s pre-eminent position in the national logistics network through the acquisition of MLP.”
The site’s location in Sydney’s southwest precinct is highly strategic, providing direct access to the M5 motorway, M7 motorway, and Hume Highway, servicing key freight corridors through NSW.
“The supply chain benefits offered by the increased access to freight by rail over road will benefit the tenants of MLP enormously, and the connectivity between Port Botany, the distribution centre at Moorebank and the warehouses on site will offer unparalleled operational savings for importers and exporters,” said Searle.
“The site benefits extend far beyond just the tenants. By 2030, MLP is aiming to reduce Sydney and interstate truck travel by 243,000km per day, and lower carbon emissions by the equivalent of removing 11,000 vehicles from the road for a full year.
“We are proud to have leading sustainable practices and outcomes at the centre of our investment process.”