Woolworths has commenced building works on the supermarket’s new Melbourne Fresh Distribution Centre (MFDC) in Truganina, Melbourne. The multi-million state-of-the-art facility, which will be built by Vaughan Constructions, will store and deliver fresh produce and chilled products to hundreds of Victorian supermarkets, create 200 jobs during construction and 300 permanent new jobs when it opens in late-2020. The custom-designed facility will replace Woolworths current operations at Mulgrave, and provide the leading national retailer with a market edge in terms of supply chain dynamics. The MFDC will be co-located with Woolworths’ meat supplier Hilton Meats’ production facility. Co-location with Hilton and closer proximity to more fresh food suppliers will take up to 600 trucks off the West Gate Bridge each week and a further 3,000 truck movements off Melbourne roads each year. “This development will help us deliver top quality fruit and vegetables to our customers fresher, faster and more efficiently than ever before. At one-and-a-half times the size of the MCG field, the distribution centre will provide a significant uplift in capacity to support our continued growth in Victoria. We’re proud to be investing in a best-in-class supply chain network in Victoria – delivering fresher food to our customers, taking trucks off Melbourne’s roads, and creating hundreds of new jobs,” Woolworths Chief Supply Chain Officer Paul Graham said. At full capacity more than one and a half million cartons a week will move through MFDC bringing customers fresh fruit and vegetables and chilled goods from more than 500 suppliers. The $135m investment on the MFDC is majority funded by landowner Charter Hall, with Woolworths signing an initial 15-year lease on the site. This builds on an extensive national relationship between Woolworths and Charter Hall across both industrial and retail properties. The commissioning of the MFDC will take around 600 truck movements off the West Gate each week as Truganina is located closer to more Woolworths suppliers than Mulgrave. Co-location with Hilton Meats will take a further 3,000 truck movements off Melbourne roads each year as it eliminates shuttle runs between Mulgrave and Truganina. The MFDC is also targeting a Five Star Green Star rating from the Green Building Council of Australia, with a solar panel system on the roof, charge points for electric trucks, and fuel savings of more than 400,000 litres each year from transport efficiencies. The Mulgrave Produce DC will continue to operate until the MFDC opens in late 2020.
Tigers has been selected as the local logistics partner to support the launch of Asendia Oceania and provide a regional footprint for B2C and omnichannel fulfilment solutions in Australia. Hong Kong-based Tigers has an extensive warehousing network across Australia in Perth, Adelaide, Melbourne, and Sydney, with a focus on B2C vertical markets. Read more
FedEx has made the decision to not renew the FedEx Express U.S. domestic contract with Amazon as the company wishes to focus on serving the broader e-commerce market. In an announcement FedEx stated that this decision does not impact any existing contracts between Amazon and other FedEx business units or relating to international services. Amazon is not FedEx’s largest customer. The percentage of total FedEx revenue attributable to Amazon represented less than 1.3 percent of total FedEx revenue for the 12-month period ended December 31, 2018. “There is significant demand and opportunity for growth in e-commerce which is expected to grow from 50 million to 100 million packages a day in the U.S. by 2026. FedEx has already built out the network and capacity to serve thousands of retailers in the e-commerce space. We are excited about the future of e-commerce and our role as a leader in it,” FedEx declared.
Texas-based Emergent Cold is moving further into the Australian market with the acquisition of Victoria- based Oxford Cold Storage. According to a statement released by the company, this acquisition complements the broader Emergent Cold strategy of creating a global network of cold chain businesses and is subject to regulatory approval. The organisation recently acquired Australian businesses Swire Cold Storage and Montague Cold Storage. “This is a very exciting time for the Oxford business. The Emergent acquisition provides our staff with increased opportunities and career development. It will also provide for the opportunity to service clients across Emergent’s substantial geographical footprint and to increase our service offerings,” Paul Fleiszig, Oxford’s Operations and Marketing Director said. “We look forward to welcoming the Oxford Cold Storage team to the Emergent Cold network. Combining Oxford with our platform will further strengthen our offering to the Australian and International market,” Neal Rider, CEO of Emergent Cold said. Emergent Cold was founded in 2017 with the vision to be the leading global cold chain services partner for its customers. Emergent Cold has grown through a combination of business acquisitions and new greenfield developments and now has a network of 42 cold stores in five countries.
Australian Brisbane based company e-Motion Concepts (eMC) has signed a MOU with Rap Intelligent Vehicle Company, a Chinese electric vehicle manufacturer. As part of this agreement, eMC will become the exclusive importer, distributor and service agent for the current two vehicle models which will be used for the last-mile in urban environments. Both RAP vehicles will be fully electric three-wheel mopeds for the transport of goods in urban environments. eMC welcomes the addition of the two RAP vehicles to its expanding portfolio of Urban Transport Solutions for goods and people. “We are very pleased to have reached this agreement with RAP-SEV. The two vehicles are novel products that provide a solution to the ever-growing challenges urban transport and deliveries have to address, whilst being innovative, efficient, electric and safe and packed with features, such as GPS tracking and remote fleet management,” Wolfgang Roffmann, founder and CTO of eMC said. “Australia is a very promising market, we will work together with e-Motion Concepts to support their strategy to introduce the vehicles across Australia. Our vehicles have been designed to meet strict European compliance standards and our factory is equipped to support large volumes of production with paramount focus on quality control and after sales service,” Peter Wang, Chief Executive Officer of RAP-SEV said. The vehicles will be first revealed at the upcoming Electric Vehicle Expo in Noosa, Sunshine Coast on 22 June 2019. Mr. Roffmann further explains “These vehicles are perfectly suited to urban transport solutions. Known as the ‘first and last mile’, the RAP vehicles are smart electric vehicles designed to have a low environmental impact and a smaller footprint than traditional petrol vehicles, making transport movement more efficient, and also less impactful on the city environment” eMC’s Chief Executive Officer, Harry Proskefalas says. “Our strategy has a strong emphasis on aligning with commercial operators including local and national courier providers, food and goods delivery, universities and local governments in delivering long-term sustainable solutions” he continued to state that “The future of logistics and transport is, high efficiency and clean energy with smart technology, and these RAP vehicles provide the solutions” The unique RAP vehicles have been specifically designed for last mile delivery tasks in urban environments. Powered by high quality motors and fueled by Lithium batteries, a range of up to 110km per charge and a top speed of 50 km/h together with a width of 1 and 0.8m respectively they are perfect for inner city last mile deliveries. The vehicles are also packed with features usually only found in cars, such as LED instrument screen and reversing camera and reversing radar and Bluetooth connectivity. The CT-Cargo (Bange) and the CT-Kube (OAK) are the first vehicles of this kind with a T-Box, allowing the vehicle to be remotely monitored, including GPS, battery status and health with a smart app. RAP-SEV vehicles are currently being homologated and expected to be available in third quarter of 2019 in Australia.
C.H. Robinson continues to expand its global footprint with its second acquisition of 2019. The company has acquired Dema Service, an Italian-based provider of European road transportation. “The acquisition of Dema Service is an exciting milestone for C.H. Robinson and will strengthen our existing footprint in Italy, one of the largest road transportation markets in Europe. We are eager to work with Dema Service’s customers to offer our full suite of logistics services to help improve their supply chains,” Jeroen Eijsink, President of Europe for C.H. Robinson said. The company recently acquired the freight forwarding group Space Cargo, which expanded C.H. Robinson’s presence in Spain and Columbia. Dema Service is a privately-owned logistics company providing road transportation services across Europe. Headquartered in Pescara, Italy, Dema Service has approximately 100 employees and three offices located in Italy, Poland and Czech Republic. “We are excited to join C.H. Robinson, one of the world’s largest third-party logistics (3PL) providers, and contribute to the company’s strong presence in Europe. Our extensive local market knowledge in combination with C.H. Robinson’s global network will allow us to provide world-class service to customers,” Mauro de Lellis, Co-Founder of Dema Service said. C.H. Robinson will integrate Dema Service into its European Surface Transportation division and single global technology platform, Navisphere.
LOGOS has announced it has entered into an agreement to acquire a strategic asset in Truganina, one of Melbourne’s prime industrial suburbs, via an off market deal. The asset on completion will provide a purpose built facility offering 48,770sqm of GLA for an initial ten year term. The deal is anticipated to complete in early 2020.
Located at 30 Logistics Drive, the 8.5 hectare property benefits from direct access to Melbourne’s key arterial road networks, including the Princes Highway, West Gate Freeway and Western Right Road.
“The Melbourne logistics market continues to perform strongly and we are pleased to be able to strengthen our foothold in this strategic market. LOGOS’ Melbourne portfolio now stands at circa 350,000sqm with an additional 27 hectares of development land at our Truganina Logistics Estate. We are a strong advocate of the benefits that western Melbourne provides Victorian and Australian supply chains and are confident we will see strong rental growth and tenant demand over the coming years in this area as a result of the diminishing supply of available zoned and serviced land,” Darren Searle, LOGOS’ Head of Australia and New Zealand said.
Truganina is a well-established industrial suburb which includes facilities for a number of large format logistics operators, including FMCG/Supermarket operators, e-commerce operators and 3PL groups.
LOGOS’ Australian portfolio, which spans New South Wales, Victoria, Queensland and Western Australia, has a target end value of over $4.2 billion.
Dematic has announced the launch of its Micro-Fulfilment System, an e-commerce order assembly system for retailers that need to support same day home delivery, as well as click-and-collect. The Dematic Micro-Fulfilment system is an ultra-local distribution solution that enables orders to be assembled quickly in a location close to the customer, inside a retail store or in an urban / suburban DC (distribution centre). The order assembly system is designed around process improvements and comprised of performance optimising software and automation. “Dematic Micro-Fulfilment is a high-performance solution that makes rapid response order assembly cost effective for the customer and the retailer. In operation, the automated order assembly solution provides compelling results by minimising the time, space, and cost to fill orders,” said Pas Tomasiello, Senior Director Integrated Systems Group ANZ, Dematic. The system accommodates a wide range of inventory in a compact, high-density layout that requires a small footprint. It significantly reduces the cost per order picked to a level that allows retailers to offer rapid response e-fulfilment at a price point attractive to their customers, and with the appropriate margin for retailers.
The Australian Logistics Council (ALC) has congratulated Prime Minister Scott Morrison for his decision to incorporate freight transport as a specific responsibility in his revamped ministerial line-up. “The Prime Minister is sending an important message to our industry and to the wider community with this announcement,” Kirk Coningham, CEO at ALC said. “ALC especially welcomes the appointment of Hon. Scott Buchholz as Assistant Minister for Road Safety and Freight Transport. It is significant that freight transport is now a specific portfolio title within the ministry, and highlights that enhanced supply chain performance will be a priority for the re-elected Coalition Government.” “ALC also congratulates Deputy Prime Minister Hon. Michael McCormack MP on his re-appointment as Minster for Infrastructure, Transport and Regional Development, and Hon. Alan Tudge MP on his elevation to Cabinet as Minster for Population, Cities and Urban Infrastructure.” “We also welcome Hon. Sussan Ley MP as Minister for the Environment, and congratulate Senator Hon. Matt Canavan on again being appointed Minster for Resources and Northern Australia.” “During the election campaign, ALC released Freight: Delivering Opportunity For Australia which sets out 39 priority actions for the incoming Federal Government that address challenges and opportunities relevant to all modes of freight transport.” “ALC will be pursuing the matters contained in this publication with the re-elected Coalition Government, and ensuring that supply chain efficiency and safety is appropriately prioritised in government policy making.” “The most urgent priorities are the finalisation the National Freight and Supply Chain Strategy, establishing the National Freight Data Hub, making certain that electric freight vehicles form part of the National Electric Vehicle Strategy the Government has committed to develop, and doing more to enhance freight infrastructure in Northern Australia, so we can take advantage of the region’s proximity to growing export markets.” “ALC also congratulates Hon. Anthony Albanese on his appointment as Leader of the Opposition. Given his vast experience in dealing with infrastructure related matters, there is now a genuine opportunity to build a long-term approach to infrastructure planning and investment that is truly bipartisan in nature. ALC hopes to work closely with both the Government and the Opposition in furtherance of that objective.”
Gladstone Ports Corporation’s (GPC) Board has made the decision to terminate Peter O’Sullivan’s tenure as CEO and will immediately start a merit-based search for GPC’s new leader. In a statement regarding the CEO, the GPC revealed that Peter O’Sullivan was suspended on 13 December last year, on full pay, and has had no involvement with the day to day operations of the port since that time. The substantiated complaint related to Mr O’Sullivan’s role in a staff disciplinary matter. Craig Walker continues to serve as the Acting Chief Executive Officer. The GPC stated that as an active and significant contributor to the QLD and Gladstone community and economy, the focus of its employees remain on the running of a safe and busy port to ensure we deliver sustainable economic growth and social prosperity for our region.