New smart distribution centre for Schneider Electric

Schneider Electric has announced the successful completion of the digital transformation to its flagship, Pacific Smart Distribution Centre (DC) in Ingleburn, New South Wales.
The Smart DC comprises of Schneider Electric’s EcoStruxure technology, driving end-to-end efficiency for the industrial environment, and housing an industry leading Control Tower.
Schneider’s Smart DC is one of the largest in the Pacific, spreading more than 17,500 square meters, and operating 24 hours a day, five days a week. It dispatches more than 5000 lines over 70 routes (air and road) daily, servicing more than 3500 customers in Australia and New Zealand.
“The innovative approach brings together in a single site logistics, customer care, and personnel representing all our international and domestic transport carriers. This way information from global tracking dashboards can be openly and easily shared and discussed to quickly resolve queries and issues,” said Gareth O’Reilly, zone president of Schneider Electric.
“The Control Tower approach has demonstrated a strong return on investment with a 65 per cent reduction in time taken to resolve complaints.”
“We support our clients through the digitisation journey with our EcoStruxure IoT-enabled system architecture and platform. The Ingleburn Distribution Centre is an important player in our global network of Smart sites that showcases the EcoStruxure offerings to customers,” Gareth said.

Mirvac opens logistics hub in Western Sydney

Mirvac has celebrated the official opening of its logistics hub Calibre, in Eastern Creek, Western Sydney.
Calibre’s 22-hectare site includes a mix of flexible warehousing, A-grade office space and advanced specifications with 110,000sqm of floor space across five buildings. Ideally placed to cater to logistics, warehousing and manufacturing companies, Mirvac secured premium brands CEVA Logistics, Miele, Pet Circle, Sheldon & Hammond and ACFS e-Solutions at Calibre, with the Estate 100 per cent leased ahead of its practical completion.
“At Calibre we’ve elevated the standard for industrial and warehouse facilities in Sydney with our focus on quality, functionally and flexibility which will futureproof the estate for years to come. Mirvac drew on its uniquely integrated business model and cross-sector experience to bring the best of office and residential design to an industrial asset, to exceed customer and industry expectations,” General Manager, Industrial at Mirvac, Richard Seddon said.
Treasurer of NSW, The Hon. Dominic Perrottet MP, said the logistics hub was boosting employment in Western Sydney creating hundreds of jobs during construction and on a permanent basis.
Mirvac Group said approximately 450 construction jobs were generated during the development phase with 480 permanent jobs resulting.
Displaying best practice design and sustainability, Calibre has energy efficient lighting, rainwater harvesting, photovoltaic solar, cyclist and end-of-trip facilities and 100 per cent natural lighting to reduce energy bills and create savings for customers.
Operating 24 hours a day, 7 days a week, Calibre is located at 60 Wallgrove Road, Eastern Creek at the centre of Australia’s national supply network within the Eastern Creek logistics hub.

Toyota Materials Handling opens new facility in Sydney

Toyota Material Handling Australia (TMHA) has announced it has opened a new purpose built, state-of-the art facility for its branch in Orange, New South Wales.
The branch recently relocated from its former Cameron Place location to a prized position on a 2,000 square-metre site at the intersection of Northern Distributor Road and Astill Drive.
TMHA Orange branch manager Richard Bopping said the new premises is an improvement for staff and customers in every way.
According to Richard, the previous site’s workshop was also proving to be too cramped, given the branch’s growth in Central Western New South Wales.
“We operate across a massive area stretching as far out as Bourke, Cobar, Dubbo, across to Mount Vic and even occasionally Broken Hill and down to Cowra, and everything in-between such as Mudgee, Forbes, Parkes, Narromine,” he said.
“Our core business is our forklift rental fleet, which is over 200 units-strong and is serviced out of the branch. We have more than double that, again, with retail customers that we service and provide parts and repairs for.
“We also deal in warehousing equipment such as electric pallet jacks, stackers and also skid steers loaders. New products have come online recently – such as sweepers, scrubbers, scissor-lifts, vertical lifts and the Taylor Dunn product line – to name a few. These are opening opportunities for us to expand into other markets and with our new premises we are well-placed to support our expanding range,” he said
With a site (land) size of 2000m2 and a building of 880m2 – with office being 140m2 and another 140m2 for an office mezzanine level – TMHA Orange has ensured it has all the appropriate space it required, with the addition of future-proofing. “In the future we would be able to support a rental fleet double the size of our existing fleet of 200 units, we would have enough provisional space in our workshop to support that,” Richard said.
The new building has been built for TMHA with environmentally sustainable principles in mind. “We have greatly reduced environmental impact footprint with the new building. We have solar on the roof which will just-about negate any power bill and a water tank plus a greywater system for the building. And we were able to achieve all this at a similar cost to running our old one,” Richard concluded.

DB Schenker launches direct air freight service from Chicago to Sydney

DB Schenker has launched Direct Express – Australia –  a new weekly scheduled air cargo service from Chicago to Sydney, Australia.
The service offers direct 777-300 freighter service to Sydney, every Monday departing from Chicago.
With a payload over 102 metric tons, the 777-F provides more capacity than any other twin-engine freighter as well as being one of the most energy-efficient and environmentally-friendly aircraft effectively reducing carbon emissions as compared to most other aircraft currently in service.
Additional service features include:

  •  A 22:45 departure resulting in a late cut-off for shipment drop-offs
  • With a 12:05 Wednesday arrival in Sydney, shipments are Customs cleared with same-day connections for next-day delivery to most major markets in Australia
  • Cold chain storage operations in both Chicago, IL and Sydney, Australia
  • With the ability for block space agreements, shippers can get guaranteed lift during heavy or peak periods of the year
  • Shipments remain under DB Schenker’s single-source control
  • DB Schenker’s eSchenker web portal offers shippers 100 percent shipment visibility from pickup to delivery
  • A wide range of shipping solutions for heavy and outsized products

 

LOGOS buys 15.3ha Villawood site from Toll Group

LOGOS has exchanged contracts to acquire a 15.3-hectare infill development site in Villawood, Sydney from Toll Group, including a partial sale and leaseback agreement. The acquisition is due to settle in late 2019.
Located at 246 Miller Road, Villawood, the property has good access to Sydney’s key transport network, with five freeway entry points within 10km and existing entry to the South Sydney freight railway line.
The acquisition includes a partial leaseback to Toll over a portion of the site, with LOGOS to undertake upgrading works across the existing facilities. LOGOS plans to redevelop the remaining 11.3 hectares of the site into a logistics and intermodal estate on a speculative basis with an estimated on completion value of circa $200 million.
LOGOS’ head of Australia and New Zealand Darren Searle said: “The Villawood property acquisition is a new strategic infill development opportunity that will greatly benefit both intermodal and logistics operators.
“To capitalise on the property’s strategic location and the future infrastructure development in the area, we will look to develop intermodal and logistic facilities to service the strong demand we are seeing from our existing and new tenants in this area for modern, high quality facilities,” he said.
The NSW Government is investing circa $80 billion in infrastructure across western Sydney over the next four years, including the construction of the WestConnex and NorthConnex Motorways and upgrades to the area’s existing road systems under the $3.6 billion Western Sydney Infrastructure Plan.
The acquisition also strengthens LOGOS’ relationship with Toll, with the Group having developed three facilities for the global logistics provider.
Mr Searle added: “We are pleased to be working with Toll on this strategic acquisition and look forward to enhancing their existing facilities for them within this this key industrial market”.

Import containers: the costs just keep mounting

A reduction in empty container park capacity, larger numbers of containers being handled, and a high level of import empty container ‘re-directions’ by shipping lines, are causing significant additional empty container handling costs in Sydney.
CTAA director Neil Chambers said: “The empty container management situation in Sydney has been getting progressively worse over a number of months now.
“For many container transport operators, it has reached the stage where they cannot fully absorb the additional costs.
“A conservative estimate is that the additional costs being borne by transport operators in managing empty containers in Sydney are between $90 to $200 per container, depending on the level of delay and additional handling necessary.”
Staging of empty containers via transport yards: added costs
Gate capacity and available truck arrival slots are at a premium at some key Sydney empty container parks (ECP) given the numbers being directed to those facilities by shipping lines. This is amplified when the ECP do not operate regularly after hours or on weekends.
Therefore the vast majority of empty containers must be staged through transport yards to manage the task.
This results in additional costs:

  • Container lift-on / lift off – container staging.
  • Additional administration and yard planning.
  • Additional truck kilometres and one-way truck travel with reduced opportunities to backload.

In many instances, transport operators are unable to book sufficient truck arrival slots at designated ECP in a timely manner, leading to de-hire delays and significant risks that empty containers might attract container detention fees from shipping lines for late return.
Empty container re-directions with little notice
“A significant contributor to the higher costs of empty container management in Sydney are the number and frequency of empty container ‘re-directions’ that are ordered at the discretion of the shipping lines with little notice.” observed Neil Chambers.
Port Botany is Australia’s empty container ‘re-direction capital’, with over 30 re-direction notices current every day, equating to hundreds of re-directions per month. By contrast, this is more than double the number of re-directions in Melbourne.
“Empty containers destined for one ECP, or for direct wharf de-hire, are suddenly re-directed to another location, causing significant planning difficulties for transport operators who must adjust their fleet and job allocations at the last minute.
“These re-directions are occurring solely to suit the shipping lines that want the empty containers sent to a specific location for their next use, including to meet regional rail export empty demands or for international empty repatriation, rather than the shipping line being responsible for the costs of repositioning the empty at a later date.
“That’s all well and good, but the lack of sufficient notice penalises others in the container logistics chain through higher import empty container handling and transport costs. To make matters worse, the lack of sufficient operational notice of these re-directions means that trucks with a valid ECP arrival notification, based on the original de-hire location specified by the shipping line, are being turned away because a re-direction has been put in place last minute.”
“This results in futile truck trips, added truck kilometres travelled, more one-way under-utilisation of trucks, the need to constantly rearrange empty containers stacked in transport yards, and de-hire time delays.”
Mr Chambers noted: “The lack of sufficient notice of re-directions, and the practice of not honouring original legitimate truck bookings at ECP because a re-direction has been ordered, is unacceptable to container transport operators.
“We are calling on all shipping lines and their ECP providers to give at least 24 hours’ notice of any empty container re-directions as well as a clear end-date for the re-direction.”
The administration of these re-direction notices is made more difficult where shipping lines do not provide electronic data to their ECP providers and through the Containerchain notification system, meaning that fleet allocators must manage and monitor re-direction notices manually.
This can result in futile truck trips to the wrong ECP if emailed re-direction notices are missed.
Unrealistic container detention timeframes & claims
Despite the increased delays in managing import empty container de-hires effectively, there is no incentive for shipping lines to extend container detention-free time to importers.
Container detention time restrictions are more likely to be exceeded as a result of the current delays and inefficiencies in Sydney.
“Shipping lines would be making an absolute killing at present with container detention revenue, some of which will have been incurred because of the strict policies of the shipping lines themselves leading to a lack of de-hire flexibility, last minute de-hire re-directions, and little cooperation with shippers on the extension of detention-free time.
“That is particularly perverse,” Mr Chambers noted. “Many transport operators apply business rules with their importer / forwarder customers requiring adequate business-day notification that import containers are ready for empty de-hire.
“In addition, however, transport companies are increasingly unwilling to accept container detention claims liability passed to them by their customers when the delays in de-hire are outside of their control. This is a matter for negotiation between transport operators and their direct customers.
“Transport operators aren’t a direct party to the Bill of Lading contract between the importer and shipping line on empty container detention terms and conditions.”
“So, it’s not up to the transport company to seek relief from container detention fees. And nor should it be up to the transport company to pay any container detention bills post the event when the delays in de-hire were beyond their control or not realistic in the timeframes imposed.”
“In the current circumstances in Sydney, made worse also by the fumigation delays caused by the widespread measures to address the Brown Marmorated Stink Bug (BMSB) biosecurity threat, it is not unrealistic for import containers to be taking more than 15 to 20 days from the date of discharge to be able to be returned empty.”
“Container detention claims prior to that are equally unrealistic.” concluded Neil Chambers.
“It is even more imperative that when delays threaten a breach of the shipping lines’ imposed container detention policies, importers and forwarders – the customers of the shipping lines – should be proactive in:

  • Seeking an extension of the ‘free time’ from the shipping line for the return of the empty container; and/or
  • Requesting that the shipping line allow the container to be de-hired into an ECP or wharf facility with more flexible de-hire arrangements and longer opening hours.

“There are several ECP in Sydney that open longer hours. Importers, forwarders and their transport providers should be more proactive in convincing shipping lines that they will direct the empty de-hires there, instead of suffering delays in trying to de-hire to nominated facilities that are congested or have limited opening hours.”
CTAA Alliance companies are discussing the current delays and inefficiencies with the ECP in Sydney, shipping lines, NSW Ports, Transport for NSW and the NSW Government.

Snack Brands to anchor $400m Sydney site

Universal Robina Corporation-owned Snack Brands Australia has committed to both a pre-lease facility and adjacent land sale for a site area of 10.42 hectares in Erskine Park with Altis. This new commitment as part of their supply chain transformation with consultancy firm TM Insight, is one of the largest industrial property deals in the last 12 months.
The 30,255 square-metre pre-lease facility, located on First Estate Mamre Road Erskine Park, will be situated on land four times the size of the Melbourne Cricket Ground and have an end value in excess of $400 million.
The new state-of-the-art distribution centre will transform the supply chain network for the iconic snacks company whose brands include CC’s, Thins, Kettle, The Natural Chip Company, Cheezels and Jumpy’s.
The pre-lease facility will comprise a significant 35-metre high-bay section to the building and is being developed with leading-edge technology to create an automated warehousing and distribution system.
Supply chain director at Snack Brands Neville Tapp said: “This facility will support our growth strategies and enable us to enhance our customer service at the lowest possible cost.  We are excited about working with Altis and the team at TM Insight to deliver this project over the coming years.”
Global supply chain and property consultancy TM Insight worked alongside Snack Brands in the development of the concept plan for the new site. After understanding the business case metrics, TM Insight ran the property procurement process and will be project managing the delivery of the new facility.
Director of TM Insight Travis Erridge said: “This is a significant step forward for Snack Brands in efficient operations for its customers.
“Snack Brands is investing in its future with a world class facility and has looked at all options to determine the best solution that meets both their current and future distribution requirements. Property specifications were found on the back of a robust business case and operational design completed inhouse.
“TM Insight developed the business case, ran the property procurement process and will also project manage the build. This end-to-end service ensures Snack Brands have a partner throughout the process that will make certain the facility is delivered to its highly technical specifications with the integration of automation in the building structure,” he said.
Stage one of the development will be operational in Quarter 4 2020.

Western Sydney Airport selects architect to develop business park

Western Sydney Airport has appointed Architectus to plan a business park on a dedicated 191-hectare parcel of airport real estate.
The business park will offer the opportunity to integrate office, retail, industrial, hotels and conference facilities within 1.5 kilometres of the airport terminal.
“There will be opportunities for businesses to be at the terminal’s doorstep at what will become Australia’s largest international gateway. When the Airport opens in 2026, it will be built for 10 million passengers a year, but we’ve got a blueprint for staged growth to become one of the world’s biggest airports in the decades to follow and our business park will be a key feature,” Graham Millett, CEO, Western Sydney Airport said.
Graham said he expects interest in the Airport’s business park to come from a range of different industries.
“Consultants, tech companies, defence and aerospace, airlines and pharmaceutical are just some of the industries that would enjoy considerable advantage being located at the Airport’s front door,” he said.
Master planning work on the Airport business park is expected to be complete in mid-2019. Work to build Western Sydney Airport began in September, with the business park set to open before Airport operations begin in 2026.

Toyota Australia opens new warehouse in Sydney

After more than 11-months of construction, Toyota Australia has officially opened its largest and newest parts warehouse in Western Sydney.
The Toyota Parts Centre NSW (TPC) is located on a 6.4 hectare site close to a network of motorways and major arterial roads at Kemps Creek, New South Wales.
The TPC will house more than 128,000 parts and will ship approximately 27,000 parts daily.
It features more than 50,000m2 of total work area and class-leading safety and technology, including low rack storage systems, which will provide a safer and more efficient workplace as employees will no longer need to work at heights to reach parts.
It will also include full separation of man and machine to build in safety, as well as the first use of a fleet of autonomous intelligent vehicles (AIV) to reduce manual carrying of parts.
The TPC was officially opened at a special event attended by the Honourable Shayne Mallard, MLC; Councillor Ross Fowler OAM, Mayor of Penrith as well as senior executives from Toyota Motor Corporation in Japan and Toyota Australia.
Speaking at the event, Toyota Australia President and CEO, Matthew Callachor said the project had a goal to be the best global Toyota warehouse in safety, efficiency and sustainability.
“Our commitment, as a mobility company, is to address the environmental challenges that we face, and to contribute to an ever-better society,” Mr Callachor said.
“Embracing green building solutions, cutting CO2 emissions and utilising alternative fuel sources go hand-in-hand with our production plans for new vehicles.
“We are already the leader in fuel-saving hybrid technology and we plan to introduce at least five new hybrid vehicles to our range by mid-2020, including the next generation RAV4 next year,” he said.
As part of Toyota Australia’s plans to reduce the TPC site to zero emissions by 2020, 2,200 solar panels were installed on the warehouse roof earlier this year.
So far, they’ve generated 556,000 kWh or enough energy to power 125 four-person households.
The power generated so far – before the building even became operational – has prevented more than 477 tonnes of greenhouse gases from entering the atmosphere.
Other environmental features built into the site include rainwater tanks for irrigation and toilets, as well as energy efficient LED sensor lights.
The building is cleverly positioned at a specific angle to ensure maximum natural cooling, effectively reducing air-conditioning costs.
For the first time outside of Japan, Toyota Australia will be trialling the use of hydrogen powered Toyota Material Handling fuel cell electric forklifts, with a long-term goal of being able to generate hydrogen on site in the future.
Read more:

Where will you find industrial land in Sydney?

In March 2017, Colliers Research undertook an investigation into Sydney’s industrial land supply. The paper provided the number of years of industrial land supply left as well as a projected amount of land when factoring in ‘potential future employment land areas’.
Comparing the last paper (which used 2016 data) to an updated paper just published (using 2017 data), it indicates there is a net increase of industrial-zoned land supply within the Sydney Metropolitan Region, however, a decrease in the total area of available land yet to be developed (i.e. undeveloped zoned land) – a decrease of around 113 hectares.
Between 2016 and 2017, there has been a net increase of 123 hectares of industrial zoned land – mainly due to rezonings. Over 200 hectares of industrial land was gained as a result of rezoning for industrial uses in 2016, including Moorebank (157ha), Mamre West in Penrith (47ha), and Cudgegong Road Station in Blacktown (28ha). Over the same period, just over 60 hectares of employment land was lost due to rezonings to alternate use – particularly within the North West, Central West, South, and North sub-markets.

According to the NSW Government Planning and Environment’s Employment Land Development Monitor, there is a greater concentration of industrial zoned land (developed and undeveloped) within the North West and South West sub-markets (representing a combined 59 per cent of the total Sydney Metropolitan Area). The North and Inner West sub-markets’ share of industrial zoned land is only 3 per cent and 4 per cent, respectively.
Although the South sub-market is regarded as one of the most constrained market with respect to land supply, the lack of supply is experienced within the ‘inner’ South area (i.e. encompassing areas such as Alexandria, Botany, Mascot, Banksmeadow, and Rosebery). There is extremely limited scope for development, with only 8.6 hectares of undeveloped land (all of which is unserviced). As of 2017, the Banksmeadow industrial precinct lost all its undeveloped serviced land supply.
The Sutherland Local Government Area (‘outer’ South region), on the other hand, holds around half of the South sub-market’s land supply (or 530ha) with large scope for industrial development (113ha of undeveloped land).
Between the period 2008 and 2016, the average annual take-up rate of industrial land was 157ha (lowest level equating to 105 hectares per annum and highest level recorded at 264 hectares per annum). Most of the land take-up was concentrated in the western sub-markets over the period.
Supply / demand gap
In order to determine the future demand for land, the average historic land take-up rate has been applied (i.e. 157ha per annum). This average will be considered the ‘base case’. A ‘high case’ and ‘low case’ of 264 ha and 105 ha per annum (based on the highest and lowest take-up recorded over 2008 to 2016) scenario has also been considered to deduce a range in the years of supply left.
Given that there is currently 663ha of undeveloped serviced land, and taking into account half of the undeveloped unserviced land (i.e. 1,076ha) equates to 1,739 ha of total land supply.
Note: Only half of the total undeveloped underserviced land has been added to the total supply calculations in order to take into account land required for roads, infrastructure requirements and environmental considerations, as well as possible future planning changes to alternate uses (such as residential, retail, commercial land uses).
In addition to undeveloped land, taking into account around 30 per cent of the total area set for future employment land release (i.e. 1,996ha) equates to 3,735 ha of total land supply.

©2019 All Rights Reserved. MHD Magazine is a registered trademark of Prime Creative Media.