The Australian Logistics Council (ALC) has welcomed a new publication from the Greater Sydney Commission, noting that it underscores just how important proper planning and the preservation of key freight corridors is to ensuring the efficient operation of Sydney’s freight transport network over the next four decades.
“[The] ALC welcomes Directions for a Greater Sydney, particularly its emphasis on sustained investment in freight corridors, such as the Northern Sydney Freight Corridor and the Moorebank Intermodal Terminal,” said Michael Kilgariff, Managing Director, ALC.
“As the Commission correctly notes, the construction of Western Sydney Airport will be the catalyst for significant additional economic expansion in Western Sydney in the years ahead. This facility will complement the freight activity that already occurs at Sydney Airport and Port Botany, and help a burgeoning city meet its future freight task.
“It’s pleasing to note the Commission has also highlighted the importance of the Port Botany rail line duplication – a project which [the] ALC has long argued is vital in ensuring the city’s freight network is able to keep pace with growing demand,” Kilgariff added.
“[The] ALC strongly supports the WestConnex project and its potential to improve traffic flows and alleviate congestion for freight logistics operators using the Sydney road network.
“There is no doubt the Sydney Gateway has improved the project, and ALC looks forward to clarification as to how it will connect with Port Botany and Sydney Airport, given the critical role these two facilities play in the city’s freight network.
“The recurring theme that emerges in Directions for a Greater Sydney is that all stakeholders accept the need for strategically planned investments that will provide certainly and clarity for investors and local communities alike.”
Moorebank Logistics Park, Australia’s largest intermodal precinct, continues to make headlines with yet another multi-million funding boost. Freight and logistics company Qube which is developing the project, has secured $150 million from the Clean Energy Finance Corporation (CEFC) under the premise of increasing the use of rail networks to distribute containerised freight to and from Port Botany.
According to the CEFC, the project is expected to reduce freight truck emissions by switching the movement of over 1.5 million freight containers at Port Botany from road to rail, with an estimated annual abatement of more than 110,000 tonnes of CO₂.
As such, it is expected to reduce the distance travelled by container trucks on Sydney’s road network by 150,000km every day, and 93,000km per day for long-distance interstate freight trucks.
Locally in Sydney, it will cut an estimated 3,000 truck journeys per day from Sydney’s road network, particularly the M5, according to the CEFC.
“Emissions from road freight transport are a substantial part of our carbon emissions challenge. By switching to rail solutions, the Moorebank project will reduce emissions, reduce urban congestion and improve national freight connectivity for years to come,” said CEFC CEO, Ian Learmonth.
Learmonth added that despite its massive scale – operating across a site the size of Sydney’s CBD – the freight and energy efficiencies delivered via the Moorebank Logistics Park are expected to result in net emission reductions totalling more than two million tonnes of CO₂ over a 40-year period.
However, this net reduction takes into account construction emissions, embodied energy within building materials, offsite transportation, operational emissions and savings from the onsite use of renewable energy. It does not factor in inevitable advances in technology over that 40-year period – for example the imminent introduction of Euro-VI engine technology.
Still, Qube Holdings’ Managing Director, Maurice James, said the Moorebank Logistics Park would transform the containerised freight supply chain in Sydney and deliver significant community-wide benefits.
“Our focus at Qube has always been on how we can improve the efficiency of the import and export supply chain, how we can provide a faster and more cost-effective way to get goods to consumers and the Moorebank terminal is certainly a key part of that strategy,” he said.
“Being able to deliver a faster and more reliable supply chain that creates savings for our customers, as well as remove thousands of truck trips from our roads at the same time as delivering very significant environmental benefits is a great trifecta.”
The Moorebank Logistics Park will be developed across 243 hectares in south-western Sydney, taking advantage of its location near the Southern Sydney Freight Line, M5 and M7 motorways and in an area of rapid population and economic growth.
It is expected to deliver “significant job creation”, with the precinct employing as many as 6,800 people when operating at full capacity and over 1,300 jobs to be created during the construction phases.
International freight forwarding firm Rohlig Logistics has opened a new 6,000m2 warehouse in Sydney.
The new warehouse is equipped with the latest in warehousing and logistics technology, including a sunken dock with a seven-metre in-ground hoist capable of handling 14 tonnes of airfreight. Additionally, the facility will be able to handle up to 4,000 pallet spaces, covering from warehousing and freight, to contract logistics.
“Our research and development team are always looking at new processes and technologies that can streamline our operations, deliver cost savings and efficiency, while also adding value for customers,” said Hany Amer, Managing Director, Rohlig Australia. “The sunken dock, for example, means we are able to cope with much bigger loads and offer more services than any of our competitors.”
This new addition to the organisation’s operations is the latest in a line of improvements to facilities in Brisbane, Melbourne, Freemantle and Adelaide, following the launch of a small parcel service last year and a new customs consulting service.
Parkes, New South Wales, a town perhaps best known for its reknowned annual Elvis festival, has released a light-hearted video detailing the reasons why Amazon should choose to set its fulfilment operations up there when the eCommerce giant arrives in Australia.
Telling the story of a man using Amazon to get his hands on an Elvis costume, the video notes that Parkes’ air, road and rail connections make it a worthy contender for Amazon’s warehouses.
Parkes Shire Council noted that the town is an intermodal national logistics hub situated where the north-south and east-west rail corridors intersect, “at the crossroads of the nation,” with a regional airport and accessible road networks enabling over 80 per cent of Australia’s population to be reached overnight.
The Council added that Amazon and Parkes “adds up,” as it offers intermodal transport, affordable land and liveable communities.
Check out the video below.
Sydney-based logistics and shipping business Shippit has rejected a $5 million investment offer in its Series A funding round, instead accepting $2.2 million to fund in order to drive its growth and Asia-Pacific expansion.
250,000 parcels are delivered via Shippit’s platform each month, and many of the company’s 750 clients are major retailers, including Harvey Norman, Sephora, Topshop, Thankyou and Pet Circle.
Shippit’s Series A funding round attracted strong investor interest due in part to the company’s announcement of significant growth of its subscriber base and a 200 per cent increase in monthly profits.
“During the raising process, Shippit’s user base grew ahead of our projections which reduced our capital requirement and prompted us to review our growth ambitions,” said co-CEO Rob Hango-Zada.
Hango-Zada and his co-CEO William On decided to reject the $5 million investment secured through the funding round, having calculated that the growth push would cost around $2 million.
“We’ve always been fiscally responsible, however when we reconsidered the amount that was required to fuel our next phase of growth, the figure was actually much closer to [$2.2 million],” Hango-Zada added.
“We received a humbling flurry of interest, however, we didn’t think it would be wise to accept more capital than we actually required. The purpose of this raise was specifically to obtain growth capital to invest in strategic hires, building out the local team, as well as supporting rapid expansion into international markets.”
Lead investor Aura Group, a well-established venture fund, has experience dealing in the APAC market, which will benefit Shippit as it makes its bid for the market.
“Shippit stood out to us because of the scalability of its platform and its alignment to the global opportunity being driven by the transition of retail into e-commerce,” said Eric Chan, Managing Director, Aura Group.
“The predominant reason we invested, however, was because we believe Shippit has the right founders to execute on a well-considered strategy and vision.”
The Australian Logistics Council (ALC) has announced that its 2017 Supply Chain Safety & Compliance Summit will take place 5–6 September at ICC Sydney.
With the Government continuing to develop the National Freight and Supply Chain Strategy, this year’s Summit will consider how the Strategy can be used to improve safety outcomes in the freight logistics industry.
Another key focus at the Summit will be the significant extension to Chain of Responsibility, set to come into force in 2018, that will extend the legal obligations and liabilities of executive officers and company directors.
The 2016 Summit brought together over 300 industry representatives to benchmark, share best practice and identify gaps where improvements are needed. The 2017 Summit will again attract representatives from all parts of the supply chain, including customers, suppliers and logistics providers.
“The Supply Chain Safety & Compliance Summit is a valuable opportunity to raise awareness of changes to CoR obligations and advise industry on improving safety and compliance levels,” said Michael Kilgariff, Managing Director, ALC. “The event will serve as a platform for policy discussions, workshops and consultations and we look forward to an active and engaging series of discussions.” Find out more.
The launch of the Moorebank Logistics Park has been described by the Australian Logistics Council (ALC) as a “watershed moment” in the continuing transformation of Australia’s freight networks.
“Given the Federal Budget’s significant investment in freight infrastructure and the continuing development of the National Freight and Supply Chain Strategy, it’s an auspicious moment to mark the establishment of what will become the nation’s largest intermodal freight precinct,” said ALC Managing Director Michael Kilgariff.
“This nationally significant project was included on Infrastructure Australia’s Infrastructure Priority List and, according to government figures, is expected to create some 6,800 jobs and deliver $11 billion in economic benefits over the next three decades. The strategic location of this site, at the very heart of New South Wales’ freight network, is second to none.”
Kilgariff added that more efficient road and rail connections from ports to intermodal facilities would be key in meeting the country’s growing freight task, reducing road congestion and improving community amenity.
“The Moorebank facility is central to achieving this around Sydney’s heavily congested M5 corridor,” he added. “At the same time, its ability to transport 1.5 million TEU each year from Port Botany by rail will support the NSW Government’s goal of boosting rail freight to and from that port from its current 18 per cent to around 30 per cent. Likewise, it accords with NSW Ports’ objective of moving three million TEU by rail by 2045.”
“ALC has long argued that building a reliable, national network of intermodal facilities is central to boosting rail’s contribution the national freight task. Moorebank will complement other intermodal facilities throughout NSW, including Aurizon’s operations at NSW Ports’ Enfield Intermodal Logistics Centre, and Pacific National’s facility at Chullora.”
“Both Moorebank Intermodal Company and Qube Holdings deserve enormous credit for their intensive efforts bringing Moorebank to fruition. The success of this intermodal facility is set to deliver transformational improvements to supply chain efficiency,” Kilgariff concluded.
General hire equipment supplier Kennards Hire has renewed its partnership with the Sydney Swans, signing on as a ‘premier partner’ for the next three seasons.
Kennards Hire joined forces with the Sydney Swans three years ago and has now locked in its commitment as the club’s Official Trade and DIY Hire Partner until 2019.
Sydney Swans CEO and Managing Director Andrew Ireland said he’s excited to welcome a new premier partner.
“Our football club is very grateful for the support of Kennards Hire, and to have a partner want to increase their commitment is a wonderful endorsement,” Ireland said.
“Kennards Hire is a trusted brand and a family-operated company that was founded in Bathurst here in New South Wales. Our brands share great synergy and we’re proud to have Kennards as part of our Sydney Swans family.”
Kennards Hire Chief Executive Officer Angus Kennard said taking the partnership to a new level is a natural step forward.
“Kennards Hire is proud to sign on as Premium Partner with the Swans, who undoubtedly share the similar values of fairness and family,” he said.
“As brands that aim to be the best in their field, we are excited about sharing the fast-paced thrill of AFL with our staff, customers, suppliers and Swans fans over the next few years.”
Federal funding for the $120 million Scone Bypass project in New South Wales has been approved, with construction slated for late 2017.
The Australian Government is contributing $65 million to the project while the New South Wales Government is providing $55 million.
The four-kilometre bypass is aimed at creating a safer and more efficient road network for the local region, and supporting regional producers.
Federal Minister for Infrastructure and Transport Darren Chester said the funding approval meant work on the bypass could get started later this year.
“Putting this money on the table to build the bypass is another step towards a more prosperous regional Australia. We are committed to seeing the region thrive, and putting in a bypass means safer local streets, better freight movement and less congestion on local roads,” Mr. Chester said.
“We’ve worked hard to make this project a reality – together, the Australian and New South Wales governments committed an extra $30 million at the 2016 election to make sure there were no holdups with the project,” said Federal Minister for Infrastructure and Transport Darren Chester. “We want to ensure the region’s farmers and producers remain well-connected to global and domestic markets, keeping them viable and competitive.”
Deputy Prime Minister and Federal Member for New England Barnaby Joyce said the bypass help Scone residents in the creation of hundreds of direct and indirect jobs.
“Having to negotiate with heavy freight traffic as you are trying to cross a road to get a loaf of bread is never great, and what this bypass will do is shift some of that traffic outside of Scone’s CBD,” Mr. Joyce said.
“It will also help freight operators and residents, who will no longer experience significant delays from two rail crossings intersecting the New England Highway. Currently, large freight trains hinder traffic for up to two hours each day and this will only increase as more freight moves by rail.
“The bypass will fix that problem and allow the region to reach the potential by providing the infrastructure it needs to grow.”
Minister for Finance, Senator the Hon. Mathias Cormann and Minister for Infrastructure & Transport, the Hon. Darren Chester MP marked the official commencement of construction at the Moorebank Logistics Park on 6 April, following months of pre-construction and remedial works.
Moorebank Intermodal Company and the Sydney Intermodal Terminal Alliance (SIMTA), a wholly owned subsidiary of Qube Holdings, reached financial close on the agreement to develop and operate the site in late January.
Moorebank Intermodal Company Chair Dr Kerry Schott AO and Qube Holdings Chairman Chris Corrigan joined the ministers in recognising the significant milestone.
“The site has a direct rail link to Port Botany and the interstate freight network which, along with its proximity to major motorways, makes it ideal for an intermodal facility,” said Corrigan. “Moorebank Logistics Park will transform the freight and logistics supply chain along the East Coast.”
Corrigan noted that Moorebank was identified as a priority location for a freight terminal in 2004 and in October 2016 was included on Infrastructure Australia’s priority list for national infrastructure projects.
Dr Schott noted that both Qube and the Government share a long-term strategy to improve the logistics chain between the port, Moorebank and the rest of the freight network. This arrangement has the potential to become a model for future projects involving government and the private sector.
“Moorebank Intermodal Company was established to facilitate the development of the Moorebank Intermodal Terminal and oversee the achievement of the Commonwealth’s infrastructure and freight policy objectives.”
“The commencement of construction is a significant milestone that recognises our success and brings us a step closer to realising the substantial benefits this development will deliver for the people of southwest Sydney, and NSW more broadly.”
“Moorebank Logistics Park is a nationally significant infrastructure project that will be a major economic contributor to local and regional communities for years to come.”
Chester commented, “Today marks the first sod turn of the Moorebank Logistics Park, one of Australia’s most important freight infrastructure projects to address urban congestion and improve national freight connectivity.
Assessed as a priority project by Infrastructure Australia, the Moorebank Logistics Park is expected to deliver over $11 billion in economic benefits over the coming 30 years, including $120 million a year for the economy of south-western Sydney.
Over 1,300 jobs are expected to be created during construction of the Moorebank Logistics Park and a Deloitte Employment Forecast Report found that, once operations are at full capacity, the site will employ approximately 6,800 people.