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.
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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.

ALC welcomes Infrastructure Priority List

The Australian Logistics Council (ALC) has praised the Infrastructure Priority List released by Infrastructure Australia (IA) last week. The list confirms an ongoing need for investment in freight infrastructure projects that will enhance supply chain efficiency and safety, ensuring Australia remains internationally competitive.
“As an industry leader, ALC has always been among IA’s most enthusiastic supporters, because we have long believed that the best way to ensure effective infrastructure investment is for an independent umpire to make evidence-based assessments of projects, which can then be used by governments to inform decision-making,” said ALC Managing Director, Michael Kilgariff.
“The release of the 2018 Infrastructure Priority List comes at a crucial moment, as the Commonwealth continues to develop the National Freight and Supply Chain Strategy – an initiative which is again included as a high priority initiative on this year’s list,” continued Michael.
The key freight initiatives identified in the list are:

  • the Sydney Gateway connecting WestConnex to Port Botany & Sydney Airport;
  • the Port Botany Freight Rail Duplication to boost port efficiency;
  • the Chullora Junction upgrade to enhance Sydney’s freight rail network;
  • Preserving the corridor for the Western Sydney Airport fuel pipeline;
  • Preserving the corridor for Western Sydney Freight Line and Intermodal Terminal access;
  • Improving connection between Melbourne’s Eastern Freeway and CityLink;
  • Inland Rail and a dedicated freight rail connection to the Port of Brisbane; and
  • Implementation of the Advanced Train Management System on the ARTC network.

NTP Forklifts unveils 15,000sqm NSW facility

NTP Forklifts Australia has officially launched its new facility in Huntingwood, New South Wales.
Customers, suppliers and equipment manufacturers attended the opening of the 14,590sqm site, which is almost double the size of NTP’s previous facility in Granville.
The site features a 7,900sqm under-cover warehouse, a 1,000m parts warehouse, eight-metre high racking and an indoor wash bay.
“A lot of hard work by our staff was required to ensure our new facility would cater to all out customers,” said Greg Sharp, General Manager – Sydney Branch, NTP Forklifts Australia. “The Open Day was a great opportunity for customers, suppliers and our equipment manufacturers to tour our new facility, view our extensive range of equipment and engage in product demonstrations.”
Damien Garvey, Managing Director, NTP Forklifts Australia, added: “We are very proud to officially open our new Sydney premise and to present our extensive range of world-leading material handling equipment to a larger audience.
“This investment demonstrates our company’s future commitment to our staff, the New South Wales market and more importantly to our growing customer base.”

Four new container cranes en route to DPWA from China

Australian stevedore DP World Australia (DPWA) will take delivery of four new ZPMC quayside container cranes next month, for its Brisbane, Sydney and Melbourne terminals.
The cranes departed China on 11 February, loaded on the Zhen Hua 21 vessel.
DPWA’s Brisbane and Sydney terminals are both set to receive one crane each, and two cranes will be delivered to the Melbourne Terminal.
According to DPWA, the cranes, which were built in Shanghai, have the latest in electrical technology, efficient operating systems and improved ergonomics for operator comfort.
The delivery is the first part of an order for a total of nine cranes for DPWA, an additional five cranes are to be delivered to DPWA’s Sydney, Melbourne and Fremantle terminals in mid-2018.

Toll designs ‘next-gen’ DC around e-commerce

The Hon. Melinda Pavey, Minister for Roads, Maritime and Freight, New South Wales, has attended the official opening for Toll Group’s new distribution centre in Western Sydney, a facility the Australian logistics company claims is specially designed to support online retailing.
Pavey performed the ribbon cutting, alongside John Mullen, Chairman of Toll Group, and Alex Linton, General Manger – Logistics of Specialty Fashion Group, the new DC’s inaugural anchor tenant.
The $160 million “retail and e-commerce centre” is set across 32,000sqm, and incorporates 15,600sqm of automation equipment.
According to Toll, the facility is capable of picking, processing and packing 375,000 items per day, shortening delivery times “from days to hours.”
“Staying competitive in a rapidly changing global market requires vision, determination and an appetite for change, and that’s what Toll’s new facility will provide,” said Pavey.
Chris Pearce, Divisional Director – Toll Global Logistics, noted that today’s market is placing aggressive demands on retailers to provide fast fulfilment and delivery, while keeping costs down.
“Toll’s investment in the new facility is helping our customers adapt to the new retail environment,” he said. “The facility is equipped with $50 million in advanced automation technology so retails can deliver their e-commerce orders faster and in a much more economical way.
“This advanced technology will increase our productivity fivefold – capable of picking, processing and packing 70 million items per year.”
Specialty Fashion Group worked with Toll in the design of the facility, with scalability and future growth in mind.
“At Specialty Fashion Group, we’re constantly looking to improve the omni-channel experience for our customers,” said General Manager – Logistics, Linton. “We have a highly specialised supply chain, so we needed a customised solution that would meet our ongoing needs as a retailer.”
Automation of the facility will reportedly reduce manual handling by 70 per cent, expected to lead to a reduction in safety incidents.

New sorting systems installed for AusPost

Siemens Postal, Parcel & Airport Logistics (SPPAL) has installed six sorting machines at four mail sorting centres for Australia Post.
The Open Mail Handling Systems (OMSs) were installed in Sydney, Melbourne, Brisbane and Perth, where they will be used to sort flats, plastic-wrapped magazines and small packages.
They assume the tasks performed for years by sorting machines previously supplied by Siemens.
“We needed to update our existing equipment to handle the large variety of mail coming through our sorting centres, so we selected Siemens’ OMS technology to maximise the volume of product that could be processed through automation,” said Jadd Brammall, Head of Processing, Australia Post.
“The equipment was delivered on time against a very aggressive schedule and our new OMSs have enabled us to significantly improve our efficiency and provide the best platform for meeting the future needs of the business.”
Michael Reichle, CEO, Siemens Postal, Parcel & Airport Logistics, added: “The OMS is our answer to the demanding requirements our customers have to meet, as it’s capable of processing a broader range of mail types and formats than other sorting systems on the market.”
Five of the delivered OMSs are equipped with four input lines and 284 outlets for mail trays and can each sort up to 50,000 items per hour. The sixth OMS is fitted with two input lines and 148 outlets and can sort up to 25,000 items per hour. Barcode readers and printers are used in all six systems.

Inland Rail project to impact industrial market: report

The Melbourne-to-Brisbane Inland Rail project is anticipated to transform the movement of freight around the country and significantly impact industrial property, its users and providers across regional Victoria, New South Wales and Queensland, as found by research carried out by commercial real estate company, Colliers International.
According to the findings of the Colliers Radar: The Melbourne – Brisbane Inland Rail report, the 1,700km Inland Rail project – planned for completion in 2024/25 – is expected to result in potential creation of new intermodal facilities and transport and logistic hubs in key strategic locations; the relocation and/or emergence of inter-capital freight users to key strategic locations; potential uplift in industrial land values for precincts in proximity to the rail route (occupier-led demand); and higher importance placed around the existing Ports of Brisbane and Melbourne.
“From commercial property perspective, the regions which are most likely to benefit from the completion of the Inland Rail are Darling Downs, Acacia Ridge and Bromelton in Queensland, Tottenham in Victoria and Parkes in New South Wales,” said Malcom Tyson, Managing Director – Industrial, Colliers International.
“We are likely to see increased activity along the Inland Rail route from the inter-capital freight users such as Linfox, CEVA Logistics, Toll Holdings, DB Schenker, DHL, Woolworths, Coles, GrainCorp, Bluescope and Visy.”
Tyson noted that the benefits for these users would range from operating cost savings, time savings, improved reliability, improved availability and resilience to incidents.
“In line with this, providers of the intermodal transport and logistic hubs and industrial estates may also emerge to cater for the increased demand and relocation requirements from these users,” he added.
“These providers might fall into service industry sectors such as cold-store warehousing, grain and commodities storage, rail maintenance, container park, food processing facilities, freight handling facilities, distribution centres and inland container storage facilities.”
Matthew Frazer-Ryan, National Director – Industrial, Colliers International, added, “There is compelling evidence pointing towards the positive correlation between new infrastructure projects (i.e. when committed and under construction) and associated uplift in industrial land value in a region.
“The importance of these projects to improve accessibility of freight to the area is also likely to positively impact on the potential rental value of the industrial property in the region.”
Frazer-Ryan added that this has been evidenced Melbourne during the CityLink Tulla Widening project and the beginning of the West Gate Tunnel project – directly impacting transport and logistic operators in the region and leading to an uplift in values.
In Brisbane, he added, this was evident with the completion of the Gateway Upgrade, which saw land values in the Australia TradeCoast rise upon announcement of the project.
In Sydney, the Westlink M7 Motorway construction saw average annual land value growth in the M7 catchment area of around 22 per cent over the three-year period.
“As a result, we would anticipate that as firms begin to look to these middle suburban ring and outer regional areas supported by the completion of the Inland Rail, stronger demand should lead to increasing land values and overall industrial property performance over the long-term,” added Frazer-Ryan.

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