This article is from the Australian Property Journal archive
THE Victorian government is backing global logistics company NewCold’s $147 million expansion of its Asia Pacific headquarter in Melbourne’s west, boosting food storage capacity.
Netherlands-headquartered NewCold will more than double the size of its cold storage facility in Truganina, taking storage capacity to 225,000 pallets and creating up to 50 new jobs. Some 200 jobs will be created during construction.
Stage one of the upgrade is underway and will expand the multi-temperature and freezer warehouse with advanced features to store chilled and frozen goods.
Already boasting one of the world’s largest automated high-bay warehouses, the facility will use state of the art energy-efficient storage, cooling and distribution technology to automatically move and store products and ensure they are kept in optimal conditions.
Scheduled to be operational in 2022, the facility provide storage solutions to NewCold’s global food supply chain customers including Simplot, which supplies products to Australia’s leading supermarkets.
NewCold employs 1,500 staff across three continents.
“Food logistics is a highly innovative sector and operations like the expanded facility being built at Truganina are right at the head of technological advancements,” Victorian Minister for Industry Support and Recovery, Martin Pakula said.
“Victoria is continuing to attract investment from major global companies like NewCold, generating jobs and opportunities across the state.”
NewCold founder and chief executive Bram Hage said this is a “great day for NewCold and the cold storage industry in Australia”.
“It is very pleasing to see our continued investment and growth in Australia – as we expand our global presence, we support local communities to foster economic growth and create high-quality employment opportunities.”
Industrial supply and floor space demand is being squeezed by e-commerce requirements. Melbourne saw gross take-up of over 450,000 in the December quarter, accounting for 55% of national demand after the city spent an extra chunk of time in lockdown, and still went on to account for 53% of total industrial and logistics space absorbed in Australia in the first quarter of 2021.
According to CBRE, the current industrial and logistics supply pipeline will struggle to meet the additional requirement of 500,000 sqm per year to fulfill the demand from the e-commerce sector.
Charter Hall’s wholesale industrial and logistics fund last month acquired a portfolio of 25 cold storage and food distribution centres in a $270 million sale and leaseback deal with PFD Food Services.
