This article is from the Australian Property Journal archive
WOOLWORTHS will invest around $780 million for two automated major warehouses within Qube Holdings’ Moorebank Logistics Park, to streamline its delivery network and supply chain.
Woolworths and Qube have exchanged two agreements for lease and two development management agreements to develop new distribution centres across 26 hectares.
Both leases, comprising a 40,700 sqm national (NDC) and a 34,600 sqm regional (RDC) distribution centre are on initial 20-year terms with 6 x 5-year options.
Under the agreement, Woolworths is developing the warehouses and Qube is funding their construction. Qube’s capital commitment for the base building construction is expected to be between $420 and $460 million which will be incurred over the next three to four years with revenue of approximately $30 million per annum when fully operational.
Woolworths will invest around $700 – $780 million in the technology and fitout of the two distribution centres over the next four years. The new facility will consolidate Woolworths’ operations into a purpose built high bay facility, leveraging world leading advancements in retail, supply chain and semi-automated and automated technology. An air bridge between the sites will reduce transport requirements by allowing NDC pallets to be cross docked to the RDC removing shuttle transport and allowing product to be efficiently received and processed between the distribution centres.
Furthermore, each warehouse is targeting a Five Star Green Star Design and As-Built rating and will incorporate various sustainability initiatives including solar PV systems, LED warehouse lighting and rainwater harvesting.
Qube managing director Maurice James said Woolworths has recognised the significant competitive advantages available to tenants at the Moorebank Logistics Park.
“The benefits of railing containers direct from Port Botany to a terminal co-located with warehousing across a site the size of the Sydney CBD will deliver Woolworths time and cost efficiencies,” he said. “Our project team is looking forward to working with the Woolworths team in delivering an optimal solution for their operations.”
Woolworths Group CEO Brad Banducci said the investment at Moorebank will transform the way it serves its NSW stores.
He said it will “strengthen our network and deliver on our ambition to create Australia’s best food and grocery supply chain.
“The new facilities will help us improve on-shelf product availability with faster restocking, reducing congestion in stores, and enabling a safer work environment for our teams with less manual handling.”
Subject to NSW government planning approvals, the NDC is expected to commence operations in 2023 with the RDC opening in 2024, with the facilities anticipated to reach full capacity from 2025. The developments will provide more than 1,000 construction jobs prior to the commencement of the new operations.
