Australias MIC signs Sydney intermodal terminal agreement

TIN news:         The Australian Government's Moorebank Intermodal Company (MIC) has signed an agreement with the Sydney Intermodal Terminal Alliance (Simta) to develop the Moorebank Intermodal Terminal in south-west Sydney.
 
Simta is a consortium of two Australian logistics companies, Qube Holdings (67%) and Aurizon Holdings (33%).
 
Under the deal, Simta will develop and operate an intermodal freight terminal and warehousing across both the government and SIMTA-owned land at Moorebank.
 
The deal will see combining the site into a single development, which will optimise the outcomes and minimises taxpayer exposure.
"Moorebank will be the largest integrated warehouse rail terminal precinct in Australia when fully developed."
 
The project's first phase covers an import-export terminal with a rail connection to Port Botany via the Southern Sydney Freight Line with ultimate capacity to handle up to 1.05 million containers a year.
 
The second phase includes the construction of an interstate freight terminal that will ultimately have capacity for up to 500,000 containers a year.
 
For the project, Simta will provide up to A$1.5bn in private investment, while the government would offer A$370m.
 
The new major interstate terminal will get more freight off the highways and onto rail, while there will be open access for rail operators and other users of the Moorebank facility to promote competition.
 
Aurizon managing director and CEO Lance Hockridge said: "Moorebank will be the largest integrated warehouse rail terminal precinct in Australia when fully developed.
 
"It will help drive competitive advantage for Aurizon and Qube because of its strategic location, unprecedented scale and the seamless integration of port, rail and road.
 
"Coupled with the efficiencies available to greenfield operations, it will reduce logistics costs and provides greater opportunity for a sustained modal shift from road to rail.
 
"Moorebank provides Aurizon the opportunity to diversify our general freight portfolio into the rapidly-growing IMEX market, connected by rail to one of Australia's busiest ports.
 
"Moorebank also provides a more efficient, flexible and long-term solution for Aurizon's Sydney-based intermodal operations."
 
Work under the project is scheduled to be initiated this year and the Moorebank intermodal terminal is planned to be operational from late 2017.