Industry News

National supply chain centre commences construction in Western Sydney

Primary Connect, the supply chain arm of Woolworths Group, has started building a new site in Moorebank Logistics Park, set to open in 2024.

The Moorebank National Distribution Centre is expected to strengthen Primary Connect’s national supply chain and service more than 1,000 Woolworths Supermarkets across Australia. The site will be co-located with the Moorebank Regional Distribution Centre (DC), which will start construction later and open in 2025.

With cutting-edge automation and 75,000-square-metres of floor space (almost five times the SCG playing field) across both sites, Moorebank will enable Woolworths to offer its customers an expanded range and improved stock availability in-store.

Woolworths Group will invest around $700-$780 million in the technology and fitout of both distribution centres.

Qube will invest around $440 million to build the distribution centres, with Woolworths signing an initial 20-year lease.

“The challenges of the past year have put a spotlight on the critical role our distribution centres play in providing the essential food and everyday needs Australian communities rely on,” said Woolworths Group CEO, Brad Banducci.

“To keep pace with growing demand and ever evolving customer expectations, we need to continue to invest in new technology and capacity to power our next generation supply chain.

“We have ambitions to offer a more tailored range of products in our stores. This has traditionally been constrained by what we can hold in our distribution centres.

“Once both centres are up and running, we’ll be able to carry up to 8,000 additional products in our range than we can in our existing facilities. This will help unlock a much better shopping experience for our customers.

“With unrivalled logistics infrastructure and connections to key port, rail and road networks, Moorebank is the ideal base for what will be our largest single supply chain investment.”

Moorebank Logistics Park’s direct access to a dedicated freight rail line from Port Botany, with onward connections to the national rail network, will help take at least 26,000 truck movements off Australian roads each year.

“The Morrison Government has made a significant $466 million investment to support the efficient and effective movement of freight in Sydney through the Federally funded Moorebank Intermodal Terminal and surrounding logistics park, in turn creating thousands of jobs for the region,” said Federal Minister for Urban Infrastructure and Cities, Paul Fletcher.

“Our Government remains committed to delivering this significant infrastructure project. To support the efficient operation of the Moorebank Intermodal Terminal and improve traffic flows around it, the recent budget included an investment of $87.5 million for the M5 Motorway – Moorebank Ave/Hume HWY intersection upgrade.”

Woolworths Group has a $2.3 billion investment program planned across NSW over the next five years, which will support a further 7,500 ongoing jobs and thousands more during construction.

“This distribution hub offers a welcome boost to employment and investment and is another indicator of the ongoing growth of Western Sydney,” said NSW Treasurer, Dominic Perrottet said.

“As we emerge from the shadows of COVID-19 the economic recovery and future prosperity of our state will benefit from major investments like this one. This will be a 21st Century facility located right in the middle of the economic engine room of Sydney.”

The start of construction follows approval of both developments by the NSW Department of Planning in late 2020 and the recent appointment of Richard Crookes Constructions as the lead builder on the Moorebank National Distribution Centre.

In other news, PepsiCo renewed its transport contract with Primary Connect.

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