Agreement reached for Sydney freight project at Moorebank
04 June 2015
Joint release with:
Minister for Finance
The Government's Moorebank Intermodal Company (MIC) has signed an agreement with the Sydney Intermodal Terminal Alliance (SIMTA) for the development of the Moorebank Intermodal Terminal.
The agreement will see SIMTA develop and operate an intermodal freight terminal and warehousing across both Commonwealth and SIMTA-owned land at Moorebank, with direct rail access to Port Botany via the Southern Sydney Freight Line. Combining the site into a single development optimises the outcomes and minimises taxpayer exposure.
SIMTA is a consortium which represents two of Australia's largest logistics companies, Qube Holdings and Aurizon Holdings.
The facility will include an import-export terminal with ultimate capacity to handle up to 1.05 million containers a year and a separate interstate terminal that will ultimately have capacity for up to 500,000 containers a year.
SIMTA will provide up to $1.5 billion in private investment for the project. Leveraging that significant private sector investment means the Commonwealth's commitment, through MIC, will be limited to around $370 million instead of around $900 million under the previous government's business plan.
This new, major interstate terminal will get more freight off our highways and onto rail, driving significant improvements in national productivity. There will be open access for rail operators and other users of the Moorebank facility to promote competition.
The total economic benefits of the project are estimated at close to $9 billion, including relieving traffic congestion on Sydney's roads, reducing costs to business and better environmental outcomes.
Over 1,300 jobs will be created during the construction phase, with up to 7,700 jobs created mainly in South-West Sydney once the intermodal terminal precinct is fully developed.
Environmental and planning approvals are being sought for the combined precinct, to address community concerns and minimise any potential adverse impacts on local residents and businesses.
The planning process will require the project to contribute over time to local traffic intersections where the project will add pressure and require environmental offset investment in green corridors around the facility to enhance the biodiversity and ensure conservation of important vegetation.
Subject to the approvals by the Commonwealth and state planning and environment authorities, work on the project will begin this year and the Moorebank intermodal terminal is planned to be operational from late 2017. Further information about the project can be found at: www.micl.com.au.