Freight expectations
It has been suggested that Woolworths and rail operator Aurizon are among the potential bidders for what has been described as a nationally significant infrastructure project.
The national director of corporate industrial solutions at Jones Lang LaSalle, Andrew Maher, said the Moorebank Intermodal Terminal is expected to generate as much as $10 billion in economic benefits through reduced freight costs and less traffic congestion, and better environmental outcomes.
Mr Maher said the use of rail throughout Sydney and NSW was increasing and the new Intermodal Logistics Centre at Enfield would create greater efficiencies in freight and logistics.
Sydney Ports is developing the $300 million centre, due to open later this year. It will cater for demand in central-western Sydney.
"A plan for a network of additional intermodal terminals in the central-west, south-west and west of metropolitan Sydney is also endorsed by the NSW government to meet predicted demand," Mr Maher said.
According to Jones Lang LaSalle's first quarter 2013 market commentary, there are only 309,600 square metres of projects under construction this year.
"Despite limited supply, numerous suitors are still looking for high-grade quality assets in the investment market, including domestic institutions, offshore groups and offshore mandates through third parties, syndicates and boutique fund managers," Mr Maher said.
"We expect the transport revolution, driven by the need for greater freight and logistics efficiencies, will support investors and tenants in the industrial logistics sector this year."
The influx of bigger and more efficient container ships coming onto the market will also enable larger volumes of goods to be shipped in a more streamlined, environmentally friendly and cost-efficient way.
Mr Maher said the demand for larger container ships is increasing due to competition between destinations, cost and environmental factors, and the need for assurance of continuity of supply.
Rich Thompson, the Chicago-based managing director for the global supply chain and logistics solutions team at Jones Lang LaSalle, said rising freight costs was one of the major challenges facing supply chain professionals globally, emphasising the focus for companies on reducing freight transport costs.
"Our research figures show transport can account for as much as 50 per cent of a company's total operating costs," Mr Thompson said. "Gaining maximum cost efficiencies and providing fast and reliable delivery of goods are two key challenges many businesses are focused on. This is propelling interest in alternative, lower-cost modes of transportation, including intermodal, rail and water."
Frequently Asked Questions about this Article…
The article says the Moorebank Intermodal Terminal is a nationally significant freight and logistics project whose operating contract is being sought by major Australian and international transport operators. Jones Lang LaSalle predicts it could deliver large economic benefits by reducing freight costs, easing traffic congestion and improving environmental outcomes—factors that make it attractive to investors in industrial logistics assets.
According to the article, Woolworths and rail operator Aurizon are among the potential bidders for the Moorebank operating contract. The piece also notes broad investor interest from domestic institutions, offshore groups, syndicates and boutique fund managers for high‑grade logistics assets.
Jones Lang LaSalle's national director Andrew Maher is quoted in the article saying the Moorebank Intermodal Terminal is expected to generate as much as $10 billion in economic benefits through reduced freight costs, less traffic congestion and better environmental outcomes.
The article reports that rail use is increasing across Sydney and NSW and that new intermodal facilities—such as the Intermodal Logistics Centre at Enfield being developed by Sydney Ports—are expected to create greater freight efficiencies. The NSW government has also endorsed a network of additional intermodal terminals in the central‑west, south‑west and west of metropolitan Sydney to meet predicted demand.
Jones Lang LaSalle's first quarter 2013 market commentary cited in the article states there are only 309,600 square metres of projects under construction that year. Despite limited supply, the article notes continued strong investor demand for high‑grade industrial logistics assets.
The article explains that an influx of bigger, more efficient container ships allows larger volumes of goods to be shipped in a more streamlined, environmentally friendly and cost‑efficient way. Demand for larger ships is rising because of competition between destinations, cost and environmental considerations, and the need to ensure continuity of supply.
Rich Thompson of Jones Lang LaSalle is quoted saying rising freight costs are a major global challenge for supply chain professionals. The article notes research showing transport can account for as much as 50% of a company's total operating costs, which is driving companies to seek cost efficiencies and alternative lower‑cost transport modes like intermodal, rail and water.
The article suggests the 'transport revolution'—driven by the need for greater freight and logistics efficiencies—will support both investors and tenants in the industrial logistics sector. Examples cited include investment interest in intermodal terminals, rail‑linked logistics assets and port‑related projects such as the Enfield Intermodal Logistics Centre and Moorebank.
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