Australia’s leading provider of transport and logistics, Toll Group, is positioning itself for growth in the express parcel market by building a $170 million freight sorting facility, the largest of its kind in Australia, in Sydney’s west.

New South Wales Premier Barry O’Farrell today joined Toll Group Managing Director Brian Kruger to inspect the progress of the development, which is currently under construction at the new Bungarribee Industrial Estate. Mr O’Farrell said it was fantastic to see industry-leading companies such as Toll investing in Western Sydney.

“This is one of the largest freight infrastructure projects announced in Sydney in several years,” Mr O’Farrell said. “The investment is a vote of confidence by Toll in the economy of Western Sydney and New South Wales, and is key to consolidating and growing their extensive national distribution network over the next 20 years and beyond. This project will also lead to the creation of jobs during construction and secure jobs in Western Sydney once the project is completed.”

Toll Group Managing Director Brian Kruger said the 53,305 square metre facility on 18 hectares will be used by market-leading express road freight business Toll IPEC, and will help grow the capabilities of its new online parcel delivery service Toll Consumer Delivery.

“This custom-designed facility, with its highly specialised sortation system will increase Toll’s parcel sorting capacity in Sydney more than three-fold to an unprecedented 35,000 parcels per hour,” Mr Kruger said. “Given the expected long-term growth in both our traditional B2B and the online retail parcel markets, it is important we continue to enhance our capabilities. Investments like this will help Toll continue to improve its already extensive national distribution network, making it second to none.”

Mr Kruger thanked the New South Wales Department of Planning and Infrastructure and site developer Goodman Group for their hard work in the planning and construction of such a landmark project.

“Finding land of this size adjacent to major transport routes is increasingly difficult in major cities like Sydney. Our extensive 12-month modelling process that looked at infrastructure and demographic data and projections decided Goodman’s Bungarribee Industrial Estate, with its immediate access to the M7 and M4 motorways and the Great Western Highway was an ideal location to service Sydney and its expanding western suburbs,” he said.

“The custom-built facility provides all sorts of benefits in terms of improving traffic flow and congestion, fleet productivity, staff safety, parcel sorting speed and accuracy, and energy and cost efficiencies. Once built, the new facility will enable Toll IPEC to move operations from its current sites in Moorebank, Homebush and Bankstown to a single, purpose-built facility, cementing Toll’s presence in Sydney and allowing for decades of growth in the express parcel delivery market.

“This $170 million development adds to Toll’s recent industry-leading investments over the past few years that includes a $54 million express road freight terminal in Perth, a $39 million facility in Brisbane and a $10 million terminal in Canberra.”

Mr Kruger said Toll was investigating similar opportunities in South Australia, and will also look to grow its capacity in Victoria over the coming years. The facility’s environmentally sustainable design includes high-efficiency lighting, rainwater harvesting, and water efficient fixtures and fittings. Construction is expected to be complete mid-2014.

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