Toll Group are working together with Australia’s biggest stevedore in a bid to relieve congestion around Port Botany. The proposed joint venture, between, DP World Australia and Toll, is aimed ensure more freight is delivered by rail when going in and out of Port Botany.
The proposed 50/50 joint venture (JV) will connect a dedicated container staging zone at Port Botany to an intermodal freight terminal in Villawood, 25 kilometres west of Sydney to deliver an improved service for importers and exporters. The JV is expected to move around 180,000 TEUs per annum on the rail shuttle.
“A rail shuttle running between Port Botany and Villawood on the Southern Sydney Freight Line will remove around 100,000 plus truck movements off Sydney’s roads each year,” said Brian Kruger, Toll Group Managing Director. “That’s 100,000 fewer trucks on the already-congested roads around the port and Sydney Airport.”
DP World Australia Managing Director and CEO, Paul Scurrah, is quoted as saying the combination of the experience and resources of both companies will see a new end-to-end service offering for customers.
“By using the expertise and existing assets of DP World Australia and Toll, this proposed joint venture will create new efficiencies and competition in the Sydney import-export (IMEX) supply chain,” said Scurrah. “Importantly, the introduction of a new multi-user intermodal terminal in Western Sydney with a direct rail connection to DP World Australia’s staging facility next to the wharf will increase freight transport options for local importers and regional exporters.”
The proposed JV will leverage DP World Australia’s capability in managing the container terminal interface and Toll’s capability in managing warehousing, delivery and end to end customer solutions. The partners will consider expanding the joint venture into other markets if appropriate opportunities arise over time.
“The announcement that Toll and DP World are in talks to connect a container staging zone at Port Botany to an intermodal freight terminal at Villawood represents a major step towards getting more freight on to rail in Sydney,” said Michael Kilgariff, Australian Logistics Council Managing Director. “It is clear that one of the keys to improving the efficiency of Sydney’s freight supply chains is through achieving improved end-to-end connectivity across all modes of transport.
“This initiative, along with a number of other recently-announced intermodal projects in Sydney, is fundamental to improving the efficiency of our national supply chains and to supporting national economic growth.
“The announcement of the proposed joint venture builds upon a number of important intermodal developments in Sydney, including an agreement on the future of Moorebank, as well as the augmentation of existing capacity at Enfield and Chullora,”
The Port Botany to Villawood project is planned to start operations in 2017.