Engineering, Freight Rail

Port Botany rail is “mediocre,” says Qube boss

Moorebank Intermodal Terminal. Graphic: MICL

Transport and logistics firm Qube expects the Moorebank Intermodal Project in Sydney to commence construction in 12 months and be operating with a rail terminal by mid to late 2017.

Qube chief executive Maurice James announced this expectation in an address to guests at an American Chamber of Commerce (AmCham) event on May 13.

James was tight-lipped about many Moorebank details due to confidentiality agreements with the Federal government.

But he expects a government announcement in a few weeks and said planning processes for the Commonwealth land adjacent to that owned by Qube and rail operator Aurizon, are still awaiting approval.

Qube believes it can squeeze 850,000 square metres of warehousing on the site.

He said that to improve Sydney’s freight task, a rail shuttle into the site needs to be more competitive than road.

Current rail infrastructure and rail solutions at Port Botany, James said, are “mediocre” and can’t keep up with freight demand.

He said challenges to improving rail infrastructure include the power of the road lobby and the fact that “freight doesn’t buy votes”.

“If 5m teu are to go through Port Botany and we set a target of 30% by rail, then there’s a huge shift that needs to happen,” James urged.

The Federal government agreed in December last year that Qube and rail operator Aurizon would develop the freight hub on its land and on an adjoining site owned privately by the two companies.

The government’s site at Moorebank, currently occupied by the Department of Defence, will be combined with the land owned by Qube and Aurizon and leased to the two companies.

Qube has been expanding its logistics operations through investment and acquisition which has helped to boost first-half net profits by 39% to $60.3m.