Freight Rail

Retailer Target to take space at Moorebank as Qube announces 6% profit drop

Moorebank Artist's Impression: MIC

Logistics operator Qube has announced Target Australia will be the first major client at its Moorebank intermodal terminal, after it posted a net profit of $77.3 million in FY17, down 6%.

The company said its statutory profit was down due to significant transaction and other non-recurring costs associated with its acquisition of Patrick and AAT during the FY17 period, as well as two impairments “which [were] largely offset by fair value gains on Qube’s investment properties”.

The company reported good revenue and earnings growth from both its Logistics and Ports & Bulk divisions. Qube’s statutory revenue was up 13.5% to $1.51 billion, and underlying revenue was up 14.7% to around the same figure. Statutory EBITDA was up 1.7% to $253.3 million, while underlying EBITDA was up 6.2% to $261.5 million.

“The 2017 financial year was a year of completion and implementation at Qube,” managing director Maurice James said.

“The transformational  Moorebank project remains on track and will be further enhanced by today’s announcement that Target Australia will be a major tenant in Australia’s largest intermodal precinct.”

In a separate announcement detailing the Target deal, James said the Moorebank precinct would transform Sydney’s freight and logistics supply chain.

“The Moorebank development is certainly a once in a lifetime opportunity,” he said.

“Linking one of the nation’s busiest ports by rail to an inland facility with the sheer scale and location benefits of the Moorebank site is a game changer that will deliver huge long term benefits to consumers and businesses.”

Target has agreed to a new five-year logistics services contract with Qube Logistics to move freight between Port Botany and Moorebank.

Qube will develop 37,860 square metres of warehouse and office facilities for an initial lease term of 10 years at Moorebank, due for completion in early 2019.

“Securing Target Australia is testament to the quality product that is Moorebank Logistics Park, combining a superior property location and efficient logistics,” Qube’s strategic assets division director William Hara said.

“Qube is looking forward to working with the Target Australia team in delivering an optimal warehouse and logistics solution for their operations.”