Home' MHD Supply Chain Solutions : MHD Mar-Apl 2016 Contents $200M IN RAIL HUB PROJECTS
VAUGHAN Constructions Pty Ltd has been
appointed to master-plan and develop two
regional Rail Hubs and Business Parks for joint
venture partners Colin Rees Group Pty Ltd and
Amberly Management Pty Ltd.
Ettamogah Rail Hub, 15km north of Albury
on the Hume Hwy, and Widgelli Rail Hub and
Business Park, 10km south-east of Griffith, NSW,
are strategically located to support over 500km
of rail branch lines throughout the Riverina.
Ettamogah Rail Hub, owned and operated
by rail the Colin Rees Group since 2009, will
yield over 45,000m2 of warehouse space for
lease. Chief operating officer for the Colin
Rees Group Cameron Jackson said: “We
haven’t pushed the boat out too far to date.
We’ve concentrated on the rail operations but
the time is right now, with the right partners,
to offer more to our customers. The pre-lease
interest has been encouraging, with multiple
enquiries on the hub already showing us that
the demand is there in regional areas.”
Mr Jackson said the group intends to retain
the investments on the Ettamogah site. It is
believed that rents will start at approx. $65/m2.
“Planning has commenced and we’re looking
to break dirt in next 3 to 4 months.”
The Morsheads, a fourth-generation Griffith
family with broad agricultural interests, joined
forces through their Amberley Group with
the Colin Rees Group. Widgelli Rail Hub and
Business Park is situated on a 68ha site owned
by the Morshead family. The first 30ha stage
of development at Widgelli will include the
design and construction of a new rail hub, rail
sidings and over 100,000m2 of warehouse
space, hardstands and road networks - a
construction value in excess of $80,000,000.
The Widgelli site received town planning
approval in August last year. The business
park offers both pre-lease and land & building
packages for warehouse and cold storage
buildings, ranging from 2,500m2 to 20,000m2
in addition to container-rated hardstands.
“There’s a huge variety of potential users
of the hubs, so Vaughan’s design is flexible to
accommodate any business.” Mr Jackson said.
The Australian Government Department of
Agriculture report released in April 2015, using
latest available results, confirmed that in addition
to grapes and tomatoes, the Riverina accounted
for 96% of the total value of NSW carrots, 74% of
the state’s oranges, 59% of the state’s apples and
nearly half of the state’s rice production.
Despite many years of advocacy about
the benefits of rail, investment in rail and
rail associated infrastructure has lagged.
“We know that production costs have been
squeezed to breaking point, so the focus of
many producers, processors, retailers and
exporters is the supply chain. We saw a
definite gap in the market. So we’ve teamed
up with Morsheads and Vaughans and we’re
able to offer ‘short-line’ rail services in addition
to conventional warehouse, cold storage and
distribution facilities to our customers. Our
Regional Connect network can get your box
from anywhere in the Riverina to any eastern
seaboard por t and even Perth via the Junee or
Short-line rail has led the revival of rail
transport in the United States. It provides
the benefits from economies of scale to
individual customers by pooling assets and
infrastructure in hubs, spreading the costs and
providing an economical option to get onto
the main-line networks.
The development management agreement
between the three parties will see Vaughan
Constructions roll out the design and
construction of warehousing, hardstand areas,
container pavements, ancillary offices and
rail sidings. Ettamogah is expected to be fully
developed within 18 months and the first of two
major stages at Widgelli over the next 2 years.
Rents and land & building rates are expected
to be released for Widgelli this month.
“The concept of bringing rail to the
customer, similar to the US, is a winner. Our
development partners are investing in quality
assets with a long-term view of the success
and viability of rail,” said Andrew Noble,
director and general manager of Vaughan
Constructions. “It’s also likely to reinvigorate or
reopen disused rail links.”
Vaughans has extensive experience in
planning and developing estates, including the
highly successful Wyndham Industrial Estate
located in Melbourne’s Western Industrial
precinct. The sixty-year-old company has
serviced some of Australia’s largest and most
successful logistics companies nationwide,
including Linfox, Asciano, K & S Freighters,
Northline and Mainfreight with pre-lease and
land and building packages.
MHD SUPPLY CHAIN SOLUTIONS — MARCH / APRIL 2016
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