$30 Million rail freight terminal for South Australia

February 4, 2011 Edward

The first stage of a $30 million major rail freight terminal development is expected to  provide a critical boost to industrial development both in the north of Adelaide and for South Australia’s mining industry.

The rail freight terminal (RFT), which was opened on January 25 by South Australian Premier Mike Rann, has been developed by Australia’s largest privately-owned rail operator SCT Logistics on a 70 ha site in the heart of Greater Edinburgh Parks in the City of Playford.

As the first major industrial development in the 1000 ha Greater Edinburgh Parks, it is expected to stimulate the development of a broader logistics precinct in the area. Greater Edinburgh Parks has been identified as SA’s major new industrial zone and is already home to facilities that include a $125 million Coles distribution centre.

City of Playford Mayor Glenn Docherty said the SCT RFT, which would create up to 300 new jobs, would facilitate the growth of resources, industrial and other sectors in South Australia by providing direct access to the national standard gauge rail network and the recently-opened Northern Express Way.

SCT Logistics CEO Geoff Smith said the RFT marked another significant step forward for his company, which over the next year expects freight generation and throughput of 1 million tonnes of rail-transported freight. The facility would also facilitate a modal shift from road to rail between Melbourne and Adelaide.

“It will be a vital piece in the jigsaw as Playford and Northern Adelaide becomes the economic and industrial engine room of South Australia,” Mr Smith said. “It will also play a key role in enabling the $9 billion worth of infrastructure being developed in Northern Adelaide, a region that’s expected to drive half of Adelaide’s industrial development over the next 20 years.”

Development of the RFT also coincided with SCT-related company Specialised Bulk Rail Pty Ltd (SBR) entering the bulk rail market in Australia by winning a $150 million contract with IMX Resources for iron ore rail haulage over 1000 km from the Cairn Hill mine near Coober Pedy to Adelaide’s Outer Harbour. Stage Two of the contract is expected to see its value grow to $300 million.

Mr Smith said the first major warehouse currently being constructed at the RFT site was a $9 million, 10,000 m2 distribution warehouse for the Fosters Group, in addition to a 6000 m2 container park, all constructed by SCT. The site opens opportunities for both existing and potential customers to develop new state of the art distribution centres in South Australia.

Source: T and L News