The terminal is the nation’s inaugural metropolitan ‘independent’ interstate terminal, as it operates under an open-access framework.
The Interstate Terminal at the Moorebank Intermodal Precinct, New South Wales, Australia, commenced operations on April 4.
The terminal is the nation’s inaugural metropolitan ‘independent’ interstate terminal, as it operates under an open-access framework, and will not be controlled by single above-rail operators.
The Moorebank Interstate Terminal is being developed as a joint venture between the Australian Government-owned National Intermodal Corporation, with Qube Holdings and LOGOS. The Australian Government has committed A$570 million towards the Intermodal Precinct.
The site will have the capacity to manage 500,000 twenty-foot containers annually, with each train that comes through the terminal able to move 1,500 tonnes of freight.
The terminal has four rail sidings of 900 meters which can accommodate 1,800 metre-long interstate freight trains connecting the terminal tenants with Parkes, Melbourne, Brisbane, and Perth.
According to the Australian government, the Interstate Terminal has the potential to remove 100 B-Doubles from Australia’s roads, thus easing congestion.
“The Interstate Terminal is the cornerstone of the Moorebank Intermodal Precinct, providing for the servicing of trains up to 1,800-metre-long, directly adjacent to modern warehouse facilities and last mile delivery services,” Minister for Infrastructure, Transport, Regional Development and Local Government, Catherine King, said.
“Qube is proud to deliver the new Interstate Rail Terminal, which complements Qube’s Import and Export (IMEX) Terminal, and which will revolutionise freight efficiencies between interstate capitals and further strengthen supply linkages for customers to warehousing and Port Botany,” Qube Managing Director, Paul Digney, said.
The Moorebank Intermodal Precinct includes Qube’s IMEX Terminal, which has an automated handling system for an import/export rail shuttle service to Port Botany.
Qube launched trials of automated operations at the terminal in early 2024, with a plan to start running five metro shuttles per weekday from late February with regional services commencing in late March/April.
As disclosed in Qube’s half-year results, the company has been reporting start-up losses on the MLP Terminal, which generated an EBITDA and EBITA loss for H1 FY24 of $2.0 million and $3.2 million respectively.
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Nevertheless, the company expects that the combined metro and regional volumes from Qube’s rail services will deliver annualized run rate throughput through the MLP IMEX of around 300,000 – 350,000 TEU per annum by June 2024. At these volumes, Qube expects that the MLP IMEX Terminal Operations will be at least break-even from a cashflow perspective.
When complete, the fully integrated industrial precinct at Moorebank is scheduled to house over 850,000 square meters of industrial warehouses, supporting more than 6,800 jobs.
Upon completion, the MLP Interstate Terminal will be handed over to the Joint Development Model (JDM) who will undertake the ongoing management of the terminal. The JDM is a joint venture in which Qube will hold a 65% interest, LOGOS (25%) and National Intermodal Corporation (10%).
Qube has been appointed by the JDM as the service provider of the terminal for an initial 5 year term.
The construction of MLP Interstate terminal has been faced with delays amid performance issues with the principal contractor Martinus Rail Pty. In September 2023, Qube terminated the contract and engaged John Holland Rail to manage and construct the remainder of the project. An initial test train operated through the MLP Interstate Terminal in January 2024.
Qube and Martinus have been in a legal dispute over termination entitlements, however, the company expects the final outcome of the legal dispute not to have a material impact on the company’s finances.
The company said that the total expected cost to complete Stage 1a and 1b of the MLP Interstate Terminal is in line with Qube’s previous estimate of around $200 million of which $153.7 million had been spent to 31 December 2023.
“Positive discussions are being held with potential users of the MLP Interstate Terminal and Qube expects volumes to increase progressively during calendar 2024. It is currently expected that train services will commence in Q4 FY24,” the company said.
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