Patrick Terminals and the Port of Melbourne have extended their lease agreement until 2066, and infrastructure for a new rail terminal.
Qube, which holds a 50 per cent interest in Patrick, has made the announcement, to secure its long term strategic footprint at East Swanson Dock and an adjoining logistics site, at Coode Road.
Patrick recently upgraded its capabilities at East Swanson Dock to handle vessels carrying over 11,000 TEU.
"Patrick has entered into a Development Deed with the PoM to cofund and build the rail terminal," Qube Holdings managing director Maurice James told the ASX.
"PoM will oversee the construction and when complete, the terminal will form an important part of the broader Port Rail Transformation Project to increase rail modal share in Melbourne.
"The rail terminal is expected to be complete by mid 2023."
The Port of Melbourne has committed to spend $125 million in on-dock rail, as part of its PRTP.
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Mr James said the decision supported Patrick's landside efficiency focus and was expected to facilitate the development of metro-based rail shuttle services over the medium term.
Patrick Terminals chief executive Michel Jovicic said the company was proactively investing significant capital into the Melbourne terminal, with the recent delivery of two new 19-wide ZPMC quay cranes and four new straddles.
"The investment in the new rail facility in conjunction with Port of Melbourne will deliver a better rail supply chain for both importers and exporters,' Mr Jovicic said.
The new rail terminal would deliver improved supply chain productivity at the Melbourne terminal while also assisting in moving trucks off the roads in inner Melbourne.
The new terminal was expected to handle up to 200,00 TEU's annually.
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Andrew Miller
I'm a general reporter with Stock & Land, with a special interest in irrigation issues. I completed my cadetship, with the Age, in 1980. Over my career, I've worked for ABC radio news (Mt Isa, Qld) and at provincial and suburban newspapers.
I'm a general reporter with Stock & Land, with a special interest in irrigation issues. I completed my cadetship, with the Age, in 1980. Over my career, I've worked for ABC radio news (Mt Isa, Qld) and at provincial and suburban newspapers.
