Woolworths : to transform NSW supply chain network with investment in new high-tech distribution centres

• Woolworths to partner with Qube on two new state-of-the-art facilities in Moorebank Logistics Park, Sydney
• Yennora, Mulgrave and parts of Minchinbury sites planned to close by 2025, with comprehensive support plan for impacted team members
• Moorebank sites to create around 650 roles and more than 1,000 jobs during construction

23 June 2020: Woolworths Group and Qube have today announced plans to invest in an automated Regional Distribution Centre and a semi-automated National Distribution Centre (DC) in the Moorebank Logistics Park, Sydney.

The two distribution centres - which are subject to New South Wales (NSW) Government planning approval - will strengthen Woolworths' supply chain and deliver the new capacity needed to underpin future growth.

Woolworths' customers will benefit from improved product quality, an expanded range and better availability as the site's cutting-edge technology allows for faster, safer and more efficient deliveries to stores year-round. Set to open in 2023 and 2024, the two distribution centres are expected to provide around 650 jobs once fully operational, along with more than a 1000 jobs during construction.

Both sites will build on semi-automated and automated technology deployed at Woolworths' Melbourne South Regional Distribution Centre, which has been servicing Victorian stores for more than 12 months.

Woolworths Group will invest around $700 - $780 million in the technology and fitout of the two distribution centres over the next four years and has signed an initial lease term of 20 years with Qube Holdings Limited. Qube will invest around $420 - $460 million to build the warehouses. Each warehouse is targeting a Five Star Green Star Design and As-Built rating and will incorporate various sustainability initiatives including solar PV systems, LED warehouse lighting and rainwater harvesting.

Woolworths Chief Supply Chain Officer Paul Graham said: 'The investment at Moorebank will transform the way we serve our NSW stores, strengthen our network and deliver on our ambition to create Australia's best food and grocery supply chain.

'Cutting-edge automation will build tailored pallets for specific aisles in individual stores - helping us improve on-shelf product availability with faster restocking, reducing congestion in stores, and enabling a safer work environment for our teams with less manual handling.

'The new facilities will also help progress our localised ranging efforts, with the ability to hold many thousands more products centrally than we can in our existing facilities.

'We've learnt a lot from our ground-breaking development at the Melbourne South Regional Distribution Centre (MSRDC). After hitting new volume milestones and dramatically improving the speed and accuracy of deliveries, MSRDC is now consistently supporting our Victorian stores - giving us confidence that now is the right time to invest in this new technology for our NSW network.'

Infrastructure investments by the Federal and State Government at Moorebank Logistics Park were key to Woolworths' site selection. The direct rail access to Port Botany will provide strategic benefits for Woolworths' transport network and help remove at least 26,000 of its truck movements from NSW roads each year.

Qube Managing Director Maurice James said: 'Woolworths' long-term commitment will reinforce the commercial appeal of this nationally important infrastructure and freight project.

'The benefits of railing containers direct from Port Botany to a terminal co-located with warehousing across a site the size of the Sydney CBD will deliver Woolworths time and cost efficiencies. Our project team is looking forward to working with the Woolworths team in delivering an optimal solution for their operations.'

Once established, the Moorebank facilities will replace the current ambient operations at Woolworths' Sydney Regional Distribution Centre (Minchinbury), Sydney National Distribution Centre (Yennora) and Melbourne National Distribution Centre (Mulgrave). These sites are expected to close by 2025. Temperature controlled fresh food distribution will continue out of Sydney Regional Distribution Centre (Minchinbury).

Mr Graham added: 'While this change is a few years away, we're absolutely committed to supporting our team members at existing sites through what will undoubtedly be a challenging transition.

'We explored options to upgrade our existing sites, but the ageing infrastructure just won't be able to support the growth in volumes we'll need to service in the years ahead.

'We'll look to offer redeployment opportunities wherever possible with 650 roles available at the new Moorebank sites, as well as providing a wide range of support and career transition services to our team well before site closures.'

Woolworths Group has also committed to a long-term investment in supporting its team members with the skills and training required for the workforce of tomorrow. Woolworths Group will partner with third-party organisations to ensure team members are prepared for the evolving changes technology and innovation will bring to the workforce.

A planning application seeking approval for the new facilities will shortly be lodged with the NSW Department of Planning.

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For further information, please contact Woolworths Media: [e-mail] or [phone]

About Moorebank Logistics Park

The Moorebank Logistics Park - developed, managed and operated by Qube - is set over 243 hectares in south-western Sydney. When fully developed, the precinct will include up to 850,000sqm of integrated warehousing. A direct rail link to Port Botany commenced operations in September 2019 and an interstate rail terminal will be developed in future. When complete, the facility will transport 1.5 million TEU between Port Botany and Moorebank and the national freight network.

Proposed Sydney Regional Distribution Centre: 34,600 sqm automated site. Expected to receive and dispatch more than 6,000 products from over 800 suppliers to more than 266 stores. Product lines will include fast moving packaged grocery, health and beauty and general merchandise.

Proposed National Distribution Centre: 40,700 sqm semi-automated site. Expected to receive and dispatch more than 9,000 products from over 900 suppliers to more than 1,020 stores. Product lines will include slower moving packaged grocery and general merchandise.

About Woolworths' Existing Distribution Centres

Sydney Regional Distribution Centre, Minchinbury: 92,000 sqm site first opened in 1998. Currently employs around 515 permanent team members in ambient operations. Temperature controlled operations will continue to provide employment to around 460 permanent team members.

Sydney National Distribution Centre, Yennora: 43,500 sqm site first opened in 1981. Currently employs around 540 permanent team members distributing slow moving packaged grocery, health and beauty and general merchandise goods to around 1,020 stores.

Melbourne National Distribution Centre, Mulgrave: 40,000 sqm site first opened in 1999 (building has been there since c.1974). Currently has around 295 permanent team members distributing slow moving packaged grocery, health and beauty and general merchandise goods to around 1,020 stores.

The Moorebank investment is Woolworths' next step in transforming its supply chain network. Since 2018, Woolworths has expanded its Townsville, Adelaide and Tasmanian distribution centres, launched the new automated Melbourne South Regional Distribution Centre, and started construction of the Melbourne Fresh Distribution Centre. Woolworths Group has also significantly grown its Primary Connect business during this time.