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Construction Starts on Largest Logistics Hub in Australia; Inside the $1.62B Beveridge Precinct

Home » Buildings » Industrial » Construction Starts on Largest Logistics Hub in Australia; Inside the $1.62B Beveridge Precinct

Construction has officially begun on the $1.62 billion Beveridge Intermodal Precinct in Melbourne’s north, a landmark infrastructure project set to become Australia’s largest and most advanced logistics hub. The first sod was turned on Thursday, marking a pivotal moment in the development of the precinct, which is strategically located at the southern terminus of the Inland Rail freight corridor. This massive facility will be the first in Melbourne capable of receiving double-stacked freight trains, significantly enhancing the efficiency of cargo movement between Melbourne, Sydney, Brisbane, and Perth.

The project, led by the Federal Government-owned National Intermodal, aims to revolutionize the national supply chain by facilitating a major modal shift from road to rail. Main construction works are scheduled to ramp up early next year, with the initial terminal operations targeted for mid-2028. Once fully operational, the precinct will not only streamline freight logistics but also inject billions into the Victorian and national economies, creating thousands of jobs during both construction and operation phases.

Enhancing Supply Chain Efficiency and Connectivity

The Beveridge Intermodal Precinct is designed to address critical bottlenecks in Australia’s freight network by offering an open-access terminal that fosters competition and lowers transport costs. By enabling 1,800-metre double-stacked trains to operate directly from Melbourne to Perth via Parkes, the facility will drastically reduce transit times and improve reliability for businesses nationwide. The precinct’s strategic location ensures seamless connectivity to key markets, serving as a vital consolidation point for goods moving across the eastern seaboard.

Federal Infrastructure Minister Catherine King highlighted the project’s importance, noting that it will play a key role in marshalling freight from ports and across Victoria for distribution throughout the country. This enhanced connectivity is expected to support industry growth by providing a more resilient and efficient supply chain backbone. This is essential for getting products to shelves and consumers faster and cheaper.

Economic and Environmental Impact

Beyond its logistical capabilities, the Beveridge precinct promises substantial environmental and economic dividends. The project is projected to remove approximately 167,000 truck trips from Australian roads annually. This will lead to a significant reduction in traffic congestion and road wear. The shift from road to rail is expected to cut carbon emissions by an estimated 12.1 million tonnes over the next 25 years. This will contribute meaningfully to the nation’s decarbonization targets. Environmentally, the precinct will also incorporate renewable energy technologies. This includes potential for large-scale solar installations, and preserve around 500 hectares of land for green wedges and biodiversity.

Economically, the development is a powerhouse, anticipated to generate 8,000 jobs within the precinct itself and support over 17,000 jobs at its peak. Additionally, there is a strong focus on employing local residents from Melbourne’s growing northern suburbs. The Federal Government has also committed an additional $900 million for road upgrades. Further, this includes a new interchange at Camerons Lane, to further support the precinct’s integration into the local transport network.

A Future-Proofed Logistics Hub

The Beveridge Intermodal Precinct is being built with the future in mind, mirroring the innovative strides taken as Fortescue launches the first large-scale BYD BESS at North Star Junction to support Australian mining operations. Further, it integrates advanced automation and modern logistics technologies to handle the increasing freight demands of a growing population. National Intermodal is taking a staged approach to delivery. The first stage focuses on establishing the core rail connection and terminal infrastructure by 2028. Subsequent stages will expand the facility to include co-located warehousing and a broader industrial precinct. Ultimately, they  plan to process up to 500,000 TEU (twenty-foot equivalent units) per year.

This forward-looking design ensures the terminal can adapt to future freight volumes and technological advancements. ALC CEO Dr. Hermione Parsons welcomed the investment. He emphasizes that the precinct is a critical piece of infrastructure that will drive productivity and resilience in the face of future freight challenges. By combining state-of-the-art infrastructure with strategic planning, the Beveridge precinct is poised to set a new standard for logistics hubs in Australia.

Beveridge Intermodal Precinct: Factsheet

Project Name: Beveridge Intermodal Precinct

Location: Beveridge, Melbourne’s North (VIC)

Total Investment: $1.62 Billion (Federal Government)

Developer: National Intermodal

Contractor (Stage 1): John Holland

Key Features:

Australia’s largest intermodal precinct (1,100 hectares).

Southern terminus for Inland Rail.

Capable of handling 1,800m double-stacked trains.

Capacity: 500,000 TEU per annum (upon full completion).

Timeline:

Construction Start: Late 2025 (Sod turn Dec 2025).

Stage 1 Operations: Target Mid-2028

Economic Impact:

8,000 direct jobs; 17,000+ total jobs supported.

$14 billion economic uplift for Victoria.

Environmental Benefits:

Removes:~167,000 truck trips/year.

Cuts 12.1 million tonnes of CO2 emissions over 25 years.

500 hectares preserved for green space.

Nathan G is a reporter from Nairobi, Kenya. He has written for Construction Review for just over four years. He is currently a university student at one of Nairobi's top universities studying for a Bachelor of Science in Finance.

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