DP World, NSW Ports invest US$250 million to boost Botany’s rail capacity
DP World and NSW Ports are jointly investing US$250 million to expand the rail terminal at Port Botany in Sydney, enhancing its logistics capabilities and solidifying the city’s role as a key hub for international trade.
NSW Ports is contributing US$92 million to the new facility project that will serve both the Container Terminal and the Logistics Park, a prime example of the global trend of placing major logistics hubs near key ports. The project, set to begin in June and complete in two years, will include five new rail sidings designed to accommodate 600-meter-long regional trains.
This investment is part of DP World’s ongoing efforts to strengthen its rail infrastructure globally, extending its reach in the supply chain. Customers will benefit from expanded intermodal rail services connecting operations across Europe, North America, South America, Africa, India, and the Middle East, including a new freight train between Abu Dhabi and Dubai’s Jebel Ali port.
Nicolaj Noes, Executive Vice President, Oceania, DP World, commented: “Our investment in this new port-centric logistics infrastructure will deliver more capacity, superior agility, seamless integration of processes, increased productivity and added reliability. We cannot wait for our present and future customers to reap the benefits of this world-class facility, which accelerates the shift of freight from road to rail while reducing carbon emissions and improving Sydney’s air quality at the same time.”
A key benefit of the project is the increased capacity with the annual rail capacity for DP World’s terminal more than double, from 400,000 TEUs to 1 million TEUs. Environmental benefits include fewer truck movements and reduced carbon emissions supporting Sydney’s sustainability goals. Additionally, economic growth is expected with enhanced logistics efficiency stimulating growth in sectors like agriculture, manufacturing, construction, retail, and e-commerce, creating sustainable jobs across New South Wales.
Port Botany, New South Wales’ primary container port, handles 2.8 million TEUs annually and contributes US$6.7 billion to the state’s economy each year. It is the only Australian port with on-dock rail access at all three of its container terminals, with dedicated freight rail connections to metropolitan and regional intermodal terminals.
At Port Botany, DP World operates the 200 thousand square meters of Sydney Logistics Park, the largest in the city, with over 18,500 TEUs of capacity. The park offers a range of services including warehousing, bonded storage, quarantine, and container repair.
Further inland, DP World collaborates with Stockland at the Yennora Intermodal Terminal, one of the Southern Hemisphere’s largest logistics hubs. This year, DP World launched a new rail service at the terminal to offer fully integrated supply chain solutions.
These rail upgrades are part of DP World’s global strategy, drawing on its extensive intermodal expertise in regions including Europe, North America, South America, Africa, India, and the Middle East, and expanding successful initiatives like the ASEAN Express in Asia and expanded rail services in the UK.
Marika Calfas, CEO of NSW Ports, commented: “This collaboration with DP World to deliver a new, enhanced, rail terminal continues the growth of on-dock rail capacity at Port Botany to service the state’s import and export trade. This new rail terminal will enable more containers to be moved by rail, reducing the growth of trucks on roads and will deliver greater efficiency for the state’s container supply chains. Port Botany is uniquely the only port in Australia with on-dock rail within each container terminal, connected to an extensive network of metropolitan and regional intermodal terminals including dedicated freight rail.”
