The rail capacity of Sydney's freight supply chains will receive a boost with Stage Two of NSW Ports' On-Dock Rail Investment Program at Port Botany scheduled to commence in the first half of this year.
Stage Two of the program will see NSW Ports co-invest with DP World in a new rail terminal built at DP World's Port Botany container terminal.
This will include 600 metre rail sidings serviced by rail mounted gantry cranes, boosting rail handling capacity at the terminal to an ultimate throughput of 1 million TEU per annum. NSW Ports will contribute $148 million towards the delivery of four rail sidings.
DP World will invest $250 million in an additional rail siding, operational equipment and significant upgrades to its adjacent logistics park as part of a broader project.
NSW Ports CEO Marika Calfas said sustainable supply chains were critical to the NSW economy to ensure cost effective and timely delivery of imported goods to households and businesses and for the state's exporters to reach global markets.
"This project will move more containers on rail to reduce the growth of trucks on roads, reduce transport emissions and secure the efficiency of the state's supply chains," Ms Calfas said.
"This new rail terminal will improve efficiency and reduce turnaround times for containers at the port. It will reduce congestion, by taking trucks off NSW's roads, benefiting households and businesses right across the state."
DP World Executive Vice President, Oceania, Nicolaj Noes said the project would deliver significant benefits for customers.
"This is what world-class logistics infrastructure is all about – delivering capacity, superior agility, seamless integration of processes, increased productivity, added reliability and predictability while at the same time improving safety," Mr Noes said.
"This new facility delivers on all these critical elements, and we cannot wait for our present and future customers to reap the benefits."
Port Botany is the only port in Australia with on-dock rail within each container terminal, connected to Sydney's extensive network of intermodal terminals, including by dedicated freight rail.
Stage One of NSW Ports' On-Dock Rail Investment Program was completed in late 2023.
NSW Ports will fund Stage Two through an increase of $4.28 per TEU in wharfage fees on all full imports and full exports from 1 July 2025, which will be removed once the cost of the investment has been recovered.
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