First look: Aldi plans massive distribution hub for key western Sydney site

An empty paddock, 20 times bigger than the Sydney Cricket Ground, is set to be transformed into a massive packing and distribution hub for supermarket giant Aldi. See the plans.

An empty paddock 20 times bigger than the Sydney Cricket Ground is set to be transformed into a massive packing and distribution hub for supermarket giant Aldi.

The German retailer has taken a stake in the future Aerotropolis city development next to the new Western Sydney Airport, with plans to build an automated distribution centre capable of servicing more than 200 Aldi stores.

The distribution hub at 475 Badgerys Creek Rd would be highly automated, with about 80 per cent of the internal processes being performed by machines and robots rather than by hand.

Plans, however, show there would still be a human presence, with the site expected to support a workforce of up to 350 staff.

Aldi - in its plans for the development - stated the project would capitalise on the “catalytic” level of infrastructure planned for land around the new Western Sydney Airport, including the new Metro line and the M12 motorway

The development would be able to service more than 200 Aldi stores.

“Developments such as that proposed by Aldi at Badgerys Creek will undoubtedly leverage off this significant infrastructure investment and showcase exactly what long-term plans for the Aerotropolis are intended to achieve,” the plans stated.

Early plans for the facility show the distribution hub would cost at least $30m and have a footprint of around 90,000 sqm.

It is expected to generate 1540 truck movements a day to supply stores with goods and produce.

The development site, located directly to the east of the new airport.

Aldi’s plans for the site said the development would also have the capacity to service “future expansion of the store network”.

“The project will be transformational to Aldi in its aspirations to better support its customers,” the plans stated.

“It not only will harness leading edge technology to drive supply chain efficiencies, but also stands to be a landmark investment by a globally recognised brand in western Sydney, and specifically the Aerotropolis.”

A concept design of the new distribution hub.

The Aerotropolis is set to become a major residential and employment zone following the opening of the airport, with the NSW Government aiming to have 10,000 homes and 20,000 jobs built in the precinct over the coming decade.

It is understood the owner of the Badgerys Creek Rd site – Ingham Property Group – is working with the NSW Department of Planning on a masterplan for the site, including its connection to new roads and other core infrastructure such as power, sewerage, water, telecommunications and stormwater drainage.

CoreLogic data shows Ingham bought the development site – measuring about 220,000 sqm – for $3.8m in 2022.

The proposal has been lodged with the NSW Government and is currently being considered as “state-significant” infrastructure.