Woolworths gets cracking on distribution with Moorebank build

Woolworths is building distribution centres that span the size of five Sydney Cricket Grounds in Moorebank

Woolworths has started building a next generation supply chain hub at Moorebank

Supermarket giant Woolworths is looking to drive efficiencies across its supply chain as it splits off the Endeavour Group drinks and hospitality businesses.

The company’s supply chain arm, Primary Connect, has kicked off building works on its new national distribution centre in the Moorebank Logistics Park in western Sydney.

The scale of the complex is shown by the materials required, with the centre to include 2000 tonnes of structural steel, 12,000 cubic metres of concrete to be poured, and 60,000 cubic metres of soil to be moved on site.

Such complexes have grown in importance to companies seeking to cut costs.

Set to open in 2024, the new Moorebank facility will strengthen Primary Connect’s national supply chain and service more than 1000 Woolworths supermarkets across Australia. It will be co-located with the Moorebank Regional Distribution Centre, which will start construction later and open in 2025.

With cutting-edge automation and 75,000sq m of floor space, Moorebank will give Woolworths an edge on most competitors.

Woolworths invested about $700m-$780m in the technology and fit-out of both distribution centres in partnership with Dematic and Vanderlande. Qube will invest about $440m to build the distribution centres, with Woolworths signing a 20-year lease.

Woolworths CEO Brad Banducci flagged ambitions of offering a more tailored range of products in stores. “We’ll be able to carry up to 8000 additional products in our range,” he said.

Moorebank Logistics Park has direct access to a freight rail line from Port Botany, with connections to the national rail network.

Woolworths has a $2.3bn investment program planned across NSW over the next five years.