Leading transport and logistics business, Austrans has committed to a 15-year lease on a brand-new $55 million facility at Salta’s Nexus Altona Industrial Estate 40-hectare industrial precinct located just 15 kilometres from the Port of Melbourne.
Colliers’ agents, Nick Saunders and Hugh Gilbert, secured the lease of the 20,692sqm facility, which will be situated adjacent to the proposed Altona Inland Port, a rail-based terminal directly connected to the Port of Melbourne that, upon completion, will significantly reduce truck trips into the Port of Melbourne.
Nick Saunders, National Director of Colliers Industrial, said the new Altona Inland Port is expected to deliver significant cost savings and efficiencies in transferring containers to and from the Port of Melbourne compared to road transport making Nexus Altona Industrial Estate a sought-after industrial estate.
“Austrans’ brand-new facility at Salta’s Nexus Altona Industrial Estate, due for completion in May 2023, will significantly improve transportation effectiveness for the business, being located close to major arterial roads, including the Western Ring Road and the Princes Freeway.”
“The direct connection to the new Altona Inland Port will also clear up some of the traffic congestion on the West Gate Bridge as import and export businesses will be able to ship containers via rail directly to Altona,” said Mr Saunders.
In 2022, industrial leasing reached a record high with approximately 1.9 million sqm of industrial warehouses above 5,000sqm leased across Melbourne, which has been the country’s most active industrial market for the past three years, supported by record levels of infrastructure investment and land availability which has enabled occupiers to fulfil their expansion plans.
“Almost 60% of deals by floorspace in 2022 stemmed from pre-commitment or speculative leases compared to 42% reported in the previous year, as established industrial warehouses extremely tightly held with limited assets available to the market,” added Colliers National Director Hugh Gilbert. “We continue to see upward pressure on rents, with incentives also coming off dramatically, to a point where they are negligible.”
On the other side of the bay, Salta also controls the 180 hectares industrial estate Nexus Dandenong South, 46 km south of the Port of Melbourne, which already houses several major distribution centres for leading businesses, including Woolworths’ South regional distribution centre, Bunnings regional distribution centre, Modial VGL, and Silk Contract Logistics amongst others.
Salta’s Managing Director Sam Tarascio said, “The two industrial estates will play a significant role in improving freight efficiency across metropolitan Melbourne, providing direct rail access to the Port of Melbourne.”
“The Dandenong South and Altona Intermodal terminals will enable importers, exporters, and businesses direct access to the Port of Melbourne, utilising their existing rail connections, enabling greater levels of efficiency, reliability and savings. By facilitating a freight mode shift, numerous non- economic benefits are also available, including a rail-related reduction in carbon emissions, lower levels of road degradation, improved safety and lower congestion surrounding the Port of Melbourne,” said Mr Tarascio.