Toll Group has announced an AU$200 million investment to open a new, next-generation automated retail distribution centre in Kemps Creek, Western Sydney. The facility will be Toll’s largest Australian omnichannel facility spanning 67,626 sqm and forms part of Toll’s future growth strategy to expand the Retail and Consumer footprint nationally.
Featuring AU$75 million of advanced automation technology, the omnichannel facility has been designed to support both e-commerce and retail store fulfilment for retailers. Major retailers have shown strong interest in the new facility, which is expected to be fully committed before opening.
The facility will have a storage capacity of close to one million cartons and, through automated picking stations and connected zone-routing stations, will be capable of dispatching 37 million items yearly. Toll President of Retail & Consumer, Mr Nick Vrckovski, said the investment shows Toll’s leadership in developing leading solutions for the fast-paced retail industry.
“We’re seeing huge demand from our retail customers for fast, flexible warehouse solutions that meets the needs of Australia’s savvy online and retail shoppers,” Mr Vrckovski said. “Our newest facility will give our customers fast, flexible fulfilment that integrates multichannel order management for immediate and accurate deliveries across Australia. Whether it’s opening up new channels, offering more delivery options, or increasing warehouse capacity, our fulfilment solutions can adapt to the changing needs of retailers.”
The facility, to be developed by ESR Australia, will meet Toll’s sustainability requirements with a 5 Green Star Design and As Built rating and target a 6 Star Green rating outcome. It will largely be powered by renewable energy through extensive solar panels supported by battery storage. Other sustainability features include LED lighting, rainwater harvesting, and electric vehicle charging facilities. New carton technology that customises a carton to a minimal size will reduce waste and transport space.
The site is ideally located in the western Sydney growth corridor near the new airport, with convenient transport links to deliver across a national network. The facility will provide up to 240 direct jobs for operations workers, technicians and engineers, boosting the local economy.
Construction at the Kemps Creek site will commence in August 2023 and is expected to be fully operational in 2025. The investment at Kemps Creek is part of Toll’s broader strategy to grow the Australian business, with AU$400 million of new investments planned over the next four years.
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