DP World and NSW Ports have announced a joint investment of $400 million to expand the rail terminal at Port Botany, with the aim of more than doubling its annual capacity. This project is part of Stage Two of NSW Ports’ On-Dock Rail Investment Program and is scheduled to commence in June, with an expected completion timeline of two years.
The expansion will include the construction of 600m rail sidings equipped with rail-mounted gantry cranes, which will significantly increase the rail-handling capacity at the terminal from 400,000 to 1 million TEU per year. NSW Ports will contribute $148 million towards the delivery of four rail sidings, while DP World will invest $250 million in an additional rail siding, operational equipment, and upgrades to its adjacent logistics park as part of a broader project.
Marika Calfas, CEO of NSW Ports, emphasized the importance of sustainable supply chains for the NSW economy, highlighting the need for cost-effective and timely delivery of imported goods to households and businesses, as well as providing exporters with access to global markets. She stated that the project would help move more containers by rail, thereby reducing the growth of trucks on roads, transport emissions, and ensuring the efficiency of the state’s supply chains.
Nicolaj Noes, Executive Vice President of Oceania at DP World, expressed his confidence that the project would deliver significant benefits for customers. He emphasized that the investment in new port-centric logistics infrastructure would increase capacity, agility, integration of processes, productivity, and reliability. Mr. Noes also highlighted the environmental benefits of the project, including reducing carbon emissions, improving air quality in Sydney, and accelerating the shift of freight from road to rail.
Port Botany currently handles approximately 2.8 million TEU annually and is the only port in Australia with on-dock rail facilities at all three of its container terminals. It is directly connected to a network of metropolitan and regional intermodal terminals, including dedicated freight rail connections. The completion of Stage One of NSW Ports’ On-Dock Rail Investment Program took place in late 2023.
To fund Stage Two, NSW Ports will implement an increase of $4.28 per TEU in wharfage fees on all full imports and exports from 1 July 2025. This fee will be removed once the cost of the investment has been recovered. The overall goal of the project is to enhance the efficiency of container handling at the port, reduce turnaround times, and promote the use of rail transport over road transport for freight movement.
In conclusion, the expansion of the rail terminal at Port Botany represents a significant investment in the future of supply chain logistics in NSW. By increasing rail-handling capacity, improving efficiency, and reducing environmental impact, the project aims to position Port Botany as a key hub for global trade and commerce. Source: NSW Ports, DP World.
