More freight loads will be transported via rail through a Sydney south-west link constructed to ease road traffic.
Constructed from Sydney’s Port Botany to a freight terminal and warehousing facilities at Moorebank, the Moorebank Intermodal Terminal will take 3300 trucks off Sydney roads.
The federal government will call for tenders from the private sector to design build and operate the terminal.
Private sector operators will be selected through an open and competitive tender process for the project.
A government business enterprise will be established to manage the tender process, which will include an experienced private sector board with a strong commercial focus.
The Department of Infrastructure expects 1650 full time jobs will be created during construction, and a further 1,700 people could be employed in the Liverpool region once the project is up and running.
The terminal will see an injection of $135 million a year into the economy of the south-western Sydney alone, according to the Department of Infrastructure.
Moorebank has a close proximity to major connecting routes such as the M5, M7 and the Southern Sydney Freight Line.
Independent firms KPMG and Greenhill Caliburn have accessed Moorebank as the most appropriate location for an intermodal terminal.
Reduced freight costs and diesel emissions will be a benefit to Australian businesses using Sydney’s port, according to the Department of Infrastructure.
Following planning and environmental approvals, the open-access terminal is expected to open in 2017.
According to the Department of Infrastructure, the Moorebank site will also be expanded to include an interstate freight terminal at a later date.