Toll Group and DP World Australia in talks to set up new joint venture

Toll Group and DP World Australia announced that they have agreed to progress plans for a joint venture that could see more freight delivered by rail into and out of Port Botany, Australia. The proposed 50/50 joint venture would connect a dedicated container staging zone at Port Botany to an intermodal freight terminal in Villawood, 25 km west of Sydney to deliver an improved service for importers and exporters.

Toll Group Managing Director Brian Kruger suggested the JV could move around 180,000 TEUs per annum on the rail shuttle. “A rail shuttle running between Port Botany and Villawood on the Southern Sydney Freight Line will remove around 100,000 plus truck movements off Sydney’s roads each year,” Kruger said. “That’s 100,000 fewer trucks on the already-congested roads around the port and Sydney Airport.”

DP World Australia Managing Director and CEO, Paul Scurrah, said that combining the experience and resources of both companies would see a new end-to-end service offering for customers. “By using the expertise and existing assets of DP World Australia and Toll, this proposed joint venture will create new efficiencies and competition in the Sydney import-export supply chain,” Scurrah said. “Importantly, the introduction of a new multi-user intermodal terminal in Western Sydney with a direct rail connection to DP World Australia’s staging facility next to the wharf will increase freight transport options for local importers and regional exporters.”

The proposed joint venture will leverage DP World Australia’s capability in managing the container terminal interface and Toll’s capability in managing warehousing, delivery and end to end customer solutions. The partners will consider expanding the joint venture into other markets if appropriate opportunities arise over time.

The Port Botany – Villawood project is planned to start operations in 2017.