Toll announces AU$200m investment in new retail fulfilment facility in Sydney

Toll Group today announced a AU$200m investment to open a new, next-generation automated retail distribution centre in Kemps Creek, western Sydney. 

The facility will be Toll’s largest Australian omni-channel facility spanning 67,626 sq m, and forms part of Toll’s future growth strategy to expand the Retail and Consumer footprint nationally. 

Featuring AU$75m of advanced automation technology, the omni-channel 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 ahead of opening.

The facility will have storage capacity of close to one million cartons and, through the use of automated picking stations and connected zone-routing stations, will be capable to dispatch 37m items each year.

Toll President Retail & Consumer, 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,” Vrckovski said.

“Our newest facility will give our customers fast, flexible fulfilment that integrates multichannel order management for immediate and accurate deliveries across all of 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 will be targeting a final outcome of 6 Star Green rating. 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 the 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. 

Construction at the Kemps Creek site is due to 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$400m of new investments planned over the next four years.

Source: Toll Group