A new $400 million freight hub on the outskirts of Melbourne backed by Aware Super aims to steal market share as superannuation funds try to capitalise on billions of dollars of government spending on rail networks.
Aware revealed plans to build an open-access freight terminal at Somerton, about 26 kilometres north of the Port of Melbourne, in late January.
The $160 billion pension fund is willing to take the risk of building a freight hub because it expects the $31 billion east coast Inland Rail project to take freight off trucks and onto trains. It believes “unlocking the efficiencies and the value” will come from establishing a network of independently owned intermodal terminals, Aware’s associate infrastructure portfolio manager, Krish Gandy, told The Australian Financial Review.
Artist’s impression of the new Somerton intermodal terminal that will be built north of Melbourne.
Aware considers independently owned and operated intermodal terminals to be a new infrastructure asset class, and by building a terminal from scratch, it avoids the “competitive auction environment”, Mr Gandy said. “As active asset managers we get to come in on the ground level.”
Aware fully owns the Intermodal Terminal Company, a firm created late last year by former Pacific National executives Mishkel Maharaj, Leigh Cook and Brendon Gibson. ITC’s management team, which approached the superannuation fund for investment, is responsible for acquiring, developing and operating the Somerton hub, which is due to open in 2025.
“The ITC management team view Somerton as the first in many for their portfolio with the aim to create a national network of intermodal terminals,” Mr Gandy said.
Owning ITC also allows Aware to oversee the company’s strategy
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