Qube tears up freight hub contract with Martinus Rail

afr.com:

Construction has stopped on an interstate rail hub in southwest Sydney that is supposed to get freight off trucks on to trains after logistics group Qube scrapped a $140 million construction contract signed a year ago with Martinus Rail.

Qube, which has been building an interstate intermodal terminal at Moorebank afterselling land and warehouses at the site to the Logos Property Group in a $1.65 billion deal, said the contract with privately owned Martinus was terminated on Monday night.

“While regrettable, our decision to do so was made in the best interests of the project and an alternative delivery strategy is under development to achieve meeting our completion in the second half of fiscal 2024,” a Qube spokesman said.

Happier times...a contract signed a year ago by Qube commercial manager Simon Barney (left) and Martinus CEO Treaven Martinus has been scrapped. 

Qube revealed in its annual results in August that it was having disagreements with Martinus over changes to the construction price, project scope and delivery date.

The rail terminal, which was initially scheduled to be built by early 2021, was given a new completion date of October 2023 after the contract with Martinus was signed.

But it has been delayed again by almost a year, which could also postponethe remaining payments Qube is due to receive from Logos as part of the Moorebank sale agreement.

Qube, which will operate the rail hub and try to increase interstate rail services, is required to pay for the first stage of the terminal’s construction even though the federal government’s Moorebank Intermodal Company will have a 10 per cent stake in the freight hub and Logos will have 25 per cent.

Martinus, which was founded by Treaven Martinus, confirmed work