Senator the Hon Mathias Cormann

The Government welcomes a submission from the Moorebank Intermodal Company outlining its proposed approach for developing the Moorebank Intermodal Terminal.

Moorebank has been identified as a priority location for a freight terminal development since 2004. This site connects key road and rail networks with major freight markets in Australia and around the world.

Moorebank is needed now to cope with Sydney's freight growth. Other intermodal locations will be required in the medium to longer term to meet Sydney's ballooning freight transport task.

The proposal put forward by the Moorebank Intermodal Company suggests a joint precinct, encompassing the Commonwealth's former School of Military Engineering site and the adjoining land owned by the Sydney Intermodal Terminal Alliance, a consortium comprised of Qube Holdings and Aurizon Holdings.

The proposal is the result of direct negotiations between Moorebank Intermodal Company and the Sydney Intermodal Terminal Alliance, following an expression of interest process.

The joint precinct would be developed by the Sydney Intermodal Terminal Alliance and include an import-export freight terminal connected by rail to Port Botany, with capacity for 1.05 million containers a year, and an interstate freight terminal with capacity for 500,000 containers a year. Both facilities will provide open access, to maximise competition.

The Government will now undertake a due diligence examination of the proposal. The Boards of Qube Holdings and Aurizon Holdings will also consider the proposal.

Our examination will determine if the proposal delivers value for money for taxpayers and achieves the Government's objectives for the Moorebank Intermodal Terminal development.

The Moorebank Intermodal Terminal will be required to deliver significant economic, environmental and social benefits. These include:

• reducing constraints on container volumes moving through Port Botany;
• relieving traffic congestion on Sydney's roads;
• enabling faster freight times and reduced costs to business;
• creating jobs in south-west Sydney throughout the construction and operation phases; and
• reducing diesel emissions by encouraging a modal shift from road to rail.

We remain committed to minimising any impacts on local residents and businesses and proposals will pass through rigorous environmental and planning processes.

Moorebank Intermodal Company has released an Environmental Impact Statement that thoroughly considers environmental and planning issues. Submissions on the statement may be made to the New South Wales Department of Planning and Environment until 8 December 2014.

Further planning and environmental approvals will be sought for the precinct should the agreement between Moorebank Intermodal Company and the Sydney Intermodal Terminal Alliance receive the required Government and Board approvals for the commercial arrangements.