Costa?s brings its business west

MELBOURNE-BASED company Costa?s Pty Ltd is just weeks away from starting operations at its new distribution facility in Jandakot.

The facility will be the wholesale fruit merchant?s WA headquarters, from which it will distribute fresh fruit and vegetables to 60 Coles super-markets and 18 Newmart stores around the State.

Coles Myer previously handled the distribution of its own fresh produce, however the outsourced fresh produce operations will begin by the end of next month.

Shifting the division to Jandakot Industrial Area is the first step

in major plans for Coles Myer?s Canning Vale distribution



centre, which will be expanded from 55,000sqm to a total of 77,000sqm in the near future.

Costa?s new facility is being built by Doric Constructions at a cost of $7 million and consists of 6300sqm of warehouse space plus administration, receivables, dispatch and mechanical plant areas.

A spokesperson for Costa?s said the Jandakot site had been chosen because of its proximity to the Kwinana Freeway, a major transport link, and the Canning Vale markets.

The facility is also close to Clelands Cold Stores in Banjup, which supplies Coles Super-markets with frozen foods and some groceries, allowing for the possibility to share distribution transport.

Knight Frank industrial and commercial director Martin Reeson expected the Jandakot and Banjup industrial areas to become important locations for the food distribution business in the future.

?At the moment people are able to buy big areas of land and construct facilities, still leaving themselves room to expand,? Mr Reeson said.

?And what tends to happen is when you get certain important businesses locating in the area their suppliers, and sometimes their customers, also like to locate there.?

At present, land in Jandakot is selling for between $75 to $80 per square metre for blocks up to 5000sqm and for $35 to $40 per sqm for three to five-hectare blocks.