Kewdale rail terminal to grow

National rail freight operator, Pacific National, has signed a longterm lease agreement with the state government to secure an additional 38 hectares of land adjoining its Kewdale site .

The 50-year lease, which was finalised late last year, more than doubles the size of the company’s holding, bringing it to a total of 68ha .

The acquisition allows Pacific National to expand its rail freight terminal and build an adjoining customer precinct, which will include major warehouses and distribution centres .

Pacific National business improvement manager Steve Peers said the new facilities would ensure the company could manage higher volumes of freight .

“We currently accommodate around 430,000 TEUs [standard containers] per annum,” he said .

“Our intention is that the new area will provide us with enough capacity to double our volume if required .

“It will improve the rail facilities we have and provide us with the surety to invest in and expand our operations.” The expansion of Pacific National’s rail terminal will include the building of a new internal road network for customers to access warehouses, with entry points on Abernethy Road .

While the company would not disclose the value of the lease, industrial property analysts told WA Business News the land could be worth between $150 and $200 per square metre .

“It’s probably similar to what Westralia Airports Corporation paid (at the Perth Airport), about $180 to $200/ sqm,” Jones Lang LaSalle director industrial, Richard Parry, said .

Mr Parry said Goodman International’s $70 million acquisition of the former WA Meat Authority site in Hazelmere also provided a guide to value, with that 34ha site worth about $210/sqm .

However, he said Goodman’s site was freehold rather than leasehold land, and therefore attracted a higher price .

Most of the industrial land available in Kewdale near the rail line is leasehold, while smaller freehold lots in the area are fetching between $500 and $600/sqm .

Within the Pacific National site, a remaining parcel of about 6ha has been reserved by the state government for a potential inland rail terminal to service Fremantle Port .

Discussions are continuing over whether to locate the terminal in Kewdale or Forrestfield .

The government is also due to begin construction works at the Daddow Road railway level crossing in Kewdale .

The project, which involves a grade separation of the track and road, will include a new bridge to improve traffic flow .

It is expected to be completed by the second half of 2009 .

The two projects are part of the government’s strategy to manage increased rail freight volumes and infrastructure bottlenecks in Perth .

Mr Peers said Pacific National’s expansion would meet increased demand from clients, although the plans for the new terminal were still being finalised .

“At the moment, Perth is becoming one of the most competitive rail freight markets nationally,” he said .

“The volume and increases will depend on how we go in fending off our competition.” The new land will enable the company to extend its northern boundary along Abernethy Road .