LOGISTICS company Qube has finalised its $1.67-billion deal with the Logos Property Group Consortium for the sale of its interest in the warehousing and property components of the Moorebank Logistics Park.
As part of the transaction, Moorebank Intermodal Company and Qube have resolved all outstanding claims and disputes.
In July, Qube announced it had entered into a binding transaction with the Logos Consortium, pending conditions and approvals, which have been obtained.
In a statement to the ASX, Qube said it would be focused on its core logistics business and will have the long-term benefits of retaining its interest in the terminals and logistics activities at MLP.
Qube is retaining full ownership of the IMEX Rail Terminal and majority ownership of the future interstate rail terminal, which is to have an initial capacity of 250,000 TEU.
A component of the transaction is the establishment of a joint development model for the delivery and operation of the Moorebank Interstate Rail Terminal. Qube, MIC and Logos will have equity interests in the rail terminal’s ownership and a new joint development entity will be responsible for the terminal’s operations.
A statement from MIC said the efficiencies generated from the scale of the Moorebank precinct, coupled with its direct link to Port Botany and mainland capital cities will increase the capacity and drive efficiencies of freight networks across Sydney and along the east coast.
MIC is to retain final determination over several matters relating to the joint development, particularly in relation to preserving open access arrangements to ensure what it says will be “fair and equal access for all existing and future rail freight market participants”.
MIC chair Erin Flaherty said the development of the Moorebank Interstate Rail Terminal is a critical step towards helping to address Australia’s growing freight logistics challenges.
“Once completed, the interstate rail terminal will connect businesses with their customers and suppliers faster and more efficiently than ever before, both in Australia and overseas. This will facilitate broader and more efficient market access for Australian businesses and a renewed competitive advantage,” Ms Flaherty said.
“We’re pleased to be partnering with Qube Holdings and Logos to deliver a state-of-the-art terminal that will assist in reinvigorating competition within the rail freight market and enhancing the effectiveness of rail services to industry throughout the east coast.”
MIC CEO James Baulderstone said the government’s endorsement of the Logos Consortium investment and interstate terminal joint development caps off a year of significant achievements for the company.
“MIC has now established itself as a successful and respected logistics participant. We were pleased to recently obtain the support of ANZ and Mizuho for a five-year unsecured $200 million revolving debt facility demonstrating both domestic and international lender confidence in the Commonwealth’s strategic direction and our capabilities,” Mr Baulderstone said.
“Over the past 12 months a number of important milestones have been achieved. We finalised terms for the final stage of land preparation works across the old School of Military Engineering Defence site which has paved the way for the critical Interstate Rail Terminal to commence construction next year.”
