Toll signs JV with DP World

Toll Group and stevedore DP World Australia have agreed to progress plans that could see more freight delivered by rail into and out of Port Botany.

The proposed 50/50 joint venture (JV) will connect a dedicated container staging zone at Port Botany to an intermodal freight terminal in Villawood, 25 kilometres west of Sydney, to deliver an improved service for importers and exporters.

Toll Group Managing Director Brian Kruger (pictured) said the JV could move around 180,000 TEUs per annum on the rail shuttle.

"A rail shuttle running between Port Botany and Villawood on the Southern Sydney Freight Line will remove around 100,000-plus truck movements off Sydney's roads each year," Mr Kruger said.

"That's 100,000 fewer trucks on the already-congested roads around the port and Sydney Airport."

DP World Australia Managing Director and CEO, Paul Scurrah, said that combining the experience and resources of both companies would see a new end-to-end service offering for customers.

"By using the expertise and existing assets of DP World Australia and Toll, this proposed joint venture will create new efficiencies and competition in the Sydney import-export supply chain," he said.

"Importantly, the introduction of a new multi-user intermodal terminal in Western Sydney with a direct rail connection to DP World Australia's staging facility next to the wharf will increase freight transport options for local importers and regional exporters."

Both parties say they will consider expanding the joint venture into other markets if appropriate opportunities arise over time.

The Port Botany/Villawood project is planned to start operations in 2017.