ONE of Australia’s largest and most powerful privately owned companies, Visy, looks set to fund construction of a freight terminal at Bomen.
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Visy Logistics has signed an agreement with Wagga City Council which significantly advances the long-awaited Riverina Intermodal Freight and Logistics Hub project.
Previously, council had been working with US rail giant Genesee & Wyoming, but progress on the project had stalled.
However, Wagga City Council pushed ahead with the development of Bomen and has completed a $35 million upgrade of roads around the industrial suburb.
Wagga City Council’s general manager Peter Thompson said the RiFL Hub has the potential to become a ‘transformative piece of infrastructure’ for Wagga and the wider region.
“The aim of the public-private partnership is for Visy Logistics to fund the construction of the freight terminal and then operate the freight terminal on a long-term lease,” he said.
“It will provide a significant and long-lasting benefit to current and future businesses, as well as flow-on effects for the broader community.”
Visy is expected to invest between $5 million and $10 million in the freight terminal. The project’s progress now hinges on securing $35 million in state government funding.
Visy Logistics executive general manager Sean Richards said: “Visy Logistics is focused on investing in integrated logistics solutions & enablers, across the complete supply chain, both locally and internationally.
“RiFL presents a unique opportunity for Visy Logistics to utilise the Visy Group’s volumes for the purposes of enabling the development and realisation of a sustainable and efficient logistics solution, connecting our current and future customers in the Riverina to world markets.”
Addressing the issue of the stalled agreement with Genesee & Wyoming, the council said that “during the agreement’s exclusivity period, it became clear to both council and GWA that the best partner for council was Visy as it has the logistics business and freight load to make the project viable”.
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Work on securing the long-term future of Bomen has been going on for more than a decade.
A strategic master plan for the 1800-hectare Bomen site was completed in 2009 and featured the proposed RiFL Hub and the roadworks required to make the project possible.
Works began with the Eunony Bridge Road Deviation project in 2014-15 and were followed by the $35m Bomen roads project, which was completed in 2017.
Currently the council is looking at tenders it has received for a project to strengthen and widen the Eunony Bridge – the final major road link for the project – so that heavier vehicles can more easily get to Bomen.
“Developing a high productivity freight route for Bomen business park has been a priority for council for a number of years,” Mr Thompson said.
“The opening of the Bomen enabling roads was a significant milestone and with the Eunony Bridge works moving forward, the pieces are falling into place as we continue to work closely with Visy Logistics on the proposed freight terminal.”
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