Logistics News

Salta details Dandenong South Intermodal Terminal operations

Facility to feature automated rail mounted gantry cranes and advanced tech


Salta Properties appears about to realise a dream decades in the making, but at a significant premium on an earlier indication.

In August last year, the Salta investment was put at “more than $50 million” in a joint funding of the Dandenong South Intermodal Terminal (DSIT), with construction due to begin early this year.

That figure is now put at $155 million and whether it is joint funding is unclear, while work on what is seen as becoming Melbourne’s largest intermodal terminal is now to begin before year’s end and take some 24 months to complete.

As before, it is said the Victorian and federal governments will jointly invest $28 million on government-owned land to connect rail to Salta’s terminal site boundary.

DSIT is to be located on Salta’s 180ha Nexus Dandenong South Industrial Estate.

The terminal capacity is expected to grow up to 560,000 twenty-foot equivalent units (TEU) per annum.

“The Dandenong South Intermodal Terminal will be a state of the art facility creating a new benchmark in terminal innovation,” the company said.

“Salta Properties is currently in discussion with a number of major logistics operators in regard to the terminal’s operations.”

It adds that the “Dandenong South connection is part of the broader Victorian Port Rail Shuttle Network, forecast to cut freight transport costs by up to 25 per cent while slashing truck movements on suburban roads by up to 175,000 trips each year”.

Read how the DSIT project was tracking in August last year, here

Salta Properties founding director Sam Tarascio Snr said he was “delighted to reach an agreement with the Victorian government after investing millions developing the Nexus Dandenong South Intermodal Terminal Estate”.

Nexus Dandenong South is home to major users of freight services including Woolworths’ $215 million Melbourne South Regional Distribution Centre, Bunnings’ 40,000 square metre regional distribution centre, plus major logistics businesses Mondiale VGL and Silk Contract Logistics.

Salta anticipates the value of warehouse developments at the Nexus Industrial Estate will exceed $1 billion over the next three to five years.

“On completion, the Dandenong South Intermodal Terminal will be a 24 hour a day fully automated terminal and will offer a safer working environment for users,” Salta said.

“Trucks will have dedicated lanes for loading and unloading, and the use of automated rail mounted gantry cranes (ARMGC) will reduce noise pollution because they are powered by electricity over diesel powered reach-stackers, which also allows the cranes to lift and lower containers with precision, assisting in preventing damage to containers.”

Two 700 metre rail tracks are to be constructed within the terminal, linking to an additional 800-metre spur track being built by the Victorian government to link the facility with the main line.

The ARMGCs involved are said to use of a specialised power feedback system that allows the crane to generate its own power when lowering a container: “This power is either redirected to assist other cranes that are performing a lift or is fed back into the grid.

“ARMGC also produce a smaller carbon footprint when compared to diesel powered reach-stackers.”

During peak periods, the automated cranes will have capacity to handle both trains and trucks simultaneously.

While during non-peak periods, they can perform housekeeping functions such as optimising the container stack for upcoming moves.

The intermodal terminal will be controlled by an advanced terminal operating system (TOS), integrated with the vehicle booking system (VBS), which manages truck appointments at the terminal and the gate operating system (GOS) that coordinates truck entry and exit.

The entry and exits have automated optical character recognition system, which provides high definition photos of containers to the terminal operator and scans the container registration number to inform the TOS.

ATN is awaiting clarification from a Salta spokesperson on some details.


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