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Australia Post to invest $320M for parcel super hub

Facility will be largest sorting center in the country

Eric Kulisch
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Australia Post continues to expand its domestic and international parcel infrastructure to accommodate e-commerce growth. Earlier this year, the postal operator opened a new international parcel clearance center (pictured) at Melbourne Airport.
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Key Takeaways:

  • Australia Post is investing US$324 million to build an ultra-large, highly automated parcel processing center in South Australia, set to open in 2028 as the country's largest such facility.
  • This new center will double current capacity to 400,000 parcels per day, combine Australia Post and StarTrack operations, and is designed to provide faster deliveries and meet the region's significant e-commerce growth.
  • The South Australian investment is part of a broader network modernization strategy, with Australia Post opening and planning multiple new high-tech parcel facilities across the country to meet increasing e-commerce demand.
Key takeaways sponsored by SONAR
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Australia Post Group will invest US$324 million to build an ultra-large parcel processing center in a former automotive manufacturing plant located in South Australia, the corporation announced Thursday morning local time. The news follows the recent opening of other parcel facilities as the postal operator modernizes its network to meet demand for e-commerce delivery.

The 893,400 square-foot facility will be the largest in the country. It represents Australia Post’s largest ever investment in South Australia and will serve as a blueprint for expanding highly automated sorting facilities around the country. 

Scheduled to open in 2028, the facility will be equipped with advanced sortation technology and be able to process up to 400,000 parcels per day, doubling the current capacity at the Adelaide Airport Parcel Facility, resulting in faster deliveries for customers, Australia Post said.

The facility will be the first to fully combine the operations of Australia Post and StarTrack, a wholly owned subsidiary of Australia Post that provides courier services.

The Adelaide Parcel Facility will streamline parcel processing and customer experience for South Australians, ensuring maximum efficiency and sustainable features, said CEO and Managing Director Paul Graham in a press release.

“South Australia continues to experience year-on-year e-commerce growth, with 80% of residents shopping online in the past year. This new parcel facility will help us meet that growing demand over the next two decades and deliver to customers’ doors faster than ever before, he said. 

More new facilities

Last month, Australia Post said it will build a multimillion dollar parcel facility on the Sunshine Coast to support the Queensland region’s growing parcel demand. Expected to open in late 2026, the facility will feature high-tech automation to improve turnaround times and process up to 16,0000 parcels per day, and up to 21,000 parcels per day during the peak season.

The Sunshine Coast is one of Queensland’s fastest growing regions. Parcel volumes there have increased 10% annually compared to the national average of 6%. 

The announcements follow Australia Post’s recent plans to develop six new parcel facilities in New South Wales. 

In August, Australia Post opened a parcel delivery center in Western Sydney. 

And in April, Australia Post inaugurated a new international commercial facility at Melbourne Airport, designed to expedite the clearance process for international parcels entering Australia. 

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

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Eric Kulisch

Eric is the Parcel and Air Cargo Editor at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He has won two regional Gold Medals and a Silver Medal from the American Society of Business Publication Editors for government and trade coverage, and news analysis. He was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. He was runner up for News Journalist and Supply Chain Journalist of the Year in the Seahorse Freight Association's 2024 journalism award competition. In December 2022, Eric was voted runner up for Air Cargo Journalist. He won the group's Environmental Journalist of the Year award in 2014 and was the 2013 Supply Chain Journalist of the Year. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. He has appeared on Marketplace, ABC News and National Public Radio to talk about logistics issues in the news. Eric is based in Vancouver, Washington. He can be reached for comments and tips at ekulisch@freightwaves.com Eric is the Parcel and Air Cargo Editor at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He has won two regional Gold Medals and a Silver Medal from the American Society of Business Publication Editors for government and trade coverage, and news analysis. He was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. He was runner up for News Journalist and Supply Chain Journalist of the Year in the Seahorse Freight Association's 2024 journalism award competition. In December 2022, Eric was voted runner up for Air Cargo Journalist. He won the group's Environmental Journalist of the Year award in 2014 and was the 2013 Supply Chain Journalist of the Year. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. He has appeared on Marketplace, ABC News and National Public Radio to talk about logistics issues in the news. Eric is based in Vancouver, Washington. He can be reached for comments and tips at ekulisch@freightwaves.com Eric is based in Vancouver, Washington. He can be reached for comments and tips at ekulisch@freightwaves.com