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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