New Australia airport has no curfew for cargo campus

Qantas Freight adds terminal, aircraft capacity to support Australia Post parcel delivery

Shippers, including Australia Post, are rejoicing about the opening of a second major airport in Sydney, Australia, that will enable more efficient cross-border trade and e-commerce deliveries at all hours of the day. (Photo: Qantas)

The official opening of a large cargo campus at Australia’s newest airport, outside of Sydney, has businesses excited about opportunities to reach new markets and expands Australia Post’s ability to meet growing demand for next-day delivery of e-commerce packages in New South Wales.

Qantas on Monday operated its first commercial all-cargo flight from Western Sydney International Airport for Australia Post, officially inaugurating its terminal in the cargo zone and kicking off a 10-year extension of its air cargo contract with the national postal operator.

The 30-minute flight from Western Sydney International arrived in Brisbane Monday evening, local time, according to flight tracking databases. Qantas Freight, the air logistics arm of Qantas, said it expects to move more than 160,000 parcels through the 258,000-square foot facility in the first 24 hours, with 12 arrivals overnight. Domestic services will also shuttle between WSI, Melbourne, Cairns, Adelaide, Gold Coast and Perth. Australia Post international flights are expected to begin early next year.

Sydney is now served by two major airports. Sydney Kingsford Smith will continue to handle the vast majority of Sydney’s air traffic. Decades in the making, Western Sydney International brings new capacity and a 24-hour operating model to the region, with no curfew like that at the existing Sydney airport.

It is designed to keep urgent freight — perishables, pharmaceuticals, high-value goods, e-commerce —moving and accommodate future shipping growth. The first phase of the project spans about 7.9 million square feet and can receive up to eight large freighter aircraft and 16 standard-size freighters simultaneously, according to the airport’s website. The facility will initially be able to handle up to 298,000 tons of freight annually, with 2 million more tons of capacity planned in the next development phase. 

WSI will add 33% more air cargo capacity for New South Wales, said Transport and Infrastructure Minister Catherine King, at an opening ceremony, excerpts of which were carried on Australian television networks.

WSI’s passenger terminal is scheduled to open on Oct. 25.

The Freight & Trade Alliance, which represents logistics and cross-border cargo owners in Australia, hailed the new air cargo facility as a boon for importers, exporters and other shippers. 

The new cargo campus “will provide much-needed additional capacity, genuine operating flexibility and greater choice in how time-sensitive goods are moved into, out of and across Australia. Its proximity to Western Sydney’s major logistics and industrial centers, supported by dedicated road connections, should also deliver important efficiencies throughout the supply chain,” said FTA Director Paul Zalai, in a statement. “This is not simply the opening of another freight terminal. It is the beginning of a major new trade gateway that should encourage investment, competition and improved service offerings, while strengthening the resilience of

Australia’s international supply chains for decades to come.”

The commencement of service follows cargo trials with Qantas, Texel Air and ground handling agents this month. 

Australia Post air cargo

Under the revised contract, Qantas Freight will operate a dedicated fleet of two Airbus A330 and six A321 narrowbody converted freighters, plus set aside priority space on the airline’s passenger aircraft to carry shipments on behalf of Australia Post, according to a joint news release. Qantas is scheduled to take delivery of three additional leased A321 freighters, which are being converted from passenger to cargo configuration by Airbus affiliate EFW, in the coming months. The dedicated fleet will support delivery of more than 83 million tons of parcels and freight each year, with volume expected to grow along with future online shopping demand.

[Why It Matters: Australia is gaining more air cargo capacity and reliability for cross-border trade and e-commerce at a facility that isn’t subject to curfews.]

“It’s a historic day for aviation in Australia as our first freight services take off from Western Sydney International Airport. This new terminal will help us meet growing demand for next-day deliveries and move express cargo across Australia and the world,” said Cam Wallace, Qantas CEO of international and freight.

The Qantas and Australia Post partnership dates back more than 100 years, when Qantas flew 106 letters for Australia Post on its inaugural commercial flight.

Dubai-based airport services firm dnata is one of the companies selected to process cargo shipments for airlines. It has invested $22.3 million for storage racks, dollies, forklifts, technology and a semi-motorized materials handling system in the 54,000-square foot facility it leased from the airport. 

In related news, Australia Post announced on Tuesday that it has broken ground on a $324 million parcel super hub near Adelaide, development of which was first disclosed in October.

Australia Post to invest $320M for parcel super hub

Australia Post inaugurates large air parcel hub at Brisbane Airport

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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