Australia Post to invest $320M for parcel super hub
Australia Post Group will invest $324 million to build a very large parcel processing center at a former automobile manufacturing plant in South Australia, the company announced Thursday morning local time. The news follows the recent opening of additional parcel distribution centers as the postal operator modernizes its network to meet e-commerce delivery demand.
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 model for the expansion of highly automated sorting facilities across the country.
Scheduled to open in 2028, the facility will be equipped with advanced sorting technology and will be able to process up to 400,000 parcels per day, doubling the current capacity of Adelaide Airport’s 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 which provides courier services.
The Adelaide Parcel Facility will streamline parcel processing and the customer experience for South Australians, ensuring maximum efficiency and sustainable functionality, CEO and Managing Director Paul Graham said in a press release.
“South Australia continues to experience year-on-year e-commerce growth, with 80 per cent of residents shopping online in the past year. This new parcel facility will help us meet this growing demand over the next two decades and deliver to customers faster than ever,” he said.
Last month, Australia Post announced it would build a multi-million dollar parcel facility on the Sunshine Coast to meet growing parcel demand in regional Queensland. The facility, scheduled to open in late 2026, will feature high-tech automation to improve turnaround times and process up to 16,000 packages per day, and up to 21,000 packages per day during peak season.
The Sunshine Coast is one of Queensland’s fastest growing regions. Parcel volumes there have increased by 10% per year, compared to a national average of 6%.
These 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 opened a new international trade facility at Melbourne Airport, designed to speed up the customs clearance process for international parcels entering Australia.
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