Global online retail giant Amazon will establish its first dedicated Australian sort centre in Melbourne, creating hundreds of new jobs and building the strength of Victoria’s logistics sector
Amazon will open a sorting centre in the city’s outer northern suburbs, which will employ 200 people and create 700 construction jobs. The new Craigieburn facility, due to be completed this year, will be close to the size of the MCG playing surface.
Construction has already started at the Craigieburn specialist centre, which will sort picked-and-packed customer orders by final destination, then ship them to logistics sites for “last mile” delivery to customers. The centre will be Amazon’s fifth site in Melbourne to open since the company’s arrival in Victoria in 2017, joining centres in Dandenong South, Mulgrave, Ravenhall and Tullamarine. More than 1,500 people currently work in Amazon’s businesses in Victoria.
Located in Melbourne’s fast-growing northern region, the sorting centre sits within Goodman Group’s Amaroo Business Park, which is a key link to the adjacent Craigieburn North Employment Area, a state-significant industrial and commercial precinct of just under 500 hectares. “This is a vote of confidence in Melbourne’s burgeoning north that will have major flow-on benefits for the region,” said Minister for Economic Development Tim Pallas, who joined Amazon leaders in Craigieburn to announce the new purpose-built centre.
Just 25kms north of Melbourne’s CBD and a 15-minute drive from the Melbourne Airport, the outer-north suburb Craigieburn was once the country, but times have changed. It has become a popular suburb with plenty of employment opportunities. Due to its proximity to Melbourne airport and Melbourne Airport Business park, the largest business park in the southern hemisphere, the suburb is growing in popularity predominantly among young families looking for their first or second home. The suburb has seen rapid population growth, tripled in the last 17 years. In the last 20 years, the capital growth in Craigieburn has been 7.2% per annum, meaning property values have doubled every 10 years.
According to the Realestate website, “Median property prices in Craigieburn over the last year range from $620,000 for houses to $405,500 for units. Houses in Craigieburn rent out for $400 PW with an annual rental yield of 3.4% and units rent for $350 PW with a rental yield of 4.5%. Based on five years of sales, Craigieburn has seen a compound growth rate of 7.8% for houses and 3.0% for units.”
Victoria’s logistics sector, which includes transport, postal and warehousing industries, contributes more than $21 billion to the state’s economy, directly employing almost 170,000 people.