Woolworths has turned the first sod on a $57 million expansion of the existing Adelaide Regional Distribution Centre (ARDC).
The project will create approximately 140 local jobs throughout construction as Woolworths and Hutchinson Builders partner with local businesses on the 14 month build.
The expanded ARDC aims to deliver fresher, faster and more frequent deliveries to supermarkets in South Australia and the Northern Territory by mid-2020.
Once completed, the expanded centre will span 94,000 square metres boosting the capacity of the temperature control and ambient warehouse sections of the Gepps Cross site.
These expanded operations are set to significantly strengthen Woolworths’ 7-day-a-week delivery of fresh produce to communities across South Australia as well as into the Northern Territory.
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Premier of South Australia Steven Marshall joined Woolworths’ Chief Supply Chain Officer Paul Graham at an event on-site to mark the start of construction, together with Mayor of Port-Adelaide Enfield Claire Boan and Scott Hutchinson, Chairman of Hutchinson Builders.
Graham said the $57m expansion of Woolworths’ Adelaide DC forms a key part of its ambition to create a best in class supply chain network for its customers.
“The site’s proximity to the Adelaide markets has always been a strength, but this upgrade will allow for more frequent and faster deliveries to our stores to help fulfil our fresh food promise,” Graham said.
“We partner with dozens of local suppliers in South Australia, connecting products from growing regions including the Northern Adelaide Plain, South Murraylands, Riverland, Mallee, the Lime Coast and Adelaide Hills, to our customers.
“We have a long and proud history in South Australia, and this investment demonstrates our commitment to continued growth in the state and local jobs,” he said.
Boan said the investment by Woolworths builds on the momentum of positive news stories for the Port Adelaide Enfield region and cements the importance of the city as a logistics hub for South Australia.
“Woolworths’ confidence in our region will create construction industry jobs now during the site development phase, and longer term in the distribution and logistics sector once construction is completed,” she said.
Sustainable energy will help power the expanded distribution centre with Woolworths to install 3,500 solar panels (1.6MVa system) across the rooftop. This is the largest solar installation in Woolworths’ Australian network, and larger than the current installation at Adelaide airport.
The $2.5 million solar installation will provide around one-fifth of the centre’s energy needs, and produce enough green energy to power the equivalent of 300 homes.
Construction of an expanded recycling facility for pallets is also part of the project, to further reduce plastics and cardboard within the supply chain.
The expansion of Adelaide Regional Distribution Centre is to be funded by landowner, Growthpoint Properties, under a new 15-year lease over the entire distribution centre.