Woolworths Plans $184m Distribution Centre in Brisbane


Supermarket giant Woolworths has lodged a development application for a new 42,000sq m distribution centre in Brisbane.

Plans for the $184 million facility, lodged with the Brisbane City Council, show the distribution centre will be located in Heathwood, located 19 kilometres from Brisbane CBD.

The project is majority funded by Logos, with property development costs of around $148 million, and Woolworths signing an initial 15-year lease on the Heathwood site.

If approved by council, Woolworths chief supply chain officer Paul Graham said the facility will enable efficient deliveries to around 260 stores across Queensland and northern New South Wales.

“The extra capacity through the Heathwood distribution centre will be key to supporting our future growth in Queensland,” Graham said.

Graham said the facility will be co-located with Woolworths' meat supplier Hilton Meats’ production facility, which the company expects would help remove up to 390 trucks from Brisbane roads each week.

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Woolworths reported $32.4 billion in revenue in its half year earnings released this month, and a net profit of $1.36 billion, largely in line with expectations.

The February results also show that Woolworths raised its estimate of staff underpayments to $315 million from its initial estimate of $200 million following its review, impacting a larger number of employees than initially expected.

The supermarket giant has repaid up to $80 million to staff, following its admission late last year of staff underpayments.

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