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Adelaide Airport is looking to expand its “Airport Junction” industrial precinct with a new land release.
The airport has released 27 hectares of developable land, its largest single release since 2002, and is looking to increase direct air freight access to Adelaide and encourage more cargo to travel through the city rather than larger gateways like Sydney or Melbourne.
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Approximately $1.5 billion in air freight passes through Adelaide every year, the airport’s figures say.
“In 2023, 21 per cent of air freight imports and 70 per cent of air freight exports moved via road links to interstate airports to access direct flights,” said Adelaide Airport’s head of property development, Shimon Spina.
“We want to create opportunities for this freight to travel through Adelaide Airport direct to key markets the quickest way possible rather than having to travel by road to interstate ports.
“To do this, we’re working to increase capacity through more international services, but we’re also investing in the necessary on-airport freight and logistics infrastructure to improve supply chain efficiency.”
Adelaide Airport says the new land is at a “prime central location”, sitting 6 kilometres from the city’s CBD and 13 kilometres from Port Adelaide.
According to Adelaide Airport executive general manager, property, James Sangster, the precinct will have a total project value of around $250 million at completion and offers direct airside road access to the domestic and international terminals in under four minutes.
“Adelaide Airport is a seasoned developer that can deliver projects to tenant specifications. We’re currently seeking expressions of interest for multiple sites ranging from 1 to 10 hectares in size,” he said.
“These opportunities extend from full turn-key development to tenant-specific premises project managed by Adelaide Airport, to long-term ground leases.
“We intend to further activate Airport Junction with freight and logistics companies, making it an attractive location for businesses looking to create supply chain efficiencies and form part of a vibrant commercial community.”
Sangster added that Adelaide Airport has around 100 hectares remaining for future development, as well as another 100 hectares at Parafield.
“Industrial land in Adelaide is at a premium, with a recent JLL report on behalf of the Property Council indicating that of the 1,500 hectares of vacant ‘employment lands’ identified by Plan SA in 2021, more than 90 per cent is no longer available or not development-ready,” he said.
“With the current severe shortage of large parcels of employment-use land in Adelaide, the timing for the release of Airport Junction is ideal and will help to meet the pent-up demand for industrial land.”
The release follows the completion of a 59,000-square-metre FedEx freight facility and a 20,000-square-metre DHL freight facility in 2023.
