Eco Investor June 2017

Core Securities

Qube Starts Work on Rail Precinct

Qube Holdings has officially commenced construction of its Moorebank Logistics Park, which will be the largest intermodal logistics precinct in Australia. It has also commenced an underwritten $350 million equity raising to help fund the new warehousing and growth expenditure.

The equity raising consists of a $228 million 1 for 15 entitlement offer at $2.35 per share and a $122 million institutional placement at between $2.40 and $2.45 per share.

Managing director, Maurice James, said the Moorebank precinct, with its rail link to Port Botany in Sydney, will transform the freight and logistics supply chain along the East Coast.

Qube will develop, manage and operate the facility. Moorebank Logistics Park sits on 243 hectares in south-western Sydney and will include up to 850,000 square metres of warehousing. Mr James said negotiations are close to completion with the first tenant expected to be finalized in coming months.

When complete, the facility will transport 1.5 million containers of freight each year from Port Botany to Moorebank by rail and remove thousands of heavy truck movements from Sydney's roads every day.

Qube's share price has been trending upwards since last November.

Elsewhere, Qube has won a contract with lithium miner Altura Mining for its Pilgangoora Project in WA that is under construction. The first shipments are expected in the first quarter of 2018. Qube Bulk Pty Ltd won the contract to provide transport logistics services for a five-year period. Qube will load the lithium and transport it by road trains to Port Hedland, construct and operate a product storage shed at Port Hedland, and load the lithium to ship using its patented Rotabox system. (ASX: QUB)







Search Eco Investor