Qube Holdings Limited and Aurizon Holdings Limited confirmed last week they had been invited to commence direct negotiations with state-owned Moorebank Intermodal Company (MIC) about development and operation of the Moorebank Intermodal Terminal in South Western Sydney.

Qube and Aurizon, through their joint SIMTA consortium, have participated in the expression of interest process conducted by the MIC over the past six months. The SIMTA consortium has also been progressing development of its own intermodal terminal at Moorebank.

Moorebank Intermodal Company (MIC) said that if a detailed agreement with SIMTA cannot be reached within six months, MIC will consider other options. Two other respondents to the request for expression of interest have been asked by MIC to remain on standby.

Moorebank Intermodal Company was established in December 2012 to develop an intermodal terminal at Moorebank. MIC is wholly owned by the Commonwealth Government.

The proposed Moorebank intermodal terminal will manage freight containers carried by rail to and from Port Botany as well as freight containers carried on the interstate rail network. The proposal is intended to increase the proportion of containerised freight carried by rail, in comparison to containers carried by truck.

Once fully developed, the Moorebank Intermodal Terminal will handle around 1.2 million TEUs of IMEX freight and 0.5 million TEU of interstate freight each year. The terminal will enable more freight to be carried by rail, which will ease the pressure on Sydney's roads.

Qube Holdings Managing Director Maurice James said:

"We are pleased to now have the opportunity to bring the two projects together through direct negotiations with Moorebank Intermodal Company.

"We have always believed that the Moorebank precinct should be developed as an integrated freight hub for South Western Sydney. Adopting a whole of precinct approach will produce the most efficient outcome for taxpayers and the community in the development of this vital freight infrastructure.

"We will work hard over the next few months to reach agreement with the MIC to develop an integrated precinct that will deliver the best solution for the community, the Commonwealth and investors."

Aurizon Managing Director and CEO Lance Hockridge welcomed the announcement by MIC:

"As Australia's largest rail freight operator, Aurizon is delighted to progress the proposal to co-develop the strategic rail and port infrastructure of South Western Sydney. The project will potentially help unlock the transport gridlock of Australia's largest city and will deliver strategic and critical export infrastructure for the nation."