Global delivery giant Amazon has withdrawn plans to build a major warehouse at Sydney’s second airport, claiming a lack of progress in construction.
Amazon was set to sign a lease for a newly constructed stock warehouse on the outskirts of Badgerys Creek.
The retailer has now exited the agreement over concerns about when construction would be completed.
The industrial precinct covers more than 11,000 hectares.
It is also expected to bring in thousands of new jobs and businesses.
Amazon said it is committed to Western Sydney operations, telling SkyNews.com.au in a statement that it is “here to stay”.
“Amazon is proud of our investment in NSW and Sydney – including significant investments in Western Sydney. In just six years since we opened our first facility in Sydney, we’ve expanded our fulfilment and logistics sites to seven across the state, including locations in Gosford and Newcastle,” Amazon’s Director of Operations, Sandra McNeil said.
“We’re here to stay and continuing to invest and expand our operations in Western Sydney, including with a new Fulfilment Centre in development at Horsley Park, targeting completion later this year. We’ve created more than 2,000 jobs in Kemps Creek with hundreds more to come in Horsley Park – all within a stone’s throw of the new airport.”
Amazon Abandons Plans Warehouse At Western Sydney Airport
Global e-commerce giant Amazon has decided to withdraw its plans to build a major warehouse at the Western Sydney Airport, citing a lack of progress in construction. This decision marks a significant shift in Amazon’s Australian expansion strategy.
Amazon had initially planned to construct a warehouse that would have played a pivotal role in its Australia-based operations. However, according to multiple sources, including Sky News Australia and MSN, the company has rescinded these plans due to unsatisfactory progress at the site.
The Western Sydney Airport, which is still under construction, was expected to be a strategic location for Amazon. The proposed warehouse would have facilitated faster and more efficient delivery services in the region.
This decision comes amid a series of delays and abandoned plans by Amazon. As reported by Fortune, the company has delayed opening an additional 21 locations, totaling nearly 28 million square feet. This suggests a potential shift in the company’s global expansion strategy, focusing perhaps more on consolidation than aggressive growth.
The Western Sydney Airport, slated to open in 2026, is part of the larger Western Sydney Aerotropolis project, a plan to build an economic zone around the airport. Amazon’s withdrawal might be seen as a setback for this ambitious project.
However, it’s important to note that this does not mark the end of Amazon’s presence in Australia. In 2020, ABC News reported that Amazon revealed plans to build a large robotic warehouse in Western Sydney, capable of stocking up to 11 million items. This facility, roughly the size of Taronga Zoo, is expected to be the first Amazon robotics warehouse in the Southern Hemisphere.
While Amazon’s decision to pull out of the Western Sydney Airport project may seem like a setback, it does not indicate a withdrawal from the Australian market. Instead, it may reflect a strategic reassessment of its expansion plans in the light of current global conditions.
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