Australia Post to build $500 million parcel facility in South Australia

Australia Post will make its largest investment in South Australia with the announcement of a new parcel facility at the former Holden site in Elizabeth.

Scheduled to open in 2028, the 83,000 sqm facility will be the first fully combined Australia Post and StarTrack site and the largest in the network.

The facility has been designed to support deliveries across South Australia for the next 20 years and will feature world-leading sortation technology capable of processing up to 400,000 parcels per day — doubling the current capacity at the Adelaide Airport Parcel Facility and promising faster deliveries for customers.

“South Australia continues to experience year-on-year eCommerce growth, with 80 per cent of residents shopping online in the past year. This new parcel facility will help us meet that growing demand over the next two decades and deliver to customers’ doors faster than ever before,” said Paul Graham, Group CEO and Managing Director at Australia Post.

“As online shopping habits evolve, it’s critical that Australia Post invests in infrastructure that gives us a competitive advantage. This parcel facility will be the largest in the country and the blueprint for our most technically advanced facilities going forward.”

The facility forms part of Australia Post’s long-term strategy to modernise its network, improve efficiency, and maintain its role as a trusted delivery partner.

Pelligra Group will develop the site, with Chairman Ross Pelligra noting, “This project will provide a broad range of benefits to South Australia, and we’re excited to be a part of that.”

“We’re proud that Australia Post selected us to help them breathe new life and activity into a site with significant industrial heritage and help transform it into a state-of-the-art facility focused on keeping South Australians connected.”

The facility is targeting a 5-star Green Star rating and will incorporate advanced on-road sustainability technology.