Metcash is investing $12 million into upgrading its Alice Springs distribution centre (DC), aiming to better support local communities and strengthen food security in the Northern Territory. The news comes amid crippling supply chain challenges across the country, and increasing rates of food insecurity in remote Australia.
The upgrade aims to deliver further improvements in safety standards, increase capacity and streamline operations to ease pressure during peak periods. The expanded facility will help strengthen food supply and logistics in the Northern Territory, where Metcash serves more than 400 remote supermarkets and Foodservice & Convenience customers in many local communities.
The infrastructure improvements will also assist with emergency food reserve space in the region, a requirement emphasised by recent natural disasters and experiences through COVID. According to a recent AFGC report, more than half of Australian manufacturers are experiencing moderate to large business impacts from supply chain disruptions.
A food and beverage industry roundtable was held in April, with Metcash representatives in attendance, to discuss food pricing and insecurity in remote Australia. One of the key issues raised was the need to “improve the supply chain from freight to fridge”, something the federal government is also attempting to tackle with its updated National Freight and Supply Chain Strategy and new National Action Plan.
Metcash Food CEO, Grant Ramage, said the initiative is more than just an upgrade to the company’s distribution centre.
“It’s a commitment to the people of Alice Springs and the communities we serve in the Northern Territory,” said Ramage.
“We’re increasing capacity to ensure reliable access to essential goods, while also investing in facilities to better support our teams at the DC.”
The upgrades will be managed by local builder Jaytex Construction, with work expected to commence in December, and be completed by the end of 2026.
Jaytex Construction director and landlord of the property, Brett Dixon, said the company had invested significant project funding, partnering with Metcash to drive upgrades that will bring long-term benefits to the region.
“By partnering with Metcash from the earliest concept stage, we’ve been able to create a design that meets their immediate operational needs while providing flexibility for future growth,” said Dixon.
“We’re excited to move forward and commence works on site, bringing this significant project to life for Alice Springs.”
A soil turning event was held on 18 November, with Metcash and Jaytex representatives in attendance.
