Melbourne Market Relocation

Melbourne's wholesale fruit and vegetable market is to be relocated to a new site in Epping in Melbourne's north, and redeveloped into a modern, innovative and efficient fresh produce trading and distribution precinct.

The market is an important part of the state’s economic infrastructure, with an annual turnover in excess of $1.6 billion.

The core of the precinct will be the relocated Melbourne Wholesale Fruit and Vegetable Market and National Flower Centre currently located in Footscray Road in West Melbourne.

The precinct will also include an extensive, complementary development accommodating facilities and businesses that improve and develop the transportation, handling and marketing of fresh produce.

The Melbourne Market relocation project is about more than just relocating a facility from one site to another. It is about ensuring the ongoing viability and relevance of the market as an essential link in the distribution channel for fresh produce in Australia.

The new market will:

  • meet current and future needs for warehousing space
  • cater for modern logistics
  • encourage innovation in transport, equipment, materials handling, storage and information technology in the fresh food industry.

Redeveloping the market into an efficient and integrated trading environment

  • The new market at Epping will provide market users with significant improvements in logistics, access and occupational health and safety
  • The trading floor alone will provide users with improved access to all areas of the floor, and there will also be undercover loading and unloading bays immediately adjacent to the trading floor, an important consideration in maintaining quality of product
  • There will be ample opportunity for warehousing in close proximity to the trading floor. The current market has 30,000m2 of warehousing (with no capacity to expand). It is believed there is a demand for around 60,000m2 of warehousing, which can easily be accommodated at the Epping site
  • Market users will be able to enjoy the opportunities and benefits that come from being part of an interactive and integrated fresh food-related business precinct

Benefits

As it is fully developed over the next 10-20 years, the new market precinct incorporating the market's core trading facility, warehousing, distribution centres and value-added business is expected to drive over $1 billion of investment on the site.

Relocating the market is also expected to provide substantial economic benefits to the state through a more efficient market precinct and by freeing up the existing Footscray Road site for port and rail development over the next 20 years.

Procurement

The project will be delivered under a design and construct model managed by Major Projects Victoria for the Department of Business and Innovation.

Timeline

Works commenced onsite at the end of 2009 and the market is expected to be being fully operational in 2014.

 

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Construction progress 2010 Construction progress 2010
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News

  • 2011-07-20 - Coalition Government fixes Labor’s leftover mess to deliver a vibrant modern wholesale market for Victoria

    The Victorian Coalition Government will deliver a modern and vibrant wholesale market at Epping to meet the long term needs of the market community with more affordable rents for market tenants and the required warehousing.

    Minister for Major Projects Denis Napthine today visited the new site at Epping where he said the Coalition Government was forced to resolve massive cost blowouts and project management failures left by Labor to get the Epping market project back on track.

    "The Coalition Government has undertaken an exhaustive review and thoroughly considered all options to provide the best outcome for taxpayers and achieve a modern market that meets the long term needs of the community," Dr Napthine said.

    As a consequence of Labor's disastrous mismanagement of this project, additional project funding would be required to continue the market at the Footscray site or to relocate to Epping.

    The review of the project completed by the Department of Treasury and Finance found that continuing at Footscray Road would cost taxpayers at least $100 million more than the Epping option, and market tenants would face higher long term tenancy costs as well as significant disruption to business while site upgrades were completed.

    "From 2004, when a decision was made to move the market, Labor completely mismanaged and under-funded the Melbourne Wholesale Market redevelopment creating a $370 million cost blowout for taxpayers, years of delays in project delivery, no warehousing, and unaffordable rents for tenants," Dr Napthine said.

    In 2005-06, project funding was set at $300 million, well short of a revised figure in 2009 of $531 million and less than half of the $670 million the Coalition Government was advised late last year the project would cost.

    Critically, the project was not just underfunded by Labor but the funding model was completely unsustainable.

    Under Labor's plan, market tenants would have been forced to pay rent increases well in excess of 200 per cent which would have put many market users out of business.

    "Protecting market tenants from the exorbitant rent increases they would have faced under Labor is imperative to the future of Melbourne Wholesale Markets and preventing rising food costs," Dr Napthine said.

    When Labor announced the Melbourne Wholesale Market Redevelopment they committed to opening the new market in 2010 however Labor's failure to properly plan, cost and manage this project meant that, in addition to a $370 million cost blowout, the new Epping site can not be completed until 2014/15 at the earliest.

    Labor's flawed plan also failed to provide proximity warehousing, a crucial part of a modern wholesale market.

    "The project funding determined by the Coalition Government will make sure the construction of warehousing goes ahead and is ready for the opening of the new market," Dr Napthine said.

    Dr Napthine said the Government would now be entering commercial discussions with market tenants to finalise project finances and make sure market users are properly catered for in the relocation.

    "Unlike Labor, who continually failed to properly consult market users, the Coalition Government will be working hand-in-glove with market users to make sure their relocation issues are resolved in a cooperative manner," Dr Napthine said.

    Dr Napthine said that without the Melbourne Wholesale Market, independent retailers would decline and Victorian consumers would have less choice about where they buy fresh fruit and vegetables.

    "The Coalition Government's decision is in the best interests of the market tenants and minimises cost exposure to Victorian taxpayers, it will also create thousands of jobs in Melbourne's north," Dr Napthine said.

    "The Coalition Government is implementing a clear plan to end the mess that Labor left behind and deliver a modern and vibrant wholesale market at Epping that meets the long term needs of the market community and Victorians."

  • 2010-10-26 - Melbourne Markets Project Enters New Phase
    The $300 million Melbourne Wholesale Market project today reached a new milestone with the start of construction on the main market building in Epping, Major Projects Minister Tim Pallas announced today.

    Mr Pallas was joined by Member for Yan Yean Danielle Green onsite to inspect the works today.

    “The Brumby Labor Government is taking action to invest in vital infrastructure, creating thousands of jobs and boosting the local economy as we continue to build for Victoria’s future,” Mr Pallas said.

    “The pouring of the first concrete footings today on the northern section of the project will allow for the installation of the first steel frames later this year.

    “Meanwhile, the excavation and levelling of the central and southern sections continues with about 2500 tonnes of rock being removed, crushed and reused as fill every day.

    “It’s only when you get onsite that you can see the scale of this project. The completed building will cover 12 hectares – six times the size of the MCG – on a total site of 62 hectares.“

    Mr Pallas said building a modern and efficient market would inject an estimated $870 million into the Victorian economy and create around 600 jobs during construction alone.

    “When complete in 2012, up to 4000 businesses will use the markets, supplying thousands of restaurants, supermarkets and local grocers throughout the state,” he said.

    “This project will help put fresh food on Victorian tables more efficiently then ever before and will be crucial to sustaining Victoria’s $11.8 billion agricultural sector.”

    Ms Green said the new markets would put Epping at the centre of Victoria’s fresh food chain and revitalise Melbourne’s north, bringing thousands of new people to the Epping area everyday.

    “The site at Epping offers fantastic opportunities for market tenants with modern, safe facilities and excellent access to the road network for faster distribution,” Ms Green said.

    “This is a huge growth opportunity for the area and I know there is great interest from local businesses in the project and the benefits it will bring.”

    Bovis Lend Lease Victorian General Manager Geoff Moore said the project would provide great benefits for market traders.

    “The commencement of construction on the main building marks a significant milestone for the project, which is on target for scheduled completion in 2012,” Mr Moore said.

  • 2010-03-18 - Major construction contracts signed for Epping market

    Construction of the new $300 million Melbourne Wholesale Fruit, Vegetable and Flower Market at Epping is moving into the next phase, with the signing of major works contracts following the completion of early works this week.

    Major Projects Minister Tim Pallas announced today major construction contracts had been signed with preferred bidder Bovis Lend Lease and said the new stage of work was an important milestone for the markets project

    “The Brumby Labor Government is taking action to invest in vital infrastructure, creating thousands of jobs and boosting the local economy as we continue to build for Victoria’s future,” Mr Pallas said.

    “Bovis Lend Lease commenced early works on site in late 2009 and have now been given the go ahead to commence full blown construction of this vital new facility.

    “This project at Epping will create 600 jobs and inject an estimated $870 million into the Victorian economy during construction.

    “The Melbourne Markets project will create an efficient, competitive and accessible market with a greatly improved occupational health and safety environment for market users.

    “It will provide a great boost for the market community where, on a busy day, up to 4000 wholesalers, growers and retailers use the current market supplying thousands of restaurants, supermarkets and local grocers throughout Melbourne and regional Victoria.”

    Member for Thomastown Peter Batchelor said the new market would not only be crucial to sustaining the state’s $11.8 billion agricultural sector, but would create significant growth opportunities for Melbourne’s north.

    “The new market will put Epping and our northern suburbs on the map as a major centre for food distribution in the state, Mr Batchelor said

    Member for Yan Yean Danielle Green said moving the markets north was a major economic boost for the local area.

    “We expect a positive economic impact with hundreds of workers on site during construction and then thousands coming into the area every day during operation,” Ms Green said.

    Bovis Lend Lease Victoria General Manager Geoff Moore said the new market was a significant infrastructure project for Victoria and the company was pleased to be working with the State Government in its delivery.

    “The project will provide a state-of-the-art new facility with improved operational efficiency, a safer work environment and a more sustainable home for Victoria’s fruit, vegetable and flower market community,” Mr Moore said.

    The new market facility, situated off the Hume Highway, is expected to be completed in 2012.

  • 2009-12-16 - Works on new Melbourne markets underway

    Work is underway on the $300 million Melbourne Wholesale Fruit, Vegetable and Flower Market at Epping, with the new facility to inject an estimated $870 million into the Victorian economy during construction.

    Acting Premier Rob Hulls inspected works today with Major Projects Minister Tim Pallas and said the exciting project would deliver improved operational efficiency and a safer work environment for Victoria’s market community.

    “The Brumby Labor Government is taking action to invest in vital infrastructure, creating thousands of jobs and boosting the local economy as we continue to build for Victoria’s future,” Mr Hulls said.

    “We’re establishing a modern and efficient market in Epping for the next 50 years and beyond, so it’s great to see construction underway on this important project, creating 600 jobs in the process.”

    Mr Hulls said the new facility, to be built by Bovis Lend Lease, would be a great boost for the market community and all those who benefit from a bigger, better Melbourne Wholesale Market.

    “On a busy day up to 4000 wholesalers, growers and retailers use the current market supplying thousands of restaurants, supermarkets and local grocers throughout Melbourne and regional Victoria. This is the new link in Victoria’s fresh food chain,” he said.

    “When complete, this project will ensure the ongoing viability of the wholesale markets, which is crucial to sustaining Victoria’s $11.8 billion agricultural sector.”

    Mr Pallas said the new market would offer vastly superior facilities and logistical arrangements for wholesalers, growers and retailers.

    “This project will incorporate a range of sustainable energy and water efficient features, while creating an efficient, competitive and accessible market with a greatly improved occupational health and safety environment for market users,” Mr Pallas said.

    “The Government has been working closely with the market community on the design of the building, which has been refined from a T-shape to a more efficient anchor set-up following feedback from the users.

    “This consultation process has worked particularly well and we would like to thank the market community for this work.”

    Member for Yan Yean Danielle Green said the new market would create significant growth opportunities for Melbourne’s north.

    “The new Melbourne Wholesale Markets will revitalise Epping and make it a major centre for food distribution in the state,” Ms Green said.

    “We expect a positive economic impact on the area with hundreds of workers on site during construction and then thousands coming into the area every day during operation.”

    Chairman of the Market Overview Consultative Committee Neil Lowe said the start of works on site was a great result for the market community.

    “The Government has established a constructive dialogue with the market community and as a result, improvements have been made to the design. This is a very positive outcome,” Mr Lowe said.

     

  • 2009-10-02 - Market preferred builder announced

    Bovis Lend Lease is the preferred builder for the design and construction of the new wholesale fruit, vegetable and flower market at Epping, Major Projects Minister Tim Pallas announced today.

    Mr Pallas said the bidding process had clearly demonstrated the confidence of the construction industry in Melbourne Markets relocation project.

    “The Brumby Labor Government is taking action now to invest in vital infrastructure that is creating thousands of jobs and providing a boost for the local economy as we continue to build for Victoria’s future,” Mr Pallas said.

    “This is yet another important milestone in the delivery of what will be an outstanding facility at the 133 hectare Epping site.

    “The new Melbourne Wholesale Fruit, Vegetable and Flower Market will ensure the ongoing viability of the wholesale markets, which is crucial to sustaining Victoria’s $11.8 billion agricultural sector.

    “This Government is committed to supporting the wholesale market as an essential link in the distribution channel for fresh produce and a vital part of the Victoria’s infrastructure with an annual turnover of more than $1.6 billion.”

    Mr Pallas said the new market would offer vastly superior facilities and logistical arrangements for wholesalers, growers and retailers.

    “On a busy day up to 4000 wholesalers, growers and retailers use the current market supplying thousands of restaurants, supermarkets and local grocers throughout Melbourne and regional Victoria,” he said.

    “This new market project will be a great boost for the market community and all those who benefit from a bigger, better Melbourne Wholesale Market.”

    During construction it is estimated that around 600 jobs will be generated and $870 million injected into the Victorian economy.

    The new relocated market, situated just off the Hume Highway, will deliver:

    • An efficient, competitive and accessible market;
    • A vastly improved occupational health and safety environment for market users; and
    • Significant growth opportunities for Melbourne’s north through the expansion of warehousing and related transport services.

    Following contractual close, the builder is expected to start works by the end of 2009.

  • 2009-08-14 - Two bidders remain for new markets construction project

    Bids for the construction of the new wholesale markets at Epping have closed with two companies in the running, Major Projects Minister Tim Pallas announced today.

    Mr Pallas said Baulderstone and Bovis Lend Lease had submitted detailed proposals to design and deliver the construction project at the 133 hectare Epping site, which will be the new home of the Melbourne Wholesale Fruit, Vegetable and Flower Market.

    “The Brumby Labor Government is taking action now to invest in vital infrastructure that is creating thousands of jobs and providing a boost for the local economy as we continue to build for Victoria’s future,” Mr Pallas said.

    “This is an important milestone in the establishment of the new market and clearly demonstrates the confidence of the construction industry in our capacity to deliver major projects in Victoria.

    “This project provides the base for a strong and viable central wholesale market. The Melbourne Markets relocation will deliver benefits across the state through vastly improved facilities and logistical arrangements for wholesalers, growers and retailers.

    “During the construction phase, it is estimated that 600 jobs will be generated and around $870 million will flow into the Victorian economy.”

    Mr Pallas said the markets were an essential link in the distribution channel for fresh produce and a vital part of the Victoria’s infrastructure with an annual turnover of more than $1.6 billion.

    “The relocation project will ensure the ongoing viability and relevance of the markets as an essential link in the distribution channel for fresh produce in Australia by developing a new, efficient and integrated trading environment,” he said.

    The new relocated market, situated just off the Hume Highway, will deliver:
    • An efficient, competitive and accessible market;
    • A vastly improved occupational health and safety environment for market users; and
    • Significant growth opportunities for Melbourne’s north through the expansion of warehousing and related transport services.

    The preferred bidder for the design and construction of the new market will be announced later this year with works to commence by the end of 2009.

  • 2009-04-29 - Melbourne markets project moves forward

    Major Projects Minister Tim Pallas has announced a shortlist of companies to take on the $300 million project to relocate the Wholesale Fruit, Vegetable and Flower Market from its current Footscray Road home to Epping.

    Mr Pallas said three companies – Baulderstone, Bovis Lend Lease and Thiess – had been asked to submit detailed proposals to design and deliver the construction project.

    “The Brumby Government is committed to creating jobs and ensuring the best outcome for a strong and viable central wholesale market operation at Epping,” Mr Pallas said.

    “The relocation will deliver benefits across the state through vastly improved facilities and logistical arrangements for both growers and retailers as well as up to 600 new Victorian jobs as part of the construction project.

    “There was a good response to the call for expressions of interest demonstrating the confidence of the construction industry in the strength of the fundamentals of the Victorian economy and the government’s decision to get on with the job.”

    Mr Pallas said the wholesale markets are a vital part of the state’s infrastructure with an annual turnover of more than $1.6 billion.

    “The relocation project will ensure the ongoing viability and relevance of the markets as an essential link in the distribution channel for fresh produce in Australia by developing a new, efficient and integrated trading environment,” he said.

    The new relocated market, which will be situated on a 133 hectare site just off the Hume Highway, will provide:

    • Excellent road access to Melbourne and regional Victoria
    • Vastly improved occupational health and safety for market users
    • Greater efficiencies through the co-location of the trading area and ancillary facilities on one site.

    Construction is expected to be later this year.

  • 2008-12-11 - Industry confidence in market relocation project

    The construction industry has indicated its confidence in the Brumby Government’s $300 million Melbourne Markets relocation, with a number of companies registering their interest to take on the project.
    Acting Major Projects Minister Tim Pallas said 11 companies had registered their interest in the project to relocate the Melbourne Wholesale Fruit, Vegetable and Flower Market from its current Footscray Road home to a new 133 hectare site in Epping.

    “The Brumby Government is taking action to invest in vital infrastructure for Victoria that is creating jobs and new business opportunities and helping to meet the current global economic challenges,” Mr Pallas said.

    “This is a great response from developers and demonstrates the confidence of the construction industry in the strength of the fundamentals of the Victorian economy and the Brumby Government’s decision to get on with the job.

    “Our commitment to the Melbourne Markets relocation will deliver benefits across the state through vastly improved facilities and logistical arrangements for both growers and retailers as well as up to 600 new Victorian jobs as part of the construction project.”

    Agriculture Minister Joe Helper said the construction industry’s interest was welcome and it further demonstrated confidence in the Brumby Government’s commitment to address the needs of Victoria’s fresh fruit, vegetable and flower growers and retailers.

    Mr Pallas said thorough planning and concept design work had been completed and the registrations of interest were an important first step in a three stage procurement process.

    Detailed submissions will be required during the next two procurement stages.

    The new relocated markets situated just off the Hume Highway, will provide:

    • Excellent road access to Melbourne and regional Victoria;
    • Vastly improved occupational health and safety for market users; and
    • Greater efficiencies through the co-location of the trading area and ancillary facilities on one site.

    Calls for expressions of interest will open on 16 December 2008. Construction is expected to begin in mid to late 2009.

  • 2008-12-02 - Call for registration of interest on markets project

    Acting Major Projects Minister Tim Pallas today called for registrations of interest from the construction industry for the $300 million Melbourne Wholesale Market relocation project. 

    Mr Pallas said thorough planning and concept design work was completed and he encouraged developers to register their interest in the exciting project in Epping.

    “The Brumby Government is taking action to invest in vital infrastructure for Victoria that is creating jobs and new business opportunities and helping to meet the current global economic challenges,” Mr Pallas said.

    “We are committed to the Melbourne Markets relocation that will deliver benefits across the state through vastly improved facilities and logistical arrangements for both growers and retailers.

    “This construction project will create up to 600 new Victorian jobs. The industry can take confidence in this project, the planning work and concept design is complete to meet the needs of our fresh fruit and vegetable growers and retailers following thorough consultation.”

    The project will relocate the Melbourne Wholesale Fruit, Vegetable and Flower Market from its current Footscray Road home to a new 133 hectare site in Epping, with the Brumby Government providing $300 million for the development.

    Agriculture Minister Joe Helper said today’s announcement was indicative of the Brumby Government’s strong support for the new Melbourne Markets, which is a major investment in the state’s primary industries.

    “The call for registrations of interest is a clear indication that the Brumby Government is taking action and getting on with the job,” Mr Helper said.

    “This further demonstrates our commitment to successfully relocating the Melbourne Markets to the Epping site as quickly and efficiently as possible.”

    The new relocated markets situated just off the Hume Highway, will provide:

    • Excellent road access to Melbourne and regional Victoria;
    • Vastly improved occupational health and safety for market users; and
    • Greater efficiencies through the co-location of the trading area and ancillary facilities on one site.

    Registrations of Interest close on 9 December 2008. Construction is expected to begin in mid to late 2009.