Melbourne Airport Business Park Warehouse Site 2 (Airport Drive)
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Australia Pacific Airports (Melbourne) Pty
Ltd
Bid No. 60329110
04-Sep-2015
Melbourne Airport Business
Park Warehouse Site 2
MELBOURNE AIRPORT
BUSINESS PARK
WAREHOUSE – SITE 2
(Airport Drive) (AIRPORT DRIVE)
MAJOR DEVELOPMENT
PLAN PROJECT
Draft Major Development
Plan
September 2015
04-Sep-2015
Prepared for – Australia Pacific Airports (Melbourne) Pty Ltd – ABN: 069 775 266
AECOM Australia Pacific Airports (Melbourne) Pty Ltd
Melbourne Airport Business Park Warehouse Site 2 (Airport Drive)
Melbourne Airport Business Park Warehouse Site 2 (Airport Drive)
Australia Pacific Airports (Melbourne) Pty Ltd
Client: Australia Pacific Airports (Melbourne) Pty Ltd
ABN: 069 775 266
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04-Sep-2015
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04-Sep-2015
Prepared for – Australia Pacific Airports (Melbourne) Pty Ltd – ABN: 069 775 266
AECOM Australia Pacific Airports (Melbourne) Pty Ltd
Melbourne Airport Business Park Warehouse Site 2 (Airport Drive)
Quality Information
Document Melbourne Airport Business Park Warehouse Site 2 (Airport Drive)
60329110
Ref p:\603x\60329110\6. draft docs\6.1 reports\draftmdp\dmdp2\draft mdp warehouse
2_04.09.15.docx
Date 04-Sep-2015
Prepared by Prepared by Kristina Butler
Reviewed by Reviewed by Greg Harrison
Revision History
Authorised
Revision
Revision Details
Date
Name/Position Signature
A 10-Oct-2014 Exposure Draft Greg Harrison
B 11-Dec-2014 Preliminary Draft Greg Harrison
Technical Director
C 04-Sep-2015 Draft Major Development Plan Greg Harrison
Technical Director
04-Sep-2015
Prepared for – Australia Pacific Airports (Melbourne) Pty Ltd – ABN: 069 775 266
AECOM Australia Pacific Airports (Melbourne) Pty Ltd
Melbourne Airport Business Park Warehouse Site 2 (Airport Drive)
Table of Contents
Executive Summary i
01 Introduction 1
1.1 Overview of the Proposal 1
1.2 Background 2
1.2.1 Need and Justification 2
1.2.2 Project Objectives 3
1.2.3 Future Needs of Civil Aviation and Other Users of the Airport 3
1.3 Proponent Details 4
1.4 Statutory Context 4
1.4.1 Major Development Plan 4
1.4.2 Other Project Approvals 5
1.5 Structure of this MDP 6
02 Site and Surrounds 1
2.1 Proposed Site 1
2.2 Existing Environment 3
2.2.1 Topography, Land and Vegetation 3
2.3 Ground Transportation 3
2.3.1 Road Network 3
2.3.2 Bus Network 4
2.3.3 Rail 4
2.3.4 Walking and Cycling 5
2.4 Zoning 5
03 Proposed Development 7
3.1 Introduction 7
3.2 Project Vision and Objectives 7
3.3 Description of the Proposal 7
3.3.1 Site Preparation 7
3.3.2 Building Envelope and Materials 7
3.3.3 Fencing and Security Gates 8
3.3.4 Car Parking and Access 8
3.3.5 Landscaping 8
3.3.6 External Lighting 9
3.3.7 Drainage 9
3.3.8 Signage 9
3.3.9 Anticipated Staff 9
04 Statutory and Policy Compliance 10
4.1 Commonwealth Legislation 10
4.1.1 Airports Act 1996 10
4.1.2 Environment Protection and Biodiversity Conservation Act 1999 11
4.2 Melbourne Airport Lease 11
4.3 Melbourne Airport Master Plan (2013) 12
4.4 Melbourne Airport Environment Strategy (2013) 12
4.5 State and Local Government Planning 13
4.5.1 State Planning Provisions 13
4.5.2 Local Planning Provisions (Hume Planning Scheme) 15
4.6 Australian Noise Exposure Forecast 16
4.7 Prescribed Airspace 16
4.8 National Airports Safeguarding Framework 17
4.9 Pre-Existing Interests and Obligations 18
05 Assessment of Impacts 19
5.1 Overview 19
5.2 Social and Economic Impacts 19
5.2.1 Employment 19
5.2.2 Broader Social Benefits 19
5.3 Environmental Impacts 20
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Melbourne Airport Business Park Warehouse Site 2 (Airport Drive)
5.3.1 Phase 1 Environmental Site Assessment 20
5.3.2 Flora and Fauna 20
5.3.3 Traffic Impact Assessment 21
5.3.4 Cultural Heritage 22
5.3.5 Stormwater Impact 23
5.3.6 Noise 23
5.3.7 Air Quality 24
5.3.8 Waste Management 24
5.4 Construction Impacts 24
5.4.1 Air Quality 24
5.4.2 Sediment, Erosion, Control and Contamination 25
5.4.3 Vehicle Movement 25
5.4.4 Noise and Vibration 25
5.4.5 Waste Management during Construction 26
5.5 Flight Paths 26
5.5.1 Airport Navigation and Radar Systems 26
5.5.2 Runways and Approach / Departure Paths 27
5.5.3 Windshear 27
5.6 Summary of Impacts 27
06 Environment Management 31
6.1 Environment Policy 31
6.2 Environment Strategy (2013) 31
6.3 Environmental Management Measures 31
6.3.1 Construction Environmental Management Plan 32
6.3.2 Operational Environmental Management Plan 32
07 Consultation and Approval Process 33
7.1 Consultation Objectives 33
7.2 Consultation Strategy 33
7.2.1 Preparation and Consultation of Preliminary Draft MDP 33
7.2.2 Statutory Exhibition of Preliminary Draft MDP 34
08 Conclusion 1
2
A Development Plans
B Ultimate Airport Development Concept Plan
C Consistency of the MDP with Section 91 Requirements
D Flora and Fauna Assessment
E Melbourne Airport Environment Policy
F Phase 1 Environmental Site Assessment
G Cultural Heritage Management Plan
H Traffic Impact Assessment
I Social and Economic Impact Assessment
J Noise impact Study
K Construction Environmental Management Plan Requirements
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00
Melbourne Airport Business Park Warehouse Site 2 (Airport Drive)
EXECUTIVE SUMMARY
04-Sep-2015
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AECOM Australia Pacific Airports (Melbourne) Pty Ltd i
Melbourne Airport Business Park Warehouse Site 2 (Airport Drive)
Executive Summary
Proposed Development
Australia Pacific Airports (Melbourne) Pty Ltd (Melbourne Airport) proposes the construction of a new warehouse
development within the Melbourne Airport Business Park identified as Site 2 (Airport Drive), Tullamarine.
Melbourne Airport functions as one of Victoria’s key freight and logistics gateways, facilitating passenger and
freight movements. Melbourne Airport handles more than 30 per cent of Australia’s total air freight market and 36
per cent of the export market – this market share made Melbourne Australia’s largest export airport in 2012. It is
estimated that 250,000 tonnes of air freight were moved through Melbourne Airport during 2013 which could
increase to 393,000 tonnes by 2033. With the increase in air-freight exports and improved transport network such
as Airport Drive, there has been a growing demand for freight logistics facilities at the Airport.
Across metropolitan Melbourne this increased demand for logistics and distribution centre space and
development is driven by build-to-suits, particularly in industrial and logistics precincts such as the Melbourne
Airport Business Park that have a close connection to major transport infrastructure.
The proposed warehouses at Site 2 (Airport Drive) will be developed by Melbourne Airport to respond to current
and forecast demand in the warehousing and distribution centre market. Several other warehouse developments
are also proposed within the Melbourne Airport Business Park and MDPs for these warehouses have been
concurrently lodged with the Department of Infrastructure and Regional Development. There is already
commercial interest in the warehouses. The proposal will enhance Victoria’s position as the ‘Freight State’ and
support growth of the economy.
In seeking MDP approval from the Department of Infrastructure and Regional Development for the proposed
warehouses, Melbourne Airport want to be “market ready” for new tenant opportunities as they emerge. Tender
periods are generally short and competitive, and accordingly the warehouses need to be “shovel ready”.
The proposed warehouse development is to be sited on a development site of approximately 16.3 hectares, and
will comprise:
- Two warehouses of up to 40,000 square metres each, totalling a maximum developable floor area of 80,000
square metres to tenant specifications. The internal layout will be flexible to allow for the space to be split
between two tenants or undertaken in stages, if required.
- Two separate office / administration areas up to 1,800 square metres each to tenant specifications.
- A back of house area containing supporting physical infrastructure.
- A re-fuelling station, truck wash bay and maintenance building expected to be sited along the southern
boundary.
- Car parking to be provided in accordance with the specific needs of the future tenants. Car parking
treatments are to be provided in accordance with the Melbourne Airport Planning and Design Guidelines.
- Landscaping treatments are to be undertaken in accordance with the Melbourne Airport Planting Guidelines
and the Planning and Design Guidelines.
- Access to the site will be via four crossovers onto Sky Road East, with separate truck and car accesses.
New roads are planned to service the Melbourne Airport Business Park (including the recently completed
Airport Drive and the realigned Link Road) and they will cater for larger vehicles such as B-Doubles and
where appropriate B-Triples or high productivity freight vehicles.
Statutory and Policy Compliance
Based on the estimated construction cost, the proposed development is considered a ‘major airport development’
under the Airports Act 1996. It is therefore a requirement of the Airports Act 1996 that a MDP be prepared and
submitted to the Minister for Infrastructure and Regional Development for approval.
This MDP has been prepared in accordance with the requirements set out at Section 91 of the Airports Act 1996.
The Melbourne Airport Master Plan (2013) was approved by the Minister for Infrastructure and Regional
Development on 18 December 2013. Development within Melbourne Airport Business Park must be consistent
with the envisaged land uses identified within the approved Melbourne Airport Master Plan (2013) which is
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Melbourne Airport Business Park Warehouse Site 2 (Airport Drive)
structured to guide land use and development at Melbourne Airport over the next 20 years. It identifies that the
Melbourne Airport Business Park is within the Landside Business Precinct of the airport. The Landside Business
Precinct is envisaged to provide for a range of non-aviation uses, including industrial, commercial, retail, office,
recreational, manufacturing, warehousing and associated activities. The proposed warehouses are therefore
entirely consistent with the approved Melbourne Airport Master Plan (2013).
In 2013 the Victorian Freight and Logistics Plan ‘Victoria the Freight State’ was introduced by the State
Government. It defines Melbourne Airport as a Freight Airport, with a key strategy being to work with the Airport
and Commonwealth Government to ensure that Victoria maintains its competitive advantage in air freight, by
“…contributing to the 2013 Melbourne Airport Master Plan, including … development of a new, integrated freight
and logistics precinct on airport land”. The Government recognises the potential of Victoria’s aviation
infrastructure to grow the State’s role as a gateway for international trade and cargo and, in particular, for new
markets in Asia. The proposed warehouses will support this growth, by providing space for a distribution centre or
similar industrial warehouse use for freight storage and distribution.
Plan Melbourne (2014) identifies Melbourne Airport as a Transport Gateway and major economic gateway, acting
as an employment anchor within the northern region of the city. The further development of the Melbourne Airport
Business Park has also been envisaged within Plan Melbourne (2014).
This MDP will be assessed at the Commonwealth-level, however the proposal has also considered the Victoria
Planning Provisions contained within the Hume Planning Scheme and relevant State policy within Victoria. The
development of two warehouses on Site 2 (Airport Drive) within the Melbourne Airport Business Park will be
entirely consistent with relevant State and local planning policy.
Assessment of Impacts
Potential impacts associated with the proposed warehouse development have been assessed in terms of the
construction phase impacts and the long term operational impact. This assessment included specific
consideration of aviation, traffic, flora and fauna, cultural heritage, noise, air quality and stormwater impacts. A
summary of key finding is set out in Table 1 below:
Table 1 Summary of Impacts
Impact Consideration Assessment and Mitigation
Aviation - Airspace Assessment confirms warehouse is below prescribed surface levels
- Impact on Airservices radio link to be agreed / implemented with Airservices
- No impact on existing and future runway approach and departure paths
Traffic - Majority of areas of the road network able to accommodate the increased traffic
associated with the proposed development. Largest impact at am peak period
- Lower & upper parking rates applied based on expected warehouse occupier/
operations
Flora and Fauna - Ecological Assessment undertaken (Biosis 2014)
- 2 EPBC Act listed native grassland patches (5.12 ha) recorded, but no listed fauna
species observed during field survey
- EPBC Act referral to occur under MDP approvals process
- Environmental management requirements to be addressed via CEMP/OEMP
Cultural Heritage - Requirements of Heritage Act 1995 & Aboriginal Heritage Act 2006 considered
- Cultural Heritage Management Plan (CHMP) prepared
- No Aboriginal artefacts, historical sites or places located on the site
Noise and Air Quality - No significant impact on noise exposure levels (primarily vehicle noise)
- Separation distance from residential development is approximately 290m,
reducing potential impacts
- Air emissions limited to rooftop ventilation and AC units
- Airport air quality monitoring program is already in place for Airport
- Management processes to be included in the CEMP/OEMP
Stormwater - Stormwater will be appropriately managed with respect to the increase in
impervious areas as a result of the proposed development.
- Warehouse to incorporate flood design controls and water-sensitive urban design
(WSUD) treatments
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Melbourne Airport Business Park Warehouse Site 2 (Airport Drive)
Key identified issues relate to:
- The management of traffic in consideration of potential congestion along the southern portion of South
Centre Road.
- The stormwater system (to be developed at detailed design phase) must be compatible with the approved
Airport Drive and Steele Creek North Stormwater Enhancement Project MDP.
As outlined in the approved Melbourne Airport Master Plan (2013), trunk infrastructure will continue to be added to
support the Business Park’s growth. The Master Plan (2013) outlines a Ground Transport Plan which sets out the
Airport’s areas of transport focus, including significant improvements to the internal road network such as the
opening of Airport Drive, a secondary access to the airport. In addition Melbourne Airport is working closely with
the State Government to ensure the wider road works can manage the Airport’s growth. Initiatives, including the
widening of the Tullamarine Freeway, are again outlined within the Master Plan (2013).
The proposal incorporates mitigation measures to address the above issues. The investigations have not
identified any significant issues that warrant changes to the concept design or that would impede construction of
the proposed development.
Due to the intervening distance, existing development and the trees buffering the site, the proposal is not
expected to have any impact on the amenity of residential areas to the east. The proposal will result in positive
social benefits through increased local employment and additional freight services for businesses and improved
productivity and efficiency.
Environmental Management
Environmental management of construction and operational impacts will be undertaken in accordance with the
Melbourne Airport Environment Strategy 2013 (contained within the approved Melbourne Airport Master Plan
(2013)) and the Environmental Management System. Construction phase impacts will be managed through the
preparation and implementation of a Construction Environmental Management Plan.
Consultation and Approval Process
The Melbourne Airport Business Park Warehouses Site 2 (Airport Drive), Tullamarine is entirely consistent with
the approved Melbourne Airport Master Plan (2013). The proposal is for a use strategically planned and
envisaged within the Landside Business Park Precinct and this MDP has not identified any technical issues which
will result in a significant impact on the local or regional community. The proposal fully accords with the strategic
intent of the Melbourne Airport Business Park.
The need for the proposed Business Park Warehouses Site 2 (Airport Drive), Tullamarine to undergo the MDP
approval process has been triggered solely due to the capital cost of the works being in excess of $20 million. The
project is not expected to have any negative economic, environmental or social impacts.
This MDP will be subject to the consultation and approval process outlined within the Airports Act 1996.
Melbourne Airport will undertake consultation for a period of 60-days in accordance with Section 92 (2A)(a) of the
Airports Act 1996.
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Melbourne Airport Business Park Warehouse Site 2 (Airport Drive)
INTRODUCTION
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Melbourne Airport Business Park Warehouse Site 2 (Airport Drive)
01 Introduction
1.1 Overview of the Proposal
Australia Pacific Airports (Melbourne) Pty Ltd (Melbourne Airport) has prepared this Draft Major Development
Plan (‘MDP’) for the Melbourne Airport Business Park Warehouses Site 2 (Airport Drive), Tullamarine at
Melbourne Airport.
This MDP is required by the Airports Act 1996 as the construction cost of the Melbourne Airport Business Park
Warehouses Site 2 (Airport Drive), Tullamarine project exceeds the Airports Act 1996 trigger of $20 million as the
total anticipated project cost will be in excess of $60 million.
Under the approved Melbourne Airport Master Plan (2013) (Master Plan (2013)), Melbourne Airport has the
opportunity to continue to develop the remaining 146 hectares of vacant land within the Melbourne Airport
Business Park. The focus of the Master Plan (2013) and its predecessor is the ongoing development of large
industrial warehouses and distribution centres within the Melbourne Airport Business Park ranging in size
between 10,000 to 100,000 square metres.
A number of new warehouse facilities are to be established within the Business Park in the short-term, with
Melbourne Airport having recently prepared a MDP for a warehouse and facilities for Toll Holdings Limited, which
is now approved and under construction. Additionally, there is increased activity within the Business Park, with
several other strategically planned warehouse developments also proposed which have been concurrently lodged
with the Department of Infrastructure and Regional Development. These will enable potential businesses to take-
up new sites at Melbourne Airport with approvals already in place. These proposals will enhance Victoria’s
position as the ‘Freight State’ in which Melbourne Airport is recognised as a key freight and logistic gateway with a
role as a nationally significant freight distributor.
In seeking MDP approval for the proposed warehouses from the Department of Infrastructure and Regional
Development, Melbourne Airport want to be “market ready” for new tenant opportunities as they emerge. This is
due to the generally competitive and relatively short tender periods, and accordingly the warehouse needs to be
“shovel ready” in consideration of this.
This site within the Business Park has been identified for development by Melbourne Airport to accommodate a
large-scale industrial warehouse development. The site, which is the subject of this MDP, is located at the junction
of Sky Road East to the north and the recently opened Airport Drive to the east, and is approximately 2.0
kilometres to the south-east of Runway 34R (refer to Development Plans, Appendix A).
The final design of the site will be based on the specific requirements of a future tenant, and this MDP seeks
approval for a generic warehouse design for two structures to allow for warehousing or distribution operations,
which may be altered to suit the needs of a specific tenant. This requirement for flexibility is necessary to avoid
future amendments and variations if the MDP is approved and tenant requirements change. This form of approval
will allow Melbourne Airport to meet the current market demand, particularly with the recently completed
construction of the Airport Drive extension.
A specific tenant has not been identified yet, the MDP is based on a conceptual design and the final design may
require alteration to suit the functional needs of the specific tenant. Should the final proposed design vary
significantly from the details in the draft MDP submitted to the Minister for Infrastructure and Regional
Development for consideration, it may be necessary for APAM to seek further approval from the Department of
Infrastructure and Regional Development. If the variation is of a minor nature, the Airports Act 1996 provides a
process for the approval of a minor variation to the MDP in accordance with Section 95.
The proposed Melbourne Airport Business Park Warehouses Site 2 (Airport Drive), Tullamarine will indicatively
comprise the following:
- Two warehouses of up to 40,000 square metres each, up to a maximum developable floor area of 80,000
square metres to tenant specifications. The layout will be flexible to allow the spaces to meet tenant
requirements.
- Two office / administration areas up to 1,800 square metres to tenant specifications, associated with each of
the proposed warehouse structures.
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- A back of house area containing supporting physical infrastructure.
- A re-fuelling station, truck wash bay and maintenance building expected to be sited along the southern
boundary.
- Car parking to be provided in accordance with tenant specifications. As the tenant is yet to be determined,
car parking ratios have been estimated in line with the anticipated upper and lower employment forecasts,
expected floorspace requirements, the shift profile (not all staff will be on site simultaneously ) and the likely
use of alternative transport modes or trip sharing amongst staff. It is expected that peak parking
requirements for the site will be approximately 314 spaces for the lowest employment estimate and up to
1,095 spaces for the highest estimate.
- Landscaping treatments associated with the proposed development are to be undertaken in accordance with
the Melbourne Airport Planting Guidelines and the Planning and Design Guidelines.
- Access to the site will be via four crossovers onto Sky Road East, with separate truck and car access and
egress locations. New roads are planned to service the Melbourne Airport Business Park (including the
recently completed Airport Drive and Link Road) and they will cater for larger vehicles such as B-Doubles
and where appropriate, B-Triples or high productivity freight vehicles.
The project is outlined in plans contained in Appendix A.
It is important to note that the final design and configuration of the warehouses will be subject to detailed space
planning investigations and construction feasibility by Melbourne Airport. The control measures provided through
this planning and design process are described at Section 1.4.2.
The timeframe for the proposed construction will be subject to market demand but indicatively is scheduled to
commence in late 2015.
1.2 Background
1.2.1 Need and Justification
Melbourne Airport functions as one of Victoria’s key freight and logistics gateways and is the second busiest
passenger airport in Australia, with over 30 million passengers passing through it in 2013, which is anticipated to
increase to 64 million passengers by 2033.
The Airport handles more than 30 per cent of Australia’s total air freight market and 36 per cent of the export
market – this market share made Melbourne Australia’s largest export airport in 2012. It is estimated that 250,000
tonnes of air freight were moved through Melbourne Airport during 2013 which could increase to 393,000 tonnes
by 2033. With the increase in air-freight exports and improved transport network such as Airport Drive, there has
been a growing demand for freight logistics facilities at the Airport.
Through the operations at Melbourne Airport, over 14,000 jobs are directly supported and a further 43,000 jobs
indirectly supported; with airport activities directly supporting over 1 in 6 jobs within Hume alone. The operations
of Melbourne Airport contribute over $1.47 billion (or 6%) to Victoria’s Gross State Product on an annual basis,
with indirect activity adding over $5.2 billion to the Victorian economy annually. The range of business activities on
the airport site contribute to creating a diverse range of employment opportunities both within the local area, and
the broader Metropolitan region.
Furthermore, there is an increased demand for logistics and distribution centre space and development across
metropolitan Melbourne; particularly in industrial precincts that are well connected to major transport infrastructure
such as the Melbourne Airport Business Park which has led to the desire to construct additional warehousing
facilities. Additionally, the subject land is flat, unencumbered, and of a size and configuration that makes it ideal
for large-scale industrial development.
Melbourne Airport now exports more air freight than any other airport in Australia and recognises that facilitating
ground transportation of freight in and out of the airport is vital. As such, the airport is making major improvements
to the internal ground transport network through projects such as Airport Drive and the elevated loop road. The
Victorian Government also acknowledges the importance of the transport infrastructure to Melbourne Airport in
policy documents including Victoria: The Freight State (2013) and Plan Melbourne (2014).
The industrial market in Melbourne continues to offer good yields and prospects for steady and stable rental
growth. In seeking MDP approval from the Commonwealth Minister for Infrastructure and Regional Development
for the proposed warehouse development, Melbourne Airport want to be “market ready” for new opportunities as
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Melbourne Airport Business Park Warehouse Site 2 (Airport Drive)
they emerge. The proposed warehouses will be developed by Melbourne Airport to respond to current and
forecast demand in the warehousing and distribution centre market, which is predicted to be further stimulated
with the completion of Airport Drive and the significant access benefit this will bring to the Melbourne Airport
Business Park.
1.2.2 Project Objectives
Melbourne Airport’s Master Plan (2013) and its predecessor outlines a number of aviation and non-aviation
development objectives which will be achieved by the proposed warehouse development. These objectives
include:
- Protect the airport’s long-term viability.
- Support a range of uses, including complementary business and shopping activities, employment, travellers’
accommodation, leisure, transport and community facilities.
- Support sustainable urban outcomes that optimise the use of infrastructure.
- Encourage developments that achieve the highest standards in sustainable environmental development,
safety and security.
- Support safe, secure and sustainable transport solutions.
- Work with the neighbouring municipalities with respect to optimising development, both on the airport and in
the surrounding region.
- Provide a business environment which allows our business partners to develop and grow their businesses in
accordance with their shareholder’s objectives.
- Pursue flexibility in facilities to cope with changing circumstances.
- Enhance the flow of passengers and freight through the airport and strive towards achieving a reputation as
an efficient, delay-free airport.
The Master Plan (2013) outlines the vision and strategic intent for Melbourne Airport’s future development over
the next 20 years. The Master Plan (2013) acknowledges the important role that non-aviation industries play in
protecting the long-term viability of the airport by supporting the airport’s growth and diversifying the business risk.
This proposal is entirely consistent with the Master Plan (2013) as it will:
- Reinforce Melbourne Airport’s gateway role in the domestic and international freight and logistics.
- Contribute to the economic viability of and infrastructure investment in Melbourne Airport and the broader
north-western region.
- Support and drive positive economic, environmental and social outcomes both on-airport and in the
surrounding region.
- Support and upgrade local and regional infrastructure.
- Create a sustainable, high quality built form and landscaped environment.
- Ensure consistency with the Airports Act 1996 and other Commonwealth legislation, and State and local
planning schemes.
The proposed warehouse development will implement the objectives of the Master Plan (2013).
1.2.3 Future Needs of Civil Aviation and Other Users of the Airport
Clause 91(1)(b) of the Airports Act 1996 requires a MDP to include the Airport-lessee company’s assessment of
the extent to which the future needs of civil aviation users and other users of the airport will be met by the
development. The Master Plan (2013) identifies that
…non-aviation development plays a vital role in Melbourne Airport’s economic vitality and
complements its key functions. It supports the airport’s growth and diversifies business risk,
enhancing the contribution it makes to the broader community and underlining its importance as
an activity centre.
The proposed Melbourne Airport Business Park Warehouses Site 2 (Airport Drive), Tullamarine will have
particular benefits for freight businesses operating through Melbourne Airport. Melbourne Airport handles 250,000
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Melbourne Airport Business Park Warehouse Site 2 (Airport Drive)
tonnes of air freight per annum, giving it more than 30 per cent of Australia’s freight market. The efficient ground
transportation of this freight is critical for the airport and related businesses to function effectively. Located within
the Melbourne Airport Business Park, the proposal will assist in the consolidation of airport-based freight storage
and distribution.
The proposed development is to be located within the comprehensively planned Melbourne Airport Business
Park, an area of land of 230 hectares that has been strategically identified as not being required for future aviation
development. Accordingly, it is not considered that the proposed development will have any negative impacts on
the existing and planned future operating capacity of the airport. The Master Plan (2013) provides the medium
and long-term planning concepts for the airport site and identifies areas for development of aviation support and
commercial activities for the 20-year Master Plan (2013) horizon.
Importantly, the Master Plan (2013) incorporates the Ground Transport Plan for Melbourne Airport, which has
overarching objectives to improve ground transport access for all modes of transport and provide a transport
network that is integrated into the wider local and State-wide network.
The location of the proposed development within the Melbourne Airport Business Park will take advantage of the
key siting requirements for a warehouse and distribution centre development including a flat topographical form,
excellent airside access to international markets as well as major road transport infrastructure such as the M80
Ring Road and the Hume, Calder, Western and Princes Freeways. This road network provides efficient linkages
to the major regional areas of Victoria as well as the Ports of Melbourne and Geelong.
The proposed development will boost employment in the region, resulting in the ongoing employment of
approximately 510-1700 staff at the warehouses and office, depending on the type of tenant and business
occupying the warehouses. It is considered that the proposal is consistent with and will implement the strategic
intent of the Master Plan (2013). Importantly, the proposed development will not conflict with the future aviation
needs of civil aviation and other users of Melbourne Airport.
1.3 Proponent Details
The proposed development will be located entirely within Melbourne Airport land and therefore located on
Commonwealth land. Melbourne Airport is an Airport Lessee Company pursuant to the Airports Act 1996. Below
are the details of the proponent for this MDP:
Australia Pacific Airports (Melbourne) Pty Ltd
Contact: Mr Linc Horton – Executive- Property and Construction
Melbourne Airport
Locked Bag 16
Tullamarine VIC 3043
Pursuant to the Airports Act 1996, the Commonwealth Minister for Infrastructure and Regional Development, is
responsible for all decisions in relation to a MDP for a major airport development.
1.4 Statutory Context
1.4.1 Major Development Plan
In accordance with the Airports Act 1996, a MDP must be prepared where a major airport development is
proposed and the various triggers are defined under Section 89 of the Airports Act 1996. The proposal is a major
development as the construction cost of the Melbourne Airport Business Park Warehouses Site 2 (Airport Drive),
Tullamarine project exceeds $20 million. The purpose of a MDP in relation to an airport is to establish the details
of major development that relates to the airport and is to ensure the proposal is consistent with the airport lease
and the Master Plan (2013) for the airport. There are a number of steps in the preparation of a MDP, which are
outlined in Figure 1 and as follows:
- Prepare a Draft MDP, which is a comprehensive report about the project including, amongst other criteria:
A detailed outline of the proposed development.
An assessment of its consistency with the Master Plan (2013), including the Environment Strategy.
An assessment of its consistency with State and local planning legislation within the relevant locality
and justification for inconsistencies.
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Where appropriate, an assessment of the effect that the proposed development is likely to have on
noise levels/flight paths.
An assessment of the effect that the proposed development would be likely to have on Melbourne
Airport.
An assessment of the environmental impacts that might be associated with the proposed development.
- Publicly exhibit the Preliminary Draft MDP and revise the document in line with comments received.
- Submit the Draft MDP to the Commonwealth Minister for Infrastructure and Regional Development. The
Minister will then refer the Draft MDP to relevant agencies and departments to receive advice prior to making
a decision to approve or refuse the application.
The proponent is required to comply with the provisions of the Environment Protection and Biodiversity
Conservation Act 1999 in relation to environmental impact and the assessment of projects on Commonwealth
land and/or projects which may have a significant impact on a matter of national environmental significance.
Subsequent to the finalisation of the MDP for the Melbourne Airport Business Park Warehouses, further approvals
are required under the Airports Act 1996. These include a Building Permit from the Airport Building Controller in
consultation with the Airport Environment Officer, as detailed below.
1.4.2 Other Project Approvals
New developments and building works at Melbourne Airport are subject to an internal approval process whereby
proposals are assessed by building and environmental officers to ensure consistency with the Master Plan (2013)
and other relevant Melbourne Airport policies and plans.
Independent approvals for construction of the proposed facilities will be sought through:
- The Airport Building Controller (ABC). The ABC exercises the power and functions prescribed by the Airport
(Building Control) Regulations 1997, made under Division 5 of the Airports Act 1996.
- The Airport Environment Officer (AEO). The AEO assesses the proposal against the environmental
requirements of the Airports Act 1996 and the Airports (Environment Protection) Regulations and the
environmental commitments in the Master Plan (2013), and the Environment Strategy. The AEO will also
examine Construction and Operational Environmental Management Plans.
This approval process comprises of the following components:
- Airport Operator’s consent granted by Melbourne Airport.
- Building permit issued by the ABC.
- Permit to commence work issued by Melbourne Airport.
- Assessment of the proposal by the AEO and review of the Construction Environmental Management Plan
(CEMP) to be prepared by the Construction Contractor.
- Certificate of Compliance issued by the ABC upon completion of the works.
Approvals will be consistent with the Master Plan (2013), incorporating the Environment Strategy (2013). In
addition, the new Melbourne Airport Business Park Warehouses Site 2 (Airport Drive), Tullamarine will be
designed in accordance with all relevant building codes and Victorian standards.
No additional approvals are required for this proposal under Division 5 or Part 12 of the Airports Act 1996 with
respect to capacity declarations or the protection of airspace.
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Melbourne Airport Business Park Warehouse Site 2 (Airport Drive)
1.5 Structure of this MDP
This MDP is structured as follows:
- Section 2: provides a description of the site and surrounding environment.
- Section 3: describes the proposed development in detail.
- Section 4: identifies the statutory context for the development, outlines the MDP process, and provides
assessment of the proposal against relevant airport planning documents, state and local policy.
- Section 5: provides an assessment of the environmental, social and economic impacts of the proposal.
- Section 6: outlines the environmental management measures to manage the effects of the proposal.
- Section 7: describes consultation undertaken to date and the approval process required for the MDP.
- Section 8: outlines the conclusions of the report, including key issues, impacts and matters to address.
Detailed Specialist Reports have been prepared to inform the preparation of the Draft MDP and are contained
within the Appendices. The Specialist Reports and their authors are detailed below:
- Offset Assessment, Offset Management Plan and Flora and Fauna Assessment, Biosis, Appendix D
- Phase 1 Environmental Site Assessment and Site Inspection Checklist, APAM Environment Coordinator and
DoIRD, Appendix F
- Cultural Heritage Management Plan, Dr Vincent Clark & Associates, Appendix G
- Supplementary Traffic Report and Traffic Impact Assessment, Jacobs Appendix H
- Social and Economic Impact Assessment, Jacobs, Appendix I
- Noise Impact Study, SKM, Appendix J
A Supplementary Report (May 2015) has been prepared for the Draft MDP which summarises and provides
responses to submissions received following consultation of the Preliminary Draft MDP. The Supplementary
Repot is submitted to the Minister for Infrastructure and Regional Development along with this Draft MDP.
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Melbourne Airport Business Park Warehouse Site 2 (Airport Drive)
Figure 1 Major Development Plan Process
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Melbourne Airport Business Park Warehouse Site 2 (Airport Drive)
02 Site and Surrounds
2.1 Proposed Site
The proposed warehouses will be located within the Melbourne Airport Business Park, which is located to the
south of the airline maintenance bases and approximately 22 kilometres north-west of the Melbourne CBD. The
site falls within an area of approximately 230 hectares that has been identified as not being required for future
aviation development.
The development site is bounded by Sky Road East to the north and the extended Airport Drive to the east which
was recently opened. The proposed development site will be bounded by existing warehouse operations to the
west and south. The site is generally a rectangular configuration with a slightly longer eastern boundary. The site
has a total area of approximately 16.3 hectares with the locality and context shown in Figures 2, 3 and 4.
The site is well situated in respect of manufacturing and major commercial developments and has excellent
transport linkages via the M80 Ring Road to the Hume, Calder, Western and Princes Freeways, which link major
regional areas of Victoria, and the Ports and Melbourne and Geelong.
The site is located approximately 2.5 kilometres south of the airport terminal buildings. Existing warehousing
extends to the west and south of the subject site, abutting Sky Road East to the north, South Centre Road to the
west and Sharps Road to the south.
The proposed development is located within the Melbourne Airport Business Park in the Activity Centre Zone
(Landside Business Precinct). The Business Park and subject site is situated approximately 290 metres from the
nearest residential development (Tullamarine) to the east, with trees and an industrial park acting as a physical
buffer between the uses. In addition, vehicles will access the site by three access points on Link Road, via South
Centre Road and Airport Drive, avoiding impact on residential streets.
Figure 2 Subject Site
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Melbourne Airport Business Park Warehouse Site 2 (Airport Drive)
Figure 3 Broader Locality Plan (Google Earth 2014)
Subject Site
Figure 4 Locality Plan (Google Earth 2014)
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Melbourne Airport Business Park Warehouse Site 2 (Airport Drive)
2.2 Existing Environment
2.2.1 Topography, Land and Vegetation
Topographically, the site is generally flat with a surface of silty clays and a grassy ground cover, as shown in
Figure 5 below. The site is characterised by low grasses and weed species with no notable larger vegetation
species and is currently vacant land with no built form in the vicinity of the proposed development. The use of the
site prior to establishment of the Melbourne Airport was for agricultural purposes as faming land. On this basis,
there is a low risk of site contamination from previous uses.
Figure 5 View of Subject Site from Sky Road East looking south (2014)
2.3 Ground Transportation
2.3.1 Road Network
Melbourne Airport comprises a network of internal roads including major access roads, collector roads and local
service roads. These provide connections between freight facilities, passenger terminals and other services within
the airport precinct.
Melbourne Airport is positioned in proximity to a number of major freeways which provide access to the precinct.
The Tullamarine Freeway runs to the east of the airport and provides a direct link to Melbourne’s CBD. Roads at
the southern end of Melbourne Airport connect into the M80 Ring Road which provides access to the Hume,
Western and Princes Freeways. The local freeway network is shown in Figure 6.
The benefits of this effective arterial road access are recognised within Victoria’s freight and logistics plan,
Victoria: The Freight State (2013), which identifies Melbourne Airport as a critical key freight gateway to Victoria.
The plan outlines further future improvements to the road network surrounding the airport including a widening of
the Tullamarine Freeway between Melbourne Airport and Calder Freeway.
The internal road network links back into the broader public road network through key access roads including
Terminal Road (from the Tullamarine Freeway) which becomes Departure Drive and Arrival Drive adjacent the
key passenger terminals, prior to leading onto Melbourne Drive which provides access back to the Tullamarine
Freeway. The extension to Airport Drive completes the approach to the airport from the M80 Ring Road. This
extension provides a secondary entry point into the airport precinct and relieves some of the congestion on
Tullamarine Freeway.
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Melbourne Airport Business Park Warehouse Site 2 (Airport Drive)
Figure 6 Local Freeway and Active Transport Access to Melbourne Airport (Extract from Master Plan 2013)
Subject Site
2.3.2 Bus Network
Melbourne Airport has the benefit of a bus network for the movement of passengers and staff both within the
terminal precinct, and to the Melbourne CBD and broader metropolitan region.
There are several types of bus networks running within the Melbourne Airport precinct including:
- Privately Operated Metropolitan Services, including Skybus (Melbourne CBD); Dandenong-Airport shuttle;
Frankston and Peninsula Airport Shuttle; Eastside Airport Bus and Star Bus.
- Privately Operated Regional Services, including buses from Ballarat, Bendigo, Geelong, Shepparton, and
V/Line services between Southern Cross Station and Barham and Deniliquin.
- Public Bus Local Services: SmartBus Route 901 Melbourne Airport to Frankston; Route 470 Sunbury to
Moonee Ponds; and Route 500 Broadmeadows to Sunbury.
- Other bus services including tour buses, hotel buses, charter buses and off-airport buses.
There are also a number of bus services, which run internally within the Melbourne Airport Business Park
precinct. These include shuttle buses for the public to the long term parking areas (including off-airport long term
car parks) and staff shuttle buses operated by airlines and the airport. Melbourne Airport also has indicated that a
new internal bus route is likely to be established along the upgraded Airport Drive.
2.3.3 Rail
Public Transport Victoria has recently undertaken the Melbourne Airport Rail Link Study assessing the feasibility
of a rail link between Melbourne Airport and the Melbourne CBD. The study investigated how a rail link would
operate and identified appropriate routes for a rail link. A preferred route (Albion East) has been nominated,
however funding for the project has not been confirmed and investigations by Public Transport Victoria remain
ongoing.
The recently released metropolitan planning strategy for Melbourne titled ‘Plan Melbourne’ (2014) envisages an
airport rail link between the CBD and Tullamarine, identifying the potential rail link as an important future initiative
for the northern subregion of Melbourne. Melbourne Airport has incorporated this initiative into their planning for
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Airport Drive, allowing for the possibility of the rail corridor to locate within the median of Airport Drive. A key
direction of Plan Melbourne (2014) is to improve the landside transport access to primary gateways, including
Melbourne Airport. This is a longer term goal of the Plan, and is anticipated to occur post 2025.
2.3.4 Walking and Cycling
Melbourne Airport, through its active transport network, will aim to improve bicycle links to the airport and the
pedestrian environment within the airport boundary. Proposed improvements include enhancing the bicycle path
network and quality of infrastructure including end of trip facilities. A shared pedestrian and bike path has been
constructed adjacent to the Airport Drive extension which will benefit future warehouse occupiers.
2.4 Zoning
The Master Plan (2013) identifies the proposed site as falling within the Landside Business Precinct. This precinct
is situated to the south of the Airside and Landside Main Precincts. It extends from the Tullamarine Freeway and
Mercer Drive in the north to Annandale Road and Sharps Road in the south. The Master Plan (2013) designates
Melbourne Airport Business Park as part of an Activity Centre Zone. The Activity Centre Zone implements the
strategic directions of a structure plan, in this case the Master Plan (2013) and dispenses with the need to apply
multiple zones.
Using the Activity Centre Zoning terminology, the strategic context of the subject site is referred back to the
Master Plan (2013) and in particular, to the purpose of the Landside Business Precinct.
The role of the Landside Business Precinct is to:
- Provide land for a range of aviation and non-aviation uses.
- Provide a range of aviation-related services, including aircraft maintenance and servicing and freight and
cargo terminals.
- Provide for a range of non-aviation uses, including industrial, commercial, retail, office, recreational,
manufacturing, warehousing and associated activities.
The Master Plan (2013) identifies that future use and development within the Landside Business Precinct will
remain focused on mixed-use purposes that provides for safe and efficient ground transport access and a high
level of visual amenity.
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Melbourne Airport Business Park Warehouse Site 2 (Airport Drive)
Figure 7 Melbourne Airport Master Plan (2013) – Zoning and Overlay Plan
Subject Site
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Melbourne Airport Business Park Warehouse Site 2 (Airport Drive)
03 Proposed Development
3.1 Introduction
The proposed development comprises the construction of two new warehouses within the Melbourne Airport
Business Park more specifically known as Site 2 (Airport Drive), Tullamarine. The details of the project are
provided in the sections below.
3.2 Project Vision and Objectives
The project involves the provision of a new warehouse facility within the Melbourne Airport Business Park which
will support the freight and logistics businesses utilising Melbourne Airport. This MDP represents a proposal
aimed at increasing the opportunities for industrial development within the Melbourne Airport Business Park. In
seeking MDP approval for the warehouses, Melbourne Airport want to be “market ready” for new opportunities as
and when they emerge. The warehouse facility will therefore be developed by Melbourne Airport to respond to
current and forecast demand in the warehousing or distribution market, further stimulated by the construction of
Airport Drive.
3.3 Description of the Proposal
The proposal comprises two warehouse buildings, however the final space planning of the proposed development
will be undertaken in conjunction with the future tenants. An indicative plan of a potential future development is
shown in plans at Appendix A.
Generally, the development will comprise:
- Two warehouses of 40,000 square metres each (totalling 80,000 square metres);
- Two office spaces of 1,800 square metres each (totalling 3,600 square metres);
- Heavy duty concrete access roadways, loading and unloading area;
- Light duty asphalt car parking areas for associated staff;
- Amenity landscaping along the northern, eastern and western boundaries of the site.
The balance of the site is to be fenced, landscaped and paved in accordance with Melbourne Airport Planning and
Design Guidelines and Melbourne Airport Planting Guidelines.
The proposal is described in more detail below.
3.3.1 Site Preparation
Site preparation will include all excavation, supply and compaction of filling materials and the preparation
necessary to ensure the site is cut and filled to the correct gradient. All excess spoil including imported and site
derived materials shall be removed from the site on completion of the specified works. Any required retaining
walls and battered slopes will be located within the development site.
3.3.2 Building Envelope and Materials
The proposal comprises two warehouse facilities with a maximum developable floor area of 80,000 square metres
between the two structures. Back of house (containing supporting physical infrastructure) and front of house
(administration) will accompany the proposed warehouses. The warehouses will extend to a total height of 13.7
metres sloping upwards from 11.5 metres from the east and west of the structure. The warehouse design will
incorporate total office space of approximately 3,600 square metres over two storeys, with a total height of 8.1
metres. The warehouse design for each structure will incorporate an office space of approximately 1,800 square
metres. The warehouses and offices will be oriented to the north incorporating the entrance to the office
component and a large parking area along the northern elevation of the warehouse fronting Sky Road East.
External materials proposed on the two warehouses will be non-reflective and will include a combination of pre-
cast concrete and Colorbond metal sheeting. Materials and finishes will be of high quality, durable products
appropriate for airport operations. External cladding will be non-reflective and will be selected so as not to
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interfere with aviation function. All materials shall be in accordance with Australian Standards. The materials and
finishes will complement the built form within the Melbourne Airport Business Park.
The plans for the two warehouses are currently at a conceptual stage. The final design and shape of the buildings
will be subject to detailed space planning investigations and construction feasibility, along with tenant
requirements. The Department of Infrastructure and Regional Development will be notified of final design details
including the building envelope.
3.3.3 Fencing and Security Gates
The site will be contained by perimeter fencing expected to consist of black PVC coated chain wire mesh or
palisade fencing to an overall height of three metres to all site boundaries, consistent with the Melbourne Airport
Planning and Design Guidelines. The entry / exit points will be secured by lockable swing open gates.
3.3.4 Car Parking and Access
The site will be accessible via four crossovers onto Sky Road East, which is currently accessible via South Centre
Road to the west and Airport Drive to the east.
It is anticipated that the proposed warehouses will be utilised for a transport and freight-forwarding business/
distribution or a storage and logistics business which receives, stores and delivers goods and packages to end
customers. These operations may involve heavy interstate vehicles operating on long haul pickups and deliveries,
as well as large fleets of smaller commercial vehicles for domestic goods transport to Greater Melbourne and
regional centres.
Under the Activity Centre Zone, which applies to the sites within the Business Park, the Master Plan (2013) states
that ‘…parking studies can be used to justify alternative rates of parking for the activity centre, although Clause
52.06 (Car Parking) of the Planning Scheme should continue to be used to address parking’.
The Victoria Planning Provisions and Hume Planning Scheme require 2 parking spaces per premises plus 1.5
spaces/100sqm of net floor area, though for industrial uses, the requirement increases to 2.9 spaces/ 100sqm of
net floor area. Alternatively, a recent Committee Paper from the Property Council of Australia (PCA)
recommended 0.5 spaces/ 100sqm for facilities over 250sqm, based on the results of an informal survey of
industrial developers and logistics users. The PCA provisions would represent the most efficient use of the land.
As the tenant is yet to be determined, car parking ratios have been estimated in line with the anticipated upper
and lower employment forecasts, expected floorspace requirements, the shift profile (not all staff will be on site
simultaneously ) and the likely use of alternative transport modes or trip sharing amongst staff. On this basis it is
expected that peak parking requirements for the site will be approximately 314 spaces for the lowest employment
estimate and up to 1,095 spaces for the highest estimate. For the highest employment estimates parking areas
can be more effectively utilised through car park management correlating to the shift profile, and the utilisation of
hardstand areas for delivery vehicles that will be off site for the majority of the peak parking period.
The car parking will be provided on the site in a safe and convenient manner that is appropriate for staff
associated with shift work at the proposed warehouse facility and in accordance with the relevant Australian
Standards. Car parking areas will be of light duty paving, which will be laid to correct gradients and shall include
perimeter kerb and channelling connected to the stormwater drainage system.
Facilities of the size and nature of the proposed Melbourne Airport Business Park Warehouses Site 2 (Airport
Drive), Tullamarine tend not to have the level of pedestrian and cycling options which are offered at other
development types due to tenant occupational requirements based around safety and security. The current design
for the facility and the improvements/additions being made to the surrounding road network, including new
footpaths to be constructed on South Centre Road, and a shared bike and pedestrian walkway adjacent to Airport
Drive allow for cycling access and facilities to be added at a later date if required.
3.3.5 Landscaping
Landscaping is proposed around the parking areas on the northern, eastern and western portions of the site, with
species selection to be finalised. Landscaping treatments associated with the proposed development are to be
undertaken in accordance with the Melbourne Airport Planting Guidelines and the Planning and Design
Guidelines developed for Melbourne Airport including the Business Park Precinct. In addition to the MDP
approval, the proposed development must obtain Planning and Design Approval from Melbourne Airport. The
Planning and Design Approval process will assess the consistency of the proposal against the Melbourne Airport
Planting Guidelines and the Planning and Design Guidelines.
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