The New South Wales 2022-23 State Budget allocates funding towards several significant infrastructure, transport and road projects that will support the Western Sydney industrial and logistics ecosystem.

The State's infrastructure pipeline has grown to $112.7 billion, the biggest infrastructure investment on record, with $76.7 billion set aside for transport projects announced in the 2022-23 NSW Budget.

JLL’s Head of Industrial & Logistics - Australia, Peter Blade said, “Government investment is good news for Western Sydney’s industrial, logistics and manufacturing sectors, particularly in terms of supply chain related infrastructure such as roads, railway and transport.

The NSW Government is committing $700 million for construction and improvement to the Western Sydney road network, including major projects such as the Western Harbour Tunnel.

Mr Blade said, “The construction and upgrades of this key network of roads will improve traffic flow, simplify the complex road corridor, and create better connections, and in turn will allow a range of industrial occupiers to improve the efficiencies of their supply chain.

“Logistics operations, warehousing and trucking companies employ thousands of people across Western Sydney. Investment to upgrade road infrastructure will keep this industry vibrant, and in turn bolster supply chains, create jobs and keep Western Sydney’s vital distribution hubs going as the heart of Australia’s East Coast supply chain,” said Mr Blade.

This Budget allocates more than $16.0 billion for transport infrastructure in Western Sydney, including $2.8 billion in 2022-23. A significant portion of this includes significant investment in three separate metro projects and the second stage of Parramatta Light Rail.

As part of the Western Sydney City Deal component of the Budget, $1.7 billion in 2022-23 has been allocated for continued construction for the Sydney Metro – Western Sydney Airport line, a metro rail link connecting St Marys to the new Western Sydney International Airport and the Western Sydney Aerotropolis.

Mr Blade said, “With vacancy still at record low levels, this is forcing many occupiers to consider a broader range of locations for their industrial assets, however elevated petrol prices are a key point of concern. The expansion of the transport network in Western Sydney will improve connectivity and provide occupiers more options that suit their business needs, while also encouraging the establishment of emerging industrial precincts.

“Offshore investors have a keen eye on these transport developments and upon completion will further increase demand for assets in these areas. This transport infrastructure will further increase the locational benefits of Western Sydney for industrial occupiers, on both a national and international scale,” said Mr Blade.