The official opening of a large cargo campus at Australia’s newest airport, outside Sydney, has businesses looking to new markets and expands Australia Post’s ability to meet growing demand for next-day delivery of e-commerce packages in New South Wales.

Qantas on Monday operated its first commercial all-cargo flight from Western Sydney International Airport for Australia Post, officially inaugurating its terminal in the cargo zone and beginning a 10-year extension of its air cargo contract with the national postal operator.

The 30-minute flight from Western Sydney International arrived in Brisbane on Monday evening local time, according to flight tracking databases. Qantas Freight, the air logistics arm of Qantas, said it expects to move more than 160,000 parcels through the 258,000-square-foot facility in the first 24 hours, with 12 arrivals overnight. Domestic services will also operate between WSI and Melbourne, Cairns, Adelaide, Gold Coast and Perth. Australia Post international flights are expected to begin early next year.

Sydney is now served by two major airports. Sydney Kingsford Smith Airport will continue to handle the vast majority of Sydney’s air traffic. Western Sydney International, which has been decades in the making, adds new capacity and a 24-hour operating model to the region, with no curfew like the one at the existing Sydney airport.

The airport is designed to keep urgent freight — including perishables, pharmaceuticals, high-value goods and e-commerce shipments — moving and to accommodate future growth in shipping demand. The first phase of the project covers about 7.9 million square feet and can accommodate up to eight large freighter aircraft and 16 standard-size freighters at the same time, according to the airport’s website. The facility will initially be able to handle up to 298,000 tons of freight annually, with an additional 2 million tons of capacity planned in the next development phase.

Transport and Infrastructure Minister Catherine King said at an opening ceremony, excerpts of which were broadcast by Australian television networks, that WSI will add 33% more air cargo capacity for New South Wales.

WSI’s passenger terminal is scheduled to open on Oct. 25.

The Freight & Trade Alliance, which represents logistics and cross-border cargo owners in Australia, welcomed the new air cargo facility as a benefit for importers, exporters and other shippers.

The new cargo campus “will provide much-needed additional capacity, genuine operating flexibility and greater choice in how time-sensitive goods are moved into, out of and across Australia. Its proximity to Western Sydney’s major logistics and industrial centers, supported by dedicated road connections, should also deliver important efficiencies throughout the supply chain,” said FTA Director Paul Zalai in a statement. “This is not simply the opening of another freight terminal. It is the beginning of a major new trade gateway that should encourage investment, competition and improved service offerings, while strengthening the resilience of Australia’s international supply chains for decades to come.”

The start of service follows cargo trials this month with Qantas, Texel Air and ground handling agents.

Australia Post air cargo

Under the revised contract, Qantas Freight will operate a dedicated fleet of two Airbus A330 and six A321 narrowbody converted freighters, and will also set aside priority space on the airline’s passenger aircraft to carry shipments on behalf of Australia Post, according to a joint news release. Qantas is scheduled to receive three additional leased A321 freighters in the coming months; the aircraft are being converted from passenger to cargo configuration by Airbus affiliate EFW. The dedicated fleet will support delivery of more than 83 million tons of parcels and freight each year, with volume expected to grow alongside future online shopping demand.

“It’s a historic day for aviation in Australia as our first freight services take off from Western Sydney International Airport. This new terminal will help us meet growing demand for next-day deliveries and move express cargo across Australia and the world,” said Cam Wallace, Qantas CEO of international and freight.

The Qantas and Australia Post partnership dates back more than 100 years, when Qantas flew 106 letters for Australia Post on its inaugural commercial flight.

Dubai-based airport services firm dnata is one of the companies selected to process cargo shipments for airlines. It has invested $22.3 million in storage racks, dollies, forklifts, technology and a semi-motorized materials handling system for the 54,000-square-foot facility it leased from the airport.

In related news, Australia Post said on Tuesday that it has broken ground on a $324 million parcel super hub near Adelaide, a project first disclosed in October.

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