Logistics giant Qube Holdings can borrow up to $150 million from the nation's clean energy agency to fund its Sydney freight interchange.
Qube on Friday said the seven-year bilateral debt facility - Clean Energy Finance Corporation's first major investment in low emission transport infrastructure - will provide a medium-term finance for the staged construction of its Moorebank Logistics Park.
The project, which is targeting full capacity by 2030, will take emissions-intensive trucks off roads by upping the use of rail networks to distribute goods from one of Australia's busiest ports.
It will also incorporate large-scale renewable energy sources, CEFC said in a statement.
"By switching to rail solutions, the Moorebank project will reduce emissions, reduce urban congestion and improve national freight connectivity for years to come," CEFC chief executive Ian Learmonth said.
"This project, and others like it, are essential for us to progress down a decarbonisation pathway to net zero emissions by the second half of the century."
The terminal is forecast to reduce heavy truck trips on the city's roads by 150,000 kilometres every day, cut regional truck trips by 93,000 kilometres per day, and generate enough renewable energy annually to power 10,000 homes.
In June, Qube completed the institutional phase of a $350 million capital raising to fund the Sydney freight interchange.
It planned to use $80 million to pay for warehouse construction and allocated the balance to other investments and future growth.
The project's first stage of construction is already underway with the import and export terminal and rail link due to be completed by late 2018.
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