Logistics giant Toll Group has signed a $420 deal to built a mega warehouse in Western Sydney capable of shipping 37 million parcels each year.

The warehouse 67,626 square metre will be built in ESR’s Westlink Industry Park in Kemps Creek, and will feature $75 million of robotic technology for automated delivery.

The warehouse has the storage capacity of close to a million cartons and will operate 24/7 as part of the push for quicker delivery times.

“We’re seeing huge demand from our retail customers for fast, flexible warehouse solutions that meet the needs of Australia’s savvy online and retail shoppers,” Toll president of retail and consumer Nick Vrckovski said.

“Our newest facility will give our customers fast, flexible fulfilment that integrates multichannel order management for immediate and accurate deliveries across all of Australia.”

Last week Coles opened its own 66,000 square metre automated warehouse in Brisbane, while Amazon’s own 200,000 square metre behemoth opened last year in Kemps Creek, with the capacity to house 20 million items.

Toll’s centre is expected to be operation by the December quarter of 2025.