Faster package delivery and more jobs are a shipment closer for South Australians, as Australia Post’s half-a-billion-dollar parcel-sorting centre in Adelaide’s north begins construction.

The 83,000 sqm facility, located at the former Holden site in Elizabeth, has become the state’s “largest-ever investment” in boosting postal deliveries across the metropolitan and regional areas.

Advanced technology including autonomous vehicles and robotic pallet movers will help process parcels more quickly by reducing manual handling for employees

Robotic systems will help transfer pallets, cages and containers between loading, sorting and storage areas, and assist workers in putting packages into the system.

Once it starts operating in 2028, the parcel super hub, constructed by SA developers Pelligra, will merge Australia Post and StarTrack operational services, processing up to 400,000 parcels a day using AI.

Braving the rainy weather at the site on Tuesday, Pelligra chairman Ross Pelligra was joined by Urban Development Minister Nick Champion to mark the major milestone.

Mr Pelligra said the project will create industrial capability and jobs in the future, and revitalise the site that was once the core of “the state’s employment and manufacturing economy”.

“At Pelligra, we have always believed in developing assets that leave a lasting legacy, drive innovation and support the communities in which we operate,” he said.

Mr Pelligra said there will be a range of roles at the centre combining new workers and the existing workforce at Australia Post and StarTrack.

“We anticipate bringing all of our teams in as we work out our automation, there will be different types of roles … working with different technology.

“What we’ll be looking at when that happens is how we upskill people.”

Mr Champion said the “significant investment” adds to the state’s growing “parcel economy”.

“We’re spending more time shopping (online) and as a result there’s this huge volume of parcels now coming through Australia Post’s system, and they need modern warehousing, modern parcel delivery and the facilities to do it.”

The facility will be double the size of Australia Post’s existing facility in Brisbane and twice the capacity of the Adelaide Airport parcel facility.

Shane Plant, Australia Post’s executive general manager network operations, said the Adelaide facility will be a blueprint for technologically advanced facilities.

“Automation, people being assisted with manual tasks, with other pieces of equipment to make jobs easier, upskilling and finding a more modern approach to the way we do things,” he said.

Mr Plant, who also attended the site on Tuesday, said the hub will help provide better services, better visibility of parcels and a more reliable service for South Australians.

“For the small local or large businesses in this state will be able to participate in e-commerce, not just here in Australia but overseas,” he said.