Major healthcare hub takes shape at former Costco site in Docklands

Progress is gathering pace on a major new healthcare hub in Docklands, with Melbourne Pathology moving forward on plans to establish a state-of-the-art Centre of Excellence at the former Costco site.

The state government this week confirmed its support for the project, which will see Melbourne Pathology open a new Victorian headquarters and advanced laboratory facility, significantly expanding diagnostic and genomic testing capacity while creating hundreds of jobs.

Minister for Industry and Advanced Manufacturing Colin Brooks visited the site to mark the next phase of development, describing the project as a transformational investment for both Docklands and Victoria’s health technology sector.

Once complete, the centre is expected to create more than 200 jobs during construction and more than 250 ongoing roles, including positions for scientists, pathologists, biomedical engineers and geneticists.

The facility will more than double Melbourne Pathology’s current operational footprint and deliver more than 10,000 square metres of laboratory space capable of processing up to 200,000 tests each day.

The expanded capacity is expected to play a critical role in strengthening the state’s pathology and diagnostic services, which underpin day-to-day healthcare delivery across Victoria. In addition to traditional pathology services, the Docklands hub will offer advanced genomic testing, reflecting growing demand for precision medicine and early diagnosis.

One of the more distinctive features of the development will be a dedicated drone landing area, designed to allow time-sensitive pathology samples to be transported quickly between hospitals and collection centres, including from regional Victoria. The technology is expected to improve turnaround times for urgent tests and support more responsive healthcare outcomes.

The centre’s workforce of more than 700 staff is also expected to deliver a broader economic boost for Docklands, injecting an estimated $6 million into the local economy each year through daily activity, spending and services. The project is seen as a key anchor for revitalising the northern end of the precinct, which has undergone significant change in recent years following major retail and commercial departures.

Melbourne Pathology CEO David Pinkus said the project marked a major milestone for the organisation, which has operated in Victoria for more than a century.

“Melbourne Pathology has a long and proud history, serving the Victorian community for more than 100 years and we are delighted to commit to a project of this magnitude,” Mr Pinkus said.

“The new facility will become the Centre of Excellence for pathology in Victoria and will allow us to significantly increase our testing capacity and broaden the scope of tests we can provide locally.”

The Victorian Government has identified health technologies and medical research as priority sectors under its Economic Growth Statement, with the Docklands development aligning closely with that strategy.

Minister Brooks said the project demonstrated confidence in Victoria’s health innovation ecosystem and in Docklands as a growing employment and research precinct.

“By expanding our diagnostic and genomic testing capabilities, this cutting-edge facility will create hundreds of jobs and cement Docklands as a hub for health innovation,” he said.

Construction timelines for the centre are yet to be publicly detailed, but the project is expected to become one of the largest health-focused developments in Docklands in recent years, reinforcing the area’s evolving role beyond retail and residential uses.