Construction work has commenced at the industrial precinct in Victoria's Avalon Airport, which officials hope will establish it as a major freight and logistics hub capable of servicing a variety of industry sectors.

The precinct will be anchored by a massive Cotton On distribution center designed to deliver 100 million items annually by late next year.  The Labor government if VIC Premier Daniel Andrews is backing the project with a AU$1.5 Million investment from the Regional Jobs and Infrastructure Fund to help create jobs and boost the local economy.  This will get things going on a 40-hectare site on the northwest corner of the 340-hectare industrial precinct, providing for necessities like voltage electricity, gas, water, fiber optics, and communications infrastructure for future tenants.

"The Cotton On deal is the first, but there'll be many more that follow it," Premier Andrews said on the first day of work on Friday.  "We're going to see, in the months and the years to come, not hundreds of jobs here as a part of the Avalon industrial precinct, but many thousands of jobs."

The first days of the project are expected to generate around 2,000 jobs, but Linfox airports group executive chairman David Fox predicted a robust 10,000 jobs by 2027. 

"The 10,000 number is very, very possible within this particular site alone within the next five to 10 years - that is a reality, from my particular point of view," he said.  "I don’t think you can really fathom just how big of a ­project this is going to be."