Competing Otago Port proposals 'frustrating', Minister says

RNZ News

19-05-2025

The Associate Regional Development Minister says local leaders should have created a coordinated regional plan.
Photo:
123RF
Clutha's mayor says newly announced
funding for an inland port
proposal came out of the blue, despite his efforts to be transparent about a similar project just down the road.
Calder Stewart debuted plans to develop a privately-funded inland port in Milburn just days before the
government announced a multi-million dollar loan
to develop a rail connection between Port Chalmers and a proposed Southern Link Logistics Park in Mosgiel last week.
The Associate Regional Development Minister said local leaders should have created a coordinated regional plan instead of having two nearby competing inland port proposals - Mosgiel and Milburn are less than 50 kilometres away from each other.
Dunedin mayor Jules Radich said he had repeatedly discussed the Mosgiel plan when Clutha's mayor was present.
But Clutha district mayor Bryan Cadogan said he was caught off guard by Friday's Port Otago funding announcement, which was frustrating as his district had been upfront and transparent about the Milburn proposal.
Photo:
Supplied by Calder Stewart
The Calder Stewart proposal was the district's "once in a lifetime project" and had been in the pipeline for at least a decade.
Local leaders including Dunedin's mayor had discussed the project last year, he said.
The Regional Development Minister hadn't been briefed about the Milburn proposal which could have impacted the government's funding decision as it didn't have the whole picture for the region, he said.
Cadogan didn't have any issue with the Port Otago project and didn't believe Calder Stewart intended to seek government funding, instead he was concerned that those local leaders didn't disclose a competing proposal despite his efforts to keep them informed.
He wanted the South to start working in unison.
"If there is a conflict like this, just be transparent. If I put my cards on the table, could you put cards on the table the same way," Cadogan said
Dunedin mayor Jules Radich agreed that it was important for regions to work together, but said he had talked about the Port Otago-Mosgiel plan repeatedly in the Clutha mayor's presence including at the Otago mayoral forum in Queenstown last year.
"I asked for government support of a heavy traffic bypass for Mosgiel to complement the project," Radich said.
"I also think the Mosgiel logistics hub would be a great asset to the meatworks in Balclutha and Ōamaru."
The up to $8.2 million loan for the Port Otago rail connection was earmarked from the Regional Infrastructure Fund, which is run by the government's Regional Economic Development and Investment Unit, Kānoa.
Associate Regional Development Minister and local List MP Mark Patterson said only one project was formally proposed to the government in the end.
It was frustrating there were two competing proposals when they could have worked together to create a cohesive proposal, he said.
He described collaboration in the regions as "absolutely critical", and said the government was expecting that regions would coalesce around an agreed set of projects and priorities.
The Port Otago option also had backing from Fonterra, Silver Fern Farms and KiwiRail so they were confident in their processes and in making the investment, he said.
He believed they could be complementary projects, and said last week's funding announcement wouldn't prevent Calder Stewart from making a funding application in the future if it chose to.
The Regional Development Minister has been contacted for comment.
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