Govt gives Mosgiel port $8.2m
Regional Development Minister Shane Jones says he does not want to "get caught in the middle of a cockfight" between two competing inland port projects despite the government financially backing the Mosgiel option.
Mr Jones announced yesterday the Port Otago and Dynes Transport's jointly proposed Southern Link Logistics Park, in Mosgiel, would receive a loan of up to $8.2 million from the government's Regional Infrastructure Fund to develop a three-track rail-siding connection to Port Chalmers.
The announcement came days after Calder Stewart announced its own inland port proposal — the "$3 billion" privately funded Milburn Quadrant development in South Otago.
Mr Jones told the Otago Daily Times yesterday he may have been informed earlier this year about "another proposition bubbling away".
Asked if the government would consider a similar investment in the Calder Stewart proposal, and if two inland port developments could coexist, he said he would have to take advice.
The Southern Link Logistics Park proposal had found favour with officials, and the government was backing their recommendations.
"So, I don't want to get caught in the middle of a cockfight between Mr Dynes and a very proud and reputable brand, Calder Stewart."
Calder Stewart land and delivery manager Mark Johnston declined to comment on the announcement.
Port Otago chief executive Kevin Winders said he was "really pleased" the project had received the government's endorsement.
"It just goes a long way to making the port and the inland port rail-enabled, and it's a great contribution from them that we value."
He saw the Mosgiel and Milburn proposals as complementary projects — the former focused on container movements, warehousing, distribution and taking trucks off the road, while the latter was a long-term project which could enable a large industrial site, Mr Winders said.
They were "quite two different propositions".
"I don't see theirs as an inland port. They might be calling it that, but Port Otago is not going to be there and we're not going to have an inland depot — that's going to be in Mosgiel.
"I see that as an industrial park and has the ability to handle new customers of the likes of Fonterra or a new entrant into the milk industry wanting to build a dairy plant.
"The Milburn site looks like a great site for that, and then the resultant product coming out the back would be an opportunity to come down through to rail to the port."
The announcement of the $8.2m loan was made at yesterday's Otago Regional Investment Summit, held at the Edgar Centre.
During his speech, Mr Jones said Port Otago was "a significant enterprise".
tim.scott@odt.co.nz
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