Latest news with #PortOtago
Otago Daily Times
21-05-2025
- Business
- Otago Daily Times
Inland port competition fears
Port Otago competing with Calder Stewart to establish an inland port could have a "serious impact" on the Otago Regional Council's financial position, a regional councillor says. Calder Stewart last week proposed what it called a "$3 billion" inland port at its 200ha Milburn site, near Milton. The Clutha-based construction giant's announcement came days before a proposed Port Otago-Dynes Transport inland port at Mosgiel got a major boost from Regional Development Minister Shane Jones in the form of an up to $8.2 million loan from the government's Regional Infrastructure Fund. The back-to-back announcements prompted debate and uncertainty, which was picked up on at a full council meeting yesterday. Port Otago is 100% owned by the regional council and Cr Gary Kelliher raised concerns about what would be a "a very sizable, very substantial investment" if the two projects went head to head. "It could have a very serious impact on our balance sheet if both of these projects go together. "And there are obvious issues appearing with the Mosgiel one already." After the meeting, he said the main issue he was concerned about was transport related "and the heavy traffic" that would be added to the local roading network if or when the Mosgiel port was established. "Also, that the Milton port has kind of appeared out of the blue — but these are possibly both billion-dollar projects and the Port Otago balance sheet will be carrying the development proposed by Port Otago," Cr Kelliher said. "As ORC owns Port Otago I am immediately concerned that there are now two proposals advancing, both saying they are proceeding with knowledge of each other, and really there's only need for one. "I think an inland port is a really good idea, but surely both proposals need to be aligned into one that meets the total needs and allays the concerns of Mosgiel residents about increased heavy traffic." At the meeting, Cr Michael Laws said Otago was but "one region with limited resources" and asked whether the two proposed facilities would be in competition. "Is Shane Jones right when he says it's frustrating that there wasn't some coalescing of minds in the region before what seems to be two competitive proposals are placed against each other?" Cr Kate Wilson, who is chairwoman of the Otago regional transport committee, said she wanted to assure people "that regional planning is going well in Otago and Southland". "And the idea that inland ports aren't planned for is incorrect. "The place to find that stuff is in the regional transport plan. "And while companies can compete, well and truly outlined in there is an option that businesses will in the end, or the market, will fix the solutions." Council chairwoman Cr Gretchen Robertson said the council was regularly briefed by Port Otago on its programme of works and another briefing was due "reasonably soon". There was also a process through the port company's issuing of a statement of corporate intent where councillors could tell the company how they expected it to operate, she said. "There's always competition in any business — that's healthy — and it's not our place to dictate that, I don't think," Cr Robertson said.
Otago Daily Times
16-05-2025
- Business
- Otago Daily Times
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".
RNZ News
14-05-2025
- Business
- RNZ News
'$3 billion' Otago inland port proposal revealed
By Hamish MacLean of Calder Stewart says the facility would take 10,000 heavy truck trips off the road each year by shifting freight to rail. File pic Photo: 123RF Construction giant Calder Stewart has proposed a "$3 billion" solar-powered inland port it says will boost Otago's export capacity and create hundreds of jobs. The 'Milburn Quadrant development', north of Milton, would span over 200ha in total and host a 55ha inland port that connected directly to State Highway 1 and the South Island's main trunk rail line, a statement issued this morning said. Port Otago and Dynes Transport have previously floated plans for an inland depot to be established in Mosgiel which planners last year poured cold water on. Calder Stewart land and delivery manager Mark Johnston said the facility would take 10,000 heavy truck trips off the road each year by shifting freight to rail. The statement did not quantify the $3 billion figure. ''Milburn is a shovel-ready, future-facing development that solves real capacity issues for our exporters. "It's fully privately funded, so it won't burden ratepayers and offers the scale and connectivity our regional economy urgently needs. ''With Port Chalmers facing container storage limits and the cost of upgrading alternate sites like Mosgiel projected at over $100 million in public spending, Milburn offers a scalable, investment-ready solution designed to meet the growing needs of the Otago-Southland region, without placing an immediate burden on ratepayers or requiring upfront public funding. ''This region is heading into a logistics bottleneck. ''Without scalable inland port infrastructure, exporters will face rising costs, road congestion and lost opportunities. We estimate Milburn could eliminate over 10,000 heavy truck movements per year by shifting volume to rail.'' Port Chalmers in Dunedin. Photo: Donovan Govan, Otago Regional Council He said freight volumes from Central and South Otago were forecast to grow 30 percent to 40 percent over the next decade, as forestry and dairy exports grew. Calder Stewart had already completed Stage 1 of the project, a state-of-the-art campus with offices and a 10,000 sqm steel fabrication facility at Revolution Hills, northeast of Milton. The company would also build out the inland port infrastructure using its own property, design, manufacturing, construction teams and plant. ''In addition to being New Zealand's largest industrial landowner, we're also a vertically integrated property development and construction business with decades of experience in building large-scale infrastructure. ''With concrete, steel, cranes and a local labour force already on-site, we can deliver faster and more efficiently than anyone else in the market,'' he said. Construction on the inland port was expected to begin within 24 months, subject to resource consent approvals. The development would, significantly lift the region's export throughput. All the new buildings at the development would include rooftop solar generation, funded and installed by Calder Stewart Energy Limited, which could generate up to 50MW of power to be used on site or distributed to the local community. A 350 kW solar system was now fully operational at the company's steel fabrication facility, marking the first stage of the development and a key step toward its renewable energy vision, he said. Calder Stewart's lower South Island business development manager John D'Arcy said the company was now seeking local government support to fast-track approvals and would present the proposal to government officials and stakeholders in the coming weeks. ''Port Chalmers is approaching logistical constraints, particularly around container storage and log volume. A delay in new inland capacity risks bottlenecking exports and eroding competitiveness,'' he said. ''This is about real economic transformation, securing long-term freight capacity, creating hundreds of jobs, and easing the pressure on urban roads and infrastructure. ''Milton is strategically positioned closer to the region's agricultural producers, where the bulk of freight originates. ''That's where rail delivers the greatest benefit, with both carbon and cost efficiency improving over distance. ''It's a smarter, more sustainable hub for Southland and Central Otago producers. ''What we need right now is visibility, political backing and certainty around regulatory timelines. ''With the right support, we can secure council approvals and ensure the public understands the scale and value of what's being built here.'' This story was first published by the Otago Daily Times .
