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RNZ News
19-05-2025
- Business
- RNZ News
Competing Otago Port proposals 'frustrating', says Associate Regional Development Minister
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. Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
19-05-2025
- Business
- RNZ News
Competing Otago Port proposals 'frustrating', Minister says
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. Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
15-05-2025
- Business
- RNZ News
Inland port at Mosgiel receives $8m government investment
The loan to Southern Link Property and KiwiRail will help build a rail link with Port Chalmers. Photo: Brendon McMahon/Greymouth Star The government is injecting $8 million into the development of an inland port at Mosgiel. The Southern Link Logistics Park was expected to remove 19,000 truck movements from Dunedin streets every year, moving freight from Port Chalmers to Mosgiel by rail. The hub was being developed by Southern Link Property Limited, owned by Port Otago and Dynes Transport. The loan from the Regional Infrastructure Fund to Southern Link Property and KiwiRail would allow a three-track rail-siding to be built, connecting Port Chalmers to the Mosgiel hub. Regional Development Minister Shane Jones announced the funding at a regional growth summit in Dunedin on Friday. "This modest contribution not only opens up that line, but it gives confidence to an area that's often overlooked, despite the fact that it's an export powerhouse," Jones said. "Like other parts of regional New Zealand, it's been through a trying set of transitional stages, but we are there to stand with the people, who see their future tied up in rail and the services that rail represents for the economy." The project would reduce traffic congestion, and reduce travel time to and from the port for freight vehicles, Jones said. He wanted to see the rail-line developed without delay. "It's really disappointing how long infrastructure is taking in New Zealand. We seemed to be able to do things a lot quicker in the past. "We are a lot smarter now, we have got better technology, so my message to the delivery agency is we don't want to see delay. We don't want to see unnecessary policy seances or endless plans. "This is a straightforward, uncomplicated upgrade of infrastructure, which is done on a regular basis around the world, and we are not strangers to it here in New Zealand." Earlier this week, Calder Stewart announced its plan to [ develop another inland port in nearby Milburn]. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
14-05-2025
- Business
- RNZ News
Plans for biggest inland port in Milburn
Construction company Calder Stewart has announced plans to build the country's biggest inland port in the small Otago town of Milburn. It is part of a $3 billion development that will span 200 hectares - with the inland port making up about a quarter of that. The site is zoned for heavy industrial use. Calder Stewart says freight volumes to the area are expected to grow by as much as 40 per cent in the next decade thanks to seasonal peaks in forestry and dairy exports. The company says Port Chalmers is facing storage limits and Milburn was ready to go. Calder Stewart says an inland port there could take as many as 10,000 truck movements off the road a year. Calder Stewart is building the site, which it says will get underway in 24 months. Clutha mayor Bryan Cadogan says the plans are magnificent, especially because the private sector is paying for it. To embed this content on your own webpage, cut and paste the following: See terms of use.
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 .
