Port alliance strengthens NZ supply chain

Located on the site of the old Longburn freezing works in Palmerston North owned by Icepak, the venture will see the nine hectare site transformed into something which Napier Port says will be “a natural extension” of its central New Zealand coverage.

“This places the port gate on the doorstep of the region’s importers and exporters, creating opportunity for both and driving cost out of the supply chain,” said Tony Gibson, CEO, Ports of Auckland. “Currently imports come south from Auckland but not much goes back. This new facility will allow exporters to access this spare capacity, lowering freight costs all round.”

Site clearance is already underway and work is due to begin soon on a cross dock to complement the existing Icepak cold store on site. A container yard and container wash facility – to prepare containers to export-ready standard – will also be built. This is the first stage of a NZ$20m development.

The site is connected to the main truck line and the parties are currently in discussion with KiwiRail to finalise services.

“Palmerston North is the ideal location for an intermodal freight hub. With well-developed rail and road connections to other centres, good infrastructure and plenty of space to grow and locate supporting industries, we think it’s a winner,” added Wayne Grattan, chairman, Icepak.

This new inland port has been in development for some time and is line with Palmerston North’s Central New Zealand Agribusiness Strategy – a collaboration between all of the Horizons region’s councils to double agribusiness exports from NZ$1.9bn to NZ$3.8bn per year by 2025.

Ports of Auckland says the initiative is part of a wider supply chain strategy to build a cost-effective freight distribution network throughout the North and South Islands.