Freight yard site revealed
Palmerston North’s new regional freight centre will be built on the northeastern outskirts of the city.
Regional Development Minister Shane Jones confirmed the location of the 2.5-kilometre roadrail centre between Palmerston North Airport and Bunnythorpe yesterday morning.
The Government is investing $40 million from the Provincial Growth Fund, for planning and to buy the land.
‘‘Building the hub next to the major distribution companies in the North-east Industrial Zone will ensure rail is close to potential customers and [the] Palmerston North Airport, while supporting the local and regional councils’ vision for Palmerston North,’’ Jones said.
The site Kiwirail plans to designate lies beside the railway line, from warehouses near the intersection of Railway Rd and Roberts Line, across Clevely Line and most of the way to Bunnythorpe.
An alternative freight road would be needed to replace a section of Railway Rd.
Dozens of affected property owners have received letters from Kiwirail.
Palmerston North mayor Grant Smith said he understood the announcement might cause some ‘‘angst and concern’’ for those living within or near the site.
‘‘However, the development brings enormous long-term benefits to the city.’’
Smith said the construction project would create more than 300 jobs in Palmerston North.
The development would unlock other opportunities, attracting more distribution and logistics
‘‘The future employment numbers could see 2000 people on site.’’
Greg Miller
Kiwirail group chief executive
companies to the region. ‘‘These will lead to housing development and job security.’’
Kiwirail group chief executive Greg Miller said the centre could attract $2 billion to $4b of additional investment to the region.
As well as Kiwirail’s existing workforce of 367 in the city moving to the new site, there would be jobs created in warehouses or facilities set up by tenants on site. ‘‘The future employment numbers could see 2000 people on site.’’
Jones said New Zealand’s freight traffic was forecast to increase more than 50 per cent in the decades ahead and Manawatu¯ would be crucial in keeping pace.
‘‘Palmerston North is already a key logistics and distribution centre for the lower North Island and the regional freight hub will help take that to a new level.’’
The centre will also link into planned council and New Zealand Transport Agency developments to manage road freight.
Jones said it would bring a log yard, a container terminal, warehousing, and Kiwirail’s operations and maintenance facilities together in one place. ‘‘It will make the transfer of domestic and export goods between road and rail safe and easy, and create an ‘inland port’ that will attract more logistics businesses to the area.’’
Kiwirail will host a series of public meetings this month.
Miller said public and iwi feedback would contribute to the selection of a name for the centre.
Kiwirail’s existing Tremaine Ave rail yards were likely to be redeveloped, possibly for housing.
As well as revealing the KiwiRail site, Jones announced $45m of investment in the Manawatu-Whanganui Horizons region.
Included is a $2.5m investment in three Te Ara Mahi programmes to support jobseekers through training into jobs in horticulture, forestry, apiculture, health and social services, agriculture and civil infrastructure.
Whanganui gains $28.6m, the bulk of which will be used to progress Whanganui Port revitalisation and repairs to lower river structures.
The Horizons Regional Council will use its $7.5m for protection works on the lower Whanganui River and river mouth.