Jones splashes cash in Manawatu¯

A $40-million rail freight centre will be developed near Palmerston North with investment from the Government’s Provincial Growth Fund.

It is part of a $48m cash injection into the Manawatu¯ Whanganui region, announced by Regional Economic Development Minister Shane Jones in Feilding yesterday. KiwiRail will use the boost to buy land, possibly in the North East Industrial zone near Palmerston North Airport, and to plan and design the rail centre which will enhance the city’s role as a key staging point for rail freight. Last year, 2.4 million tonnes of freight moved through Palmerston North, with potential for those volumes to grow by 60 per cent in the next 20 years.

Jones said plans for a significantly improved rail centre in Palmerston North had been kicked around for years but there had never been enough resources allocated towards that goal.

‘‘KiwiRail has had a long period of time where it has not enjoyed fiscal attention.

‘‘But our Government will stand or fall on our transport credentials ... We want KiwiRail to be a substantial player in provincial logistics.’’

Once the new rail centre is set up, operations will move from the freight yard on the city outskirts, freeing up land for commercial and residential development.

Other winners from the provincial growth fund are improved digital connectivity for the region, expansion of the National Driver Training Centre at Manfeild, Feilding, and investment in an Advanced Aviation Hub in Whanganui.

Other regional projects supported include $100,000 to investigate FoodHQ’s development to help food exporters; $100,000 to look at land use in the Tararua District; $98,000 towards the Kaitahi Food and Innovation Factory; $95,000 towards establishing an education, training and employment programme at the former site of Turakina Ma¯ori Girls’ College; $60,000 towards the Tararua Tourism and Trails Strategy; and $50,000 to investigate education to employment pathways in Horowhenua.