Business, residents challenge KiwiRail

Three large Palmerston North property owners in the city’s north-east industrial area have lodged an appeal against KiwiRail’s plan to designate land for new rail yards and distribution centres.

The appeal is from PMB LandCo, Brian Green Properties (Palmerston North) and Commbuild Property.

It is one of four appeals lodged with the Environment Court against KiwiRail’s notice of requirement to designate 177 hectares of land between the airport and the village of Bunnythorpe for the project.

Submitters against the proposal Peter Gore and Dale O’Reilly, who face the prospect of a compulsory sale of their property to KiwiRail, have appealed, as have Powerco and Foodstuffs North Island.

The designation plans went through a resource management commissioners’ hearing in 2021.

The commissioners recommended the designation should go ahead with a suite of conditions.

KiwiRail accepted their broad recommendation, but with some key changes, one of them being to have a lapse period of 15 rather than 10 years to put the plans into effect.

The appeal from the three property companies asks for the notice of requirement to designate the land to be cancelled. It was also open to modification, conditions, or some other relief.

The reasons for the appeal was that the project would create adverse stormwater effects beyond the designated area.

Also, the requirement did not provide for appropriate roading solutions around the north-east industrial zone.

The appeal claimed the adverse stormwater and traffic effects could not be resolved, and the development would not be an efficient use of resources.

Another reason went to the heart of the argument pitched by several opposing submitters, but over-ruled by the commissioners, that KiwiRail was acting beyond its powers, and that involvement in freight forwarding activities was not within its core purposes.

Powerco’s concern was about the lack of recognition given to protection of and access to its electricity transmission lines.

It has a major substation based in Bunnythorpe.

Powerco said the designation and closure of a number of roads around the site would have an adverse impact on its ability to manage its assets in the area.

It wanted the boundary of the designation area to be changed, or for provision to be made for the relocation of its lines and other assets.

Foodstuffs was concerned about access to its distribution centre at Roberts Line, and KiwiRail’s plans to acquire parts of its site for building a new roundabout at the intersection with Richardsons Line.

It was also concerned about the adverse effects of proposed changes to the roading network, and the traffic generated, on its operations.

It asked for cancellation of the requirement of designation, or some other relief.