Southern Link, a major inland port development near Mosgiel, is accelerating towards its October 2025 Stage One opening as partners Port Otago and Dynes Group outline the next phases of their $200 million logistics investment.
The 50-hectare facility, located at the corner of Dukes and Stedman Roads, is set to become a critical freight and warehousing hub for the lower South Island.
Stage One will provide container storage and utilise existing rail infrastructure, while plans for Stage Two covering 50 hectares is underway.
Dynes Group managing director Peter Dynes says the consenting process for Stage Two is progressing well.
“Stage 2 construction is expected to begin in mid/late 2026. Southern Link is investing $200m in logistics infrastructure and warehousing, and has committed funding in place for Stages 2 and 3 of the project,” he says.
The project recently gained momentum with the Government’s endorsement and $8.2 million in funding for railway infrastructure at the site—support which Southern Link’s partners say validates the inland port’s regional importance.
Port Otago chief executive Kevin Winders says engagement with the Ministry of Business, Innovation and Employment (MBIE), KiwiRail and other stakeholders over the past 18 months had been constructive.
“The engagement has been very positive, as key stakeholders recognise that Southern Link delivers a critical piece of regional infrastructure – one that is needed to keep lower South Island exports flowing and the southern economy healthy,” Winders says.
He added that commercial agreements with KiwiRail are currently being finalised, paving the way for construction of a new rail siding at the Southern Link site.
“Port Otago is on schedule for a July completion of its own new $13.5m rail siding on the Port Chalmers Container Terminal. The significant investment will improve rail capacity, reduce turnaround times and connect seamlessly with containers coming and going from the new Southern Link siding,” he says.
Both Port Otago and Dynes Group will anchor operations at the inland port as cornerstone tenants. Dynes said Southern Link is also engaged with other prospective customers and further announcements would follow in the coming months.
The development will allow Port Otago to consolidate its two existing inland depots at Dunedin and Ravensbourne into the new site, freeing up four hectares of Dunedin industrial land for future development.
Dynes Transport Group, through its company Icon Logistics, will also relocate operations from six sites across Otago and Southland into a single purpose-built facility at Southern Link, including 30,000 square metres of new warehousing.
