Northland is being positioned as New Zealand’s next economic powerhouse, with Government ministers outlining proposals for a commercial dry dock, expanded fuel storage, a rail connection to Marsden Point, and the potential for New Zealand’s first “special economic zone”.
Speaking at Marsden Point on Tuesday, Regional Development Minister Shane Jones and Rail Minister Winston Peters outlined the Government’s vision to unlock the region’s export and industrial potential.
Peters says Northland’s strategic location makes it the logical choice for major infrastructure investment.
“Here, in Northland, we are closest to the rest of the world. That matters because New Zealand is an exporting nation.
“This port has the deepest seaport and the largest landholdings of any port. Its footprint, proximity to our largest domestic market Auckland, and position at the top of our country where shipping lines visit mean it is a logical place for investment.”
Peters criticised previous government decisions, including the closure of the Marsden Point oil refinery.
“So, how is it possible that the previous Government could be so myopic, so economically short-sighted as to close the refinery here. Ending our ability to process crude oil in New Zealand. That means no ability to secure our energy sources in moments of crisis,” he says.
“We make no apologies for defending New Zealand’s energy and fuel security.”
Infrastructure projects underway
The ministers highlighted a refurbished jet fuel tank, part of a collaboration between Channel Infrastructure and Z Energy, which will help supply Auckland Airport via the Wiri pipeline.
They also pointed to upcoming construction of a bitumen import terminal, a diesel peaker, a biorefinery, and early discussions around sustainable aviation fuel (SAF) development.
Minister Jones says the projects make Marsden Point “a world-class proposition”.
Rail link progress and dry dock procurement
KiwiRail has completed the detailed business case for the long-planned Marsden Point Rail Link, with the corridor designated and partial funding of $410 million already allocated. The Government announced it will now open the project to market-led proposals.
“KiwiRail will be making its detailed designs available to builders and investors to assess and consider putting forward market-led proposals,” Peters says.
He adds the Coalition Agreement also includes a commitment to delivering a commercial dry dock at Northport.
“In the 2010s, KiwiRail spent $74 million on offshore dry docks,” he says.
“A commercial dry dock will bring specialist skills and international customers to New Zealand, maintaining large ships in a manner that a maritime nation desperately needs.”
“We are getting closer to finalising procurement of a provider for the Regional Infrastructure Fund part-funded dry dock at Northport, which offers the best harbour in New Zealand as it is deep, there is plenty of land, and transport connectivity is only going to get better.”
Special economic zone proposed
The Government is now exploring the potential to designate Marsden Point as New Zealand’s first special economic zone (SEZ), bringing together the fuel, rail, and maritime infrastructure under a single regulatory and investment framework.
Peters says SEZs would offer fast-tracked consents and favourable tax settings to attract both local and international capital.
“These zones enable consents to be granted as a matter of law for strategically important economic outcomes: energy security and export growth.”
Meanwhile, Jones says he’s interested in how the country can develop these areas further and attract investment into our regions.
“I will be taking a paper to Cabinet soon on the use of special economic zones (SEZs) to do just that. With attractive regulatory regimes and tax treatment, SEZs could be the fuel that really gets New Zealand’s economic engine roaring.”
