Ports of Auckland (POAL) says increased rail use will become a bigger part of its supply chain strategy hence it is developing a third new freight hub in the Waikato next to the main trunk railway line.
It is targeting an increased rail use from 13% to 30% of freight traffic to the Waitemata Port in Auckland.
“We are committed to increasing our use of rail and creating a more sustainable transport system to help generate infrastructure savings at a national level,” says POAL chief executive Tony Gibson.
“The development of our inland freight hub network is critical to achieving this target,” he says.
POAL has signed a conditional agreement to purchase 33 hectares of land at Northgate Business Park in Horotiu for development as a freight hub, complementing existing sites in the Manawatu, Bay of Plenty and Wiri, South Auckland.
The Horotiu site is 8km north of Hamilton is growing with manufacturing, warehousing, and logistics businesses.
“Establishing a freight hub in the Waikato is a central part of our supply chain strategy as it is one of New Zealand’s fastest growing areas and a large freight generator,” says Gibson.
Gibson says the key benefit of a network of such hubs is that it can be used to balance freight flows around the North Island and eliminate unnecessary movement of empty containers.
“By driving out waste from the supply chain, we can lower the cost to importers and exporters,” says Gibson.
“The new freight hub will improve access to overseas markets for Waikato-based exporters and will reduce exporters’ costs because of the supply chain efficiencies we will be able to achieve,” says Gibson.
“Better international freight links will also benefit the region, encouraging additional investment in the Waikato and greater employment opportunities,” he says.
“There will be significant investment in the site over some years, with the first step being to establish road and rail connections,” says Gibson.
POAL is now working through the conditions attached to the sale and is aiming to complete the deal by March 31.
