A new multibillion-dollar industrial development in Invercargill is set to boost South Island’s economy, creating a high-capacity freight and manufacturing ecosystem and unlocking thousands of jobs.
Awarua Quadrant, a 513-hectare intermodal and renewable energy precinct, will anchor a broader logistics network spanning the lower South Island. The project combines large-scale warehousing, manufacturing, rail-enabled freight staging, and links to multiple seaports, making it the country’s largest industrial development of its kind.
The development is being led by Calder Stewart and represents the equivalent of 733 rugby fields of industrially zoned land. With more than three years of planning, engineering and stakeholder engagement already complete, the site is ready for activation once anchor tenants are confirmed. It has a potential built-out value of more than $2.5 billion, depending on the mix of occupiers.
Strategically located between the city and South Port, Awarua is designed to support high-output food processors, clean-tech exporters and advanced manufacturers, with a focus on emission reduction and long-term sustainability.
A feasibility study shows the site could generate over 50 megawatts of renewable energy annually through wind turbines and both rooftop and ground-mounted solar — a key drawcard for energy-intensive industry.
The precinct will also include one of the country’s largest native restoration initiatives, with more than one million plants to be established alongside a 100-hectare public wetland and recreation reserve.
John D’Arcy, lower South Island business development manager at Calder Stewart, says the Awarua site has the potential to reposition Southland’s role in New Zealand’s export economy.
With direct access to two deepwater ports, proximity to Manapouri’s renewable energy network, and integration into a broader inland port logistics system, the site is set to shift Southland from a primary-sector-led economy toward high-value industrial production and export, he says.
The development forms part of a wider freight ecosystem including Milburn Quadrant, an inland port and staging hub near Milton. Together, the two sites will span more than 700 hectares and are designed to function as a unified supply chain solution.
“Milburn and Awarua aren’t just two sites, they’re parts of a single, integrated solution,” D’Arcy says.
“While Awarua creates the volume, Milburn provides a staging area and facilitates the movement of hundreds of shipping containers by rail in alignment with vessel schedules. That means we can offer tenants real-world export certainty even as shipping windows tighten and ports come under more pressure.
“Milburn is purpose-built as a scalable buffer in the export process, positioned to relieve pressure on coastal ports and give exporters greater control over their outbound logistics.
“Ships have gotten a lot bigger over time. If you go back to the mid-1970s, the average ship was around 11,000 tonnes. Now they’re closer to 100,000–180,000 tonnes. So the old terminals just don’t have the capacity for empty container returns. Larger ships mean more containers being offloaded and a much greater requirement for long-term storage.
“That’s where a larger inland port with integrated access to rail like Milburn comes in as it can absorb the overflow and help decongest the port terminals, without putting further pressure on the roading system in urban areas.”
Calder Stewart land and delivery manager Mark Johnston says the multi-port strategy gives tenants flexibility across freight providers.
“Each seaport in the South Island plays important roles in the region’s freight network. With manufacturers working across a range of freight providers, having access to multiple ports gives tenants the flexibility to align with shipping lines that best suit their export needs.”
He says the scale of Awarua means it could produce more freight than a single port can handle.
“Based on international benchmarks for similar industrial precincts, a fully developed Awarua site could generate up to 200,000 tonnes of freight per year, equivalent to around 15,000 shipping containers annually.
“That level of output reinforces the need for a coordinated inland port strategy to manage that scale of freight movement efficiently.
“That’s why the scale of Milburn is so critical; without it, you would bottleneck the entire supply chain.”
Johnston says Calder Stewart is in talks with both domestic and international tenants across a range of sectors and believes Southland’s resource base is a competitive advantage.
“Traditionally, primary produce and tourism have carried the weight of New Zealand’s economy. But COVID and global instability showed us how exposed that makes us. We need high-value manufacturing and exports to step up and Southland is the place to start.
“Southland has rich deposits of metallic, non-metallic and energy minerals. When you combine that with abundant renewable energy on-site, you’ve got the bones of a very competitive proposition for a large-scale processing facility. That’s the kind of transformational manufacturing we’re trying to attract.”
Johnson says the development is expected to boost Otago’s $16.8 billion economy as well.
He says 30% of their current workforce in Milton lives in Dunedin and commutes to work using their dedicated shuttle services.
“Eighty percent of the South Island’s freight originates in Southland. The creation of new freight corridors will support the movement of significant volumes of product north to Dunedin,” he says.
“These aren’t just regional projects, they are nationally significant infrastructure investments that solve multiple problems at once: industrial growth, freight resilience, energy security and regional development. We’re building for what New Zealand will need ten years from now, not just what it needs today.”
Great South chief executive Chami Abeysinghe says the Awarua development could play a key role in Southland’s economic diversification.
“Awarua Quadrant could provide much needed capacity for Southland as we diversify our economy and attract high-value industries. Availability of consented land for large-scale commercial and industrial processes not only facilitates greater confidence but also decreases costs and de-risks investments.
“With its proximity to key transport links and our port, it’s ideally placed to support growth in sectors like aquaculture, engineering, agri-tech and supports consolidated warehousing.
“It’s also a strong signal to investors that Southland is open for business and committed to enabling innovation-led industries. It shows what’s possible when regional development aligns with business ambition. Calder Stewart’s planned development in Awarua is a classic example of how the region’s long-term plan can come to life through private investments,” she says.
The site is fully zoned for heavy industry, with construction to begin once the first tenants are confirmed. Calder Stewart expects the first phase could be operational within 12 to 24 months of securing commitments.
