A master plan has been released for KiwiRail’s regional freight hub in Palmerston North which will include a container terminal, warehousing, and loading operations for bulk goods and forestry.
Regional economic development minister Shane Jones unveiled the plans on November 26 which includes $40 million from the Provincial Growth Fund (PGF).
The hub design is spread over three kilometres and will also include freight-forwarding facilities and KiwiRail’s train operations and maintenance depot.
KiwiRail is currently considering potential site options for the freight hub and will run public consultation before making a final decision.
“Getting rail back on track requires investment across the full range of rail infrastructure. This project will be a major development for freight distribution across the lower North Island,” Jones says
“Freight volumes are forecast to increase by more than 50% in the decades ahead. Hubs like these are needed to ensure rail can play a key role in handling this increase, so as to minimise transport emissions and avoid increased congestion from more heavy trucks on our regional roads.
“It will allow for greater use of rail across the lower North Island, efficiently link rail and road freight together, and create a focal point that will help draw more distribution businesses to the Manawatū.
“Goods come into Palmerston North from all four directions and it is already a well-known logistics centre of expertise.
“This project is about building on that, with Palmerston North City Council, Horizons and KiwiRail aligning their thinking and working together to create jobs and grow the regional economy,” Jones says.
KiwiRail chief executive Greg Miller says the project is a major step for the country’s freight logistics.
“It brings road and rail freight together in a much more integrated and seamless way, improving efficiency and saving in costs.
“The design allows for consumer imports and bulk exports to be managed at one place, and there is plenty of room to co-locate freight partners and meet their warehousing needs.”
Miller says Palmerston North is a critical freight distribution point, with goods coming through from the upper North Island, Taranaki, Hawke’s Bay, Wellington and the South Island.
“With freight volumes expected to increase in the decades ahead, this intermodal hub will be a crucial freight centre for the lower North Island,” he says.
