The steel fabrication site already built by Calder Stewart on the land where the Milburn development will be worked on. Photo: Supplied by Calder Stewart
The lower South Island economy is to get a logistics and manufacturing boost through the integration of two separate developments.
Developer Calder Stewart is planning to coordinate its Awarua Quadrant manufacturing and storage development near Invercargill with an inland port at Milburn near Milton in Otago.
The privately funded projects have been costed to eventually cost as much as $5 billion, depending on the mix of tenants and activities.
Lower South Island business development manager at Calder Stewart John D'Arcy said the projects would be operated as integrated export and logistics hubs with direct access to two deepwater ports, and close to Manapouri's renewable energy network.
Awarua would have wind and solar power installations and function as a high-output industrial hub, while Milburn would handle logistics.
"The project aims to create long-term employment, diversify the regional economic base and strengthen Southland's role in New Zealand's national supply chain," D'Arcy said.
"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."
"We can offer tenants real-world export certainty even as shipping windows tighten and ports come under more pressure," he said.
Cornerstone of Southland growth
The chief executive of Southland's Regional Development Agency Chami Abeysinghe said the proposed development had the potential to become a cornerstone of the region's long-term plan.
"Awarua Quadrant could provide much needed capacity for Southland as we diversify our economy and attract high-value industries."
"It's also a strong signal to investors that Southland is open for business and committed to enabling innovation-led industries," she said.
Calder Stewart's land delivery manager Mark Johnston said early discussions were being held with national and offshore businesses in various sectors, to attract high-value manufacturing to the region.
He said the integrated approach to the two developments would ease pressures on port facilities through removing the need to store large numbers of empty containers.
The Awarua development would also include a large native restoration project and public wetland and recreation reserve.
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