KiwiRail announces site for new Palmerston North rail centre
Thursday, 2 July 2020
Palmerston North’s new regional freight centre will be built on the northeastern outskirts of the city.
Regional Development Minister Shane Jones confirmed the location of the 2.5km long road-rail centre between Palmerston North Airport and Bunnythorpe on Thursday morning.
The Government is investing $40 million from the Provincial Growth Fund, for planning and to buy the land.
“Building the hub next to the major distribution companies in the North-East Industrial Zone will ensure rail is close to potential customers and Palmerston North Airport, while supporting the local and regional councils’ vision for Palmerston North,” Jones said.
**READ MORE:
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**
The site KiwiRail plans to designate lies beside the railway line, from the warehouses near the intersection of Railway Rd and Roberts Line, across Clevely Line and most of the way to Bunnythorpe.
An alternative freight road would be needed to replace a section of Railway Rd.
Dozens of affected property owners have received letters from KiwiRail.
Palmerston North mayor Grant Smith said he understood the announcement might cause some “angst and concern” for those living within or near the site.
“However, the development brings enormous long-term benefits to the city, which the council fully supports.”
Smith said the construction project would create more than 300 jobs in Palmerston North.
he development would unlock other opportunities, attracting more distribution and logistics companies to the region, which would need support from other trades and services.
“These will lead to housing development and job security.”
KiwiRail group chief executive Greg Miller said the centre could attract $2b to $4b of additional investment to the region.
As well as KiwiRail’s existing workforce of 367 in the city moving to the new site, there would be jobs created in warehouses or facilities set up by tenants on site.
“The future employment numbers could see 2000 people on site.”
Jones said New Zealand’s freight traffic was forecast to increase by more than 50 per cent in the decades ahead and Manawatū would be crucial in keeping pace.
“Palmerston North is already a key logistics and distribution centre for the lower North Island and the regional freight hub will help take that to a new level – attracting more distribution businesses and helping create jobs while reducing congestion from heavy trucks in and around the city.”
The centre will also link into planned council and New Zealand Transport Agency developments to manage road freight, such as the regional ring road, around Palmerston North and Bunnythorpe.
Jones said it would bring a log yard, a container terminal, warehousing for freight businesses, and KiwiRail’s operations and maintenance facilities together in one place.
“It will make the transfer of domestic and export goods between road and rail safe and easy, and create an ‘inland port’ that will attract more logistics businesses to the area.”
KiwiRail will host a series of public meetings during July.
Miller said public and iwi feedback would contribute to coming up with a fitting name for the centre.
KiwiRail’s existing Tremaine Ave rail yards were likely to be redeveloped, possibly for housing.
♦ As well as revealing the KiwiRail site, Jones announced $45m of investment in the Manawatū-Whanganui Horizons region.
Included is a $2.5m investment in three Te Ara Mahi programmes to support jobseekers through training into jobs in horticulture, forestry, apiculture, health and social services, agriculture and civil infrastructure.
Whanganui gains $28.6m, the bulk of which will be used to progress Whanganui Port revitalisation and repairs to lower river structures.
The $12.5m investment Whanganui District Council has received will be put towards infrastructure requirements needed for port users.
“This infrastructure includes work on wharf 1, wharf 2 and wharf 3, boat launch infrastructure, dredging tools, building repairs and demolition of derelict structures,” said Whanganui mayor Hamish McDouall.
Horizons Regional Council will use its $7.5m from the fund for protection works on the lower Whanganui River and river mouth.
There is also $12m to support the development of a new wing for the Sarjeant Gallery in Whanganui.