Lyttelton Port Company will spend $821m in the development of the Te Awaparahi Bay wharf and container terminal in a bid to drive economic growth in the South Island and ensure long-term resilience of the region’s supply chain.

LPC chair Barry Bragg announced the investment plan on Monday afternoon, saying it marks a significant step for the port, Christchurch and the economy.

“We’ve spent the last decade rebuilding and strengthening the port. Today’s announcement is about creating the capacity, resilience and capability needed for the next generation of South Island trade,” Bragg said.

Christchurch City Holdings Limited (CCHL), the wholly owned investment arm of Christchurch City Council, owns the port.

CCHL chair Bryan Pearson said their board’s decision to approve LPC’s major transaction comes after extensive due diligence into the project’s strategic need, business case, funding pathway and long-term benefits for resilience, capacity and regional growth.

“This approval by CCHL reflects confidence in Christchurch, the South Island economy and our strong belief in Lyttelton Port Company’s role as the South Island’s key international trade gateway,” said Pearson.

An artist's impression of Lyttelton Port Company's Te Awaparahi Bay wharf and container terminal development. Image: LPC

The project will be funded through a combination of debt, together with equity from CCHL.

“CCHL’s investment into the infrastructure in support of South Island businesses, exporters and economic growth will be around $300 million. The rest of the project will be funded by LPC,” said Pearson.

LPC chief executive Graeme Sumner said the need for investment in the port was clear, with ageing infrastructure, growing demand, larger ships and increasing export volumes creating the right conditions to move forward.

“The resilience of some of the container berths is a major driver for the project. Rebuilding them would take at least three years and significantly disrupt container operations.

“Building the Te Awaparahi Bay expansion removes the need to rebuild these wharves and allows the Port to continue operating at full capacity,” said Sumner.

The Te Awaparahi Bay Expansion and Resilience Project will deliver a 388m deepwater wharf, future berth capacity and a 5-hectare container terminal. The wharf will feature four new ship-to-shore cranes.

An artist's impression of Te Awaparahi Bay wharf and container terminal development. Image: LPC

The new terminal will feature semi-automated gantry yard cranes, helping the port handle more containers in less space, improving the speed and reliability of terminal operations, and supporting safer, more efficient container movements.

When complete, the port’s annual berth capacity will be around 850,000 TEU, ensuring projected volume over the coming decades can be managed. The project is expected to be complete by 2031.

Sumner said the announcement followed a period of strong financial performance for LPC, reflecting the commitment of its people and giving the company confidence to invest for the future.

“None of this happens without our people. Today’s announcement reflects the commitment, expertise and hard work of generations of LPC staff,” he said.

Sumner said the project “reflected confidence in the future of Christchurch, confidence in the South Island economy and confidence in the role Lyttelton Port will continue to play as the region’s leading trade gateway, connecting South Island businesses to global markets”.