Where the plans will ultimately land remains unclear.
The underlying issue is congestion at Port Otago, Port Chalmers. Hence, the desire for some sort of "inland port" where cargo and containers can be collected, collated, stored and transported by rail to the port itself.
Inland ports, perhaps better described as hubs, are a worldwide means of managing space and logistics requirements for ports and their customers.
Last week’s first announcement, a privately funded $3 billion plan, was significant. Calder Stewart unveiled the "Milburn Quadrant development", north of Milton, spanning more than 200ha and hosting a 55ha inland port with direct connections to State Highway 1 and the South Island’s main trunk rail line.
Calder Stewart land and delivery manager Mark Johnston said the facility would remove 10,000 heavy truck trips from the road each year by shifting freight to rail.
Export volumes from Central and South Otago were projected to grow 30% to 40% over the next decade, as forestry and dairy exports expanded, the company said. Milburn was strategically positioned close to this growth. Stage 1 — a campus with offices and a steel fabrication facility — had already been completed.
Calder Stewart has expanded over 65 years from its Milton roots into a nationwide industrial construction and property development company, employing 450 staff.
Meanwhile, Port Otago and Dynes Transport have advanced plans for an inland depot in Mosgiel, the 50ha Southern Link Logistics Park. Last week, the project gained momentum through an $8.2 million government loan from the Regional Infrastructure Fund to upgrade the rail link connecting the park to Port Chalmers. Stage 1 — container storage and use of existing rail infrastructure on the Dukes Road site — was on track for an October opening.
Concerns, however, remain regarding heavy traffic loads in Mosgiel and whether a bypass will be developed.
While Port Otago chief executive Kevin Winders said, last week, he had been unaware of the Calder Stewart proposal, he also said he welcomed it. Calder Stewart has said its project would progress regardless of whether the Mosgiel plan goes ahead.
Politicians have now weighed in. Dunedin Mayor Jules Radich "strongly favoured" Mosgiel, while Mosgiel-Taieri Community Board chairman and mayoral candidate Andrew Simms offered "conditional support" provided the heavy traffic bypass was addressed at the same time.
Clutha District Mayor Bryan Cadogan is a cheerleader for Milburn.
Associate Regional Development Minister Mark Patterson, of Lawrence, said a "complete failure of regional planning" meant only one of two competing proposals was considered for the $8.2m government loan.
Milburn’s growth as an industrial area gained traction after the failure to build a proposed timber plant in Allanton, ultimately abandoned by the city council in 2001. Clutha district was perceived as more favourable to development than Dunedin.
As an industrial zone Milburn has made progress but not taken off as much as envisaged. Calder Stewart, the major landowner there, will see its plan as a catalyst for growth. Industries can thrive around a hub, providing the scale to make it work more effectively.
Loading and unloading, particularly for rail, are significant costs which must be minimised. Southern meat processors and Fonterra at Edendale would aim for continued direct rail transport from production sites to the port. Logs, being of relatively lower value, are especially sensitive to added costs, and much of the timber is located north rather than south of Milburn.
Regardless of how these hubs develop, businesses, politicians and planners must adapt to customers’ logistics needs as far as feasible. The priorities of exporters and shipping lines will be pivotal.
