Calder Stewart lower South Island business development manager John D’Arcy said the proposed freight centre, on a site with direct access to both State Highway 1 and the South Island’s main trunk rail line, would create hundreds of jobs and could add $3 billion to the region’s economy.
The plans for the "Milburn Quadrant development", near Milton, released by the company yesterday had been five years in the making, he said.
Assuming consenting went smoothly, ground-breaking was expected to take place in 24 months.
Then, in another 18 to 24 months the 55ha inland port would be operational, he said.
Port Otago and Dynes Transport have previously touted plans for an inland depot, the "Southern Link Logistics Park", to be established in Mosgiel.
Its website said that project would be completed by 2035.
Whether or not that project was progressed, Mr D’Arcy said the Calder Stewart project would go ahead.
He said "potentially there could be some competition" between the two proposed facilities, but Mr D’Arcy said Calder Stewart believed it could complete its project sooner.
Importantly for Calder Stewart, its land was already zoned industrial and the project would require no ratepayer or taxpayer investment, he said.
"Port Chalmers is approaching logistical constraints, particularly around container storage and log volume," he said.
"A delay in new inland capacity risks bottlenecking exports and eroding competitiveness.
"This is about real economic transformation, securing long-term freight capacity, creating hundreds of jobs, and easing the pressure on urban roads and infrastructure.
"That’s where rail delivers the greatest benefit, with both carbon and cost efficiency improving over distance.
"It’s a smarter, more sustainable hub for Southland and Central Otago producers."
Calder Stewart land and delivery manager Mark Johnston said the facility would take 10,000 heavy truck trips off the road each year by shifting freight to rail.
Freight volumes from Central and South Otago were forecast to grow by 30% to 40% over the next decade, he said.
"With Port Chalmers facing container storage limits and the cost of upgrading alternate sites like Mosgiel projected at over $100 million in public spending, Milburn offers a scalable, investment-ready solution designed to meet the growing needs of the Otago-Southland region, without placing an immediate burden on ratepayers or requiring upfront public funding."
Clutha Mayor Bryan Cadogan said the plans were "absolutely magnificent".
The inland port at Milburn would be transformational for the lower South Island — and the private sector was footing the bill, Mr Cadogan said.
"It’s going to be the biggest thing to happen in the rural South in our lifetime.
"For the rural South to get a shot in the arm like this is just an absolute tonic for the whole of the lower South Island, really — we’re so excited."
Mr Cadogan said the Calder Stewart team had been working on getting the Clutha District Council’s district plan aligned with the project for more than a decade.
"This is the ideal location.
"There has been talk about putting an inland port right smack in the middle of Mosgiel, but let’s face it, you’d get less disruption if you put an airport down the main street of Mosgiel.
Port Otago chief executive Kevin Winders said yesterday he had not been aware of the construction company’s plans.
Work continued on the port company’s joint venture with Dynes Transport, he said.
And construction on their Dukes Rd site was expected to begin next year.
Further, Mr Winders said the joint venture had looked at Milburn — and discounted it — before selecting the Mosgiel site.
There were "topographical challenges" at Milburn in that trains hauling freight would be required to start their journey going uphill.
"And it's 63km away [from Port Chalmers], so it's too far."
Typically, an inland port was 20km to 30km from the port, Mr Winders said.
Nevertheless, Mr Winders said he welcomed the investment in the region and he said Calder Stewart was correct in saying Port Chalmers was constrained.
He noted Calder Stewart had talked about moving logs through its facility and there was "a wall of wood" coming from Southland and South Otago to the port.
A KiwiRail spokesman said KiwiRail was "happy to engage" on any infrastructure proposals that made use of rail.
"While we have met with Calder Stewart, our immediate growth-oriented infrastructure focus is on Port Otago and Dynes Transport’s Southern Link project, which is well progressed."
