The $2.5billion 513ha Awarua Quadrant project near Invercargill would be linked to a purpose-built inland port at Milburn, creating a high-capacity export corridor with direct access to multiple seaports.
The project, spearheaded by Calder Stewart, is expected to reshape New Zealand’s freight and industrial landscape, offering long-term economic, logistical and employment benefits for the South Island.
Calder Stewart land and delivery manager Mark Johnston said the integrated network would "future-proof and transform" the country’s freight infrastructure while attracting large-scale clean-tech and advanced manufacturing industries to the region.
"These aren’t just regional projects, they are nationally significant infrastructure investments," Mr Johnston said.
"They solve multiple problems at once — industrial growth, freight resilience, energy security and regional development."
"Eighty percent of the South Island’s freight originates in Southland."
Mr Johnston said that made it a logical base for a large-scale logistics and industrial precinct.
The development would create a streamlined corridor for moving goods north to Dunedin and beyond, boosting efficiency and reducing reliance on overburdened urban transport systems.
"Milburn and Awarua aren’t just two sites — they are parts of a single, integrated solution," Mr Johnston explained.
"Awarua will generate the volume, and Milburn will serve as the staging area, aligning the movement of hundreds of shipping containers by rail with vessel schedules."
The project is also expected to ease congestion at existing container terminals, many of which are struggling with capacity issues due to larger vessels and growing freight volumes.
Once fully developed, Awarua could handle up to 200,000 tonnes of freight annually — the equivalent of about 15,000 containers. That scale reinforced the importance of the inland port strategy, Mr Johnston said.
John D’Arcy, Calder Stewart’s business development manager for the lower South Island, said the Awarua site was designed to shift Southland from a traditionally primary sector economy towards high-value industrial production by attracting high-output food processors, advanced manufacturers and clean-tech exporters to the region.
Great South chief executive 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.
She said it was also a strong signal to investors that Southland was open for business and committed to enabling innovation-led industries.
"This is what regional economic development looks like when it aligns with bold private-sector ambition," she said.
