Big Southern logistics hub to boost exports

A landmark $3 billion privately funded development in Otago is set to create New Zealand’s largest inland port, boosting the export capacity of the country’s primary industries and future-proofing South Island freight logistics for the next century.

Site spans over 200 ha.

Dunedin’s seaport is NZ’s sixth largest by export volumes and provides critical access to sea freight for Otago and Southland’s forestry, dairy and aquaculture sectors.

Capacity constraints at Port Chalmers have threatened to impact the region's economic growth, with a search for alternative sites underway.

The Milburn Quadrant development, located north of Milton, will span over 200 ha, including a 55 ha inland port, and connect directly to State Highway 1 and the South Island’s main trunk rail line.

Developer Calder Stewart expects construction on the inland port to begin within 24 months, subject to resource consent approvals.

The development could ultimately accommodate 400,000–600,000 twenty-foot equivalent unit (TEUs) annually, significantly lifting the region’s export throughput.

Mark Johnston is land and delivery manager at Calder Stewart, and says Milburn could eliminate over 10,000 heavy truck movements per year by shifting volume to rail.

It will act as a ‘pressure relief valve’ to address storage capacity constraints at Port Chalmers.

Freight volumes from Central and South Otago are forecast to grow 30–40 per cent over the next decade, driven by seasonal peaks in forestry and dairy exports.

“This region is heading into a logistics bottleneck. Without scalable inland port infrastructure, exporters will face rising costs, road congestion and lost opportunities."

John D’Arcy, lower South Island business development manager of property for Calder Stewart, says the company is now seeking local government support to fast-track approvals and will present the proposal to government officials and stakeholders in coming weeks.

“Port Chalmers is approaching logistical constraints, particularly around container storage and log volume. 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.”

“Milton is strategically positioned closer to the region’s agricultural producers, where the bulk of freight originates. 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.

“What we need right now is visibility, political backing and certainty around regulatory timelines. With the right support, we can secure council approvals and ensure the public understands the scale and value of what’s being built here,” says D’Arcy.

The site is already zoned for heavy industrial use and will require no public infrastructure investment.

In a first for the NZ market, all new buildings at Milburn Quadrant will include rooftop solar generation, funded and installed by Calder Stewart Energy.