Australasia’s largest industrial development with a new inland port is set to create a multibillion-dollar logistics and manufacturing network in the South Island and boost the Otago economy by $16.8 billion, says developers Calder Stewart.
John D’Arcy, lower South Island business development manager at Calder Stewart, said the combined Awarua and Milburn Quadrant inland port developments, spanning over 700 hectares between them, were strategically designed to operate as a unified export and logistics ecosystem. Awarua would function as a high-output industrial hub, while Milburn would act as the logistics interface.
Combining both ends of the supply chain would provide seamless freight stage, improved rail efficiency by aligning the Milburn staging site with vessel schedules.
The 513-hectare $2.5 billion Awarua Quadrant development near Invercargill – which is NZ’s largest industrial-zoned site, was to be linked to a purpose-built inland port system forming a unified, high-capacity export corridor with access to multiple seaports.
The industrial-zoned development was designed to transform Southland’s economy by attracting high-output food processors, advanced manufacturers and clean-tech exporters to the region.
The Awarua precinct had a potential built-out value exceeding $2.5 billion.
More than three years work had been completed including capital investment, engineering design and stakeholder engagement.
Mr D’Arcy said, with direct access to two deepwater ports, proximity to Manapouri’s renewable energy network, and integration into a broader inland port logistics system, the site is set to shift Southland from a primary-sector-led economy toward high-value industrial production and export.
A feasibility study showed the site had the potential to generate over 50 MW of renewable energy annually through a combination of wind turbines and rooftop and ground-mounted solar power.
The development would also host one of New Zealand’s largest native restoration projects, with more than one million plants to be established alongside a 100-hectare public wetland and recreation reserve for the region.
Mr D’Arcy expected the project to create long-term employment, diversify the regional economic base, reduce pressure on coastal terminals and strengthen Southland’s role in New Zealand’s national supply chain.
