New multibillion-dollar logistics hub to transform Southland freight network

In News3 MinutesBy NZ Trucking magazineJune 27, 2025

A new chapter in New Zealand’s industrial evolution is unfolding in the South Island, with the integration of Australasia’s largest planned industrial development and an inland port expected to create a multibillion-dollar logistics and manufacturing network. The development is forecast to create thousands of jobs and catalyse regional economic growth.

Positioned on 513 hectares of industrial-zoned land in Invercargill, the Awarua Quadrant is a purpose-designed intermodal freight and renewable energy precinct. This vast development will accommodate high-capacity manufacturing, warehousing, and rail-based freight operations, enabling exporters to access multiple South Island seaports with efficiency and scale.

The development forms part of a wider freight ecosystem including Milburn Quadrant, an inland port and staging hub near Milton. Together, the two sites will span more than 700 hectares and are designed to function as a unified supply chain solution.

“Milburn and Awarua aren’t just two sites, they’re parts of a single, integrated solution,” said John D’Arcy, lower South Island business development manager at developer Calder Stewart.

“While Awarua creates the volume, Milburn provides a staging area and facilitates the movement of hundreds of shipping containers by rail in alignment with vessel schedules. That means we can offer tenants real-world export certainty even as shipping windows tighten and ports come under more pressure.

“Milburn is purpose-built as a scalable buffer in the export process, positioned to relieve pressure on coastal ports and give exporters greater control over their outbound logistics.

Calder Stewart land and delivery manager Mark Johnston says the multi-port strategy gives tenants flexibility across freight providers.

“Each seaport in the South Island plays important roles in the region’s freight network. With manufacturers working across a range of freight providers, having access to multiple ports gives tenants the flexibility to align with shipping lines that best suit their export needs.”

He says the scale of Awarua means it could produce more freight than a single port can handle.

“Based on international benchmarks for similar industrial precincts, a fully developed Awarua site could generate up to 200,000 tonnes of freight per year, equivalent to around 15,000 shipping containers annually.

“That level of output reinforces the need for a coordinated inland port strategy to manage that scale of freight movement efficiently.

“That’s why the scale of Milburn is so critical; without it, you would bottleneck the entire supply chain.”