Canterbury freight hub could bring big benefits

Mayor Sam Broughton and KiwiRail future state freight general manager Mark Heissenbuttel signing...
Mayor Sam Broughton and KiwiRail future state freight general manager Mark Heissenbuttel signing the memorandum of understanding. PHOTO: SDC
Early discussions are under way to develop the South Island’s largest freight hub in Rolleston.

It comes after KiwiRail signed a memorandum of understanding with the Selwyn District Council to become a logistics and tourism partner.

The specific location, cost and timeframe for the hub’s completion is still to be decided.

Said KiwiRail future state freight general manager Mark Heissenbuttel: “KiwiRail is in early discussions with the Selwyn District Council and other interested parties over the establishment of a freight hub in Rolleston.

“The key benefit of any inter-modal hubs is the use of both road and rail transport – enabling trucks to complete the first and last mile of collection and delivery, and for rail to do the heavy longer-distance movements.

“They highlight how road and rail can work efficiently together, which delivers wider benefits for New Zealand.”

Mayor Sam Broughton said the MOU will assist in the hub’s development.

“The main outcomes we are hoping for is that this will help improve connectivity around the district and beyond and support future land use opportunities for KiwiRail to expand their operations in our district,” Broughton said.

“This proposed freight hub, which would be the largest in the South Island, would reinforce Selwyn’s position as an economic and innovation leader, paving the way for continued growth and opportunity.”

KiwiRail currently operates from the hub in Middleton, Christchurch and runs 30 scheduled train services through the Rolleston area each day, including the TranzAlpine.

The MOU is set to cover an initial five-year term, with a focus on first establishing a more formal and strategic relationship, led through a steering group of senior leaders from both organisations.

The MOU will seek to align strategic opportunities identified through the Selwyn Economic Development Strategy, Future Selwyn, and the council’s investment and disinvestment framework.

The KiwiRail MOU is the second the council has signed this year after inking an MOU with Lincoln University in June.

The MOU comes at a time when KiwiRail is offering voluntary redundancy to all staff.

In an email to all staff, KiwiRail chief people and communications officer Andrew Norton said the move was designed to “reshape the business, lower our costs and create a solid footing for future growth,” RNZ reported.