KiwiRail is among those backing Port Otago’s proposal for an inland port and freight hub near Dukes Rd North, Mosgiel.
The inland port and freight hub would offer more holding space for the port and allow it to decarbonise the supply chain, by switching from just trucks to some rail-based freight services.
However, planners overseeing the Future Development Strategy (FDS) — a joint Dunedin City Council and Otago Regional Council urban environment plan for the next 30 years — have poured cold water on the plan going ahead any time soon.
The city council’s transport department said it was not supportive of the plan, saying it would add significant traffic congestion to Mosgiel, which already had issues with the number of trucks on its roads.
"There are no overriding considerations / compelling transportation arguments that would suggest that this location provides for the most appropriate location for an inland port or any other large-scale industrial activity that would add significant numbers of heavy traffic to a relatively remote site," its report said.
It recommended that if the hearing panel supported the idea, that the area be added to the FDS as a potential future location for an inland port, subject to the necessary investigation of required infrastructure upgrades and any identified being funded in relevant funding documents.
Estimated upgrades to the state highway network could take between 10 and 30 years at the "very earliest", it said.
The council’s overall response, co-authored by two city council and one regional council planner, estimated up to $10 million in upgrades for each of drinking water, wastewater and stormwater infrastructure would be needed over a long period to service the inland port.
Consideration of managing flood risks and developing highly productive land was also needed, and pre-existing traffic issues around Mosgiel could be exacerbated.
The council planners’ comments were made in response to submissions on the FDS, of which numerous businesses indicated their support for an inland port.
KiwiRail planning and land use group manager Mike Brown said in his submission the concept of inland ports was generating interest from freight companies looking for more efficient transport methods.
The existing rail facilities could offer the company an opportunity for significant cost savings.
"The recognition of the benefit of an inland port serving Port Otago is welcomed," he said.
"KiwiRail is working actively with the port and other freight entities on this as a key enabler of rail freight growth going forward."
Southern Edge Hub Farms, owned by Dynes Transport which has partnered with Port Otago, said in its submission it wanted to develop a logistics hub on the 50ha of land it had bought next to the planned location of the inland port.
However, for this to happen the land first needed to be rezoned as industrial.
Port Otago chief executive Kevin Winders wrote a letter of support backing the submission, saying the land owned by Port Otago on Dukes Rd North was not large enough to support long-term regional growth on its own.
Mr Winders told the Otago Daily Times the company had invested in land in Mosgiel some years ago, securing three blocks of land over the past 10 years — 8ha in total.
A business case was being completed and support was being sought for a heavy traffic bypass, to accommodate the increased flow of heavy traffic coming in to Mosgiel.
Port Otago’s focus would shift to advocating for the bypass this year once construction on a temporary container storage depot in Ravensbourne was completed, he said.
Mr Winders said he could understand how heavy traffic movements could be frustrating to the people of Mosgiel, and was exploring options that would mitigate the disruptions.
"Effectively, we’re engaging on the basis that when we do come to town in due course, we’re going to make the current problem down Gordon Rd [SH87] worse," he said.
He did not wish to comment directly on the reports by the council.
