THE PARTNERS developing Port Otago’s much-needed inland port have welcomed a NZD 8.2 million contribution from the New Zealand Government.
Southern Link, a joint venture between Port Otago and Dynes Transport Group, is developing a 50-hectare site on the corner of Dukes and Stedman Roads, near Mosgiel.
Port Otago’s Port Chalmers Container Terminal can accommodate today’s 6000TEU container ships and the larger 10,000TEU ships expected in coming years but is constrained by a lack of landside infrastructure to hold a buffer stock of empty containers and full export containers ready for shipping.
Port Otago operates two inland depots, at Dunedin and Ravensbourne, with both to be consolidated into Southern Link, freeing up 4 hectares of industrial Dunedin land for development. Dynes owns Icon Logistics, which currently operates from six sites across Southland/Otago. It has 26,000m2 of warehousing spread over five warehouses. These sites and warehouses will relocate to a single purpose-built facility at Southern Link, including 30,000m2 of new warehousing.
Port Otago chief executive Kevin Winders said the partnership had been engaging with the Ministry of Business, Innovation and Employment, KiwiRrail and other parties for the past 18 months. Southern Link is working with KiwiRail to finalise commercial agreements that will see construction of a new rail siding at the new site.
“Port Otago is on schedule for a July completion of its own new $13.5 million rail siding on the Port Chalmers Container Terminal. The significant investment will improve rail capacity, reduce turnaround times and connect seamlessly with containers coming and going from the new Southern Link siding.”
Dynes Group MD Peter Dynes said Stage 1 of Southern Link – container storage and use of existing rail infrastructure on the Dukes Road site – is on track for an October 2025 opening. “The consenting process is underway for Stage 2, which involves 50 hectares adjacent to the Stage 1 footprint.
“Stage 2 construction is expected to begin in mid/late 2026. Southern Link is investing $200 million in logistics infrastructure and warehousing, and has committed funding in place for Stages 2 and 3 of the project.”
The two partners have committed to being the cornerstone tenants. Southern Link is engaged with other prospective tenants and customers for Stages 2 and 3 and further announcements will be made in coming months, the partners said.