Mosgiel, New Zealand – An NZ$8 million government investment is set to transform freight logistics with the development of the Mosgiel inland port. This strategic project aims to streamline supply chains connecting New Zealand and Pacific Island nations.

The funding will facilitate the construction of a crucial rail link between Port Chalmers, a key export hub, and the Southern Link Logistics Park in Mosgiel. This initiative, a collaboration between Southern Link Property and KiwiRail, is projected to significantly reduce road congestion by removing an estimated 19,000 truck movements annually from Dunedin roads.

Regional Development Minister Shane Jones emphasized the project’s importance for the region’s export capabilities. “This modest contribution not only opens up that line, but it gives confidence to an area that’s often overlooked, despite the fact that it’s an export powerhouse,” he stated.

Key Benefits for Pacific Island Procurement and Supply Chains

While the immediate focus is on New Zealand’s South Island, the Mosgiel inland port offers several potential advantages for Pacific Island procurement and supply chains:

• Faster Transit Times. Enhanced and more efficient freight movement from Port Chalmers, a vital port for trade with the Pacific Islands, can lead to quicker and more reliable delivery schedules.
• Potential for Cost Reduction. The shift from road to rail transport may eventually yield cost savings that could benefit businesses involved in trade with the Pacific Islands.
• Sustainable Logistics. Rail transport offers a more environmentally friendly alternative to trucking, aligning with the increasing emphasis on sustainable procurement and ESG considerations.
• Improved Port Efficiency. Reduced road congestion around Port Chalmers can contribute to smoother overall port operations, benefiting all users involved in international trade.
• Regional Development Model. The success of the Mosgiel inland port could serve as a blueprint for similar infrastructure projects in other Pacific Island nations, where efficient logistics are crucial.

Minister Jones underscored the urgency of infrastructure development, signaling a strong government commitment to enhancing New Zealand’s logistics capabilities. The Mosgiel inland port, alongside another proposed inland port, signifies a move towards a more integrated and efficient freight network in the South Island, ultimately fostering more effective and sustainable trade links with the Pacific Islands.