Fonterra signs up for half of new cold store

Scales managing director Andy Borland, left, said there was consistent demand for domestic, temperature-controlled storage. Photo / APN

NZX-listed Scales Corp says its subsidiary Polarcold will build a new cold store at Ports of Auckland's intermodal freight facility at Wiri and Fonterra will take about half the storage space.

The facility would take about 20,000 pallets of goods over 8700 sq m, and expand Scales' cold storage capacity by 16 per cent.

Polarcold had secured a long-term lease at Ports of Auckland's hub at Wiri. The hub has an inland port and an empty container depot and rail links to the Auckland port and the central and lower North Island.

Subject to conditions, construction would start this year, and the facility would be open by the third quarter of next year, the company said.

Scales managing director Andy Borland said there was consistent demand for domestic, temperature-controlled storage.

"New Zealand's perishable food exports have increased by almost 65 per cent in volume terms since 1990 and our forecasts show this continuing," he said.

Half of the capacity is contracted to Fonterra, and Borland said the balance would be taken by import/export clients and fast-moving consumer goods customers from the Auckland region.

Polarcold operates facilities in Timaru, Christchurch and Dunedin.

Associated company Whakatu Coldstores has facilities in Hastings, Napier, Kerepehi and Wellington.

Both companies are part of Scales Corporation's storage and logistics division, with bulk liquid storage terminal operator Liqueo.

The company, which has divisions involved in horticulture, storage and logistics and food ingredients, listed on the NZX on July 25.

Scales shares closed up 1c yesterday at $1.53 - 4.4 per cent below the $1.60 issue price.