Lyttelton Port of Christchurch is spending $5.7 million to build a rail siding capable of handling 24 wagons as more containers arrive at the port via rail.
The port's two existing sidings hold eight wagons each.
The new siding will extend into the existing Cashin Quay back road.
The port handles coal trains from the West Coast and is handling more freight from Fonterra.
Chief executive Peter Davie said the siding development was a response to increased demand and should be completed in 12 months.
- NZPA
Port growing rail capacity
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