Major milestone for KiwiRail's Regional Freight Hub

Opportunities for Tararua with new rail hub.

KiwiRail's Regional Rail Hub, near Palmerston North, has reached a significant milestone, with the Independent Hearing Panel recommending it be given the planning designation it needs to proceed, says executive general manager property Olivia Poulsen.

KiwiRail applied to have the land the hub will be built on designated for rail use – a consenting process commonly used for large infrastructure projects – in late October 2020.

This was followed by public hearings on the designation before the Panel in August and September 2021.

"After careful consideration, the panel has confirmed that it recommends to KiwiRail that it proceed with the designation. This is great news for us and for Palmerston North, marking a major milestone for the hub project," Ms Poulsen says.

"The regional freight hub will offer the Tararua District further opportunities for businesses to operate from our towns being close to Palmerston North," said Tararua District Mayor Tracey Collis.

"The Central NZ Distribution Hub will be a magnet for new investment, especially in manufacturing and processing across the region, which will spill over into the Tararua District.

"We are an attractive choice for companies with land being more reasonably priced and the connection both safe and quick when the new Manawatu-Tararua Highway is completed," she said.

The operation time of 2030 gives council and businesses time to plan and be ready. KiwiRail received $40 million seed funding from the Government in 2019 for the high-level design of the hub, to designate it and to begin purchasing land.

"We are now working on a business case for investment to build the hub. The aim is for it to begin operating around 2030," says Ms Poulsen.