Clifford Bay proposed as replacement for Picton port

The Interislander ferry arrives in Picton from Wellington. Photo / Simon Baker

A new terminal to replace the Picton port linking the North and South Islands has been talked up by Government as a prime candidate for a public-private partnership.

Transport Minister Stephen Joyce said officials would carry out a study on the benefits of establishing a sea freight terminal at Clifford Bay south of Blenheim in the next two months.

He said building a new port had the potential to boost the South Island's economy.

It would cut the ferry journey between the North and South Island by 30 minutes and the road trip between Wellington and Christchurch by 50 minutes, he said.

"Clifford Bay has been floated a number of times in the past. A thorough investigation will evaluate the potential it has to add to the New Zealand growth story".

The project would likely be undertaken as a partnership between Government and a private company, Mr Joyce said.

"KiwiRail would not have the resources on its own to build and operate the facility. It's the sort of facility that could provide a steady long term revenue stream to infrastructure investors."

Proposals to build a replacement terminal for Picton have been floated since the 1990s.

Mr Joyce says if Clifford Bay is found to be a viable option, the new terminal could boost the long term recovery from the Christchurch earthquake.

A new terminal in the area would take two and a half years to build after consent processes, he said.

- NZ HERALD STAFF