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Home / Manawatu Guardian / Opinion

Is Palmerston North a logistics hub – or not? - Grant Smith

Manawatu Guardian
1 Oct, 2024 07:46 PM4 mins to read

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Palmerston North Mayor Grant Smith.

Palmerston North Mayor Grant Smith.

Opinion

THREE KEY FACTS:

  • The Regional Freight Ring Road will run around the outskirts of Palmerston North and connect industrial areas to Feilding and state highways to the north, and Longburn and Linton Military Camp to the south.
  • Public submissions on the proposed tolling of Te Ahu a Turanga Manawatū Tararua Highway and the new Ōtaki to north of Levin (Ō2NL) highway close Monday, October 7.
  • The Ring Road is a key part of Palmerston North City Council plans for growing economic prosperity in the area.

Grant Smith is Mayor of Palmerston North

OPINION

Geography, history and development have combined to gift Palmerston North a new national role as the lower North Island’s logistics hub.

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However, it appears someone forgot to tell central government and NZTA - their transport agency - as it seems to me that policy advisers continually refuse to acknowledge our status with funding.

Private sector transport operators and logistics moguls are gravitating here because they understand that Palmy’s pivotal location and skilled employment base have huge benefits for their distribution networks.

Think ‘location, location, location’ and I think you have the reason for increasing private sector investment here.

I think the recent commercial development by Hall’s Cold Chain Logistics at the Longburn Inland Port, a 70,000sq m warehouse expansion by Foodstuffs at Te Utanganui Central NZ Distribution Hub, and new terminal and airfreight warehousing at Palmerston North Airport on top of existing facilities will raise the city’s logistics profile even further.

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This growth is happening despite what I would call ongoing silly local decisions by NZTA. They’ve even refused funding for a Regional Freight Ring Road business case.

Then there’s the, in my opinion, extremely, poor level of transport funding from the National Land Transport Programme (NLTP) which leaves us $80 million short over the next three years.

NZTA’s only response, I feel, has been to tack a last-minute roading toll proposal on to our Manawatū Gorge replacement highway – and at double the national average for roading tolls.

That means the region will be paying the highest highway toll in the country. Adding this to the ongoing denial of roading infrastructure to support our growing logistics facilities, it’s hard not to conclude that Palmy and Manawatū is being well and truly rorted.

As I’ve pointed out in previous columns, we are certainly not getting what I would consider to be our fair share of the nation’s transport dollar.

The Manawatū Regional Freight Ring Road should be a Road of National Significance in my opinion, yet doesn’t even rate as a Road of Regional Significance.

So, why isn’t the Government and NZTA getting it? Right here - at Longburn for dairy and ‘wet’ goods, and at Te Utanganui north-east of the airport for ‘dry’ goods - is the North Island’s distribution nexus for 24% of the country’s GDP.

This supplies beyond Manawatū-Whanganui into the ‘middle million’ of New Zealand - Taranaki, Hawke’s Bay, Wairarapa and Wellington.

With that perspective, these recently announced, poorly evidenced and shortsighted NZTA decisions seem strangely at odds with reality. If they are not reversed, I believe the lack of roading and rail investment in our region could result in supply chain breakdowns.

The Government’s goal of doubling exports would be compromised before it gets under way if lower North Island exporters can’t get their freight to international ports on time.

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Without a functioning effective local transport network, the potential for empty shelves, diminishing exports and underutilised ports is very real. It’s vital that these concerns are addressed – and soon.

In the meantime, we press on looking at options to progress the city’s logistics case and its associated projects.

This week, I’m in Sydney with a delegation of Palmy and Wellington private transportation and distribution operators, developers, and public sector interests along with local and central government officials.

We’re there to look through Penrith’s new Morebank Intermodal Hub; its neighbouring rail, road, logistics and distribution centres; the adjacent new West Sydney Penrith Airport airfreight hub, and to talk funding, planning and infrastructure with Aussie counterparts.

Monday, October 7 is the last day for submissions on the NZTA toll road proposal for Te Ahu a Turanga Manawatū Tararua Highway and the new Ōtaki to north of Levin (Ō2NL) highway.

The submissions, which are quite prescriptive in my opinion, are online only at nzta.govt.nz/teahuaturanga-tolling and www.nzta.govt.nz/O2NL-tolling.

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