A commercial dry dock, a rail link to Marsden Point and new fuel storage tanks - all within a special economic zone - are the plan to grow Northland into an economic powerhouse for New Zealand.
New Zealand First’s Winston Peters and Shane Jones announced the significant developments today as being either under way or about to start.
The announcement could give a much-needed shot in the arm for Northland, where the GDP per capita is 30% below the national average.
Speaking at fuel importer Channel Infrastructure’s base in Marsden Point, south of Whangārei, the pair said a refurbished tank will soon provide an extra 30 million litres of fuel, to help keep the country’s aviation sector in the air.
But the ministers also pointed to upcoming developments centred around Marsden Point.
Peters, speaking as Rail Minister, said a commercial dry dock at Northport is a step closer.
“A commercial dry dock will bring specialist skills and international customers to NZ, maintaining large ships in a manner that a maritime nation desperately needs,” Peters said.
Estimated to cost $500 million, the dry dock will enable large ships and ferries to be serviced in NZ. A report by Northland Inc suggested the facility could create an additional 1135 jobs and generate an income of $290m a year by 2060.
Peters said procurement is close to being finalised for the project, which is part-funded by the Regional Infrastructure Fund.
Peters also announced the Marsden Point Rail Link design will be open for discussions with investors and potential builders.
The link, estimated to cost at least $300m, will provide rail to Marsden Point and Northport.
“We are pleased to confirm that KiwiRail will open discussions, under commercial agreements, on its Marsden Point Rail Link design data for investors and builders – informing the best approach for building and funding this project,” Peters said.
A recent NZIER report commissioned by Northland Corporate Group found Northland could become a $60-billion-a-year economy by 2050 through such projects.
Jones, speaking as Regional Development Minister, said a special economic zone would help attract investment into these projects, along with other developments.
This zone would include tax incentives - such as an initial tax holiday and an increase in depreciation - plus allow self-consenting to give certainty over resource consents.
NorthPort should have a perpetual consent, allowing the likes of its 11.7ha expansion and reclamation to go ahead, he said.
Jones said he would be taking a paper to Cabinet soon on the use of special economic zones to get the economy roaring, with Northland’s Marsden Point likely to be the first of many areas.
“Unless we have these bespoke initiatives with tax incentives and self-consenting powers, I fear we are just going to be stuck in a rut and talking about the same thing year after year.”
While he had the support of former Transport Minister Simeon Brown, Jones was not sure if the paper would be supported by Cabinet now would be taken to the next election.
Jones said the dry dock would be built with a public-private partnership.
Proposals are coming in now and nothing more than the original price tag - of $400m to $500m - would be accepted, he said.
Jones hoped resource consent for the project would be approved through fast-track consenting.
With the Marsden Point Rail Link, costs are more uncertain but Jones said it would not include over-the-top climate change resilience.
KiwiRail initially wanted to build the rail link high in the air to cover a 1000-year climate change event but there would be no Auckland or Whangārei “if climate change was that bad”, Jones said.
However, he said long-term resilience and safety - so trucks and trains don’t have a stand-off - would be included in the design.
KiwiRail would also not reveal the cost of the rail link, saying it was confidential.
Chief capital programme officer David Gordon said KiwiRail has submitted to Government a detailed business case for building the Marsden Point Rail Link and reopening the mothballed rail line between Kauri and Otiria, north of Whangārei.
It will now make the project data and reference designs available to interested investors and construction companies, on a confidential basis, with an Expressions of Interest process starting in the next month.
Jones said interested parties included companies involved with rail in China, as well as Italian engineers.
Jones had a look through a refurbished fuel tank - a collaboration between Channel Infrastructure and Z Energy - designed to store an additional 30 million litres of fuel.
Channel Infrastructure is investing up to $30m over two years for the tank and other developments planned for Marsden Point include a bio-refinery.
Jones said such projects would make Marsden Point a world-class proposition and strategic location for partners, such as the US military.
“I know they have a facility in Guam and I can think of no better place for our own military and fellow travellers than here in Marsden Point.”
While military movements were up to Peters as Foreign Affairs Minister and Defence Minister Judith Collins, Jones said New Zealand has to “think big” when it comes to strategic fuel reserves.
Denise Piper is a news reporter for the Northern Advocate, focusing on health and business. She has more than 20 years in journalism and is passionate about covering stories that make a difference.