Port of Tauranga. Photo / Kelly O'Hara
Tauranga has been described as Peru’s “ideal partner in this part of the Pacific” as a proposed trade corridor to the South American nation gains momentum.
The two-way export route – dubbed the Southern Link – between the Port of Tauranga and Peru’s Port of Chancay could slash shipping times and benefit local sectors, the Peruvian Ambassador says.
Tauranga iwi Ngāi Te Rangi hosted business leaders, politicians, and the Peruvian Ambassador at the iwi’s Mount Maunganui office on April 24 to discuss the proposed route.
The New Zealand China Council (NZCC) first led an analysis on the route in 2019.
Its executive director, Alistair Crozier, said the initial idea centred around New Zealand as a hub connecting Asia and South America, instead of being a “station at the end of the line”.
He said benefits to New Zealand included more frequent transport links, increased passenger and airfreight flows, and helping guard against cancellation of transport routes during any future supply chain crises such as Covid-19.
A conference was held in 2019 involving domestic and foreign airlines, airports, ports, logistic companies, academics, and government officials.
A “five years on” workshop was held in September 2024.
Crozier said New Zealand could become an e-commerce hub for Asian and South American exporters.
An NZCC 2021 report said the Southern Link had almost $2 billion in estimated benefits.
“Going forward, it is now up to commercial operators to establish the viability of logistics connecting Asia and Latin America via New Zealand.”
Peruvian ambassador José Bustinza said Tauranga was “the ideal partner in this part of the Pacific”.
The proposal was at an “initial stage”, and Bustinza said the Embassy of Peru in New Zealand had been working on it since 2023.
“We are currently in the stage of generating awareness of the economic potential and business interest among various stakeholders in New Zealand.”
New Zealand products, including kiwifruit, meat, dairy, and seafood, had “strong export potential”.
“In return, Peru could supply cacao, fresh produce, textiles, potatoes, and quinoa.”
Bustinza said the trade corridor could reduce shipping times and costs for trade between New Zealand and South American markets.
He said he had submitted a formal proposal to the Peruvian Government to establish a new Tauranga-based consular district.
A Ministry of Foreign Affairs and Trade spokesperson confirmed Peru had proposed the trade corridor, and said the establishment of a new route would depend on commercial viability.
New Zealand exported $1.6b in goods and services to South America and imported $1.7b in 2025, which the spokesperson said was “relatively low”.
“We are eager to see New Zealand’s trade with the region increase, including with our close partner Peru.”
A Port of Tauranga spokeswoman said it had not had any formal discussions with the Port of Chancay about introducing a new service.
The port had existing services to South American ports.
The port currently has no capacity to accommodate any new container services.
“To meet demand, we are currently seeking resource consent through the fast-track process to create additional berths by converting existing cargo storage land.”
Tauranga Business Chamber chief executive Matt Cowley said Tauranga was “New Zealand’s export gateway to the world”.
He said many exporters were based here for close access to the port.
“As New Zealand’s only port that can handle the next generation of giant cargo ships, Tauranga’s success will be a key component of New Zealand’s economic prosperity.”
He said food exporters, agritech, and high-end consumer products could benefit from the proposed corridor.
“Particularly Māori-business exporters through the ancestral indigenous trade relationships.”
Cowley said trade between South America and Asia currently travelled through “the bottleneck of California”.
Direct shipping routes to South America would have “huge potential benefits” for the Bay of Plenty.
Cowley said Tauranga could become a “trans-shipping hub” for Asian and South-American cargo, saving up to 20 days of transport time.
Western Bay of Plenty economic development organisation Priority One chief executive Dave Courtney said New Zealand and Peru shared a reliance on maritime trade and distance from major markets.
He said Peru had valuable sectors, including food, agri-tech, productivity, coolchain, logistics, traceability, and biosecurity expertise.
“The ambassador’s visit was a timely reminder of the economic potential on the other side of the Pacific.”
Ngāi Te Rangi chief executive Paora Stanley said he wanted to see any and all New Zealand businesses access trade opportunities.
He said the Māori economy was valued at about $126b.
“Our only role here is to open doors through various departments and businesses in Peru, particularly Lima, and encourage them to liaise with the ambassador, New Zealand Trade and Enterprise, and the New Zealand embassy in Chile and Peru.”
Trade Minister Todd McClay was approached for comment.
Bijou Johnson is a multimedia journalist based in the Bay of Plenty. A passionate writer and reader, she grew up in Tauranga and developed a love for journalism while exploring various disciplines at university. She holds a Bachelor of Arts in Classical Studies from Massey University.