"New Zealand is a small, very remote country and we live or die on an effective supply chain. This development fits with Government's long-term view of infrastructure and the needs of this region. It's also the successful result of a partnership between public and private companies, with the collaboration of government-owned KiwiRail."
He said the recent Manawatu-Whanganui Growth Study identified opportunities that would benefit from better transport connections and key to that was good freight logistics.
The bulk of the more than 30 containers from the depot each day are full of bagged milk powder from the Open Country Dairy, but now the factory has added a second dryer that volume will double. The terminal also attracted business from Taranaki.
Brendon Bartley, Ali Arc Logistics general manager, said the joint venture would continue to support the growth of businesses in the region.
"When we took over the site, it had been under-utilised for more than 20 years. Working with CentrePort and KiwiRail, we breathed life back into it with great support from local exporters and importers," he said.
Blair O'Keeffe, CentrePort chief executive, said the partnership was part of deliberate strategy "to move our customers closer to the world".
The port company was putting through $3.5 billion worth of cargo a year and he said it planned to create more container terminals and develop the port to handle bigger ships.
Mr O'Keeffe said the Wanganui depot represented a multi-million dollar investment by both Ali Arc Logistics and CentrePort supported by KiwiRail.
He said CentrePort always wanted to connect to central New Zealand "at a regional level".
"This was initiated by us coming out into the regions and looking for business partners. We met with the Bartleys and within a very short space of time put a formula together that was going to work."
Mr O'Keeffe said there was a lot of conjecture about how many ports the country should have and where they should be.
"Our very strong view is that New Zealand needs to be strong north, centre and south, and that's why we have the hubs we do such as Wanganui. A viable supply chain close to a deep-sea port is vital for central New Zealand."
KiwiRail chief executive Peter Reidy said the Castlecliff terminal was an example of what could happen when businesses worked collaboratively. While KiwiRail was not a partner in the joint venture, it was able to provide the key transport link.
Mayor Annette Main said creating the terminal recognised current and anticipated growth in the Wanganui region.
She said the terminal gave business confidence in the district a huge boost and stood as an "outstanding symbol" of co-operation.
