Economic report paints rosy future for Marton Rail Hub development

If a plan change is approved, the Marton Rail Hub will occupy land near the Main Trunk Line that is now used for grazing. Photo / Supplied

As the plan change for the proposed Marton Rail Hub inches through the Environment Court, an economic consultant has painted a rosy picture for the development.

The development of the rail hub was announced in 2020 in a partnership between Rangitīkei District Council, Te Runanga O Nga Wairiki Ngati Apa, the Ministry of Business, Innovation and Employment's Provincial Development Unit and Rangitīkei Forestry Holdings.

Last month's report from economic consultancy m.e consulting (Market Economics Ltd) said the proposed rail hub and associated forestry businesses would add at least 220 new jobs to the district and an extra $17 million to $31 million to the Rangitīkei district's GDP.

That amounts to a GDP increase of 3 to 5 per cent, the report said.

The estimate did not include the jobs created to build the hub and its associated businesses.

The businesses include a food and fibre hub, a log yard with sawmilling and timber sales, a debarker, facilities that make two types of plastic from plant material and a biomass energy plant that manufactures industrial gas and organic chemicals.

There were a lot of companies wanting to set up, Rangitīkei mayor Andy Watson said, but he was unable to give details about them.

"The district has incredible opportunities in front of it," Watson said.

The hub would have wider effects for the New Zealand economy outside of Rangitīkei - at least $36 million in GDP and 360 jobs.

The report used information from a comprehensive development plan compiled by consultant WSP and updated in January. Its estimates were conservative.

The writer said the development would also diversify the district's economy and would likely create clusters of related businesses and businesses to service the initial ones. It would create more traffic, but much of that would be rail.

The project started in 2020, with a $9.1 million grant from the Provincial Development Unit. Extra finance is being provided by some of the partners.

Rangitīkei Forestry Holdings is to contribute $500,000 and will build the debarker facility. Rangitīkei District Council is financing the district plan change required, and road and rail access.

A plan change is needed to alter the zoning of 40ha of farmland adjoining Makirikiri Rd from rural to industrial. It has been appealed and went to mediation in the Environment Court in April last year.

Rangitīkei District Council senior infrastructure project manager Jess McIlroy said moves toward a plan change continued.

"The rail hub project is subject to an ongoing Environment Court process and so I am unable to comment other than council continues our commitment to work on this exciting opportunity."