The integration of Australasia’s largest industrial development with a new inland port is set to create a new multibillion-dollar manufacturing and logistics network and employ thousands in the South Island.
Awarua Quadrant is a 513-hectare intermodal hub and renewable energy precinct – a vertically integrated ecosystem that brings together large-scale manufacturing, warehousing, rail-enabled freight staging and provides exporters connections to multiple seaports.
Strategically located in Invercargill, the industrially zoned development is designed to transform Southland’s economy by attracting high-output food processors, advanced manufacturers and clean-tech exporters to the region.
Developers Calder Stewart say the large-scale precinct, which is the equivalent of 733 rugby fields, will have a potential built-out value exceeding $2.5 billion, depending on the mix of occupiers, and is well advanced in planning, with more than three years of preparatory work completed – including capital investment, engineering design and stakeholder engagement.
A feasibility study shows the site has the potential to generate over 50 MW of renewable energy annually through a combination of wind turbines and rooftop and ground-mounted solar power. The generation capacity will be appealing to a range of industrial manufacturers to reduce their production emissions.
The development will also host one of New Zealand’s largest native restoration projects, with more than one million plants to be established alongside a 100-hectare public wetland and recreation reserve for the region.
The announcement marks the second stage of privately funded manufacturing and freight infrastructure planned for the lower South Island in recent weeks and is expected to provide a significant long-term boost to both the Southland and Otago economies.
John D’Arcy, lower South Island business development manager at Calder Stewart, says with direct access to two deepwater ports, proximity to Manapouri’s renewable energy network, and integration into a broader inland port logistics system, the site is set to shift Southland from a primary-sector-led economy toward high-value industrial production and export.
He says the project aims to create long-term employment, diversify the regional economic base and strengthen Southland’s role in New Zealand’s national supply chain.
The combined Awarua and Milburn Quadrant developments, spanning over 700 hectares between them, are strategically designed to operate as a unified export and logistics ecosystem. Awarua will function as a high-output industrial hub, while Milburn will act as the logistics interface.
D’Arcy says by coordinating both ends of the supply chain, the company aims to provide seamless freight staging, improved rail efficiency and just-in-time delivery to multiple South Island ports.
“Milburn and Awarua aren’t just two sites, they’re parts of a single, integrated solution. While Awarua creates the volume, Milburn provides a staging area and facilitates the movement of hundreds of shipping containers by rail in alignment with vessel schedules. That means we can offer tenants real-world export certainty even as shipping windows tighten and ports come under more pressure.
“Milburn is purpose-built as a scalable buffer in the export process, positioned to relieve pressure on coastal ports and give exporters greater control over their outbound logistics.
“Ships have gotten a lot bigger over time. If you go back to the mid-1970s, the average ship was around 11,000 tonnes. Now they’re closer to 100,000-180,000 tonnes. So the old terminals just don’t have the capacity for empty container returns. Larger ships mean more containers being offloaded and a much greater requirement for long-term storage.
“That’s where a larger inland port with integrated access to rail like Milburn comes in as it can absorb the overflow and help decongest the port terminals, without putting further pressure on the roading system in urban areas.”
Mark Johnston, land and delivery manager at Calder Stewart, says the multi-port access strategy allows tenants greater flexibility.
“Each seaport in the South Island plays important roles in the region’s freight network. With manufacturers working across a range of freight providers, having access to multiple ports gives tenants the flexibility to align with shipping lines that best suit their export needs.”
Johnston says the 320 hectares of buildable industrial land at Awarua could generate export levels that exceed what a single regional port could manage.
“Based on international benchmarks for similar industrial precincts, a fully developed Awarua site could generate up to 200,000 tonnes of freight per year, equivalent to around 15,000 shipping containers annually.
“That level of output reinforces the need for a coordinated inland port strategy to manage that scale of freight movement efficiently.
“That’s why the scale of Milburn is so critical; without it, you would bottleneck the entire supply chain.”
Johnston says early tenant discussions include both national and offshore parties across a variety of sectors who see the benefits and scale that this site provides. He says Southland’s natural resource base makes it a compelling candidate for clean-tech industrialisation.
“Traditionally, primary produce and tourism have carried the weight of New Zealand’s economy. But COVID and global instability showed us how exposed that makes us. We need high-value manufacturing and exports to step up and Southland is the place to start.”
“Southland has rich deposits of metallic, non-metallic and energy minerals. When you combine that with abundant renewable energy on-site, you’ve got the bones of a very competitive proposition for a large-scale processing facility. That’s the kind of transformational manufacturing we’re trying to attract.”
Johnson says the development is expected to boost Otago’s $16.8 billion economy as well.
He says 30% of their current workforce in Milton lives in Dunedin and commutes to work using their dedicated shuttle services.
“Eighty percent of the South Island’s freight originates in Southland. The creation of new freight corridors will support the movement of significant volumes of product north to Dunedin,” he says.
“These aren’t just regional projects, they are nationally significant infrastructure investments that solve multiple problems at once: industrial growth, freight resilience, energy security and regional development. We’re building for what New Zealand will need ten years from now, not just what it needs today.
Chami Abeysinghe, chief executive at Great South, Southland’s Regional Development Agency, says the proposed development has the potential to become a cornerstone of the region’s long-term plan.
“Awarua Quadrant could provide much needed capacity for Southland as we diversify our economy and attract high-value industries. Availability of consented land for large-scale commercial and industrial processes not only facilitates greater confidence but also decreases costs and de-risks investments. With its proximity to key transport links and our port, it’s ideally placed to support growth in sectors like aquaculture, engineering, agri-tech and supports consolidated warehousing.
“It’s also a strong signal to investors that Southland is open for business and committed to enabling innovation-led industries. It shows what’s possible when regional development aligns with business ambition. Calder Stewart’s planned development in Awarua is a classic example of how the region’s long-term plan can come to life through private investments,” she says.
With construction start dates dependent on the requirements of anchor tenants, Awarua is fully zoned for heavy industry and ready for activation. The company is in discussions with several prospective occupiers and expects that once the first commitment is secured, its first stages will be online within a 12 to 24-month timeframe.
