Ports of Auckland Ltd is buying 33 hectares of land at Horotiu, 8km North of Hamilton to develop an inland freight hub – similar in intent to the Port of Tauranga's MetroPort Auckland which has been in operation since 1999.

'Establishing a freight hub in the Waikato is a central part of our supply chain strategy as it's one of New Zealand's fastest growing areas and a major freight generator,” says Ports of Auckland chief executive Tony Gibson.

File photo.

'Waikato will complete our North Island freight hub network, complementing our existing sites in the Manawatu, Bay of Plenty and Wiri, South Auckland.

'The location is in an area of growing manufacturing, warehousing and logistics businesses. This is a strategic purchase, which will be developed over a number of years,” says Tony.

'The key benefit of our freight hub network is that it can be used to balance freight flows around the North Island and eliminate unnecessary movement of empty containers. By driving out waste from the supply chain we can lower the cost to importers and exporters.”

Tony says establishing a Waikato freight hub will improve access to overseas markets for Waikato-based exporters and will reduce exporters' costs because of the supply chain efficiencies they will be able to achieve.

'Better international freight links will also benefit the region, encouraging additional investment in the Waikato and greater employment opportunities.”

There will be significant investment in the site over a number of years, with the first step being to establish road and a rail connections, says Tony.

The Northgate site was chosen because it is beside the North Island Main Trunk line, with a direct link to Port of Auckland's other freight hubs and the Waitemata seaport. The site is also located close to State Highway 1.

Ports of Auckland is committed to increasing use of rail and creating a more sustainable transport system, which will in turn help generate infrastructure savings at a national level.

The target is to increase the use of rail from 13 per cent to 30 per cent of traffic to the Waitemata port in Auckland. The development of the port company's inland freight hub network is critical to achieving this target.

The sale process is expected to be complete by March 31.

Port of Auckland Ltd has bought land at Horotiu.