Kawerau's dreams of a container terminal to link the town and the wider Eastern Bay of Plenty with the Port of Tauranga are a step closer to being realised, with the launch of its Container Terminal Research Project.

The project will assess the proposed container terminal's economic and logistical feasibility.

Kawerau container terminal research project begins with hopes of linking the Eastern Bay town with the Port of Tauranga.

If a terminal is developed, it will open up opportunities for Kawerau – and wider Eastern Bay – businesses, with increased connectivity allowing them better access to customers.

The Industrial Symbiosis Kawerau project kicked off with an initial stakeholder meeting on Tuesday, April 19, which saw staff from NZTA, Scion, Kiwi Rail, the Port of Tauranga visit Kawerau for an overview.

A range of businesses also attended and will participate in the project.

Glenn Sutton, economic development manager at Kawerau District Council, which belongs to the ISK collective, says there was a good cross-section of stakeholders represented.

'There has been interest from a wide range of businesses, including wood/fibre processors, packhouses, boat builders, engineering companies and food manufacturing.

'We have met with managers of various businesses around Kawerau and the wider Eastern Bay to gauge their interest and possible level of use, and feedback has been positive.”

ISK has engaged Scion to carry out the project, which is expected to take six months to complete.

The idea for the Container Terminal Research Project came about in 2012 when established Kawerau businesses such as Sequal Lumber realised rail could be a more effective way to transport products to the Port than road.

Glenn visited the new Tokoroa container terminal last October with council chief executive Russell George and Kawerau mayor Malcolm Campbell, and they realised a Kawerau terminal could benefit the whole Eastern Bay.

Potential sites are now being investigated.

Malcolm says the project is positive for the entire Bay of Plenty as business and industry work together to better the region.

'All the industries participating will ensure the project's long-term sustainability. From a transport point of view, the project will ensure we can get heavy produce transported via rail. As strain on our roading system from the central North Island increases, this will help relieve the congestion from the eastern side.”

ISK is working closely with key stakeholders, including Kiwi Rail, the Port of Tauranga, NZTA and Scion on the project. Scion's Value Chain Optimisation group will develop an event simulation (DES) model to simulate train movements for full and empty containers between the Kawerau and the Port.

The project will also simulate scenarios including varying levels of volumes, costs and fluctuations, to highlight risk levels and establish a threshold at which the container terminal will become economically viable.

Bay of Plenty Regional Council, the Kawerau and Whakatāne District Councils, the Ministry of Business, Innovation and Employment and Scion are helping fund the project, which is also supported by Ōpōtiki District Council and Toi-EDA, and links into the Bay of Plenty Economic Action Plan.

'A big thanks to all the project funders and supporters who have made this a reality,” Glenn says.

Any Eastern Bay businesses interested in finding out more about the project can contact Glenn, phone (07) 306 9009 or email glenn.sutton@kaweraudc.govt.nz