Tauranga is emerging as New Zealand’s most cost-effective logistics hub for importers and distributors, according to an independent study.
The analysis found that Tauranga offered cost savings of about five per cent over Auckland as a hub for nationwide distribution.
It comes amid investment and rapid growth at Port of Tauranga and improving key transport connections between the city and other regions.
The Middlebank Consulting Group analysis was conducted for an international brand seeking information about a potential New Zealand hub for importing and distributing manufactured goods.
It concluded Tauranga was arguably the best option for furniture, electronics and apparel. For vehicle imports, there was benefit to using Auckland for areas north of the Bombay Hills and Tauranga for the rest of the North Island.
However, for furniture, the analysis found Tauranga was about 12.5 per cent cheaper than Auckland for warehousing and six per cent cheaper for road freight.
Brother International moved from Wellington to Tauranga and saved $889,000 a year and helped reduce CO2 emissions by 47 per cent over five years. Tauranga offered the company “super-efficient” port container handling and same-day delivery to areas from Hamilton to north of Auckland, allowing Brother to increase productivity by being closer to customers.