Port Otago recently celebrated the official opening of its new $13 million rail pad at the Port Chalmers Container Terminal, a major step in enhancing the region's freight and logistics capabilities. 

The event was attended by three government ministers: Rail Minister Winston Peters, Regional Development Minister Shane Jones, and Rural Communities Minister Mark Patterson.The new infrastructure is a critical component of a larger project that includes the development of a sister rail pad at Port Otago's Southern Link inland port in Mosgiel, located 32km away. This inland port, a joint venture with Dynes Group, is supported by an $8.2 million government loan and is slated for completion by the end of next year.

The dual rail system will create a seamless logistics connection for containers moving between the coast and the inland hub. Port Otago Chief Executive Kevin Winders said the rail connection is fundamental to the company's strategic pillar of creating "space to grow."

"It's exciting to see the big picture come together and important to celebrate the milestones that along the way, as each piece of picture slots into place," Winders commented. 

Government officials lauded the project's significant benefits. Minister Peters noted that the existing rail siding already takes 43,000 truck trips off Dunedin’s roads annually, with an additional 19,000 to be eliminated once the inland port is operational.

"Inland freight hubs provide vital additional space away from busy coastal ports," Peters said. "Until now, Dunedin was the exception. That is finally changing." Minister Jones highlighted the economic impact, stating that enabling producers and manufacturers to get goods to port more efficiently leads to "savings, higher productivity and export earnings. 

He added, "This is great news for the regions, its workers and the local economies. The country does well when its regions prosper."

The opening was also attended by Dunedin Mayor Jules Radich, regional council members, and representatives from key project partners including Kiwirail, Martinus, and SouthRoads.