Fonterra Considers Inland Port
March 2010

Fonterra’s belief that rail will play a strategic part in New Zealand’s future internal distribution network has been reinforced by the news it is considering opening up its new North Taieri warehousing hub development as an inland port operation for other shippers.

Due to be completed in September, the $69 million transformation of the former Fisher & Paykel factory will provide a 45,000-tonne dry and 17,000-tonne cool store for dairy products emanating from Fonterra’s Edendale and Stirling factories.

As part of the design, rail will play a significant role in the logistics links for the site. Rail lines linking it to the north and south are about to be laid and it is expected that up to 22 trains per day with 14 wagons each will call at the facility throughout most of the year.

A Fonterra executive has intimated there is extra capacity at the site and in the rail connections which other businesses might be interested in utilising.

This may have further logistic benefits in that inbound containers might come as “fulls” for other customers rather than “empties” for Fonterra.

Fonterra’s embracing of rail in its logistics patterns has been evident in recent years, most obviously with its Te Rapa hub and subsequently in its major port call decisions. This further decision in the Deep South aligns with that. It is expected that about 90% of the milk powder and cheese to be stored at the site is to be exported by rail.

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