Awarua Quadrant to become NZD $2.5 billion South Island hub

The integration of the Awarua Quadrant industrial development with a new inland port is set to establish a multibillion-dollar logistics and manufacturing network in the South Island of New Zealand.

The 513-hectare Awarua Quadrant, located near Invercargill, will become part of a purpose-built inland port system that aims to connect exporters with several major seaports through a unified, high-capacity corridor. Developers propose that this new logistics framework will facilitate the creation of thousands of jobs, ease pressure on existing coastal terminals, and attract major clean-tech and manufacturing businesses to the region.

Development details

Awarua Quadrant has been described as a vertically integrated ecosystem combining manufacturing, warehousing, rail-connected freight staging, and access to export routes. Calder Stewart, the site developer, noted that the finished precinct could exceed NZD $2.5 billion in value, depending on the tenant mix. Planning for the industrially zoned site is significantly advanced, with over three years dedicated to investments, design, and stakeholder consultations.

The development features renewable energy infrastructure, with a feasibility study outlining a potential to generate more than 50 megawatts of renewable energy annually via wind turbines and solar installations. This capability is intended to support manufacturers in reducing production emissions.

Awarua Quadrant also intends to host one of the country's largest native restoration projects, establishing over one million plants alongside a planned 100-hectare wetland and recreation reserve.

Economic and regional impact

The project is expected to provide significant economic benefits across both the Southland and Otago regions. The announcement follows recent investments in private manufacturing and freight infrastructure across the lower South Island.

John D'Arcy, Lower South Island Business Development Manager at Calder Stewart, said the location's connectivity to two deepwater ports and proximity to Manapouri's renewable energy will shift Southland's economic focus. He explained: "The project aims to create long-term employment, diversify the regional economic base and strengthen Southland's role in New Zealand's national supply chain."

Combined with the Milburn Quadrant, which covers more than 700 hectares with Awarua, the developments are designed to form a unified export and logistics network. Awarua is to serve as an industrial production hub, while Milburn is envisaged as the logistics interface.

"Milburn and Awarua aren't just two sites, they're parts of a single, integrated solution. While Awarua creates the volume, Milburn provides a staging area and facilitates the movement of hundreds of shipping containers by rail in alignment with vessel schedules. That means we can offer tenants real-world export certainty even as shipping windows tighten and ports come under more pressure.

"Milburn is purpose-built as a scalable buffer in the export process, positioned to relieve pressure on coastal ports and give exporters greater control over their outbound logistics.

"Ships have gotten a lot bigger over time. If you go back to the mid-1970s, the average ship was around 11,000 tonnes. Now they're closer to 100,000-180,000 tonnes. So the old terminals just don't have the capacity for empty container returns. Larger ships mean more containers being offloaded and a much greater requirement for long-term storage.

"That's where a larger inland port with integrated access to rail like Milburn comes in as it can absorb the overflow and help decongest the port terminals, without putting further pressure on the roading system in urban areas."

Mark Johnston, Land and Delivery Manager at Calder Stewart, highlighted the advantage of the multi-port access strategy, stating: "Each seaport in the South Island plays important roles in the region's freight network. With manufacturers working across a range of freight providers, having access to multiple ports gives tenants the flexibility to align with shipping lines that best suit their export needs."

Johnston explained that 320 hectares of buildable land at Awarua could generate up to 200,000 tonnes of freight every year. He said: "Based on international benchmarks for similar industrial precincts, a fully developed Awarua site could generate up to 200,000 tonnes of freight per year, equivalent to around 15,000 shipping containers annually.

"That level of output reinforces the need for a coordinated inland port strategy to manage that scale of freight movement efficiently.

"That's why the scale of Milburn is so critical; without it, you would bottleneck the entire supply chain."

He added that discussions with potential tenants from both local and international sectors are ongoing, noting Southland's suitability for clean technology. Johnston said: "Traditionally, primary produce and tourism have carried the weight of New Zealand's economy. But COVID and global instability showed us how exposed that makes us. We need high-value manufacturing and exports to step up and Southland is the place to start."

"Southland has rich deposits of metallic, non-metallic and energy minerals. When you combine that with abundant renewable energy on-site, you've got the bones of a very competitive proposition for a large-scale processing facility. That's the kind of transformational manufacturing we're trying to attract."

Johnston also pointed out anticipated economic benefits for Otago, referencing workforce flow and logistics corridors: "Eighty percent of the South Island's freight originates in Southland. The creation of new freight corridors will support the movement of significant volumes of product north to Dunedin," he said.

He continued: "These aren't just regional projects, they are nationally significant infrastructure investments that solve multiple problems at once: industrial growth, freight resilience, energy security and regional development. We're building for what New Zealand will need ten years from now, not just what it needs today."

Regional significance

Chami Abeysinghe, Chief Executive at Great South, Southland's Regional Development Agency, commented on the development's role in the region's long-term plans:

"Awarua Quadrant could provide much needed capacity for Southland as we diversify our economy and attract high-value industries. Availability of consented land for large-scale commercial and industrial processes not only facilitates greater confidence but also decreases costs and de-risks investments. With its proximity to key transport links and our port, it's ideally placed to support growth in sectors like aquaculture, engineering, agri-tech and supports consolidated warehousing.

"It's also a strong signal to investors that Southland is open for business and committed to enabling innovation-led industries. It shows what's possible when regional development aligns with business ambition. Calder Stewart's planned development in Awarua is a classic example of how the region's long-term plan can come to life through private investments," she says.

Awarua is now fully zoned for heavy industry and discussions with prospective occupiers are ongoing. Construction timelines will depend on the requirements of anchor tenants, with initial project stages anticipated to become operational between twelve and twenty-four months after key agreements are secured.