Palmerston North’s rise as a distribution powerhouse has taken another big step forward, with Foodstuffs North Island starting construction on a major expansion of its distribution centre at Te Utanganui, the Central New Zealand Distribution Hub. 

Foodstuffs North Island is investing $340 million to redevelop and expand its Palmerston North distribution centre, which supplies stores across the lower North Island. 

The multi-year project includes a new fresh, chilled and frozen distribution centre, and an expansion of its existing non-refrigerated supply facility, which is due for seismic and infrastructure upgrades.

Palmerston North Mayor Grant Smith says the development demonstrates why major businesses are increasingly choosing Te Utanganui for large-scale warehousing and distribution. 

"This is a significant investment by Foodstuffs and a great vote of confidence in Palmerston North and Te Utanganui," Mayor Smith says.

"Te Utanganui is becoming the place for large-scale distribution in New Zealand. We’re right in the centre of the lower North Island, with road, rail and air connections and access to some of the country’s biggest markets. 

"For a business moving large volumes of goods around the country, that location and connectivity really matters. Foodstuffs investment in growing the size of its operation here shows the value businesses see in being based in Palmerston North."

Mayor Smith says developments such as Foodstuffs are exactly what Te Utanganui was established to enable.

"This isn’t just about building bigger warehouses. It’s about creating a nationally important logistics hub that makes it easier and more efficient to move goods around New Zealand, while attracting investment, businesses and jobs to our city, region and the lower North Island.

"The continued growth and investment by major companies also underlines the need for further investment in supporting infrastructure," Mayor Smith says, "particularly the proposed Manawatū Regional Freight Ring Road, which would give heavy vehicles direct inter-regional state highway access to Te Utanganui."

Earlier this year, the Government announced a loan of up to $22.4 million through the Regional Infrastructure Fund to support the next phase of Te Utanganui, including work towards the first stage of KiwiRail’s hub.

Options for the location of the Manawatū Regional Freight Ring Road are currently being explored and will be open for community consultation in the coming months. 

The wider Te Utanganui programme is led by CEDA in partnership with councils, iwi, KiwiRail and private-sector partners across the lower North Island. 

CEDA Chief Executive Jerry Shearman says continued public and private investment demonstrates the hub’s growing national importance.

"Te Utanganui is already one of New Zealand’s key freight and distribution hubs. With major road and rail links, access to ports, and one of only three airports in the country able to move freight 24/7, it’s perfectly placed to move goods quickly and efficiently around New Zealand."

 "A high-performing freight hub here in the heart of the country means more investment, more opportunities and more jobs, driving growth across our region and strengthening New Zealand’s economy."