Draft approval granted for $100m inland port near Mosgiel

A proposal to build a $100 million logistics hub near Mosgiel in Otago has won draft approval from a fast-track panel.

The decision paves the way for the proposed Southern Link Inland Port to be built by Port Otago and Dynes Transport on Dukes Road, pending final feedback and agreement on a set of conditions.

The April fast-track application outlined features of the project including a container depot with 1500 refrigerated container charging ports and up to 80,000 square metres of warehousing.

Once operational, rail siding would link the hub to Port Chalmers, which was expected to take an estimated 30,000 heavy truck trips off Dunedin streets and State Highway 88.

Dynes Group managing director Peter Dynes said the project would bring road, rail and port services together to give lower South Island producers more choice in how they moved their goods.

"By connecting Dynes' transport network with KiwiRail and Port Otago, Southern Link will give our customers more options and provide end to end freight solutions that meet the needs of their businesses," he said.

Port Otago general manager marine and infrastructure Grant Bicknell said the port would also relieve pressure on constrained land at Port Chalmers, allowing Port Otago to meet growing demand.

"While this is a draft decision by the fast-track expert panel, we're pleased that it lets us move ahead and assess and finalise the consent conditions with the panel," he said.

The project was estimated to sustain about 1489 jobs over its 10-year construction period, as well as 104 permanent operational jobs once complete.

The draft decision included conditions covering noise, lighting and environmental safeguards.

The panel also made it mandatory for the rail siding to be built and operational within a year of the port's opening.

The fast-track panel is due to release its final decision on 12 November.