South Port expands storage for dairy products at Bluff facility

The country's southernmost port at Bluff has opened a new freight centre, expanding its warehousing capacity for dairy exports.

With New Zealand's dairy exports reaching a record $28.8 billion for the year to June, South Port has backed the valuable trade, adding 4000 square metres of storage capacity.

The company purchased the former Southland Coolstores site for redevelopment into the Bluff Freight Centre.

"The team's done a very good job of upgrading the facilities and getting them into a dairy standard store," chief executive Derek Nind said.

Agriculture is a growth sector for the port, highlighting the benefit of stronger commodity prices flowing through the South Island's supply chain.

Total cargo volumes increased by 11.5 percent to record levels in the year to June, with net profit up 21 percent to $16.1 million.

South Port said the cargo lift to a record 3.96 million tonnes translated into a substantial lift in profit.

"Predominantly we are a bulk port, so 3.3 million of our tonnes is bulk cargo and that's supported by the New Zealand aluminium smelter, which is about 24 percent of our key volumes across the port."

Forestry dominates primary sector exports at the port with fertiliser and stock feed bringing in significant import business.

"We've got a great mix of forestry, farm inputs, fertiliser, stock food, and containers which create most of our volume."

Around 20 new jobs are anticipated, boosting the 140-strong workforce.

"With container throughput reaching an all-time high of 62,000 TEU, this level of growth will require additional staffing, and we are looking to fill around 21 additional roles in the next 12 to 18 months."

South Port is also looking to capitalise on Southland's emerging industries, including Ngāi Tahu's Hananui 1285ha marine farm, which has received fast-track consent.

The Datagrid data centre near Makarewa, 7 kilometres north of Invercargill, and wind farm construction in the region may also boost business.

Mercury's Puke Kapo Hau wind farm will begin construction of its 40 turbines next month, and is expected to be fully operational by the end of 2028.