A new rail hub for the shipment and processing of logs will be built in the Rangitīkei district, near the town of Marton.
The facility will be supported with NZ$9.1 million ($8.3m) from the government’s $3 billion COVID-19 response and recovery fund.
Infrastructure Minister Shane Jones said that the hub would get more freight onto rail.
“This rail hub will not only attract more commercial developments to the immediate area, it will also take freight trucks off the roads.”
The local council expects the hub, which will include a debarker facility, will create roughly 83 jobs during construction and 22 full time jobs once operational.
Improved efficiencies created by the Marton facility, located in an existing freight centre, will combine logistics efficiencies.
“Marton is central to significant forests in Rangitīkei, Manawatū and Horowhenua regions that are mature and will continue to produce mature trees and increased volumes for the next 15 years. It is also a key service town for agriculture in the area, making it a good location for a freight hub,” said Jones.
“Parts of this region are deprived, with few options for economic development. This construction project will benefit the building and associated industries, boosting the local economy and keeping people in jobs. It also provides potential for the region to diversify and boost the local economy.”