The Project

Building Otago’s inland port to secure the region’s freight future

Otago faces a choice. Build the region’s inland port now, in Mosgiel, or absorb rising freight costs, port congestion and lost trade as the region’s supply chain runs out of room. The Southern Link Logistics Park is a privately funded, 40-hectare development adjacent to rail in Mosgiel, built to take pressure off Port Otago’s congested wharf and move freight off Dunedin’s roads and onto existing rail infrastructure.

The case for building now is time-bound. Port Otago’s current container storage at Strathallan Street runs out when the lease ends in 2030. That storage, and the handling and repair work that goes with it, needs a new home well before then. Planning that now, while Otago still has land and options, avoids a rushed and more expensive response later.

This is a future-proof solution. It supports growth across the Southern region for the next 50 years, keeps Otago’s freight connected to the port the region owns, and gives exporters, importers and shipping lines the reliability they’re increasingly looking for.

A site designed for growth and sustainability

Sophisticated onsite warehousing, container facilities and state-of-the-art equipment and technology at the Southern Link Logistics Park will use renewable energy. Planning includes smart initiatives to mitigate noise or light pollution, caring for the local community. The site will be MPI and customs-compliant for imports and exports, including the potential for a free trade zone to be developed.

The Southern Link Logistics Park offers transformative environmental gains, urban transport advantages, and social and economic benefits. We seek to collaborate with the community, local government agencies and stakeholders to bring this exciting proposal to life.

Southern Link Logistics Park provides:

  • World-class inland logistics operation
  • Single-site solution in nearby Mosgiel
  • Uses existing Kiwirail infrastructure
  • Speeds up the transfer of freight and goods
  • Transformative environmental benefits
  • Renewable energy in new buildings & handling equipment
  • Customers get the opportunity to release capital
  • Cost efficiencies for customers, provide economic growth for all

Southern Link Logistics Park

Understand more about the Southern Link Logistics Park and the benefits to Dunedin and the Southern Region.

The Site

Located on a flat 40-hectare rail-adjacent site, the Southern Link Logistics Park has the capacity to scale for the future.

  • Onsite upgrade facilities, allowing faster container access
  • Break Bulk Storage Facility for assembly and construction of non-containerised products
  • Renewable energy to power new buildings and container handling equipment
  • Increased chiller and frozen capacity to provide ambient, chilled, and frozen storage
  • Customers can outsource their logistics for just-in-time delivery to the Port
  • Temperature-controlled plugin services for imported and exported goods
  • Straddles and reach stackers to move containers around the site
  • Onsite MPI and customs compliance for the import and export of goods
  • Potential for a free trade zone to be developed
  • Workforce housing & accommodation supplied onsite
  • Five-hectare Container Terminal for storage of import and export containers
  • Four-hectare Container Deport for maintenance and upgrade of export and import containers
  • Warehousing configured to 2500 – 15,000 sq metres per customer
  • Warehouses have their own truck canopy and unloading area
  • Higher Stud warehousing to allow for five-pallet high stacking
  • Truck Servicing Area includes Hydrogen fuel depot, truck & and fork hoist maintenance facility
  • Containerised and bulk cargo equipment – powered by renewable energy
  • Empty container storage and supply

350,000

tonnes of import / export products are currently moved each year by truck into Dunedin

Dunedin truck movements cover

1,160,000

kilometres each year, accounting for 4,800 tonne of CO2 per annum

$300m

Private sector investment

Opportunity and Benefits

The Southern Link Logistics Park creates deep economic value and future proofs trade growth.

Business and Economic Benefits

  • Creates deep economic value and future-proofs trade growth for the Southern region
  • Strengthens Port Otago, a locally owned port that pays dividends to Otago ratepayers and supports regional jobs, keeping that value here in Otago rather than at risk of moving to competing ports
  • Mosgiel sits 32km round trip from Port Chalmers. An alternative site at Milburn is 54km, adding cost, time and cycle delays to every container movement
  • An efficient transport and distribution network leads to increased economic activity, trade and regional investment
  • Increasing available freight transport windows on road and rail, plus better utilisation of facilities, means better customer cost outcomes
  • Allows customers the option of capital release, moving local business expenditure from fixed to variable cost, transferring risk and freeing up capital
  • World-class, high-quality logistics park of scale to keep costs down
  • Leverages the existing KiwiRail infrastructure, which alleviates the need for big capital expenditure from central or local government

Transport Infrastructure Benefits

  • Vastly improved transport infrastructure and improve supply chain resilience
  • Reduces heavy truck traffic away from Dunedin City, reducing expensive wear and tear on local roads
  • Reduces transportation bottlenecks and congestion
  • Reducing over 19,000 truck movements annually from Dunedin city streets onto rail
  • One Heavy truck and trailer is equivalent to 21 cars in terms of road degradation, providing significant cost savings in road maintenance
  • Critical supply chain resilience can be achieved by moving core freight and transport services outside Dunedin City
  • Unlocks Port capacity for better utilisation of limited Port infrastructure

Employment and Growth Benefits

  • The construction phase of the Southern Link Logistics Park will create significant job growth
  • The Southern Link Logistics Park includes warehousing facilities, trucking, rail operations, and logistics roles that will result in further employment for the southern region
  • Onsite worker accommodation is provided to support the workforce
  • Streamlines logistics and supply chain movements, increases and future-proofs productivity, and maintain the cost per tonne
  • Offers customers increased capacity and the reassurance of long-term network resilience across the southern region

Carbon Emission Reduction

Benefits:

  • The Southern Link Logistics Park will reduce over 19,000 truck movements annually from Dunedin city streets onto rail.
  • The resulting reduction in transport carbon emissions aligns with the Dunedin City Council’s commitment to Zero Carbon.
  • Today, over 350,000 tonnes of import / export products are moved by truck into Dunedin. These truck movements cover 1,160,000 kilometres, accounting for 4800 tonnes of carbon dioxide, addressing this carbon impact.
  • Reducing urban transport congestion because of fewer truck movements reduces C02.
  • By reducing the routes travelled and speeding up the transfer of goods, climate emissions are reduced.

Why here, why now?

Mosgiel is the right location, and we need to move quickly.

  • Otago has a narrow window to get this right. Plan the region’s inland port properly now, while land and options still exist, or face a rushed and more costly response once Port Otago’s Strathallan Street lease ends in 2030 and existing storage arrangements run out
  • Otago’s population is projected to grow by approximately 27% to 315,600 by 2053. That growth brings investment and opportunity, but only if the region’s infrastructure keeps pace
  • Infrastructure decisions made now will shape Otago’s competitiveness for the next 50 years
  • An inland logistics facility adjacent to existing rail infrastructure reduces Dunedin City truck and traffic congestion
  • Dynes Group and Port Otago have jointly invested in acquiring the site required to establish Southern Link Logistics Park
  • The Resource Consent report for the development is underway, requiring re-zoning from Rural to proceed.
  • The site takes pressure off Port Otago’s congested wharf infrastructure, where reclaiming land is no longer feasible
  • With a shortage of industrial land in Dunedin City, Southern Link releases valuable inner-city land as the city plans for growth
  • Mosgiel is a 32km round trip from Port Chalmers. An alternative site at Milburn is 54km, adding cost and cycle time that becomes prohibitive at scale
  • $300M development with direct positive impact on the region’s economy.

FAQs

The Southern Link Logistics Park is planned for the corner of Dukes and Stedman Roads, Mosgiel.

Port Otago's current container storage at Strathallan Street operates under a lease that ends in 2030. When it ends, that storage, along with the handling and repair work that goes with it, needs a new home. Exporters will still need empty containers, importers will still need goods unpacked and distributed, and shipping lines will still need efficient handling. Planning that solution now, while Otago still has land and options, avoids a rushed and more expensive response once the lease runs out.

The Southern Link Logistics Park project build is planned to begin in 2025 and be completed by 2035.

The proposed site of the Southern Link Logistics Park project is rural and will need to change to industrial to proceed, the same zoning as the neighbouring property.

The Southern Link Logistics Park will be in operation 7 days a week, on completion.

Southern Link is a joint venture between Port Otago and Dynes Group, alongside Chalmers Properties Ltd. Port Otago is a locally owned port that returns dividends to Otago ratepayers and supports regional employment, and Southern Link strengthens that asset rather than risking freight moving to competing ports.

The $8.2 million loan provided by the Ministry of Business, Innovation and Employment, through the Regional Infrastructure Fund, has been awarded to KiwiRail to support the construction of a new rail siding. This investment enables vital infrastructure that will deliver commercial benefits for KiwiRail and support the long-term success of the Southern Link Logistics Park, improving freight efficiency and unlocking regional economic growth.

Port Otago is a critical economic driver for the Otago region but is constrained by a lack of landside space at Port Chalmers. Mosgiel offers a strategic solution, located adjacent to existing rail infrastructure and close enough to Port Chalmers to support direct, efficient freight transfer by shuttle train. The site has been acquired by Dynes Group and Port Otago as a joint commercial investment. Southern Link provides scalable storage capacity to improve container flow, reduce port congestion, and deliver a more resilient supply chain for the region's exporters. Containers can be staged and transported to Port Otago just in time for vessel arrival. Inland ports are a proven model. Every major city in New Zealand has one, except Dunedin.

No, the long-term goal is the opposite. In Stages 1–3, truck traffic is expected to increase by just 1%, primarily from increased freight out of South and Central Otago. As the Southern Link Logistics Park evolves into Stage 4, we anticipate that continued economic growth may lead to increased freight volumes and traffic movements. While this level of growth is not expected for another 10 years or more, discussions are already underway between NZTA, local authorities, and invested community partners to support the future implementation of a heavy traffic bypass. This is a time for regional collaboration and forward thinking. Together, we can ensure this project delivers lasting benefits while planning proactively for future infrastructure needs.

We welcome regional investment and discussion around infrastructure that supports Otago's freight future. Mosgiel is a 32km round trip from Port Chalmers. Milburn is 54km, adding distance, cost and cycle time to every container movement between the inland port and the port itself. A large facility that far south is also more likely to operate as a multi-port hub, with freight able to move toward competing ports outside Otago rather than staying connected to the port this region owns. The Southern Link Logistics Park has been in development for over five years, with active collaboration between Port Otago, KiwiRail, and Dynes Group. It is shovel-ready, supported by Government investment, and aligned with current infrastructure and planning frameworks.

Dynes Transport Group is a family-owned New Zealand logistics company, proudly founded in Dunedin in 1969, providing nationwide transport solutions across sectors such as dairy, forestry, viticulture, and bulk goods. Today Dynes has evolved into a logistics and solution architecture company. The company plans to divert a percentage of current freight volumes onto rail and is partnering to support a more efficient, lower-carbon freight future. Dynes Transport Group is investing to enable KiwiRail to grow, not compete. The Southern Link Logistics Park is about growing freight capacity through smarter multi-modal logistics, not more road pressure.