Auckland pressures drive up demand at Inland Port

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Land costs and other pressures are pushing up interest in Tainui Group Holdings’ industrial land next to its Inland Port, according to TGH chief executive Chris Joblin.

As TGH gains resource consent to subdivide the 48 hectare industrial site Mr Joblin says it is getting strong demand particulary from Auckland for large scale industrial sites.

“Land costs and usage pressures in South Auckland have been driving inquiry south and we are in talks with a number of major manufacturers and distributors seeking large scale sites to future proof their operations,” Mr Joblin says.

These industrial resource consents mean TGH can provide potential industrial tenants with time certainty about relocating their operations. Being adjacent to the inland port, these early movers will be best placed to get the full benefits of the wider 480 hectare precinct.

“We are experiencing a high level of customer and tenant inquiries particularly from major warehousing and distribution businesses looking to relocate outside Auckland including significant players in construction equipment and materials, food and drink processing, and from within the dairy, forestry, horticulture and retailing sectors.

“Our potential tenants and customers can now be assured in their own planning for warehouses, distribution sites, pack houses or other facilities to take advantage of sites which are well connected by road and rail and offer port neutrality between Auckland and Tauranga. That certainty will be appreciated by businesses taking a long-term view of their own growth as well as growth in the golden triangle,” Mr Joblin says.

With direct connection to the future Waikato Expressway, the industrial zoning opens up opportunities for a wide range of development options.

Mr Joblin says the 48ha site, with its easy access to prime productive regions, lends itself to export activities, such as packing facilities or horticultural exports. Importers are also suited as two million people live within 140km, lending itself towards North Island or regional distribution centres for food products or retail merchandise.”

Leasing inquiries for the wider Ruakura precinct are being managed by leading industrial leasing specialists JLL.

Sam Smith, head of Industrial for JLL, confirms that inquiry levels are strong for large footprint sites in Waikato.

“New distribution-based business models requiring more scale, efficiencies and connectivity are driving a significant number of businesses to consolidate smaller, older and fragmented sites into larger, well connected central developments,” says Mr Smith.

Meanwhile leading civil engineering and resources company Fulton Hogan is well advanced with the initial works covering the first six hectares of what will eventually be a 31 hectare inland port with the capacity to handle around one million TEUs (20 foot container equivalents) per year when fully built. TGH, along with its JV partner LINX Cargo Care Group Ltd expects to commence initial operations at the inland port in the first half of 2019.

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