Distribution hub expansion gains momentum after adoption of masterplan

Published on 16 November 2023

A map showing the proposed expansion of Palmerston North's northeast industrial zone to create a new distribution hub.

Work on the expansion of Te Utanganui, the Central New Zealand Distribution Hub has taken an important step forward with agreement from Palmerston North City Councillors on a masterplan to guide the growth of the area, within 3 stages over 30 years.

Delivering the benefits of national and international trade 

Te Utanganui is a freight, logistics, and distribution hub that combines road, rail, air and sea links via nearby ports. It’s already a key part of the national transport and freight network. The recently adopted masterplan will guide the growth of the hub over coming decades to leverage and enhance Palmerston North and the Manawatū region’s role in New Zealand’s national and international trade networks.  

The name Te Utanganui was gifted by Rangitāne o Manawatū and invokes the concept of an inland port, where things of value arrive by sea, sky and land, and then flow outwards again. Ki uta refers to an inland location and nui describes the hub’s vastness and importance. 

The hub will include and extend the city’s existing northeast industrial zone, which includes Palmerston North Airport, Ruapehu Aeropark, and KiwiRail’s planned Regional Freight Hub. Under the masterplan some of the land surrounding these areas would be incorporated into the industrial zone to make room for large format warehouse businesses who want to base themselves there. 

Planning and implementation for the hub is a collaborative effort between Palmerston North City Council, Manawatū District Council, the Central Economic Development Agency, Rangitāne o Manawatū, Ngāti Kauwhata, Horizons Regional Council, KiwiRail, Waka Kotahi, and various freight and distribution operators.  

Chief Planning Officer David Murphy says Council’s recent adoption of a masterplan means Te Utanganui is poised to become an even more important part of our national transport and freight network. 

“Palmy’s central position provides a huge opportunity for our city and the region to capitalise on our key role in both our national and international trade routes.” 

Te Utanganui is already a key servicing point for central New Zealand, including the Taranaki, Manawatū-Whanganui, Hawke’s Bay, Wairarapa and Wellington regions. It is also home to one of only 3 airports in the national air freight network which operate 24/7. 

“We are very well placed as a key logistics centre for goods in transit and a base for distribution. The aim is to provide a base for businesses wanting to operate from a purpose-built zone, able to accommodate large warehousing and all modes of freight transportation,” says Mr Murphy. 

Timeframes for development  

Development for Te Utanganui will require significant infrastructure investments, including work on the Main Trunk Railway Line, integrated stormwater reserves, and a regional freight ring road to support the freight hub's operation. 

The masterplan will be implemented in 3 stages, with the total Te Utanganui hub planned to eventually cover an area of 753 hectares by 2052. The development of KiwiRail's regional freight hub will play a pivotal role in this expansion. 

It’s likely the need for housing to support the development will mean changes and growth for nearby Bunnythorpe village. A village planning project for Bunnythorpe is currently proposed for our next long-term plan. This would be used to guide growth around the area and help realise the future aspirations of its residents. 

We’ll keep you informed every step of the way, so that you can have your say 

As the project progresses, we’ll be working with those affected by the proposed changes and our community every step of the way. We’ve begun talking to landowners within the planned zone and other interested parties.  

There will be a number of opportunities for people to formally submit on the proposed changes and be heard by the Council. The first of these will be as part of our joint consultation with Horizons on a Future Development Strategy for the region. This will happen in the first quarter of 2024, as part of our consultation on the Long-Term Plan 2024-34.  

The masterplan for development of Te Utanganui will be iterative. This means that there will likely be changes over time as we gain a better understanding on things like how to manage flood, stormwater and transport issues, and as we gather more local knowledge from our communities. After the long-term plan consultation, there will be further opportunities to take part in formal consultations as part of any proposed rezoning for each stage of Te Utanganui. 

For more information on the masterplan, or to talk with one of our planners please email planchange@pncc.govt.nz or call us on 06 356 8199

For more information on the masterplan and planned growth stages, go to pncc.govt.nz/TeUtanganui 

To learn more about Te Utanganui, go to teutanganui.co.nz