The integration of Australasia’s largest industrial development with a new inland port is set to create a new multibillion-dollar manufacturing and logistics network and employ thousands in the South Island.
Awarua Quadrant is a 513-hectare intermodal hub and renewable energy precinct - a vertically integrated ecosystem that brings together large-scale manufacturing, warehousing, rail-enabled freight staging and provides exporters connections to multiple seaports.
Strategically located in Invercargill, the industrially zoned development is designed to transform Southland’s economy by attracting high-output food processors, advanced manufacturers and clean-tech exporters to the region.
Developers Calder Stewart said the large-scale precinct, which is the equivalent of 733 rugby fields, will have a potential built-out value exceeding NZD 2.5 billion, depending on the mix of occupiers, and is well advanced in planning, with more than three years of preparatory work completed - including capital investment, engineering design and stakeholder engagement.
A feasibility study revealed that the site has the potential to generate over 50 MW of renewable energy annually through a combination of wind turbines and rooftop and ground-mounted solar panels. The generation capacity will be appealing to a range of industrial manufacturers, enabling them to reduce their production emissions.
The development will also feature one of New Zealand’s largest native restoration projects, with over one million plants to be established alongside a 100-hectare public wetland and recreation reserve for the region.
The announcement marked the second stage of privately funded manufacturing and freight infrastructure planned for the lower South Island in recent weeks and is expected to provide a significant long-term boost to both the Southland and Otago economies.
John D’Arcy, lower South Island business development manager at Calder Stewart, said with direct access to two deepwater ports, proximity to Manapouri’s renewable energy network, and integration into a broader inland port logistics system, the site is set to shift Southland from a primary-sector-led economy toward high-value industrial production and export.
He added that the project aims to create long-term employment, diversify the regional economic base and strengthen Southland’s role in New Zealand’s national supply chain.
The combined Awarua and Milburn Quadrant developments, spanning over 700 hectares between them, are strategically designed to operate as a unified export and logistics ecosystem. Awarua will function as a high-output industrial hub, while Milburn will act as the logistics interface.
D’Arcy said by coordinating both ends of the supply chain, the company aims to provide seamless freight staging, improved rail efficiency and just-in-time delivery to multiple South Island ports.
“Milburn and Awarua aren’t just two sites, they’re parts of a single, integrated solution. While Awarua creates the volume, Milburn provides a staging area and facilitates the movement of hundreds of shipping containers by rail, aligning with vessel schedules to ensure seamless operations. That means we can offer tenants real-world export certainty even as shipping windows tighten and ports come under more pressure,” he said.
“Milburn is purpose-built as a scalable buffer in the export process, positioned to relieve pressure on coastal ports and give exporters greater control over their outbound logistics. Ships have become significantly larger over time. If you go back to the mid-1970s, the average ship was around 11,000 tonnes. Now they’re closer to 100,000-180,000 tonnes. Therefore, the old terminals lack the capacity for empty container returns. Larger ships mean more containers being offloaded and a much greater requirement for long-term storage.”
Mark Johnston, Land and Delivery Manager at Calder Stewart, also noted that the multi-port access strategy provides tenants with greater flexibility. Each seaport in the South Island plays a vital role in the region’s freight network.
With manufacturers working across a range of freight providers, having access to multiple ports gives tenants the flexibility to align with shipping lines that best suit their export needs.
The 320 hectares of buildable industrial land at Awarua could generate export levels that exceed what a single regional port could manage.
Based on international benchmarks for similar industrial precincts, a fully developed Awarua site could generate up to 200,000 tonnes of freight annually, equivalent to approximately 15,000 shipping containers.
Early tenant discussions include both national and offshore parties across various sectors, who see the benefits and scale that this site provides.
“Traditionally, primary produce and tourism have carried the weight of New Zealand’s economy. However, COVID-19 and global instability have shown us how exposed we are. We need high-value manufacturing and exports to step up, and Southland is the place to start,” said Johnston.
“Southland has rich deposits of metallic, non-metallic and energy minerals. When you combine that with abundant renewable energy on-site, you’ve got the bones of a very competitive proposition for a large-scale processing facility. That’s the kind of transformational manufacturing we’re trying to attract.”
The development is expected to boost Otago’s NZD 16.8 billion economy as well.
“Eighty percent of the South Island’s freight originates in Southland. The creation of new freight corridors will support the movement of significant volumes of product north to Dunedin,” he said.
“These aren’t just regional projects, they are nationally significant infrastructure investments that solve multiple problems at once: industrial growth, freight resilience, energy security and regional development. We’re building for what New Zealand will need ten years from now, not just what it needs today.”
Chami Abeysinghe, chief executive at Great South, Southland's Regional Development Agency, said the proposed development has the potential to become a cornerstone of the region’s long-term plan.
"Awarua Quadrant could provide much-needed capacity for Southland as we diversify our economy and attract high-value industries. The availability of consented land for large-scale commercial and industrial processes not only facilitates greater confidence but also reduces costs and de-risks investments."
With its proximity to key transport links and port, it’s ideally placed to support growth in sectors like aquaculture, engineering, agri-tech and supports consolidated warehousing.
It’s also a strong signal to investors that Southland is open for business and committed to enabling innovation-led industries. It shows what’s possible when regional development aligns with business ambition.
With construction start dates dependent on the requirements of anchor tenants, Awarua is fully zoned for heavy industry and ready for activation. The company is in discussions with several prospective occupiers and expects that once the first commitment is secured, its first stage will be online within a 12 to 24-month timeframe.
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