The loan to Southern Link Property and KiwiRail will help build a rail link with Port Chalmers. Photo: Brendon McMahon/Greymouth Star
The government is injecting $8 million into the development of an inland port at Mosgiel.
The Southern Link Logistics Park was expected to remove 19,000 truck movements from Dunedin streets every year, moving freight from Port Chalmers to Mosgiel by rail.
The hub was being developed by Southern Link Property Limited, owned by Port Otago and Dynes Transport.
The loan from the Regional Infrastructure Fund to Southern Link Property and KiwiRail would allow a three-track rail-siding to be built, connecting Port Chalmers to the Mosgiel hub.
Regional Development Minister Shane Jones announced the funding at a regional growth summit in Dunedin on Friday.
"This modest contribution not only opens up that line, but it gives confidence to an area that's often overlooked, despite the fact that it's an export powerhouse," Jones said.
"Like other parts of regional New Zealand, it's been through a trying set of transitional stages, but we are there to stand with the people, who see their future tied up in rail and the services that rail represents for the economy."
The project would reduce traffic congestion, and reduce travel time to and from the port for freight vehicles, Jones said.
He wanted to see the rail-line developed without delay.
"It's really disappointing how long infrastructure is taking in New Zealand. We seemed to be able to do things a lot quicker in the past.
"We are a lot smarter now, we have got better technology, so my message to the delivery agency is we don't want to see delay. We don't want to see unnecessary policy seances or endless plans.
"This is a straightforward, uncomplicated upgrade of infrastructure, which is done on a regular basis around the world, and we are not strangers to it here in New Zealand."
Earlier this week, Calder Stewart announced its plan to [https://www.rnz.co.nz/news/business/560948/3-billion-otago-inland-port-proposal-revealed
develop another inland port in nearby Milburn].
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