Northland’s Economic Transformation Accelerates with Key Infrastructure and Industry Projects

Northland is rapidly emerging as a vital hub for New Zealand’s future economic growth, driven by major developments underway and planned at Marsden Point and Northport. Rail Minister Winston Peters and Regional Development Minister Shane Jones highlighted these projects as game-changers that will bring jobs, trade, manufacturing, and international investment to the region, strengthening New Zealand’s position as a thriving exporting nation.

Marsden Point: Powerhouse of Energy and Export Potential

At the heart of Northland’s economic surge is Marsden Point, a strategic location rapidly becoming a cornerstone of New Zealand’s energy and export industries. Mr Peters described the area as a “burgeoning energy, export and economic powerhouse,” noting that the developments will bring “much-needed jobs, trade, manufacturing and economic development” to the region and country.

One of the flagship projects includes the refurbishment of a fuel tank in a collaboration between Channel Infrastructure and Z Energy. This facility will play a crucial role in supplying jet fuel to Auckland Airport via a pipeline stretching from Marsden Point to Wiri. According to Mr Jones, “This is great news for New Zealand’s fuel resilience and aviation sector.”

Beyond jet fuel supply, Marsden Point is positioning itself as a global player in sustainable energy with several ambitious projects underway or proposed. These include potential developments of sustainable aviation fuel (SAF) production, the construction of a bitumen import terminal, a diesel peaker plant, and a biorefinery. Together, these initiatives will establish Marsden Point as a world-class industrial and energy precinct.

Northport: Expanding Maritime and Shipping Capabilities

Equally significant is the development of Northport, New Zealand’s deep-water port facility, which offers a rare combination of deep harbour, ample land, and excellent transport connections. Mr Peters emphasized the importance of Northport in maintaining New Zealand’s maritime capabilities: “A commercial dry dock will bring specialist skills and international customers to New Zealand, maintaining large ships in a manner that a maritime nation desperately needs.”

The Government is advancing procurement processes for a Regional Infrastructure Fund-supported dry dock at Northport, which will enhance New Zealand’s ship maintenance capacity and attract international business. Northport’s strategic location complements and bolsters the existing port services in Tauranga and Auckland, providing stronger and more efficient shipping connections for the nation’s exporters.

Rail Link and Regional Infrastructure Investments

To further integrate Northland’s industrial hubs with the rest of the country, KiwiRail is preparing to open commercial discussions on the Marsden Point Rail Link project. This rail connection aims to improve freight transport efficiency between Marsden Point and key distribution centres, supporting the growing industrial activities in the region.

Minister Peters explained, “We are getting closer to finalising procurement of a provider for the dry dock and KiwiRail will open discussions, under commercial agreements, on its Marsden Point Rail Link design data for investors and builders. This will inform the best approach for building and funding this critical infrastructure.”

Special Economic Zones: Fueling Regional Growth

Regional Development Minister Shane Jones also announced his intention to take a paper to Cabinet proposing the use of special economic zones (SEZs) to further accelerate investment and development in Northland and other regions. SEZs offer attractive regulatory regimes and tax incentives designed to attract businesses and stimulate economic activity.

“With SEZs, we could create a highly conducive environment for investment that truly gets New Zealand’s economic engine roaring,” Mr Jones stated. This approach aligns with the Government’s broader regional development strategy, aiming to diversify the economy, create jobs, and enhance the quality of life for local communities.

Looking Ahead: A Bright Economic Future for Northland

Together, these initiatives position Northland as a key driver of New Zealand’s future economic success. From energy production and sustainable fuel development at Marsden Point to enhanced maritime services and improved transport infrastructure at Northport, the region is set to benefit from increased investment, innovation, and international trade.

Minister Peters concluded, “As an exporting nation, we need strong connections for shipping lines, and Northport offers the efficient shipping connections to bolster port services in Tauranga and Auckland.” The combination of infrastructure development, industry growth, and innovative policy measures like SEZs signals a transformative era for Northland and New Zealand’s broader economic landscape.