$19.9 million from PGF for Kawerau

Regional Economic Development

A $19.9 million investment from the Provincial Growth Fund will help develop essential infrastructure for an industrial hub in the Bay of Plenty town of Kawerau, Regional Economic Development Minister Shane Jones says.

“The funding will go to three projects to further develop the Putauaki Trust Industrial Hub, an industrial development which will act as a catalyst for much-needed economic growth the Eastern Bay of Plenty.”

The  projects are:

  • Kawerau Container Terminal (KCT Co Limited) - $9.6 million
  • Putauaki Trust roading extension and infrastructure (Putauaki Trust) - $7.5 million
  • Kawerau Off-Highway Road (Sequal Lumber Ltd) - $2.8 million

Putauaki Trust Industrial Hub needs an efficient rail link to transport goods and connect heavy industry in the Bay of Plenty to global markets. A reliable road network is also essential for the hub to attract new businesses,” Shane Jones said.

A total of $9.6 million from the PGF is funding the construction of rail siding at the Kawerau Container Terminal to allow for the loading and unloading of containers.  This will take pressure off roads by removing an estimated 40 daily truck trips from local roads and reduce Co2 emissions.

The Putauaki Trust industrial roading extension will connect around 50ha of vacant plots within the Hub to existing roads by adding a turning bay and a roundabout on SH34.

The Kawerau Off-Highway Road will be a new 1.6km stretch direct to the Kawerau Container Terminal. This will be used by large vehicles that cannot use the existing highway.

In 2018, the Putauaki Trust Industrial Hub received $2 million for the first stage of construction.

“The $19.9 million I’m announcing today will create significant employment opportunities and attract further private sector investment. This is an exceptional example of the Government partnering with Māori, local council, businesses and the community to create a landmark change for the future of Kawerau.

“We back communities such as Kawerau by funding projects that will make a difference to the lives of local people for generations to come, while boosting industries vital to New Zealand’s economic success,” Shane Jones said.

The project is the result of more than a decade of planning work from Putauaki Trust, council and businesses, and is expected to create at least 150 jobs in Kawerau.