$3.1m Government Loan to Kickstart Industrial Development Near Gore

The 43-hectare industrial development will be delivered through a 50/50 partnership between Ngāi Tahu iwi authority Hokonui Rūnanga and Robertson Transport Limited.

Southland is set to receive a significant economic boost, with the Government committing a $3.1 million loan through the Regional Infrastructure Fund (RIF) to support the development of a new industrial subdivision near Gore.

Associate Minister for Regional Development Mark Patterson announced the funding today, describing the project as a major step toward addressing industrial land shortages and strengthening Eastern Southland’s long-term economic resilience.

Partnership to Address Industrial Land Shortage

The 43-hectare industrial development will be delivered through a 50/50 partnership between Ngāi Tahu iwi authority Hokonui Rūnanga and Robertson Transport Limited.

Mr Patterson said the project responds directly to a critical shortage of large, serviced industrial lots in the Gore District.

“It tackles the critical shortage of large industrial lots in the Gore District and supports long-term prosperity for both partners and the wider Eastern Southland community,” he said.

The subdivision forms part of a wider $13.6 million investment, strategically located on State Highway 1, providing strong transport and logistics links for future tenants.

Job Creation and Economic Growth

The development will transform underutilised farmland into a new industrial hub, with construction expected to generate up to 50 jobs.

Once operational, the site is expected to attract a range of industries, including:

• Fertiliser distribution

• Farm equipment servicing

• Warehousing and logistics

• Industrial retail and support services

The project is designed to support Southland’s core agricultural economy while also encouraging diversification and value-added activity.

Long-Term Benefits for Hokonui Rūnanga and Community

Mr Patterson highlighted the importance of the development in creating a sustainable, long-term income stream for Hokonui Rūnanga.

“Importantly, this development will provide Hokonui Rūnanga with a sustainable income stream through long-term leases, enabling it to fund vital health and social services for the community,” he said.

The initiative aligns economic development with social outcomes, ensuring local communities benefit directly from growth.

Regional Infrastructure Fund Supporting Southland’s Future

The Associate Minister said the Regional Infrastructure Fund is playing a key role in delivering the infrastructure Southland needs to build resilience and support future growth.

Southland currently produces 12 per cent of New Zealand’s pastoral exports despite having just two per cent of the population. However, the Gore District faces a shortfall of industrial land, requiring an estimated 100 additional hectares to meet future demand.

“This investment will help ensure the region’s economy continues to thrive,” Mr Patterson said.

Construction Timeline and Future Development Stages

Construction is expected to begin in mid-2026, subject to rezoning and resource consents.

The industrial subdivision represents the first stage of Hokonui Rūnanga’s wider 90-hectare master plan, with future stages expected to include:

• Relocation of the marae

• Papakāinga housing

• A potential childcare facility

Together, the staged development aims to support economic growth, cultural outcomes, and community wellbeing across Eastern Southland.