Article: Commercial
Benefits of investing in Bream Bay commercial property
As the designation process for the rail link to Northport nears completion, there is within the overwhelmingly positive submissions some gems which signify the start of an industrial land boom out there.
It is our pleasure in our inaugural issues of PropertyPlus to break what is probably the most significant property story in Northland. Those who have followed the developments in this area know that major commercial players have been evaluating and negotiating to establish processing plants for some time. Who they are and what they intend to build is highly confidential and commercially sensitive.
However because the rail link is so intrinsic to their operation Bio Pacific Energy Ltd and Pentarch Forest Products have gone on public record and announced their plans.
Here are relevant quotes from their submissions:
“Bio Pacific Energy Limited (BPE) is in the late planning stage of a wood processing plant to be established near Marsden Point wharf, on land adjacent to the proposed new rail corridor. This plant will indicatively process between 400,000 and 600,000 mt. of wood, with most of this supplied as logs. The output will be an export product.
BPE will be contracting Pentarch Forest Products Limited (PFP) to supply the 400,000-600,000 mt. Delivery will be by truck initially, and once the new rail corridor is established it is anticipated that 60-70% of the input tones required could be delivered to the plant site by rail. The indicative completion date of the plant is end 2010, early 2011, depending on the outcome of the final planning.
Pentarch Forest Products (PFP) is a log exporter that uses up to five New Zealand ports at any one time including Marsden Point. It is intended to grow the Marsden Point business to 100,000 tonnes per year by 2010. All of this volume will have to be delivered by truck until the rail link is built. Once the rail link is built it is expected about 50% of this volume will be able to utilize rail delivery to the port.
PFP is going to be contracted by Bio Pacific Energy Ltd (BPE) to supply 400-600,000 tonnes of logs and wood waste to a wood processing plant being planned by BPE to be built near Marsden Point. The wood processing plant is planned to be commissioned by early 2011. Initially all logs will have to be delivered by truck but once the rail link is built our logistical planning indicates that 60-70% can be delivered by rail if costs are competitive with trucking.”
400,000 – 600,000 tonnes of processed export product plus another 100,000 tonnes of logs is a massive increase on what is currently exported through Northport. The existing volumes already justify the rail link. This increase is likely to justify the building of the (already consented) fourth berth and the addition of container cranes. Once this is done Northport (NewZealand’s only deepwater port) will be able to service the world’s largest container ships. All of which enhances the commercial attractiveness of establishing further processing plants in the area.
To appreciate the potential it is useful to have some understanding of the current status of Northlands timber industry. The main plantation species grown in Northland is radiata pine and its quality (wood density and fibre length) is the highest in New Zealand due to the clement climate. This quality is manifested in the strength, stiffness, hardness, drying, and finishing properties of the solid timber and also the fibre length influences its suitability for pulping and other processing. Forecasts from MAF indicate that between 2008 and 2012 there will be a steady increase in the Northland harvest from 2.3 million cubic metres to around 3.6 million cubic metres per year.
This is just the timber industry potential never mind the other primary produce processing, mining and manufacturing possibilities.
PropertyPlus spoke to Peter Jennings, an Auckland based real estate agent who has specialised in the Ruakaka Marsden Point area for over nine years. He informed us that the first stages of the two major industrial parks Northgate and Port Marsden Park are nearing completion with lights now up, sealed roads completed and titles about to be issued. These developments have over $75 000 000.00 of unconditional sales and he is now fielding inquires from Northland Businesses and prospective tenants who wish to rent or build there.
He expects this interest to turn into a deluge as more announcements of major industry locating there become a regular occurrence. Without giving any details he said that another major timber processing plant was also establishing out there and non governmental organisations had expressed interest in funding the rail link construction. As the master agent he is currently appointing local sub agents to handle the rush.
Other factors he attributes to driving this interest are the recent announcements of more roading improvements such as a bypass from Wellsford to Warkworth, straightening the southern side of the Brynderwyns and major road widening is already taking place.
Peter Jennings concludes: “The Whangarei District Council is hearing submissions for the new Structure Plan for this entire area and upon its adoption, I believe the North will experience the biggest economic booster it has ever seen. The major Industry now planning to move to Marsden Point/Ruakaka and Northport area will soon create major employment growth for all of Northland. A big thank-you to the Whangarei District Council, Regional Council, Ontrack, Northport and the Developers whose foresight and planning have contributed to the changes and opportunities we are witnessing right now.”
Invest Now in the best Industrial Land in Northland.
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