Ports of Auckland Limited has signed a conditional agreement to purchase 33 hectares of land at Northgate Business Park in Waikato for development as a freight hub.

The business park is located in Horotiu, 8km north of Hamilton on the North Island of New Zealand, and has excellent road and rail connections, according to the company.

“This is a strategic purchase, which will be developed over a number of years,” said Tony Gibson, chief executive of Ports of Auckland. “Establishing a freight hub in the Waikato is a central part of our supply chain strategy as it is one of New Zealand’s fastest-growing areas and a major freight generator. Waikato will complete our North Island freight-hub network, complementing our existing sites in the Manawatu, Bay of Plenty and Wiri, South Auckland.”

Gibson added that a key benefit of the network is that it can balance out freight flows around the North Island and eliminate unnecessary of empty containers.

The first step will be to develop road and rail connections to the site, which is beside the North Island Main Trunk line, according to the company.

“We are committed to increasing our use of rail and creating a more sustainable transport system, which will in turn help generate infrastructure savings at a national level,” said Gibson. “Our target is to increase the use of rail from 13 percent to 30 percent of traffic to our Waitemata port in Auckland. The development of our inland freight hub network is critical to achieving this target.”

The company aims to complete the deal by March 31, according to a statement.