National road freight association Ia Ara Aotearoa Transporting New Zealand is backing the Greater Manawatū City and Regional Deal Proposal, saying the Deal’s five priority projects would support the region’s role as a vital centre for freight and distribution, and support strong economic growth.
The Manawatū region is the lower North Island’s key transportation hub, providing key links to Wellington, Taranaki, Whanganui and the Hawke’s Bay.
City and Regional Deals is a Coalition Government initiative to establishing long-term agreements between central and local government. The programme is intended to unlock funding and resource opportunities to support councils to make improvements in their region.
Transporting New Zealand participated in the development of the Deal proposal by sharing its transport expertise, and by representing its road freight sector members who will be affected by the Deal and its outcomes.
Transporting New Zealand Chief Executive Dom Kalasih says the Te Utanganui Central NZ Distribution Hub, Manawatū Regional Freight Ring Road and a tolled Manawatū Expressway priority projects would super-charge the region’s economic potential and support improved productivity, safety and emissions outcomes.
“The opening of the Manawatū-Tararua Highway this year is going to be great news for road freight in the lower North Island and will be a real productivity boost. Getting this City and Regional Deal progressed will maintain this strong momentum.
“The planned Manawatū Regional Freight Ring Road will reduce congestion in Palmerston North City Centre and link freight operators to the Te Utanganui Road, Rail and Air Freight Hub, Kalasih says.
“The Deal aligns with our members’ priorities of reducing travel time, cutting freight costs for customers, and enhancing supply chain resilience.”
Transporting New Zealand highlights several key benefits of the regional transport plan for the road freight sector:
- Reduced Congestion – Significant reduction in traffic volumes around central Palmerston North, allowing freight operators to move goods with fewer delays.
- Improved Safety – Enhancements to key transport corridors will reduce accident risks, ensuring safer journeys for all road users.
- More Efficient Freight Access – About 20 per cent of New Zealand’s consumer goods move through the Manawatū and this will only increase with the development of improved transport links.
- Long-Term Economic Growth – A well-functioning transport network will drive economic benefits for the logistics sector and local businesses, on top of the projected $4 billion investment in infrastructure over the next five years.
The Greater Manawatū City and Regional Deal Proposal is a joint bid from Horizons Regional Council, Horowhenua District Council, Manawatu District Council, Palmerston North City Council and Tararua District Council.
All City and Regional Deal proposals submitted are being assessed by the Department of Internal Affairs before being considered by Government Ministers. The Government intends to have the first Deal done by the end of 2025, with three deals in place by October 2026.
About Ia Ara Aotearoa Transporting New Zealand
Ia Ara Aotearoa Transporting New Zealand is the peak national membership association representing the road freight transport industry. Our members operate urban, rural and inter- regional commercial freight transport services throughout the country.
Road is the dominant freight mode in New Zealand, transporting 92.8% of the freight task on a tonnage basis, and 75.1% on a tonne-km basis. The road freight transport industry employs over 34,000 people across more than 4700 businesses, with an annual turnover of $6 billion.
