Southern Link Stage 1 on track for October opening
Stage 1 of inland port Southern Link (Mosgiel) is well underway and on track for containers to begin working through the site in late October this year.
The development is driven by landside space constraints on the Port Chalmers Container Terminal. Southern Link will integrate seamlessly with the port’s operations, delivering a more efficient service for exporters and shipping lines, and future-proofing the lower South Island for anticipated regional growth. It will also remove more than 1900 truck movements annually from Dunedin City streets.
Southern Link – situated on 50 hectares on the corner of Dukes and Stedman Roads – is a joint venture between Port Otago and Dynes Group. Stage 1 – known as Dukes Road West Yard – involves a logistics hub development on 2.3 hectares, using existing rail infrastructure to consolidate and handle containers through the site. Full development of Stage 1 will be completed mid October 2025.
Development of the full Southern Link site received a weighty endorsement in May, when the Government announced an $8.2m loan to KiwiRail towards establishing railway infrastructure at the Mosgiel site.
Chief Executive Kevin Winders says engagement with the Ministry of Business, Innovation and Employment (MBIE), KiwiRail and other parties was very positive. “These key stakeholders recognise that Southern Link delivers a critical piece of regional infrastructure – one that is needed to keep lower South Island exports flowing and the southern economy healthy.”
Dynes Group Managing Director Peter Dynes says Stage 2 construction is expected to begin in April 2026, with the bulk of development complete by the end of 2026.
“Southern Link is investing $200m in logistics infrastructure and warehousing, and has committed funding in place for Stage 2 and future development.”
Dynes Group and Port Otago have committed to being cornerstone tenants.
Terminal rail connection to Southern Link complete
In August 2025, Port Otago completed construction of a 6500m2 rail pad on the Port Chalmers Container Terminal. The new $13.5m rail pad enables rail shuttles to efficiently move between Southern Link and the port, removing trucks of the road and providing our customers space to grow, enabling seamless connection of containers coming and going between the sites.
