Manawatū-Whanganui Region (Post-COVID-19) Economic Recovery Strategy
“WHAT”
Survive Short-term Keep people in their jobs; keep businesses alive • Cash Support for businesses Survive 0-6 months 3 • Advice Wage subsidy 3 Keep people in work; provide work for businesses Revive Medium-term Shovel-ready, • Jobs Revive suffering from the COVID downturn 6-12 months job-rich infrastructure Phases Work • Businesses projects Create new, valuable jobs. Build vigorous, productive Plans Thrive Long-term Big Regional Thrive • Resilience businesses. Achieve ambitious regional goals. 12+ months Development Projects • Future-proof
Priority Projects Box 2 – Project Detail High
$ Estimated Central NZ Projects Impact Food O2NL Investment Jobs distribution Central NZ distribution – Regional Freight Ring Road and HQ Ruapehu c. $3-3.5 Freight efficiency and connectivity across Central North Island Freight Hub - significant development SkillsSkills & & Te Ahu a billion c. 350 for central New Zealand and ports, reduced freight Tourism project: new KiwiRail distribution hub, new regional freight Talent (public and construction costs, reduced carbon emissions, major wealth Talent Turanga ring road commercial) and job creation Shovel-ready Highway Lead: PNCC – Heather Shotter Skills & Talent Projects Critical north-south connection, freight SH1 – Otaki to North of Levin (O2NL) – major new alignment c. 300 over 5 Te Puwaha - c. $800 efficiency, safety and hazard resilience, major 1 2 for SH1 around Levin years for million wealth and job creation through processing, Whanganui Lead: Horowhenua District Council – David Clapperton construction Impact manufacturing and logistics growth Marton Port axis Manawatū Ruapehu Tourism - increasing Tourism revenue from $180m Facilities and tourism services development Rail Hub c. $300 - Retain c150, • to $400m per year throughout Ruapehu and wider supporting Job-rich Recycling $400 million Create c750 • At scale Lead: Ruapehu District Council – Warren Furner region • Have Te Puwaha- Whanganui Port - major project with port Enabling marine servicing and manufacturing, wealth National redevelopment, marine precinct, skills hub, all guided by c. $200 c. 100 for regeneration of industrial area, enhance health creation Tupua te Kawa million construction and wellbeing of the Whanganui River, Flying School Lead: Whanganui District Council – Kim Fell significant job, skills and training opportunities capacity / Simulator Rural Foxton Innovation Lab Futures Te Ahu a Turanga Highway (Manawatū George Highway Critical east – west connector, freight efficiency, Blueberries c. $600-700 c.350 for Ngāti Apa replacement) - key national arterial link east-west safety, major wealth and job creator during and Hemp million construction Technology Strawberries Lead: NZTA – Lonnie Dalziel post construction Feijoa 2 Hangar 3 Shovel-ready Projects - significant bundle of 88 Manuka 4 Critical focus is on job creation, infrastructure Tararua Water Supply environmental and infrastructure projects across the region c. $1 billion c.15,000 honey improvement and environmental sustainability Route 52 Projects (Vinegar Leads: Various Hill, Tutaenui, c.90 for Marton Rail Hub– significant opportunity linked to forestry c. $14.5 construction Key stimulator of forestry logistics and Saddle Road) logistics and products million and rail hub manufacturing opportunities Lead: Rangitikei District Council – Peter Beggs operations
Moderate Skills & Talent – Regional leadership and coordination; local High Directly matching labour opportunities and Readiness axis projects. Operational Enabling demands with people; strong effective regional Significant skills projects established across the region with • Planned cost only role network covering iwi / Maori, business, EDAs, central coordination through Regional Skills and Talent • Approved government Leadership Group • Funded “WHY” “HOW”
What has the A25 Refresh work told us about how we What has the A25 Refresh work told us about our Optimising success by: should work together? priorities? Our leaders tell us: We can create a strong regional comparative advantage with • Having a focus and a plan • Have ambition for the future an ambition beyond the ordinary: • Utilising key data on economic and social impacts of COVID-19 • Be a joined-up region with a common voice to Government • Enhanced agriculture AND Food-tech expertise • Connection to Central Government • Take a region-wide approach – no one left behind • Transport AND a vision of a Central NI hub • Strong connection with industry and the private sector • Use both economic and social wellbeing indicators • • Get out of our silos and collaborate, but stick to our swim lanes • Restored tourism AND connection to the NZ lifestyle Working with Iwi/Māori throughout projects • Have a coordinated/common approach to government • Emerging Māori economy AND an accelerated approach • Visionary and robust regional projects • The importance of Iwi/Māori to the projects and the region’s • Basic training AND a focus on a high-skilled workforce • Using government funding to leverage private sector investment for the economic future • Enhanced agricultural productivity AND an enhanced, long-term sustainable environment
The Long Term Destiny of the Region Activating Central Government channels, through: The destiny of Manawatū-Whanganui is to be a growth centre at a national scale • Senior Regional Official • Public sector lead The “Pillars” The “Bearers” • Recovery and economic growth • Senior public servants Creating wealth in a sustainable future: Supporting the creation of wealth; making it possible: funds • Political relationships • Sustainable food and fibre production – nature- • Transportation – connection, hubbing, access based strategies • Education, learning and skills – strengthening the labour market Partnering for success by everyone playing their role: • Food-tech and agri-tech – value-added production • Connectivity – integrating the rural and urban areas • Visitor/Tourism – value over volume • Community Infrastructure – modernising ageing infrastructure e.g. Three Waters • Māori Economy – Māori-driven enterprises • Working closely together with • Staying in our swim lanes • Energy and environmental sustainability – e.g. Manawatū Recycling Centre, • Specialised Services and Manufacturing – e.g. industry, Iwi/Māori, local and • Sharing resources wind and hydrogen power National Simulator, Manfeild Centre, Whanganui central government. • Sharing success and credit Manufacturing Cluster
A Glimpse of the Future - New Zealand’s “Growth Bubbles” What are our roles? Survive • Jobs and business retention • EDAs, Chamber of Commerce and Government agencies (MSD, TPK, etc) Auckland Waikato/BOP • Complex, Revive modern • Diversifying • Employment creation and business support economy economy • Tertiary and • Agri-business • Councils, EDAs, Iwi/Māori and Government agencies (PDU, MPI, TPK, Manawatū- quaternary • Transport NZTA, MBIE) Whanganui Wellington Thrive • Food and agri-tech • • Niche • Govt centre Create new valuable jobs and businesses in key areas manufacturing • Business • Recovery Task Force/A25 - advocacy, support and connection for • Transport hub technology and regional projects • Tourism innovation • Better together – in partnership with leads, partnering for delivery • Film, culture with EDAs, sector groups, councils, Government agencies, Iwi/Maori Canterbury agencies and private sector enterprises Central Otago • Agriculture • Technology Role of the Task Force/A25 • Tourism • Lifestyle • Championing of a regional vision • Lifestyle • Transport • Adventure • Advocacy for a regional plan and priorities and Government resources • Thought leadership and stakeholder connection • Facilitation of formal partnerships, joint ventures and relationships Priority Projects
Regional Freight Ring Road and Ruapehu Tourism Central North Island Freight Hub
Project Owner / Leader: Warren Furner / Ruapehu District Council Project Owner / Leader: Heather Shotter, Palmerston North District Council
Description of Project: Description of Project: A range of key initiatives to unlock the 4. Tūroa Gondola significant tourism opportunity that exists 5. Whanganui River Region infrastructure To develop a multi modal distribution hub that has become possible through the KiwiRail rail hub across the Ruapehu district and greater • Establishment of a regional business model relocation and development of the regional freight ring road. The project is led by PNCC in close Whanganui river area. The programme of work to lead development and management. partnership with KiwiRail and NZTA. The components are: aims to lift visitor revenue from $180 to $400 • Increase promotional activity to grow million per annum by 2028. awareness and further develop the • 120 ha new rail operational site Ruapehu ‘Our Greater Outdoors’ brand. • 50 kms of roading circling the city, upgraded to State Highway status and including a new The programme is based on two main focus • Connectivity investments in: bridge crossing of the Manawatū river areas: 1. KiwiRail increased capacity via the • Connectivity to Palmerston North airport one of the three New Zealand airfreight hubs 1. Develop tourism infrastructure Northern Explorer • A futureproof and fully integrated industrial development by PNCC 2. Develop an aligned marketing platform 2. Taupō Airport terminal 3. Potential alternative mountain Regional Benefits The initial components are: transport/carbon free national park • Development of five iconic visitor • Large scale increases in infrastructure and • The aim of the project is to enable the experiences: The overall objective is to achieve growth by employment across the logistics, processing lowest cost and fastest freight distribution 1. Pōkākā ecosanctuary enhancing the quality of the visitor experience, and manufacturing industries. system in New Zealand that meets and or 2. Ohakune Mountain Bike Trail while sustaining environmental, wilderness • Improved connectivity to enable the region exceeds the best in world standards. 3. Ohakune Ngāti Rangi waharoa (National and heritage values, and actively encouraging to capitalise on its central geographic Achieving this will make Manawatū/ Park Gateway) and assisting Iwi to achieve their aspirations. location and solidify its function as the Whanganui very attractive to new national premier central North Island business and international logistics, manufacturing Regional Benefits location and distribution hub. and processing industry development. • 66% carbon emissions savings as a result of • Palmerston North city will benefit by The targeted increase in visitor expenditure • Generate $200 -$300 million of commercial the transition of road freight to rail. moving freight distribution out of the city, from current $180 million p.a to $400 million investment improving people focussed transportation, p.a by 2028 will: • Support the development of ten new Iwi access and safety levels. • Retain and create jobs businesses • Grow the population by 900
Estimated jobs to be created and over • Retention of c.150 current jobs under threat Estimated jobs to be created and over • 350 through the construction period what period: from COVID-19 what period: • Creation of c.750 new jobs by 2028
$ Investment: Start date: Estimated completion date: $ Investment: Estimated start Estimated completion date: date: $300-400 million 1 July 2018 30 June 2028 $3 -3.5 billion (public and commercial) 2021 2030 Priority Projects (cont.)
Ōtaki to north of Levin (O2NL) Expressway Te Puwaha - Whanganui Port
Project Owner / Leader: David Clapperton, Horowhenua District Council Project Owner / Leader: Kim Fell, Whanganui District Council
Description of Project: Description of Project: To restore the Whanganui river structure and health, regenerate the Whanganui industrial area Upgrade of State Highway 1 to an expressway from Ōtaki to North of Levin. This is a length of 24 and stimulate the marine servicing and manufacturing sectors. kms which reaches 2km north of Levin. This project is guided by Tupua te Kawa, the innate values of Te Awa Tupua and managed via a The upgrade involves major widening and new highway development to realign the road that true community-based governance group. bypasses the heavily congested Levin town centre. The project is to develop, via key investment, a future-proofed industrial and recreational The investment is committed to build this four lane highway. environment at the head of the Whanganui river.
Components are: • Shoring up the river embankments to solidify the current river course. Regional Benefits • Regeneration of the Whanganui port infrastructure, including docks and access. • Development of the port precinct for recreational fishing and visitor usage. The decreased travel time from Wellington will make Horowhenua more easily commutable and • Support funding to marine industry companies can be expected to drive population and (therefore) economic growth through attracting industrial development. Regional Benefits
Safety improves markedly for regional residents, along with drivers transiting through the region. • This proposed infrastructure will support • General industry investment will be able to current marine services and coastal be leveraged off the coastal and inland Foxton gets an additional visitor economy opportunity by becoming the first natural driving stop shipping and freight services. distribution infrastructure improvement. coming North from Wellington and the last stop driving South. • It will also encourage potential tenants in • The Whanganui River precinct will be the marine industry, as well as from the beautified for industry, recreation and seafood harvesting and processing sector, community benefits. to consider co-locating and investing in the port. Estimated jobs to be created and over • 300 over 5 years for construction what period:
Estimated jobs to be created and over • Over 300 new jobs what period:
$ Investment: Estimated start date: Estimated completion date: $ Investment: Estimated start Estimated Total investment is over $50 million, date: completion date: $800 million 2025 2029 funding from PGF, WDC, HRC, WDETT, Q-West and the Te Ara Mahi fund. 2020 2023 Priority Projects (cont.)
Te Ahu a Turanga Shovel-ready (Manawatū Gorge Marton Rail Hub Projects Highway Replacement) Eight Territorial authorities Peter Beggs, Rangitikei Project Owner / across the Manawatū- Project Owner / Leader: Project Owner / Leader: Lonnie Dalziel, NZTA Leader: District Council Whanganui region
Description of Project: Description of Project: Description of Project: A bundle of 88 Funding these projects The objective of the project is • New rail infrastructure to Construction of new highway the current 22 minutes. environmental and will provide immediate to regenerate and modernise replace outdated layout. between Manawatū and Components are: infrastructure projects employment within the Marton rail hub, including • Roading connections to Tararua to replace the • A new four lane highway across the region. each area. developing an industrial land State Highways. redundant Manawatū Gorge traversing a new route precinct. This is driven by the • Integrated industry route, connecting eastern and across the Ruahine Range. These projects have These projects are in demand for timber logistics development of wood central New Zealand. • A new bridge crossing the been brought forward response to processing and manufacturing. movement and processing Manawatū Gorge. to combat COVID-19 Governments invitation activity. This will safely transport • Cycling and walking trails effects, and cover a to councils to submit Components are: vehicles across 11.5 kilometres • Tourist access sites spread range of areas. proposals to the • Transform rural land to with a general travel time of along the new road. recovery fund. 40ha zoned industrial. 12.5 minutes, compared with Regional Benefits Regional Benefits Regional Benefits • Immediate job improvement and • • creation, helping to environmental Efficient and lower cost Facilitation of reduced fossil • Decreased travel times and distribution infrastructure. sustain the regional sustainability’ aligned transport options, boosting fuel usage and emissions increased safety between • Build stronger economic and economy to the region’s industry profitability. through bulk movement of Ashurst and Woodville, social links between Tararua • • Longer term planned priorities Increased returns from Iwi timber from road to rail. effectively bringing Tararua and the wider Manawatū- • infrastructure forest estate rentals General investment much closer to Palmerston Whanganui region. attributable to proximity to development through new North. This makes Tararua a • Attract tourism through the rail hub. industrial land availability more attractive place to incorporating Māori Estimated jobs to be • 15,000 (for total • Associated business flows that is strategically both live and develop heritage and environmental created and over application) and new investment in positioned to service central industry - which will features. what period: timber processing and New Zealand integrate with the new manufacturing activity. $ Investment:
Estimated jobs to be c. $1billion. To date Government has announced • 350 for highway created and over what Estimated jobs to be created • 90 though construction and construction $148 million to support infrastructure, $26.9 million and over what period: rail hub operations period: to support flood control and $18.5 million for environmental projects
$ Investment: Estimated start Estimated $ Investment: Estimated Estimated Estimated start Estimated date: completion date: start date: completion date: date: completion date: $14.5 million $600 -700 million August 2020 October 2021 October 2020 November 2024 August 2020 December 2021