Foodstuffs North Island to upgrade ageing Lower North Island distribution infrastructure
Foodstuffs North Island is beginning a major redevelopment of the Palmerston North distribution facilities that help supply New World, PAK’nSAVE, Four Square and Gilmours stores across the Lower North Island.
The work is needed to replace the ageing Mihaere Drive Distribution Centre, address seismic requirements at the existing Roberts Line site and relieve capacity constraints across the network.
The multi-year project, known as Project Fusion, includes a new fresh, chilled and frozen distribution centre at Alderson Drive, an extension of the Roberts Line ambient distribution centre, and seismic and supporting infrastructure work. The total cost of the programme is $340 million.
Foodstuffs North Island Chief Executive Chris Quin said the redevelopment would replace facilities that are reaching their limits and help stores remain reliably supplied in the years ahead.
“This is the infrastructure behind the shelves. Most customers will never see it, but stores rely on it every day to receive fresh, chilled, frozen and everyday grocery products.”
“Parts of our existing distribution network are ageing and constrained, and seismic work is also required. This project addresses those issues before they place greater pressure on our ability to supply stores across the Lower North Island.”
The new temperature-controlled distribution centre will replace the existing Mihaere Drive facility. The Roberts Line site will be extended to provide more room for ambient groceries and strengthened to meet seismic requirements.
When the work is complete, the Palmerston North network will have more room to receive, store and move groceries to stores. It is expected to improve product availability, make the network less vulnerable to disruption, and provide the capacity needed as the communities served by the network change over time.
Quin said the $340 million cost reflected the scale and length of the programme.
"Projects of this scale are only possible because hundreds of NZ locally owned business operators choose to invest together for the long term. We know $340 million is a substantial amount. It covers several years of work, including a new temperature-controlled distribution centre, a major extension, seismic strengthening, fit-out and the supporting infrastructure needed to operate the facilities.”
“It is necessary work to replace infrastructure that is reaching its limits and help ensure Lower North Island stores can continue to be supplied safely and reliably.”
Palmerston North will remain the centre of Foodstuffs North Island’s Lower North Island distribution network. Its location and transport connections enable groceries to be moved from the distribution facilities to stores throughout the region.
"Palmerston North sits at the heart of our Lower North Island network. It has supported our distribution network for many years. We already have established facilities, people and transport connections here, which makes it the practical location for this replacement work,” Quin said.
“We appreciate the support of Palmerston North City Council, Rangitāne o Manawatū and the other local organisations involved as we begin the project.”
Project Fusion will include:
- A new 32,400m² distribution centre for fresh, chilled and frozen products at Alderson Drive
- A 19,300m² extension to the Roberts Line ambient distribution centre
- Seismic strengthening of existing facilities
- Replacement support offices and team facilities
- Additional storage, freight-handling and supporting infrastructure
Bulk earthworks and civil works are scheduled to begin in October 2026. The Roberts Line extension is currently expected to begin operating in November 2028, followed by the new Alderson Drive distribution centre in April 2030.