The company’s director of group manufacturing and supply chain Gary Romano told AAP that the project was expected to significantly cut truck movements between the proposed site and Port Otago, also resulting in a further curtailment of its carbon footprint of its transport operations.
The decision follows Fisher and Paykel’s announcement of the sale of the Mosgiel site along with factory facilities to Fonterra.
The site is linked to the Ontrack line to Middlemarch, and also connected by rail to two of the world’s largest dairy facilities in Southland and Timaru.
Mr Romano told AAP that it had already decided to use rail as a main means of transporting dairy exports to ports.
“For Fonterra, the development will mean a much simpler supply chain network in the South Island. It will consolidate the company’s cool store operations in Dunedin – currently spread across a number of sites in the region.
“It will also meet the additional storage requirements stemming from the construction of a fourth powder plant at the company’s Edendale site,” he said.
The new facilities will add to Fonterra’s existing cool stores in Dunedin, with contruction set to commence in July 2009.