Foodstuffs North Island will carry out a major redevelopment of its distribution facilities in Palmerston North as part of a plan to upgrade its ageing distribution infrastructure in the Lower North Island.
The $340 million 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 work will replace facilities that are reaching their limits and help ensure supply for New World, Pak’nSave, Four Square and Gilmours stores in the area.
“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,” said Foodstuffs North Island CEO Chris Quin.
“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.”
Under the plan, 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 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 and make the network less vulnerable to disruption.
Palmerston North will remain the centre of the Lower North Island distribution network, as the location enables groceries to be moved from the distribution facilities to stores throughout the region.
Bulk earthworks and civil works will begin next month. The Roberts Line extension is expected to begin operating in November 2028, followed by the new Alderson Drive distribution centre in April 2030.
- Further reading: Foodstuffs North Island to build $70m distribution centre in Mangere.
