Port Nelson’s upgraded maintenance facility opened on Friday morning, with the region’s leaders saying the multimillion-dollar project will provide economic benefits for years to come.
Construction began on the $29 million project in June 2023, seeing a brand new 550-tonne boat lift and 7000-square metre hardstand facility installed to support vessel servicing capabilities.
Known as Calwell, the facility received $9.8 million in 2020 from central government’s Covid-19 Response and Recovery Fund, and a further $700,000 from Nelson City Council.
The upgrade complements the 2400-tonne slipway that neighbours the redevelopment by catering to smaller vessels.
Calwell opened with a blessing and karakia from local iwi before a ribbon-cutting ceremony attended by community and industry leaders.
Port Nelson chief executive Matt McDonald says the redevelopment is an “investment in our region’s future”.
“We have a fit-for-purpose, future-ready facility to meet the growing needs of the marine industry.”
Calwell is expected to attract marine maintenance activity from around the country and abroad, contributing about $3.8 million to the regional GDP each year.
However, the project was not straight-forward.
Costs increased $9 million from its original $20 million budget, and it took two years longer to build than planned, which were both attributed to complex construction, managing historic contamination, and post-Covid cost escalations.
“There have been challenges along the way, but standing here today, seeing the facility, I hope we can all agree that it’s been worth it,” Matt says.
Local MP Rachel Boyack says the government of the time had been right to help fund the project despite a “little bit” of controversy surrounding the project, borne from allegations of conflicts of interest that were ultimately dismissed by the Auditor-General.
“Investing in regional New Zealand is something we should never apologize for. It’s critical that we have strong regional economies.”
As the Opposition’s ocean and fisheries spokesperson, she adds that strengthening the blue economy to boost local engineering, technology, and innovation was “the answer” to the region’s economic challenges.
“It’s very much around transforming our economy to one that doesn’t have a reputation of low wages.”
Through their holding company, the Nelson City and Tasman District Councils jointly own Port Nelson.
Nelson’s deputy mayor, Pete Rainey, says that the port is “on a roll” and supported a “huge” amount of economic activity across Nelson Tasman.
The upgraded facility would create opportunities for the marine trades, contractors, suppliers, and other businesses that depend on a productive port.
“This is exactly the kind of investment that helps future-proof our regional economy,” he says.
“[Calwell] is so important for our city and region. We are intrinsically linked to the sea.”
Tasman’s deputy mayor, Brent Maru, encourages the government to continue supporting local projects.
“We’re a region worthy of investment, we’re a region ready for investment, and we’re a region that wants to partner.”
Paul Swallow, an investment director for the Ministry of Business, Innovation, and Employment represented Kānoa – Regional Economic Development and Investment Unit at the ceremony.
He highlighted the potential for synergies with the recent $12.9 million loan from the Regional Infrastructure Fund to the Nelson City Council-owned marina for the development of its own, smaller, 110-tonne vessel hoist and marine service centre.
“Together, I think that project, this project, is just going to make an amazing difference and build capacity across the port and marine facilities.”
