Lyttelton Port Company will invest $821 million in a new deepwater wharf and container terminal at Te Awaparahi Bay, significantly expanding the port’s capacity.

The project will include a 388 metre wharf, a five hectare container terminal, four new ship to shore cranes and semi automated yard cranes.

It will allow the port to accommodate vessels carrying up to 15,000 standard container units and increase annual berth capacity to about 850,000 units.

Construction is expected to take five years, with the terminal scheduled for completion by 2031.

Christchurch City Holdings will contribute around $300 million in equity, while Lyttelton Port Company will fund the balance through debt drawn down gradually during construction.

Christchurch City Holdings is considering several ways of funding its contribution, including borrowing, using capital from its wider investment portfolio and seeking equity support from Christchurch City Council.

Lyttelton Port Company said the project would not be funded through rates.

The investment qualifies as a major transaction because its value exceeds half of the port company’s total assets. Christchurch City Holdings considered the proposal for seven months before presenting its final decision to the Council.

Christchurch City Holdings chair Bryan Pearson said the approval followed extensive scrutiny of the project’s strategic need, business case, funding and long term benefits.

“This approval by CCHL reflects confidence in Christchurch, the South Island economy and our strong belief in Lyttelton Port Company’s role as the South Island’s key international trade gateway,” Pearson said.

Lyttelton Port Company chair Barry Bragg said the development would prepare the port for the next generation of South Island trade.

“We’ve spent the last decade rebuilding and strengthening the port. Today’s announcement is about creating the capacity, resilience and capability needed for the next generation of South Island trade,” Bragg said.

A major reason for the investment is the condition of the port’s existing container berths at Cashin Quay.

Cashin Quay 3 and 4 were damaged in the Canterbury earthquakes and subsequently repaired. They remain safe to use, but the port said they would probably be unusable following another large earthquake.

“Rebuilding them would take at least three years and significantly disrupt container operations,” Lyttelton Port Company chief executive Graeme Sumner said.

“Building the Te Awaparahi Bay expansion removes the need to rebuild these wharves and allows the port to continue operating at full capacity.”

The investment comes despite container volumes falling in the last financial year. Lyttelton Port Company’s 2025 annual report recorded 431,556 container units, down 3.7 percent from the previous year.

However, revenue reached $207 million and underlying profit increased to $25.2 million. The company had net debt of $201.9 million at the end of that financial year.

The port said three independent reviews had assessed future container demand, with growth expected to broadly track the economy. It also expected larger ships and more South Island export cargo to move through Lyttelton.

Customers will pay more to use the container terminal. The company said increased charges, combined with anticipated volume growth, would help make the additional debt affordable.

The new terminal will use semi automated cranes, which the port acknowledged would change some container handling and yard jobs.

A new terminal operations centre will operate around the clock, creating more technical and specialised positions. The company said the automation was not intended to cause a sudden reduction in staffing and workers and unions would be consulted about training, redeployment and future roles.

No additional land reclamation will be required for the project once the current reclamation work is completed in early 2027. Any further expansion requiring more land and another wharf would not be expected until the 2040s, if it was needed at all.

Marine mammal observers will monitor Hector’s dolphins during piling work. Piling will not begin, or will be stopped, if dolphins enter the designated observation zone.

A conservation certified dog will also search the breakwater for white flippered penguins before it is removed, while crayfish found in the area will be relocated within Lyttelton Harbour.

The project has targets to reuse at least half of its temporary construction materials and divert 80 percent of construction waste from landfill.

 South Island and Associate Transport Minister James Meager told chrislynchmedia.com “I welcome this investment. It strengthens critical infrastructure, supports jobs, and helps ensure the South Island remains well connected to global markets.

 “We know that Lyttelton is one of the South Island’s most important trade gateways, and this investment is a strong vote of confidence in the future of Canterbury and the wider mainland economy” he said.