Woolworths New Zealand engaged Watts & Hughes to deliver the new Palmerston North Distribution Centre — a major logistics and supply chain facility designed to support the lower North Island network.

Secured through a competitive tender process, the project comprises approximately 39,000m² of warehouse space, 2,000m² of office and ancillary facilities, and a total earthworks area of 139,000m². The development included extensive civil works, post-tensioned concrete warehouse floors, large-scale structural steel portal frames, precast concrete wall panels, and Colorsteel cladding systems. Watts & Hughes also delivered all associated building services under the main contract, including security, audio, and data infrastructure.

The project achieved a 4 Green Star Design Review rating, recognising industry best practice in sustainability and operational efficiency. Sustainable initiatives incorporated throughout the facility included energy-efficient lighting systems, low-water-use plumbing fixtures, rainwater harvesting, EV charging infrastructure, enhanced natural lighting, bicycle facilities, and the use of fully electric manual handling equipment. The development became Woolworths New Zealand’s first Green Star-rated distribution centre and helped establish a benchmark for future developments nationwide.

A key sustainability success on the project involved diverting more than five tonnes of GIB® plasterboard offcuts from landfill. With limited local recycling capability available in the Manawatū region, Watts & Hughes collaborated with the client to utilise existing Woolworths freight backloading networks to transport waste materials to Auckland recycling facilities without generating additional transport emissions. This initiative helped establish new opportunities for improved waste recovery across future regional projects.

Environmental and waste management requirements on site included comprehensive material tracking, compliance auditing, recycling management, and subcontractor engagement to achieve strict waste reduction targets. Tailored site inductions and ongoing training programmes were delivered to all workers and subcontractors, supporting both environmental performance and workforce wellbeing throughout the project lifecycle.

Construction was undertaken on a large greenfield site requiring significant bulk earthworks and ground improvement works. Approximately 20,000m³ of material was imported and placed as part of the site preparation and engineered fill strategy. Extensive geotechnical testing and quality assurance processes were implemented to ensure the performance requirements of the post-tensioned floor slabs were achieved.

Despite the challenges presented during the COVID-19 pandemic, construction progressed successfully through varying alert levels, including Level 3 and Level 4 restrictions. Specialist contractors were granted exemptions to continue critical works due to the project’s importance to New Zealand’s national supermarket supply chain infrastructure.

Watts & Hughes also contributed valuable design optimisation during the tender phase, particularly in relation to the structural steel methodology. These refinements improved construction sequencing and efficiency, resulting in significant programme savings and enabling earlier commencement of Woolworths’ internal racking and operational fit-out works.

The project was completed with strong collaboration between the client, local iwi, subcontractors, and the wider project team. Cultural engagement formed an important part of the project, with pre-construction and completion blessings attended by project stakeholders, local government representatives, and community members.