Futureproofing Supply: Strategic Storage Upgrade Strengthens Resilience at IXOM Timaru

Faced with growing supply chain risks and shifting land-use needs, IXOM partnered with PrimePort Timaru on a major infrastructure upgrade to boost local storage capacity and futureproof operations. The result: a collaborative, locally delivered project that has strengthened regional resilience and unlocked capacity for growth.

Situation

Timaru has long served as a vital logistics and manufacturing hub for IXOM. From this site, the company has reliably supplied caustic soda to customers across the South Island, maintaining continuity of service through robust operational planning and inventory management.

Under stable conditions, the site’s existing bulk storage capacity was fit for purpose. But global shipping volatility in recent years – repeated delays and inconsistent timing from both overseas terminals and domestic ports – showed there was opportunity for a better, more reliable and resilient solution.

Even with a reliable fallback option for delays: a third-party-operated facility in Bluff, where product could be stored and collected by road tanker when the Timaru supply was impacted, IXOM recognised the need for improvement. Each round trip was 850km, consuming a full day for a single truck, diverting resources from customer service and increasing pressure on the transport fleet. It was a practical solution for emergencies, but not a sustainable model for long-term resilience.

The answer lay in scaling up its on-site storage. Meanwhile, the landowner, PrimePort Timaru, was advancing its own development plans and sought to reclaim some land within the port precinct. IXOM was happy to support this future-focused initiative, relinquishing part of its lease footprint to allow the port greater flexibility. Doing so reaffirmed IXOM’s collaborative approach to partnership and set the stage for a shared vision: to build resilience, unlock capacity and strengthen the port’s position as a long-term regional gateway.

Solution

PrimePort’s expansion ambitions combined with IXOM’s desire to strengthen supply chain resilience became the catalyst for a highly collaborative project with mutual benefits. IXOM to resign the rear section of land and taking on an adjacent parcel better suited for new infrastructure. The land swap gave PrimePort greater flexibility for its long-term plans and enabled IXOM to progress with a future focused upgrade.

The upgrade was shaped by two strategic priorities: strengthen IXOM’s supply chain resilience and reaffirm its commitment to the South Island market. To do this, the company needed to increase on-site caustic soda storage in a way that worked operationally, met strict safety and environmental requirements, and aligned with broader site-planning considerations.

While construction of a one-million-litre stainless steel caustic soda tank was the centrepiece of the upgrade, the project went beyond installing a single asset. The IXOM team developed a complete solution that included a new pumping station, modern control systems and updated tanker loading facilities. A secondary facility was also developed on land leased nearby to accommodate IBC (intermediate bulk container) storage, which had previously occupied space on the now-released land.

A key feature of the upgrade was the use of local contractors and suppliers. IXOM engaged a Timaru-based civil works provider for earthworks and site preparation, and sourced concrete locally for the tank and bund foundations. Specialists from the region were also involved in the tank construction, mechanical and electrical installation, and commissioning. In total, more than 60 local suppliers contributed to the build, bringing regional expertise to a technically complex project and delivering valuable investment into the local economy.

Collaboration remained central throughout. IXOM’s project team worked closely with PrimePort to coordinate activity within the busy operational precinct, successfully navigating shared access points, safety considerations and long-term site planning.

“Both parties worked collaboratively to develop a solution that enabled IXOM to remain on site, facilitated the return of strategic land to PrimePort, and delivered operational improvements for both organisations.” – PrimePort

Inside the build: laying the groundwork for resilience

Constructing a one-million-litre caustic soda tank is no small feat – especially when the site sits on reclaimed land. Before the new tank could be erected, the ground had to be prepared to safely support the weight of both the structure and the product it would store –circa 1,775 tonnes in total.

Work began in April 2024 with a full excavation of the site, using a local earthmoving contractor to remove large volumes of unstable, reclaimed soil. In its place, compacted gravel was laid down to create a stable, load-bearing base. Then came the concrete work – and plenty of it.

The tank base alone required 110 cubic metres of reinforced concrete. Surrounding it, a bund wall – designed to safely contain 110 percent of the tank’s contents in the unlikely event of a failure – was constructed using 2.2-metre-high precast concrete panels and an additional 90 cubic metres of poured concrete.

Each of the tank’s five stainless steel tiers was fabricated off site and then transported to site for installation. Each tier was craned into position and welded by a team of local contractors. The roof, preassembled in a nearby workshop, was delivered on a house-moving trailer and then lifted onto the top of the tank.

Once complete, both the tank and the bund had to be tested: the tank was hydrotested with a million litres of water; the bund with 1.1 million litres, retained for 48 hours to confirm watertight performance.

Close to 1,000 individual work permits were issued across the site to ensure rigorous safety standards were met at every stage, from hot work and confined space entry to working at heights and crane operations.

The result is more than just a tank – it’s a locally delivered feat of engineering that will strengthen supply resilience for years to come.

“This spirit of collaboration continued through the successful delivery of the pipeline relocation project, involving eight pipelines – a key initiative for PrimePort. The project was completed in parallel with IXOM’s tank build, with regular engagement between the teams.” – PrimePort

Impact

Completed in 2025, the Timaru upgrade marks a major milestone for IXOM, with the addition of a third one-million-litre stainless steel tank – alongside two existing carbon steel tanks – boosting the site’s bulk caustic soda capacity by 50 percent.

This increased capacity gives IXOM far greater flexibility to manage stock and maintain supply during disruption. With the increased buffer, the site can absorb global shipping delays without interrupting operations or relying on the Bluff fallback, freeing up transport assets to focus on customer deliveries.

The upgrade also eliminates the need to run tanks down ahead of vessel arrivals. The site can now simultaneously receive product, support manufacturing and load tankers – streamlining scheduling, reducing risk and improving overall efficiency.

Coupled with a new secondary storage facility nearby, the upgraded infrastructure delivers a significant operational boost, strengthening supply chain resilience and positioning the business for future growth. IXOM is well equipped to scale volumes, serve new customers, and continue providing safe, reliable supply to industry across the region.

The Timaru upgrade is a great example of what collaboration can achieve. By working together, IXOM and PrimePort Timaru delivered a solution that enhances service continuity, enables growth and supports the long-term success of the wider port precinct.