A planned three billion dollar inland port in Otago hopes to support soaring freight volumes in the region

Construction of the Milburn Quadrant, north of Milton, is expected to start within two years.

It comes as forecasts predict freight volumes from Central and South Otago are expected to grow 30 to 40 percent over the next decade.

Project Developer Mark Johnston says the development will include a 55 hectare inland port, offering freight storage and connected to the South Island's main trunk rail line.

He says it will be similar to Hamilton's Ruakura inland port, and offer land for other industrial development.