Ports of Auckland said that is opening a freight hub in Mount Maunganui close to the location of Port of Tauranga, which is its major rival.

The second largest port company of the country said it aimed to provide more choice to the exporters operating from Bay of Plenty. The new intermodal freight hub will also provide improved access to the markets overseas.

The port operator already has inland freight hub sites in South Auckland and Manawatu. The new site will be developed by Triton Pacific and operated by Toll Holdings. The sprawling site spread over 1.4 hectare will be developed close to a rail siding and will include a rail connection for easy access. It is expected to start operations by this year's end.

Auckland and Tauranga have been in the competition for long with the former being the largest in regard to volumes of containers and Tauranga mainly taking up Fonterra's business along with operating for shipping companies like Maersk and Timaru's Prime Port.

Tauranga port is taking dredging initiatives in order to be able to host bigger freight ships.