NZ | Ports + Infrastructure

[otumoetaiNZ]

Its good to see efficiency has won out of the emotion of small town ports. The country is so reliant on the diary sector we can't afford to have these idiots continue to screw up the export sector by adding inefficiencies. Centralisation of NZs port infrastructure is the only way forward and its good to see its happening naturally.

[NZ1]

Originally Posted by Moveax

Thats just a bunch of rubbish. It may be more expensive to rail but Fonterra knows that and did it on purpose. There was another article which said why Fonterra decided to do this.

Not entirely correct form the perspective that,

1. Fonterra themselves have stated that the main reason for the change was that the Asian shipping service leaves New Plymouth once per week, rather than the five they can get at Tauranga.

2. The ships bringing empty containers also brings full containers for delivery to New Plymouth, so it is not a special trip.

3. Empty containers already at the New Plymouth port are also used.

It would be interesting to see the actual calculations behind this move and whether POT has provided some incentive for this to occur.

However, Fonterra are of course free to make whatever business decision they believe is best for their company.

[Richard7666]

Southport announced a massive 64 per cent annual net profit increase yesterday, largely because of the difficult international trading environment southern exporters faced.

The Bluff port operator reported a profit of $4.12 million, up from $2.51m a year earlier.

Chairman John Harrington said $810,000 of that was because of one-off gains, including tax-paid dividends and capital returned from the shareholding in Hardwood Forests following the sale of its assets, deprecation recovery from the sale of a mobile crane and foreign-exchange gains. The normalised profit result was about a 30 per cent increase, Mr Harrington said.

That included a 25 per cent increase in revenue from port and warehousing operations to $19.1 million.

Chief executive Mark O'Conner said more-difficult trading conditions for many exporters meant products were being stored for longer periods of time as international markets were sought.

Other reasons for the profit increase included a shift in market share. In particular, the MSC container service, which began operating in May last year had increased opportunities for local exporters and importers.

The company had invested in significant additional plant and staff numbers had increased from 40 to 60 in the past 15 months, he said.

Mr Harrington said the gains came despite a 17 per cent drop on the record tonnage of 2008, with cargo volumes significantly affected by the capacity reduction at the Tiwai Point aluminium smelter the port's single largest customer.

Smelter output capability was reduced 30 per cent for almost eight months of the financial year when a potline was closed down. However, the company's long-term licence arrangement largely restricted the negative financial impact. The potline had since been reactivated and a new 35-year agreement became effective in April .

Other volume declines were recorded in fertiliser, acid, logs and woodchips, offset by improvements in containerised cargo, which lifted by 123 per cent.

Mr Harrington said the strength of the New Zealand dollar would act as a hand-brake on any domestic economic recovery in the next year.

"All known facts and current assumptions indicate that a tax-paid profit of $3 million is a realistic profit guideline for the 2010 financial year."

The energy sector, including offshore oil and gas exploration, were to likely to drive the southern region's next growth cycle, he said.

http://www.stuff.co.nz/southland-tim...s-soar-by-64pc

[NZ1]

Port asks for Govt funding to transform into transport hub

By ROB MAETZIG - Taranaki Daily News

Port Taranaki has developed a multi-million-dollar plan to transform itself into the energy transport hub of New Zealand and it wants the Government to fund the project.

The plan, which would centre on the port's eastern reclamation, was revealed to Prime Minister John Key during the official opening of the new Port Taranaki Centre in New Plymouth yesterday.

And with it came a reminder that each year the oil and gas industry - which is almost entirely centred on Taranaki - pays several hundred million dollars to the Government in royalties and taxes. The amount is expected to be $300 million this financial year, growing to $700 million in 2010-11 when the offshore Kupe and Maari fields get to full production.

"Here at Port Taranaki we have faithfully served, in the interests of New Zealand Inc, the oil companies that have provided your Government with the millions and millions of dollars in royalties," said port company chairman John Young.

Now it wants a share of that money back so it can develop an integrated supply base for the energy industry, he added.

Yesterday it was also confirmed that Venture Taranaki has now become involved, and will be travelling to Wellington next week to make a presentation to Government officials on behalf of the port.

While no estimates of the cost of this project were given yesterday, Mr Young told Mr Key it would be "less than half" the $40 million the Government recently paid for Auckland's Queens Wharf, which is to be transformed into an entertainment centre in time for the 2011 Rugby World Cup.

"I venture to suggest that your contribution [to the Port Taranaki project] will deliver far fewer sore heads, and will add to your potential for an increase in royalties," he said.

Mr Young's announcement was obviously the first time Mr Key had heard of the development plan, so there was no reaction from the Prime Minister in his speech.

But later yesterday Port Taranaki chief executive Roy Weaver said he and Mr Key "had a long talk about it", and the Prime Minister's reaction to the idea was positive.

"He expressed a real understanding of the economic benefits of the oil and gas industry, and the need to encourage it," he said.

"Everyone talks about Australia being the lucky country in terms of its natural resources. Well, Taranaki is the Australia of New Zealand."

Mr Weaver said the project had its beginnings when Port Taranaki was approached by a group of energy companies. They asked for an investigation into development of an integrated supply base at the port.

"At present we have different players scattered throughout the port we have energy tugs berthed at cargo wharves, other operators elsewhere, others who need cranes. It's all over the place.
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"But if we had a purpose-built facility, with the necessary deep water, they could make better use of what's there at the port. In the energy industry sense it could be similar to integrated facilities at Aberdeen for the North Sea, and Perth in Australia."

Asked why the port company felt the Government should be financially involved, Mr Weaver said the energy sector had played a very large role in turning around New Zealand's balance of payments problems.

"We think it would be prudent investment back off the royalties it has received it would enhance Port Taranaki's ability to service the energy industry."

http://www.stuff.co.nz/taranaki-dail...-transport-hub

[metroman]

The same sort of thing will be needed in Invercargill. Dunedin and Invercargill ports will both be the centre of activity once exploration begins in the GSB.

[Richard7666]

Some interesting stats on export tonnage from 2009 (sorry formatting doesn't copy)

Port name - Gross Weight (tonnes) - Value (FOB) NZ $millions


Whangarei 1,551,435 442,465
Auckland 2,796,110 9,828,315
Tauranga 6,594,267 9,333,992
Taharoa 583,500 30,225
Gisborne 805,698 136,029
New Plymouth 3,057,470 2,866,363
Napier 2,004,555 2,371,635
Wellington 789,277 951,275
Nelson 1,180,064 853,567
Picton 281,457 49,235
Christchurch (Lyttelton) 3,216,969 3,545,394
Timaru 314,179 802,426
Dunedin (Port Chalmers) 1,598,753 5,351,262
Invercargill (Bluff) 553,211 1,099,765
All seaports 25,326,944 37,661,950

http://business.newzealand.com/commo...d-airports.pdf

Auckland and Port Chalmers are massively productive, Timaru and Bluff are pretty impressive too though they ship small amounts. Tauranga does alright as well.

What do they export from Gisborne though, rocks?

[Moveax]

Logs and other forestry related things.

[otumoetaiNZ]

Tauranga choice for big ship spending

By Owen Hembry
5:30 AM Thursday Aug 26, 2010

Tauranga is the logical choice ahead of Auckland for investment to handle a bigger breed of ship, says a group of New Zealand's biggest exporters.

A report yesterday by the New Zealand Shippers' Council - which also represents importers - said that if some ports were not capable of handling 7000 twenty-foot equivalent unit ships within five years, there was a risk shipping companies might increasingly hub through Australia.

Council chairman Greg Steed urged all those involved in the supply chain to consider the report's findings and recommendations extremely seriously.

"It is imperative to the future security of New Zealand's export trade [that] the country becomes capable of accommodating bigger ships as soon as possible."

All four major container ports of Auckland, Tauranga, Lyttelton and Otago could handle ships in the range of 4500-5000 TEU and would need to increase capability to support projected cargo growth, the report said.

However, not all four ports would need to invest initially, and it was logical for two to invest to become 7000 TEU capable within five years - one each in the North and South Islands.

Article continues below

Tauranga and Lyttelton were the logical candidates to start exploring implementation of capital plans.

Under the scenario, Auckland and Otago would continue to play a vital role in servicing exports and imports, the report added.

Ports of Auckland managing director Jens Madsen said the report did not hold any fears for the company.

"The work that they have done is to be appreciated by a lot of different parties, and it's always nice to be challenged. We feel that we are in control of future capacity. We can accommodate ships that are much larger than what we currently have ...

"At fairly short notice we would be able to do additional dredging in the shipping channel from Rangitoto."

Port of Tauranga chief executive Mark Cairns said it was time for New Zealand to make some tough decisions on infrastructure investment to ensure exporters remained competitive globally.

An application to widen and deepen Tauranga harbour's shipping channels was about to be considered by the Environment Court following a recommendation from Environment Bay of Plenty to grant the resource consents.

"We have board approval to commence the first stage of the dredging project as soon as we have resolved the appeals," Cairns said.

The Shippers' Council report said Ports of Auckland was the natural location for the North Island's initial bigger-ship port based on cargo volumes, but the council did not have confidence it was able to become 7000 TEU capable within five years.

The investment required at Port of Tauranga was between $50 million and $80 million, compared with $200 million at Auckland, the report said.

Investment decisions at Ports of Auckland were likely to be stalled by political issues surrounding Super City governance and organisational structures, and whether port operations on prime waterfront real estate were the best use of the space.

HIGH STAKES

THE ISSUE
If some ports cannot handle 7000 twenty-foot equivalent unit ships within five years, shipping companies might hub more through Australia.

THE RISK
$194 million a year increased cost faced by exporters and importers to send product via Australia if the level and quality of services to Southeast Asia is lost.

THE BENEFIT
$144 million-a-year potential benefit from 2015/16 with bigger ships on Southeast Asia route and two ports able to handle 7000 TEU vessels.

WHAT NEXT
Analysis and research says it is logical for Tauranga and Lyttelton to explore investing for the bigger ships.

http://www.nzherald.co.nz/business/n...ectid=10668860

Fantastic news for tauranga The city just keeps getting better!
This will fuel another round of growth in the city. Good thing the government are investing in projects for the city otherwise the economy of the country would suffer.

[NZ1]

Region sets sights on ship service
JAY BOREHAM

A "bluewater highway" connecting New Plymouth and Nelson could be operating as early as July next year.

The proposed highway would see Port Taranaki used to ferry goods to Nelson, cutting 400 kilometres off the round trip from Auckland to Christchurch for transport companies.

This would benefit the Taranaki economy because up to 50 trucks a day using the route would require servicing by local businesses, project manager Kiri McRae told the Taranaki Regional Council.

Since early 2008 TRC and Port Taranaki have been looking at whether a move to sea freight was viable as an alternative route for goods travelling from Auckland to Christchurch.

The Western Blue Highway transport study was completed last October.

The highway would also give KiwiRail the opportunity for a link to Nelson, something it had been unable to do to date, Ms McRae said.

The initial study looked at providing a three-day-a-week service, but talks with the transport industry after the study concluded showed a five-day service was needed.

The timing of the service would get goods from Auckland to Christchurch by the end of the following day, Ms McRae said.

Late-night sailing around the early hours of the morning was the most viable, she said. Goods travelling north could fit into any time as there was less demand.

Studies showed that even with turbulent West Coast swells the service would be 98.8 per cent reliable.

Possible benefits of the route could be savings in road-user charges and costs to fleet owners, fewer kilometres resulting in fewer costs, no compulsory rest breaks for drivers and the removal of the necessity for driver swaps.

The next step would be going through due diligence to ensure the certainty of revenue, developing a joint venture between transport operators, a ship operator and Port Taranaki and finding a ship, Ms McRae said.

TRC chief executive Basil Chamberlain said the highway looked promising.

"It would be beneficial for Taranaki, but we think it is beneficial for the nation, because it is a shorter route and less use of those congested roads.

"It's all part of how to contribute with improvements to the national network as well as the benefits that it would bring through Taranaki," Mr Chamberlain said.

The challenge now was to turn the economically viable plan Port Taranaki had into a reality that fit into the commercial marketplace, he said.

Possible hindrances could be the need for upgrades to State Highway 3, with transport operators questioning whether the roads would actually be able to carry the high-productivity motor vehicles.
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Owner operators who were paid by the kilometre could also be an issue.

Port Taranaki chief executive Roy Weaver agreed the highway would be fantastic for Taranaki but said there was still a lot more work to be done before they could pull it off.

Making sure the Government supported another inter-island link - "that they actually believe that it is in the nation's interest" - was one of the key factors, he said.

- Taranaki Daily News

[KiwiGuy]

This was reported in the Nelson Mail last year or earlier this year. Personally I think it'll be a big boost to both regions since it will provide Nelson with a more direct link to the North Island rather than driving two hours to Picton. Hopefully, this development will spur regional rail development which will reduce the numbers of trucks on main arterial roads.

However, a cross strait freight service was cut due to lack of demand. Whether or not this service will be viable financially remains to be seen. Plus, maintenance facilities should be already in place by the time this ferry connection starts since Port Nelson recently won the contract for the Interislander ferry maintenance.

[NZ1]

Well no, the initial discussions have been widely published, however this update which includes a time-frame the latest news.

Yes I think it will be great news for both Cities, and for those using the service. While rail proponents are adamant that such freight should be railed from Auckland to Wellington, and then on to a ferry, I can't see that occurring en mass any time soon. Besides, a little competition is always good isn't it.

[KiwiGuy]

Originally Posted by NZ1

Well no, the initial discussions have been widely published, however this update which includes a time-frame the latest news.

Yes I think it will be great news for both Cities, and for those using the service. While rail proponents are adamant that such freight should be railed from Auckland to Wellington, and then on to a ferry, I can't see that occurring en mass any time soon. Besides, a little competition is always good isn't it.

I skim read the article. July? Really? They're being quite optimistic with that date. I'd have expected something along the lines of maybe 2010-13 depending on how much red tape the shipping industry has. Plus, where's the supposed rail link going to go? There's little room at the port currently, unless they plan on building brand new "proper" facilities.

Of course, there'll be those who are living along the waterfront who will complain about the noise, "pollution" etc. as well as fring groups like Nelsust who come up with hairbrained schemes to "improve" the port. Last I heard of them, they proposed barging logs from a prime recreational area.

But that's a little off topic. I still think they should go ahead. Is it purely freight or will there be room for passenger services?

[Davee]

The link between Auckland and Christchurch is vital for the country - why not just sail between the two? Both have deep water harbours? Surely ships can cope with sailing up and down the east coast and the trip would take no longer than 24 hours?

[otumoetaiNZ]

I reckon itd be way too slow. the best thing to do is to invest in rail and have an express train from auckland/tauranga to wellington then load it on to the ferrys and then rail it down to christchurch. Quit stuffing around in the provinces and get the heart of the economy sorted out!

[KiwiGuy]

Somehow, I'm not surprised at this response. Can you see beyond the end of your own nose?

[otumoetaiNZ]

Originally Posted by KiwiGuy

Somehow, I'm not surprised at this response. Can you see beyond the end of your own nose?

Why bother shipping goods to isolated regions first when they can just travel totheir final destination directly? Yeah maybe stuff actually going to nelson would work but most of it is probably going to christchurch anyway. Its just a waste of money.

[KiwiGuy]

Originally Posted by otumoetaiNZ

Why bother shipping goods to isolated regions first when they can just travel totheir final destination directly? Yeah maybe stuff actually going to nelson would work but most of it is probably going to christchurch anyway. Its just a waste of money.

Those statistics further up the page disagree with your statement. Also, Lyttleton is going to be out of action for a while, so it would be better to try and improve potential ports while they get Lyttleton running again. We've even had another crane delivered to help boost capacity and reduce turnaround times.

And it would spur the development of rail links to Nelson which would reduce our reliance on heavy trucks and bring us inline with other ports in NZ. Plus, it would be good to see competition to the Interislander.

[Paulsy]

Originally Posted by otumoetaiNZ

Why bother shipping goods to isolated regions first when they can just travel totheir final destination directly? Yeah maybe stuff actually going to nelson would work but most of it is probably going to christchurch anyway. Its just a waste of money.

LOL! Why ship stuff through Tauranga when most of it is for Auckland? Shot down by your own argument.

[Richard7666]

Because Tauranga is a major primary producer of goods and...oh wait no it isn't.

[otumoetaiNZ]

Originally Posted by Paulsy

LOL! Why ship stuff through Tauranga when most of it is for Auckland? Shot down by your own argument.

Got any numbers to back up that tauranga imports are mostly bound for auckland? Nah of course not, youre not smart enough for that.

But you can keep on trying building your straw man but in the mean time maybe you can prove why shipping stuff to nelson then trucking it (because theres no rail) to christchurch makes sense? Oh wait it doesnt does it.