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Previous newsletters for each calendar year are archived here……… The newsletters prior to March 2015 have now been deleted.

Latest Newsletter: May – August 2017

Welcome to our latest newsletter – an industry round-up of news and interviews related to the maritime logistics industry……

cruise berth at lyttelton

Christchurch is to get its first custom-built cruise ship berth with this image of the proposed $56m facility

NEW $56m CRUISE SHIP BERTH FOR LYTTELTON

Christchurch is to get its first custom-built cruise ship berth with the proposed $56m facility released by the Lyttelton Port Company.

The Port of Lyttelton will be able to handle some of the world’s largest cruise liners when a new $56 million cruise ship berth opens in two and a half year’s time.

Since the 2011 earthquakes most cruise vessels have bypassed the port and gone to Akaroa instead. The new berth, opening for the 2019 – 2020 cruise season, is designed to accommodate ships the size of the Oasis of the Seas which can carry 7794 passengers and crew.

Lyttelton Port Company board chair Trevor Burt said a new cruise berth would future proof Christchurch as a cruise destination.

Christchurch Mayor Lianne Dalziel said this announcement represented a massive investment in the future of Christchurch and the wider region.

“Cruise ships bring a lot of life and economic activity into the city so it is great that Christchurch will have a dedicated facility”, she said.

Lyttelton Port Company (LPC) chief executive Peter Davie said he hoped the port would host between 50 and 70 cruise ships annually.

With the cruise ship industry forecast to grow to $490 million this year, Tourism Minister Paula Bennett welcomed the LPC announcement.

“The cruise industry is incredibly valuable to New Zealand tourism, with the number of passengers growing by 48 per cent in the past five years. Without this long-term solution there was a risk larger vessels would choose to bypass Lyttelton and Akaroa, impacting the wider Canterbury region”, she said.

A 2014 report by Christchurch and Canterbury Tourism (CCT) estimated that returning cruise ships to Lyttelton would earn the region an extra $113m over 10 years. The lack of a cruise berth at Lyttelton has been a major concern for local tourism operators because of a marked fall in cruise passengers visiting the city. Ships stopping in Akaroa had to ferry passengers ashore in tenders and they then faced more than an hour’s bus ride to get to Christchurch. Akaroa’s inability to handle ships with more than 3000 passengers was also an issue for cruise companies as larger ships came on stream.

Industry body Cruise New Zealand had warned that the rate of cruise growth was slowing and said investment in berths that could safely take bigger ships was vital.

Last year the Christchurch City Council wrote to LPC, which it owns, giving clear direction that it expected a berth to be developed. The council said that having assessed the business case, it had opted to fund the project through LPC, but it would continue to receive the current level of dividend from the port company.

Cruise New Zealand board member Tony Petrie said although the design had yet to be finalised, all they needed was a safe channel, somewhere tie up safely, and space to process passengers.

Royal Caribbean Cruises general manager for Australia and New Zealand Adam Armstrong said the new Lyttelton berth would make Christchurch a more attractive destination for international guest, and it would allow them to travel further afield to Arthur’s Pass and the Waipara vineyards.

Source – Stuff

MINISTER OPENS NELSON’S PATTERSON LOGISTICS

quay connect at nelson

 At the opening of Port Nelson’s new Patterson Logistics Centre (L–R): QuayConnect’s Eugene Beneke; Jason Millar, managing director, Central Express; WineWorks managing director Tim Nowell-Usticke; and Martin Byrne, Port Nelson CEO

Transport Minister Simon Bridges has officially opened the Patterson Logistics Centre, Port Nelson’s new 13,000 sq m storage facility – the first major building project of a $32 million redevelopment plan announced last year.

The Patterson Logistics Centre is the significant Nelson-side logistics hub of QuayConnect, the port’s Nelson-Marlborough integrated warehousing, transport, and logistics service.

QuayConnect was established in February 2016 as a smarter way of distributing goods. In partnership with Central Express, QuayConnect’s model optimises import and export loads, reducing the number of trucks on the road without reducing actual freight movement. QuayConnect operates three storage facilities in Blenheim and until March this year had used temporary facilities at Port Nelson while the Patterson Logistics Centre was being built.

Port Nelson CEO Martin Byrne said that with the new facility now open, the service’s capacity has been increased by 40%.

“Over its first year, QuayConnect’s primary focus has been on the wine industry. We efficiently move substantial freight between Nelson and Marlborough, and manage 80% of the South Island’s wine exports and 90% of the inbound dry goods,” he said. “QuayConnect has had three trucks operating 24/5, but with the Patterson Logistics Centre now open, we can increase our cartage movements by another 10 dedicated line-haul truck movements per day and provide capacity to store an additional 18,000 pallets.”

“Over the last few months we’ve been recruiting logistics and transport staff for the facility to meet demand, which intensified after the Kaikoura earthquake last year when we became a key logistics partner for Marlborough wine producers after their traditional transport routes became unusable. I congratulate the project team for meeting the construction deadline so that we could be ready for peak vintage.”

The Patterson Logistics Centre is dedicated to the late Nick Patterson, who served for more than two decades on the Port Nelson board. He was a director from 1994 and chair from 2001 to 2014. He sadly passed away in January last year.

Mr Byrne said it was a privilege to honour Mr Patterson by naming the new facility after him.

“Nick’s understanding of the Nelson and Marlborough business environments and his involvement in horticulture, hops and cold storage added greatly to the strength of Port Nelson’s board and its direction,” he said. “Nick envisioned this type of innovative expansion of the port, and supported the investment we are now seeing realised. It is sad that he can’t be here to see the board’s vision come to fruition, but I know he’d be very, very proud.”

The Nelson region has experienced economic growth above the national average over the past year, with the primary sector being a ‘star performer’. Mr Byrne said Port Nelson has a significant role in servicing this growth, as well as Marlborough’s ongoing requirements.

“Stage two of Port Nelson’s infrastructure development is the construction of an approximately 9000 sq m facility that will further increase capacity to a total of 32,000 pallets of primarily wine and glass. Calder Stewart will begin construction of this second facility in June for completion by the end of this year.”

Other key projects at the port include the Plant and Food Research development and the new all-weather workshop facility. The port has also received a new harbour tug, the Toia, which arrived in Nelson in September last year.

Source – FTD magazine

EARTHQUAKE DAMAGED SHED 35 TO GO AT CENTREPORT

CentrePort will demolish Shed 35, an old cargo storeshed 35 centreport to be demolished severely damaged in November’s 7.8 magnitude earthquake.

Once earmarked for redevelopment, it had now become too dangerous, said Chris Laidlaw, chairman of Greater Wellington Regional Council, which jointly owns CentrePort.

The building had long been a problem and had become “totally compromised” in the 2013 earthquakes and again last month.

“It’s reached the point where it’s almost too dangerous … it’s a nice old building, but it’s done for,” Cr MLaidlaw said.

CentrePort, which is also owned by Horizons Regional Council, had been due to start urgent work to contain asbestos on the roof of Shed 35 when it was decided to knock it down instead.

Built in 1915, the former Wellington Harbour Board office building and warehouse is heritage listed, and Cr Laidlaw said the demolition was going ahead with the blessing of Heritage NZ. It sits behind Statistics House, Customs House and BNZ Harbour Quays, all of which have been closed since the November 14 earthquake.

In a statement on Thursday, CentrePort chief executive Derek Nind said the warehouse was susceptible to further damage or collapse and was affecting the operation of the Bluebridge ferry, “which is a key strategic freight link and critical lifeline facility in the event of a major earthquake in the region”.

“It’s very important to have alternative transport links in the event of a natural disaster, such as the two Cook Strait ferry services,” he said.

In the same statement, Wellington City Council city planning manager Warren Ulusele said it had been a “tough but necessary call” to use the Resource Management Act emergency provisions to demolish the building.

“We’ll do as much as possible to retain the city’s heritage, but in this case we have a seriously damaged building in danger of collapse,” he said.

The former New Zealand Rugby Union building at CentrePort, which had been classified as earthquake-prone before the Kaikoura earthquake, is also set to be demolished.

Source – Stuff

WORLD’S LARGEST VESSEL IS IN HONG KONG

By Raymond Yeung

mol triumph

The MOL Triumph is the largest vessel of any kind in the world. Photo / SCMP

Built in South Korea, this could be called “the mother of all ships”. The world’s largest vessel of any kind currently plying its trade on the high seas made a Hong Kong stopover as part of its maiden voyage to France.

The arrival of the massive MOL Triumph – was made possible after a multimillion-dollar project to deepen Hong Kong’s navigation channels. At 400 metres long and 59 metres wide, it arrived from Ningbo in eastern Zhejiang province at 2.30am on April 15, 2017

The MOL Triumph has a capacity of 20,170 twenty foot equivalent units (TEUs) and is the first container ship to break the 20,000 mark.

Built by Samsung Heavy Industries, it is the first of six 20,000 TEU-class deliveries to Japanese shipping firm Mitsui O.S.K. Lines, and will be deployed on the Asia-Europe trade route.

Gerry Yim, managing director of Hong Kong International Terminals (HIT) – which manages 16 berths at five terminals at Kwai Tsing container port – said the call of the mega vessel was an important landmark in cementing Hong Kong’s long-standing position as a key global port.

The city – which was listed as the fourth busiest port in the world in 2015, has since been eclipsed by Shenzhen in terms of container traffic, with the nearby ports of Guangzhou and Xiamen catching up quickly.

To accommodate larger vessels, the government undertook a dredging exercise to deepen the Kwai Tsing container basin and its approach channel. The NZ$90 million project, which began in 2013, was completed last year.

Transport minister Anthony Cheung Bing-leung said: “Mega vessels are becoming a container shipping trend. Our newly dredged approach channel with a navigation depth of 17 metres can accommodate mega vessels in all tides. We look forward to receiving more of such vessels in the future.

“With its strategic location, free port status, world-class infrastructure and world-renowned efficiency, Hong Kong is one of the most popular ports in the world.”

After a 14-hour stop, the vessel set off for the port of Yantian in neighbouring Shenzhen at 5pm the same afternoon, before continuing to Singapore, the United Kingdom, Germany and France.

Its status as the world’s largest container ship in service seems to be short-lived however, as the 20,568-TEU Madrid Maersk was delivered last month and is expected to be in operation soon.

Source – South China Morning Post

KEEP CHECKING OUR ‘WHAT’S NEW’ PAGE LINK!

We hope you enjoyed this newsletter.  Our Archive newsletter page holds previous newsletters from 2015. For the latest though, click on our “The latest” link on the home page masthead. This is updated at least weekly with industry related news items and commentary on current

Latest Newsletter: January-April 2017

Welcome to our latest newsletter – an industry round-up of news and interviews related to the maritime logistics industry……

northgate freight hub

A rendered image of what the Ports of Auckland Northgate hub will look like when completed.

FREIGHT HUB ADDS 300 JOBS

By Susan Edmunds 

A Waikato inlet freight hub currently under construction will create 300 local jobs when it is complete, Ports of Auckland said as it released its half-year results.

For the six months to the end of December, the port recorded profit of $29.3 million, down from $31.6m the same time the year before.

The volume of cars moved through the port increased 17.6 per cent to 145,883 and container volume was up 4 per cent.

Ports of Auckland had set a target of being carbon neutral by 2025 and having zero emissions by 2040. It is working towards partial automation of its container terminal, which it said would improve capacity and sustainability and reduce costs.

Ports of Auckland chief executive Tony Gibson said the company continued to make a significant economic contribution, despite the ongoing difficult international shipping and international trading environment.

“We have delivered strong growth and are focused on making further improvements to our capability and capacity through innovation, training and technology,” he said.

Ports of Auckland announced a dividend of $25.3m to its owners, Auckland Council.

“We continue to maximise our performance through innovation and technology. We are in the process of partially automating our container terminal, which will improve our sustainability, reduce costs, deliver a strategic advantage and further enhance competitiveness,” Gibson said.

“We are continuing to build resilience through our network of North Island freight hubs, with construction now under way in the Waikato. The first freight handling facilities are expected to be in service by late 2017/early 2018, ultimately providing 300 jobs directly and facilitating thousands more.”

Source – Stuff

FRUSTRATION AIRED OVER CENTREPORT

By Ged Cann

Greater connection with the community, more say in how CentrePort operates and a partial float were some of the ideas put forward by Greater Wellington Regional councillors at a meeting on Wednesday to discuss the port’s long term plan.

Councillors spent most of the debate seeking reassurance that the Wellington port was planning beyond simply earthquake recovery. They have aired frustrations with CentrePort over its attitude towards the council as major shareholder.

Cr Daran Ponter said the regional council had adopted a laissez-faire attitude toward CentrePort in the past.

“We have let the port company drift, if you like, guided by their own sense of direction and, quite frankly, by some distain toward the governance entities,” he said.

Any long term plan adopted by the port needed to connect with residents in order to instil a fresh sense of ownership. This was a plan that needed to connect to Wellingtonians, people of the Hutt and Porirua. They needed to have a sense of connection to the company and a stake.

“I don’t get that sense in the community at the moment, ” he said.

Cr Sue Kedgley took the matter one step further, saying as main shareholder the council should set the port’s Statement of Corporate Intent for the coming financial year directly.

“We should have more input and say over how it operates,” she said.

Cr David Ogden took the stance that the port was not core business, and even suggested some of the council’s 77 per cent shareholding should be floated to increase interest in the activity of the port.

Speaking after the meeting, Cr Ogden said the council should retain 51 per cent of the company, but the other 26 per cent shareholding could be sold to the public or the Manawatu Regional Council. He said funds raised could be invested in solving the city’s transport issues.

In each of the last two years CentrePort has delivered a dividend of roughly $5.2 million to the regional council. In 2013/14 financial year, the dividend had dropped to $962,000 as a result of damage suffered in the Seddon earthquakes.

 Source – Stuff

“I’M STILL IN LOGISTICS, STILL LOVING IT!”

Like many in the logistics industry, Cantabrian Tony Marriott started work as a storeman, working at Meadows Freight at Christchurch Airport in the early 1980s. tony-marriot-600x450Today, he’s the general manager of one of New Zealand’s leading providers of moving services within the country and around the world.

“I left high school at the age of 16 with every intention of going back to ‘uni’ after I had figured out what I wanted to do. I landed my first job in freight forwarding because, as my first manager put it, I had the best geography scores! Some 30-plus years later, I’m still in logistics and still loving it,” he said.

“The old days of freight forwarding were the wild frontier of learning. There were no manuals, and most of what we learned was by observation or the old process of ‘drop ‘em in the deep end’, with the possible exception of the IATA/FIATA dangerous goods courses where anything less than 90 percent was a fail. University graduates were non-existent, and there were no formal qualifications other than airline courses, which I had completed within the first 18 months.”

In this environment , air freighting involved so many different commodities, ranging from Canterbury rugby jerseys, Bowron sheepskins, CWF Hamilton Jet boat engines, fresh flowers, live crayfish and eels, fresh fruit. Most time was spent typing up forms for biosecurity and Customs, then getting them signed and still having three minutes to spare before the cutoff.

“Having served my time on the service end of the industry, I was itching to work for an exporter, which I perceived as being more interesting and challenging. I was lucky enough to work for Canterbury Timber Products as an export coordinator at their plant in Rangiora, which became part of the Carter Holt Harvey group in 1995.

“This manufacturing environment was very unique. At that time, MDF panel boards were in great demand and we would ‘allocate’ what we felt was fair to each market. Each order had to have a letter of credit established prior to manufacturing, and I can recall orders in excess of 70 containers at a time.”

At that time, the New Zealand shipping market was moving away from break bulk shipping to containers. Very few panel board shippers were using containers, but there were the benefits of loading onsite and far cheaper shipping.

“Our technical department came up with a device for flipping packs of MDF on their edge so they could be loaded, and before long 100% of our markets were ordering in containers. It was not until many shipments later did we understand that most of the Asian clients were unloading containers manually, one sheet at a time!”

Around this time (1997) this new term called ‘logistics’ that was just being talked about. There were a couple of US and UK courses that were offering training and then Nw Zealand commenced courses via Massey University. “I was part of the ‘old school, hard core’ diploma graduates as in those early days each module was only passed after submitting a 100-plus-page project. This would usually involve a fictional company (often breweries for some reason) and we would have to completely pull the business apart and redesign its distribution and manufacturing systems.”

Mr Marriott’s light-bulb moment came when he started on the people management module,which covered how staff should be managed, motivated and trained.

“This all sounded so sensible, but it resonated with me that I had never had this laid out in such a logical and planned manner. I started applying it with my staff, and before I knew it, these same people started achieving amazing things in their own roles.”

After qualifying, Mr Marriott quickly in a new job managing the South Island operation of Allied Pickfords.

“From a logistics point of view, my training really kicked in. Early on, we faced and solved issues such as growing from a branch of 12 to over 50 in three months; expanding a warehouse of 1200 sq m to one of over 5000 sq m practically overnight; developing a process of quoting that, prior to the earthquakes, covered two to three moves a day to one that could accommodate over 15 moves a day, and finding solutions for working in the red zone where there was no water or power, and daily restrictions on how many staff could work on any site.

“Allied Pickfords is a great company and I am indebted to my former managing director, Graham Sutcliffe, who gave me the opportunity to run the South Island like it was my own business,” he said.

This ultimately led to the opportunity to run the overall New Zealand operation when Graham retired in 2012. Today, Allied Pickfords New Zealand is a member of the international SIRVA Group, a leading worldwide provider of relocation and moving solutions. In my current role I have quickly learnt the importance of managing costs and revenues together. Sadly, in many logistics companies, we employ people for their revenue-generating capacities and don’t pay enough attention to the single reason we are in business – to make a profit.

(Source: Edited and abridged version of FTD article, Feb 2017)

NORTHLAND MOTORWAY MAKES PROGRESS

Transport Minister Simon Bridges said the indicative route for a new motorway between Auckland and Northland was a significant step forward in improving travel between the two regions.

The indicative route showed the progress being made in developing the Government’s Warkworth to Wellsford section of the Pūhoi to Wellsford road of national significance.

“Improving this road is part of the Government’s commitment to ensuring transport infrastructure is in place to connect communities, get people to places of work and freight to key export markets, which are all vital in helping Northland’s economy grow,” Mr Bridges said. “It will reduce the overall travel time between Warkworth and Te Hana by bypassing town centres, and avoiding the steep and winding Dome Valley.

“The straighter road alignment will also reduce the high crash rate through this area and reduce congestion and frustrations for motorists that often get stuck behind slow moving heavy vehicles.”

The indicative route is predicted to reduce the current number of deaths and serious injuries by 80 per cent.

The motorway which travels west of Warkworth and east of both Wellsford and Te Hana, connecting back to State Highway 1 north of Mangawhai Road will also provide ongoing benefits for local communities. Once built, trucks and heavy vehicles will be diverted around townships, reducing around 90 per cent of through traffic and making them safer for local road users while reducing noise and pollution.

Three interchanges will connect the motorway with Warkworth, Wellsford at Wayby Valley Road and Te Hana at Mangawhai Road.

The Transport Agency will seek to protect the route for future construction by applying for consents by 2018.  More information is available at www.nzta.govt.nz/warkworth-wellsford.

AND MORE ROAD IMPROVEMENTS AT NORTHPORT TOO

Transport Minister Simon Bridges has also announced that the NZ Transport Agency is working to ensure significant improvements to a section of State Highway 1 between Whangarei and Port Marsden Highway are completed as quickly as possible, with construction planned to start by 2019.

Mr Bridges says 22km of state highway will be upgraded to four lanes, with the section between Oakleigh and Port Marsden Highway expected to be completed within 3 to 5 years, followed by an upgrade between Whangarei and Oakleigh, to be finished in 5 to 7 years. Timeframes are subject to investigations, consenting and purchases of the necessary property.

“The Government and the NZ Transport Agency recognise the importance of securing the safety and resilience of this key road corridor for the future prosperity of the Northland,” Mr Bridges said.

“Upgrading this section of highway to four lanes and separating traffic will significantly reduce the high number of fatal and serious injury crashes in the area, many of which involve drivers crossing the centre line and colliding with oncoming traffic. It will also provide a more reliable and resilient connection to the port.

“More than 3 million tonnes of freight is exported from Northport each year and improving the regions freight connections to key export markets will be a game changer for the wider Northland economy,” Mr Bridges said.

The improvements will also help support growth south of Whangarei where there are significant opportunities for industrial development and housing.

The Whangarei to Port Marsden Highway upgrade is expected to cost an estimated $400 to $500 million and is part of the wider corridor between Auckland and Whangarei.

“Ultimately we’re planning a significant upgrade of the highway all the way from Whangarei to Auckland which will include the completion of the Puhoi to Wellsford road of national significance which will make journeys along this entire corridor safer and more efficient,” Mr Bridges said.

The Transport Agency will work with Iwi, local communities and key stakeholders as the project moves through the planning and construction phase.

reinstating-the-main-route-600x450

Caption: The North Canterbury Transport Infrastructure Recovery (NCTIR) alliance – comprising the NZTA, KiwiRail, Fulton Hogan, Downer, Higgins and HEB Construction – will repair the damaged transport infrastructure – Photo courtesy of the NZ Transport Agency

REINSTATING THE MAIN ROUTE SOUTH

The Kaikoura earthquake, which occurred two minutes after midnight on November 14 last year, tore apart the land, wrecked roads and bridges, and brought down thousands of slips, some of which blocked State Highway 1, the Inland Kaikoura Road (Route 70) and the Main North Line railway, effectively cutting off all land routes into Kaikoura.

Engineers were quick on the scene while a recovery mission was mounted by the government, in conjunction with the NZ Defence Force, to get supplies into the stricken towns and trapped tourists out of Kaikoura.

The NZ Transport Agency (NZTA) confirmed early on the morning of November 14 that sections of SH1 between Blenheim to Christchurch, and SH7 between SH1 and Springs Junction (Lewis Pass) were closed. Contractors worked throughout the day to assess the safety of bridges and clear slips, and by later that day an alternative inland state highway route had been re-established between Picton and Christchurch, via Murchison and the Lewis Pass.

NZTA was also able to create an emergency access road to Kaikoura (inland via Route 70) between Culverden and Kaikoura once several slips had been cleared. Deemed still dangerous to traffic, the route was initially under the strict control of Civil Defence Canterbury, with New Zealand Army convoys delivering supplies.

On November 25, a convoy of private vehicles – mainly tourists trapped in the township in cars and motor homes – was led safely out of Kaikoura past the cleared landslips. On November 29, control of the road transferred to the NZTA and people could then register to drive in and out of the town during the morning and afternoon time slots.

On Monday December 19, after weeks of work by NZTA crews to clear slips and create temporary detours, install culverts and erect Bailey bridges around the highest-risk sites, the Kaikoura inland road was opened for unrestricted use, providing a two-way road link in and out of Kaikoura for the first time since the earthquake.

Contractors for the NZTA continued work to clear the 25 slips along SH1 south of Kaikoura, which re-opened for daytime-only travel in time for Christmas on December 21. Work is continuing on the rail and road south of the town, but traffic has been largely unimpeded apart from a couple of closures due to poor weather and fresh rockfalls over the holiday period.kiwrail damage at kaikoura

Caption: KiwiRail’s engineers examine the damaged Main North Line following the November earthquake – 21 tunnels and 80 bridges will need to repaired, along with a lot of twisted or broken track – Photo courtesy of KiwiRail

Transport Minister Simon Bridges also announced the government would reinstate the coastal route to Kaikoura and would provide additional funding and enable legislation to speed up the process.

“The existing SH1 and rail corridor along the coastal route to the north and south of Kaikoura will be rebuilt, with additional improvements to increase safety and resilience,” he said. “Since the day of the earthquake, restoring access to Kaikoura has been our number one priority. Agreeing to restore the coastal route demonstrates our ongoing commitment to getting this region back on its feet as quickly as possible,” he added.

“To provide certainty, the Crown will fund the work required. Exact costs are still being determined, but the current estimate is between $1.4 billion and $2 billion.”

Mr Bridges said the work required to repair the route was still under investigation and it would be a very complex job. However, he was confident that limited access via the coastal route can be restored in about 12 months.

The government’s announcement to restore road and rail services was welcomed by KiwiRail, with CEO Peter Reidy saying KiwiRail would work to restore freight services for customers on the Main North Line “as soon as possible”.

On November 28, KiwiRail had announced a new coastal shipping arrangement for its freight customers – the NZ Connect service.

“KiwiRail will look for temporary fixes in some parts of the line to allow for restricted, freight-only rail services in the first instance while the permanent road and rail lines are completed. This will ease pressure on SH7 and SH63, as the roads have struggled under the influx of freight trucks during the peak period,” Mr Reidy said.

“KiwiRail will use the latest technology in slip identification and movement to allow our train drivers to safely navigate areas while permanent repairs are made. While there will be time delays on the route once opened, it will offer a reliable, cost-effective service with fewer emissions for our customers while taking heavy vehicles off the roads.”

He said KiwiRail’s teams of engineers had been analysing the damaged parts of the Main North Line and had detailed plans of where work would begin. “We have 21 tunnels, 80 bridges, and a lot of twisted or broken track to fix,” he added.

In late December, Mr Bridges announced the establishment of a new alliance to repair SH1 and the rail line north and south of Kaikoura. Known as the North Canterbury Transport Infrastructure Recovery (NCTIR), it will be led by Duncan Gibb, formerly of the Stronger Christchurch Infrastructure Rebuild Team (SCIRT). The alliance is made up of the NZTA, KiwiRail, Fulton Hogan, Downer, Higgins and HEB Construction.

“The alliance will be the lead delivery agency to repair the transport infrastructure damaged during the earthquake. These organisations have been heavily involved in the emergency response to date and will be able to keep momentum to help Kaikoura and North Canterbury to recover as quickly as possible,” Mr Bridges said.

The work of the alliance will mainly consist of rail and road network reinstatement between Oaro and the Clarence River, and the management and operation of the state highway corridor between Picton and Christchurch via Murchison and Lewis Pass.

One of the first jobs for the alliance was to remove the freight goods from service 737, the train that had stopped in a tunnel north of Kaikoura on the morning of the earthquake and was trapped by landslips. With interim repairs made to a bridge and an engineering assessment made of the tunnel, the train was able to be moved just prior to Christmas to a location where the containers could be removed, ready to be trucked to Kaikoura before being relocated to Christchurch.

A significant section of the Main North Line was reinstated over the Christmas break, with the track from Picton to Grassmere repaired and the designs for six bridges along the route near completion.

KiwiRail’s group general manager of network services, Todd Moyle, announced mid-January that more than 100 KiwiRail staff, consultants and contractors had been working apace in the lead up to and throughout the holiday period, fixing twisted track, inspecting and redesigning replacement bridges and tunnels, and getting the first part of the line – from Picton south – workable again.

“We have had track gangs moving in both directions, from Picton south and Christchurch north, over the holidays, and a key strategic goal was to get the line to Grassmere completed. While there were no major slips in that area, there were more than 50 medium-scale faults on the line, and the track had been shifted sideways in many sections along the network,” Mr Moyle said. “Our people started that work two-and-a-half weeks before Christmas, so to have it finished by the second week of January is a remarkable feat.”

The first freight train to leave the Blenheim freight hub heading south to Lake Grassmere ran on January 16.Freight from Dominion Saltworks at Lake Grassmere was then carried on the first stage of its journey to the North Island, arriving in Blenheim just after noon.kiwrail recovery at kaikoura

Caption: Contractors work to clear slip 14 on SH1 towards the end of December – Photo courtesy of the NZ Transport Agency

Mr Reidy described it as “a significant milestone” in the restoration of the Main North Line, but said there are much bigger issues to tackle further south. By the end of January, work to rebuild the Main North Line between Christchurch and Blenheim had gathered pace, including surveying the land in preparation for returning the track to its proper position. Onsite inspections of bridges and landslips are continuing, and preparation for geotech testing is underway.

To stay up to date with the recovery of road and rail routes damaged by the Kaikoura earthquakes, visit www.nzta.govt.nz/kaikoura-earthquake-response

 KEEP CHECKING OUR ‘WHAT’S NEW’ PAGE LINK!

We hope you enjoyed this newsletter.  Our Archive newsletter page holds previous newsletters from 2015. For the latest though, click on our “The latest” link on the home page masthead… This is updated at least weekly with industry related news items and commentary on current issues.

Latest Newsletter: Sept – January 2017

Welcome to our latest newsletter – an industry round-up of news and interviews related to the maritime logistics industry……

NZ TO WELCOME RECORD CRUISE SHIPS THIS SUMMER

New Zealand is gearing up for a bumper cruise season, with a record number of cruise ships headed for our shores.

Cruise Lines International Association Australasia commercial director Brett Jardine said 33 ships will be cruising local waters between October 1 and April 30, with nine making their inaugural calls. In the same period last year, New Zealand welcomed 28 ships.

There will be 33 cruise ships visiting New Zealand over the summer. The ships will make more than 600 calls to ports around the country, including close to a dozen maiden calls for cruise lines at destinations including Stewart Island, Wellington and Kaikoura.

ovation 1475033757791

‘Ovation of the Seas’ is 346 metres long and has room for 4905 passengers.: Photo supplied.

Among the visitors will be the largest ship to sail to New Zealand, Royal Caribbean’s 167,000-tonne Ovation of the Seas, as well as the youngest and most luxurious ship to cruise local waters, the Seabourn Encore, which will arrive in New Zealand just one month after she is officially named in Singapore.

Mr Jardine said the record season reflected New Zealand’s growing popularity as a cruise destination, as well as continuing growth in Kiwi passenger numbers. Figures showed close to 70,000 New Zealanders took a cruise in 2015, a 10 per cent increase on the previous year.

“New Zealand’s popularity as one of the world’s hottest cruise destinations will be clearly evident this summer,” Mr Jardine said. “Not only will there be more ships visiting than ever before, there will be scores of inaugural calls around the country as cruise lines extend their itineraries to take in a wider range of beautiful ports around the North and South Islands.”

Launched in April 2016, the 4180-passenger Ovation is the latest Quantum-class ship and will be the newest, biggest, most advanced ship to sail in New Zealand waters. It is a game changer for cruising, featuring  skydiving and surf simulators, North Star viewing capsule, spectacular Two70 entertainment venue, Seaplex activity space, 21 restaurants and cafes, solo, “virtual balcony” and family cabins.

Ovation will arrive in Fiordland on December 21, followed by Dunedin on December 22. (See www.royalcaribbean.com.au)

Encore will be the youngest, most luxurious ship to grace local waters. The elegant 604-guest ship is slightly larger than its three Odyssey-class sisters; it will have an extra deck, all-balcony suites, an aft watersports marina and new restaurants. Seabourn Encore’s first Australian season includes 15-night cruises to New Zealand and the Pacific. It will debut in Milford Sound on February 9, followed by Oban on February 10. See seabourn.com.

Otheir ships making their maiden call to New Zealand include Azamara Cruises – Azamara Journey. Arrives in Milford Sound on February 28 and Dunedin on March 1, the first of 10 maiden calls; Hapag-Lloyd Cruises – Europa 2. Debuts in Auckland on December 20 and will make eight inaugural calls around the country; Holland America Line – Maasdam. Debuts in Tauranga on November 20; NCL – Norwegian Star. Debuts in Dunedin on February 13, the first of seven maiden NZ calls; Oceania Cruises – Sirena. Arrives in Dunedin on April 17 and will make six maiden calls to local ports; P&O Cruises Australia – Pacific Aria. Arrives in Auckland on November 20; and Princess Cruises – Emerald Princess. Sails into Miford Sound on November 20.

Source – Stuff

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PIRACY FALLING FAST ACROSS ASIA, FIGURES SHOW

By Simon Rougheen, Asia regional correspondent in Jakarta.

Caption: Filipino Coast Guard personnel arrest mock pirates during a combined maritime exercise by Philippine and Japanese Coast Guards in the waters off Manila Bay on July 13. © AP

Maritime piracy attacks in Asia fell by more than two-thirds in the first half of 2016 compared to a year ago, suggesting that regional efforts to reduce the number of incidents are making headway amid a global decline in the number of ships seized or ambushed.

Even so, Indonesia remains a hotspot that in the first half of the year saw about one quarter of all piracy attacks reported worldwide take place in its waters. In addition, the waters between Malaysia and Indonesia remain dangerous because of kidnappings by the Abu Sayyaf terrorist group, which recently executed two Canadian hostages and is holding at least 10 more for ransom.

“A search on our database shows 141 incidents [worldwide] this year until Sept. 5,” said Natasha Brown, an official at the International Maritime Organization, a United Nations agency. There were 223 incidents in the comparable period of 2015, indicating “a downward year on year trend,” Brown told the Nikkei Asian Review.

The International Maritime Bureau, part of the International Chamber of Commerce, also reported that pirate attacks were down significantly in 2016 compared with a year ago, with only 98 attacks worldwide in the first six months of 2016 — the lowest in 21 years.

“[A] reduction in attacks in the Gulf of Guinea and the continued reduction in attacks off Somalia accounts for this,” said IMB director Pottengal Mukundan. After years of kidnappings and hostage-taking by Somali pirates — in some cases providing material for Hollywood movies — a NATO-led security operation has resulted in much-reduced levels of piracy around East Africa.

The IMB’s Piracy Reporting Center in Kuala Lumpur, set up in 1992, is often the first to hear of pirate attacks, with a team standing by around the clock to field reports from distressed captains.

“All information received is immediately relayed to the local law enforcement agencies, requesting assistance. Information is also immediately broadcast to all vessels in the ocean region, providing vital intelligence and increasing awareness,” the IMB states on its website.

Many of the calls received by the IMB come from vessels passing through strategically and economically-important waters such as the South China Sea and the 900km Straits of Malacca, where pirates have for centuries posed a threat to shipping and commerce.

Other key organizations involved in monitoring piracy have lauded the trends in Asia. Among them is the Regional Cooperation Agreement on Combating Piracy and Armed Robbery against Ships in Asia, an intergovernmental body representing 20 countries that was set up a decade ago to improve anti-piracy coordination across the continent.

“There has been an improvement in the piracy and armed robbery situation in Asia, with the largest decrease in number of incidents during January-June 2016 compared to the same period in the past four years of 2012-2015,” said the organization, which is referred to as Recaap.

“The number of incidents reported during January-June 2016 has decreased by 64% compared to the same period in 2015. A total of 41 incidents were reported during January-June 2016 compared to 114 incidents in 2015,” Recaap said.

Piracy attacks increased in Asia from 2014 to 2015, but the data for 2016 suggests a return to a longer-term downward trend in the region.

“In Southeast Asia, increased cooperation between nations for operational patrolling and response, effective prosecution of criminal gangs and industry vigilance appear to have successfully reduced piracy incidents, Oceans Beyond Piracy, a U.S. based private foundation that researches the impact of piracy, said in a 2015 global survey.

The reduction in pirate attacks in Asia this year has been most noticeable in one of the region’s most important waterways, the straits of Malacca and Singapore, sometimes referred to as SOMS. The waterway is the conduit for around 40% of world trade each year, including around 3 million barrels of oil a day destined for East Asia.

Recaap said: “The decline in the number of incidents reported during January-June 2016 was most evident in… SOMS. One incident was reported in SOMS during January-June 2016 compared to 55 incidents during the same period in 2015.”

Pirate attacks in Asia are usually not as dangerous as those carried out off the coast of Africa, where pirates are often heavily armed and where hostage taking for ransom was a scourge for years prior to NATO’s intervention.

Between 2005 and 2012, 61 seafarers were killed as result of piracy and 5,420 were held hostage on some 279 ships hijacked worldwide, according to the U.N. Conference on Trade and Development, which points out that piracy also affects humanitarian aid, business supply chains, global production processes, trade, energy security, fisheries, marine resources, the environment and political stability.

The global cost of piracy, which UNCTAD calls “a hidden tax on world trade,” remains unclear, although the U.N. agency cites estimates of between $1 billion and $16 billion a year. About 80% of these costs are believed to be borne by the shipping industry, including insurance and the provision of onboard security. The remaining 20% is covered by governments, including the cost of missions such as the NATO deployment off the Horn of Africa, according to UNCTAD.

The reduction in piracy attacks has not yet seen a drop in security overheads for merchant shipping, however.

“There is no real change, the costs are essentially the same, ships still have to take special measures to protect themselves, including armed guards,” said Simon Bennett, director of policy and external relations at the International Chamber of Shipping. The ICS is made up of national shipowners’ associations in Asia, Europe and the Americas whose member companies operate over 80% of the world’s merchant tonnage.

In contrast to the sometimes violent pirate attacks carried out off the coast of Africa in recent years incidents in Asia have tended to involve more lightly armed gangs, often wielding knives rather than firearms, according to incident reports sent to the IMO and IMB.

“Seven pirates armed with knives boarded the ship while enroute to Lanshan. They tied up the master and fled with stolen cash, ship’s property and crew personal belongings,” reads one IMB incident report, also posted on the IMO’s website. The report detailed a July 2016 attack on a Marshall Islands-registered bulk carrier accosted in the South China Sea, 18 nautical miles from the Indonesian island of Pulau Mangkai.

Elsewhere, the waters between Malaysia and the Philippines remain dangerous because of kidnappings by the Abu Sayyaf terrorist group, which recently executed two Canadian hostages and is holding at least 10 more for ransom. This is an operating method that echoes the activities of Somali pirates — some of which had links to terror groups such as al-Shabaab — several years ago.

“Although it is good that piracy numbers have gone down, it doesn’t mean that the problem has gone away,” said Mr Bennett.

Together, the territories of Indonesia and the Philippines include about 25,000 islands, offering ample hideaways for pirates. Indonesia and Malaysia have not joined Recaap, undermining the prospects for wiping out piracy from the region, preferring bilateral or trilateral efforts to combat the threat.

“It is important to immediately implement the trilateral cooperation in practical terms on the ground in a coordinated manner,” said Indonesian defence minister Ryamizard Ryacudu, in a Sept. 6 meeting attended by his Malaysian and Philippine counterparts on Bali.

The IMB’s half-year data for 2016 shows that around a quarter of the 98 reported attacks worldwide took place in Indonesian waters. However, Indonesia, Malaysia and the Philippines have pledged to work together to prevent kidnappings — Indonesian and Malaysian nationals are among Abu Sayyaf’s hostages — while Jakarta is campaigning to stamp out illegal, unreported and unregulated (IUU) fishing in its waters.

Indonesian Fisheries Minister Susi Pudjiastuti said in 2015 that Indonesia wants IUU fishing to be listed as a transnational crime, and the government has been busy capturing and destroying foreign vessels caught fishing illegally in its sovereign waters.

Experts say that some of the Indonesian pirates are likely to be fishermen, their livelihoods possibly undermined by foreign boats fishing illegally. Don Liddick, professor of criminal justice at Penn State Lafayette, said in a 2014 article in the academic journal Trends in Organized Crime that there was a clear “nexus” between IUU fishing and maritime piracy.

“The well-documented incidences of piracy in or near Somali waters seems to have developed within the Somali fishing industry, at least partially as a consequence of illegal fishing. A similar IUU fishing-piracy link has been observed in Southeast Asia,” added Liddick.

HANJIN TAKES LEGAL STEPS TO PREVENT SHIP SEIZURES

South Korea’s Hanjin Shipping plans to take legal action in jurisdictions worldwide to prevent its vessels being seized, as more of its ships were blocked from docking at ports in the wake of its collapse.

As of Monday, SEPT 5, 79 Hanjin ships including 61 container ships and 18 bulk carriers have been denied port access, according to South Korea’s maritime ministry. That figure includes one vessel seized in Singapore by a creditor, a company spokeswoman said. Hanjin has 141 ships, of which 128 are operating.

At least three U.S. firms have also launched legal action against Hanjin to seize vessels and other assets over unpaid bills.

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Hanjin Shipping cargo ships stacked with containers in the Port of Seattle. © Getty Images.

The collapse last week of the world’s seventh-largest container shipper has caused much agonising among its clients over the fate of stranded cargo. Whether Hanjin can fend off ship seizures will depend on the jurisdictions involved, lawyers said.

Hanjin vessels are currently carrying cargo worth 16 trillion won ($14.5 billion) belonging to some 8,300 cargo owners, the Korea International Trade Association said, adding that the carrier has unpaid bills amounting to 610 billion won.

As part of its efforts to gain legal protection for its ships, Hanjin has filed a Chapter 15 petition in a U.S. bankruptcy court in New Jersey. It plans to pursue legal action in roughly 10 countries this week and later expand that to 43 jurisdictions, South Korea’s financial regulator said.

Many port authorities and port service providers are demanding cash to work on Hanjin ships, the Hanjin spokeswoman said.

Its lead creditor, the state-run Korea Development Bank, met with officials of parent firm Hanjin Group to discuss its commitment to paying fees so stranded ships can enter ports, but did not reach a conclusion, a bank official told Reuters.

Hanjin is likely to have more recourse against its ships being seized in countries which, like South Korea, have signed the United Nations-backed UNCITRAL Model Law on Cross Border Insolvency, which include the United States, United Kingdom, South Africa and Australia, legal sources said.

“If Hanjin’s vessels have been arrested in jurisdictions that have ratified the Model Law then there is a strong chance the arrest will not be successful, although with the caveat that this is always subject to the local practices and the factual situation,” said Steffen Pedersen, partner at law firm Thomas Cooper in Singapore.

Lawyers said it was more uncertain what would happen in jurisdictions such as Hong Kong, China and Singapore that have not signed the Model law.

Shares in Hanjin Shipping plunged 30 percent on Monday after trade resumed although they later recouped most of their losses on what appeared to be buying by retail investors. The stock has lost 34 percent since creditors halted their support last week.

The ship seized in Singapore, the Hanjin Rome, includes about 50 containers with components for a nuclear power plant under construction in the United Arab Emirates by a consortium led by Korea Electric Power Corp (KEPCO), according to a person with direct knowledge of the matter.

The person, who was not authorised to speak to the media about cargo data, declined to be identified.

Hanjin accounts for 7.8 percent of trans-Pacific trade volume for the U.S. market and a Hanjin bankruptcy would be the largest ever for a container shipper.

Rival Hyundai Merchant Marine Co Ltd is in talks with firms such as Samsung Electronics Co Ltd and LG Electronics Inc to carry their cargo, South Korea’s Financial Services Commission. Ratings agency Fitch said in a research note that Hanjin Shipping risks should be manageable for South Korea’s banks.

Source – Reuters, Seoul.

SHIPPERS TURN DOWN MANUKAU OPTION

By Jamie Gray, a business reporter for the NZ Herald

Shippers have given the thumbs down to one finding from the Port Future Study – that Auckland’s next major port could be sited in the Manukau Harbour.

The study said Auckland’s next new “super port” could be moved to the Manukau Harbour or the Firth of Thames at a cost of $4 billion to $5.5 billion.

New Zealand Shipping Federation executive director Annabel Young, who is a member of the Consensus Working Group launched by Mayor Len Brown a year ago to reconsider Ports of Auckland’s place on the city waterfront, said shippers do not favour a west coast port alternative.

Ms Young said the working group included a diverse range of people but they had reached an agreement.

“And the agreement that we reached did not assume that the port would have to move, but if it does need to move it needs somewhere to go to, and we need to start thinking about that now,” she said.

The Firth of Thames was originally considered as the site of New Zealand’s only oil refinery, which ended up being built at Marsden Point, near Whangarei.

Ms Young said it was no secret that shippers favoured a port on the east coast – where most of New Zealand’s ports are located – because of the generally wilder weather and sea conditions on the opposite coast.

“The east coast is always going to beat out a west coast site,” Young said. Manukau has scored well because of its proximity to road and rail. “That said, it’s not a great site for a port,” she said.

Shifting sands and a difficult prevailing wind made the Manukau a difficult choice.

“Anyone who has ever taken a ship in there just laughs at it being turned into a major port, but more work needs to be done,” she said.

Gerard Morrison, the New Zealand managing director for Maersk Line – the world’s biggest shipping company – said the existing port did not have the land area to handle future growth.

“The one thing that is certain and definite is that the current port of Auckland will not be able to handle the task in the future,” he said. “Whether it is 10 years away or 20 years away, they are going to struggle for space,” he said. “So an alternative of some description has to be found.”

Mr Morrison said Manukau could be a viable option “but the question would be at what cost”.

David Vinsen, chief executive of IMVIA, an industry group representing the used car import business, said car importers had an “agnostic” view of where the future port should be.

“We are relatively agnostic about where the cars arrive, but there are some strong indications as to why they should continue to stay in Auckland,” he said. “It’s also the time and money aspect, and the practicality of moving them elsewhere.”

New Zealand imports about 250,000 cars a year – mostly through Ports of Auckland. The report said Northland has been rejected because of the difficulty transporting cargo across Auckland city to rail and road hubs in the south.

Daniel Silva, the secretary of the New Zealand Importers Institute, said the estimate of $4 to $5.5 billion “appears to be optimistic”.

“The obvious solution is to incentivise the port to optimise and rationalise its operation in co-operation with other ports, unencumbered by petty parochialisms,” Silva said. “The alternatives amount to grandiose schemes to relocate the port, totally ignoring the reality that

Source- NZ Herald.

POA NEEDS TO REGAIN SOCIAL LICENCE FROM RATEPAYERS

Ports of Auckland is working to regain its social licence after being buffeted by public opposition and a court ruling last year over plans to extend one of its container wharves.

The company has been recognised as the “Best Seaport in Oceania” in an award announced today for its efficiency, infrastucture and fees. However, its chief executive Tony Gibson, shown at right, said it could have handled the proposed Bledisloe Wharf extension better.tony gibson among containers

“We handled it the way we should from the legal perspective but in hindsight we should have had an open book with the public – there’s no question about that,” he said. “We’re now working hard to regain our social licence to operate.”

This included working on its credentials as a sustainable operator and engaging the community.

The Auckland council-owned company is braced for further scrutiny in the leadup to this year’s local body elections, especially in the wake of a Future Port study which will report its findings next month. Besides leaving the port where it is, the working group had shortlisted the Manukau Harbour, Firth of Thames and Muriwai as possible alternatives for a new port.

Already mayoral candidates were taking positions on where it should go with momentum to shift it from the prime waterfront location.

“We’ve always been a political football, it’s the main game in town but what you’ve got to do is focus on the business,” Mr Gibson said. “All we want is certainty and that’s what we’re hoping to get out of the Ports Future study and that’s what our customers want. If the owners want us out then find us a home where we can perform the freight task and deliver a good customer service.”

The port is owned by Auckland Council, but Mr Gibson said that if the owners wanted the port out “then find us a home where we can perform the freight task and deliver a good customer service.”

In the first six months of the year net profit came to $31.6 million – up 9.5 per cent on the same period a year earlier – despite revenue falling by 2.2 per cent to $106.1 million. Freight volumes were down but the full year result would be likely be on par with that of last year when the company reported a net profit of $63.2 million.

The global cargo market was still tough, he said.

“We’ve always been a political football, it’s the main game in town but what you’ve got to do is focus on the business.”, Mr Gibson said.

The shipping industry itself was in a terrible state. There had be a 7 per cent increase in supply during the past year and just a 1 per cent increase in growth. Around 20 per cent of the container capacity had been laid up and there had been a 47 per cent drop in freight rates. This was putting more pressure on ports to become more efficient and trim costs. The company says that in 2015 its crane rate efficiency improved by 10 per cent.

Source – NZ Herald

LAST LOG TRAIN BUT LINE NOT CLOSED

The last log train between Kauri and Otiria has completed its final run, but KiwiRail has stated the line was not closed and would be used again once it became commercially viable. The only customer north of Kauri, the woodchip company Marusumi, was informed its contract would not be renewed after August because of poor commercial returns and “life-expired wagons”. Two trains used the northern part of the line each day but Marusumi’s logs are now hauled to its Portland mill by road.

TrackSAFE NZ manager Megan Drayton has reminded the public the only safe place to cross the rail tracks was at a level crossing and that it was illegal to access the rail corridor without a valid permit. KiwiRail vehicles would use the rail track to carry out routine maintenance, she said.

The North Auckland rail line starts in Auckland and passes through Helensville and Whangarei to the dairy plant at Kauri, ending at a log loading yard at Otiria, near Moerewa.

Grow Northland Rail said as a province, Northland should look at building road-rail hubs similar to what was happening elsewhere around the country. Spokesman Alby Barr referred to the recently opened Waingawa road-rail hub in the Wairarapa which he said meant more than 700 tonnes of logs would be hauled to Wellington daily by rail instead of grinding their way on roads.

“Last week’s log falling off a truck through (Tikipunga) and narrowly missing a car really highlights the danger, and with hundreds of extra log trucks per week estimated after the log train axing, that danger is set to increase.”

Northland Regional Council transport committee chairman John Bain said while it was ideal for all rail lines in the region to be open, people had to be realistic of the costs involved. He questioned whether it made sense for taxpayers’ money to be invested to keep rail link north of Kauri operational for the benefit of a profitable company. The Dargaville branch line closed in October last year.

INDUSTRIAL DEVELOPMENT FOR MARSDEN MARITIME

Marsden Maritime Holdings has 185ha available on a leasehold basis. Of this some 25ha is zoned Business 2, suitable for light industrial uses, and the balance Business 4 and port zone which is suitable for heavy industrial use.  Access to the port at Marsden Point is available “off highway”, meaning that normally overweight loads can be transported directly between a site and ship’s side. Lease periods of up to 35 years are available and site areas are flexible depending on individual requirements.

Marsden Maritime  contains Northport, New Zealand’s northernmost multi-purpose port, and a major industrial area including the country’s only oil refinery. The Marsden Point area has substantial land holdings – much of it in Marsden Maritime Holdings Ltd ownership – and infrastructure to support the industrial and processing sectors. It offers significant natural advantages based on land, water, and climate in a pristine yet versatile environment, offering growth potential for manufacturing, construction, import/export, or processing, all within close proximity to Auckland, New Zealand’s largest metropolitan area.

State highway 15 provides a high quality 8km link to State highway one, and a 16km railway link corridor from the north Auckland Line at Oakleigh to Marsden Point has been designated to cater for potential cargo growth.

FOREST OWNERS NOT CONVINCED BY PETERS’ BILL

New Zealand forest owners are unconvinced a proposed Bill will ensure long term viability for the forest industry.

New Zealand First leader Winston Peters has told the New Zealand Institute of Forestry in Dunedin this week that a Bill he proposes will both maintain the national forested area and develop more processing capacity in New Zealand. But Forest Owners’ Association President Peter Clark said from what he understands of Winston Peters’ Bill the opposite will happen.

“Our industry certainly wants continuity of supply for both export and domestic industry. But passing a law will not suddenly produce grown trees in the ground. Nor will it work having the government tell forest managers when they can, and when they cannot, harvest their trees. Mr Peters’ formula doesn’t in any way increase the capacity for more timber processing in New Zealand.”

Peter Clark said the best way to ensure the New Zealand timber processing industry grows and invests in improvements and greater capacity, is to have more trees in the ground.

“For farmers, Māori landowners and forestry investors, the most important factors will be forest profitability and land use policy stability. The forest sector is keen to work with Government as it reviews the policies and rules which have an impact on all land users under the Emissions Trading Scheme and fresh water quality,” he said. “Trees lock up atmospheric carbon, and can also allow some farming intensification, while they maintain or improve water quality. Forest genetics are improving all the time. That means rotations can be shorter on good growth sites. Forests provide both biodiversity and recreational opportunities as well.”

“Recognition of the wider community benefits in land use and Emissions Trading Scheme policies is what is needed – not restrictions on when, or to who, forest owners can sell their trees,” Mr Clark said. “We’d love to see more farmers invest some of their land in growing timber. That makes economic sense to the farmer because it gives them another source of income apart from their livestock.

“But Mr Peters’ idea of having a reconstituted Forest Service spending taxpayer dollars to establish and maintain forests is not the answer. There are more pressing demands on our taxes, with improved roads in many rural areas being an obvious one that would also help with forest profitability.”

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Latest Newsletter: May to September 2016

Welcome to our latest newsletter – an industry round-up of news and interviews related to the maritime logistics industry……

LYTTELTON PORT PLANS BIGGEST DREDGING PROJECT

Lyttelton Port of Christchurch has announced plans for New Zealand’s largest dredging project, which will allow it to accept larger ships. Lyttelton Port will dump sediment across an area seven times the size of Christchurch’s Hagley Park, in what it says will be New Zealand’s largest dredging project. It is part of the port’s ambitious 30-year vision, in which it will spend $1 billion on redevelopment.

Lyttelton Port of Christchurch (LPC) will soon seek permission to expand and deepen the Lyttelton harbour channel, allowing larger ships to enter the port. It wants to extend the channel by 6.5 kilometres, doubling its current length. It will also make it 20 metres wider and up to 6m deeper.

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The dredging plan proposed by Lyttelton Port of Christchurch. The rectangle to the right is where sediment will be dropped. Photo- LYTTELTON PORT/SUPPLIED

LPC said it expected to spend $80 million to $120m on the dredging project. It said container ships were getting bigger, and increasing the depth of the channel would allow the port to remain internationally competitive.

The largest ships at the port had capacity for up to 5000 containers. With a deeper channel, it could take ships carrying up to 8000 containers.

“The dredging proposal is future-proofing our port,” LPC chief executive Peter Davie said. “We need to have the right facilities and capacities to continue to attract major international shipping lines.”

If the project was approved, the port would run a dredger 24 hours a day, seven days a week for about a year. It would suck up 18-million cubic metres of sediment from the harbour – enough to fill three million concrete trucks – and dump it in a “disposal zone” about five kilometres off Godley Head.

The 12.5 square km zone is about seven times the size of Hagley Park. Sediment will pile nearly a metre deep on the seabed, covering the entire zone.

The port has committed to minimising environmental effects and has spent $3 million preparing for the resource consent, which includes work with a range of scientists and commissioning research into the environmental impacts. There would be temporary disruptions to seabed ecology and marine life in the dredging area, but they would re-establish once work was finished, the port claimed.

Extensive monitoring from 15 stations would give real-time data about water quality.

“The environmental monitoring programme we put in place will be the most extensive ever undertaken on a dredge project in New Zealand and we are working alongside leading international organisations that have significant expertise in this area,” Mr Davie said.

The port would apply for resource consent from Environment Canterbury in September, and would ask for the consent to be notified so the public could make submissions. The consenting process would likely take about a year, with work expected to begin in late 2017.

Despite reservations about some of the port’s broader plans, Lyttelton-Mt Herbert Community Board chairwoman Paula Smith said the dredging proposal had not immediately raised concern.

“The community board has quite a pragmatic view – we accept that it probably has to happen for the port to remain competitive. Our goal will be to make sure it is done in the best possible way,” she said.

If approved, the project could be completed in 2019.

Source: Stuff

PANAMA CANAL OPENING CARLOS JASSO1466987456832

Chinese container vessel Andronikos navigates the Agua Clara locks during the first ceremonial pass through the newly expanded Panama Canal. Photograph: CARLOS JASSO

Panama canal expansion greeted by fireworks and dancing girls!

Fireworks exploded as a huge container ship made an inaugural passage through the newly expanded Panama Canal, formally launching the Central American nation’s multibillion-dollar bet on a bright economic future despite tough times for global shipping.

The Chinese-owned Cosco Shipping Panama passed through the Atlantic locks at Agua Clara in the early morning and in the afternoon completed the 80-kilometre journey to the Pacific at the Cocoli locks near the capital, stewarded by tugboats and cheered by dignitaries and exuberant crowds of thousands.

The US$5.25 billion (NZ$7.4 billion) project went online nearly two years late after construction delays, labour strife and apparent cost overruns, but officials were still bullish and in a celebratory mood as they declared the expanded canal open for business.

“This is an achievement that all of us Panamanians should be proud of,” President Juan Carlos Varela said at the inaugural ceremony on the outskirts of Panama City. “Today marks a historic moment for Panama, for our hemisphere and the world.”

“This new transit route is the tip of the iceberg in making Panama once again the logistics centre of the Americas,” canal administrator Jorge Luis Quijano said. “And it represents a significant opportunity for the countries of the region to improve their infrastructure, increase their exports.”

Crowds that began gathering before dawn lined both sides of the canal waving flags, partying to salsa music and watching videos on giant screens. Authorities said about 30,000 people and eight foreign heads of state were attending.

The Cosco Shipping Panama is a 158-foot-wide (48.2 metres), 984-foot-long (300 metres) behemoth that is one of the modern New Panamax class of mega-vessels that are seen as the future of global shipping and will now be able to use the canal. It carried some 9,000 cargo containers during the inaugural voyage.

The waterway’s capacity doubles with the new locks, and canal authorities are hoping to better compete with the Suez Canal in Egypt and tap new markets such as natural gas shipments between the United States and Asia. Authorities said that 85 per cent of the 166 reserved crossings scheduled for the next three months are for container ships. Container cargo accounts for nearly 50 per cent of the canal’s overall income.

Panamanians at the ceremony expressed hope that the expansion will help the economy in a country where about 25 per cent of the people live in poverty.

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Women in traditional clothing waited to welcome the first vessels through the new Panama Canal.

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The new Panama Canal extension may bring new prosperity to the country but there is a current lull in global shipping due to the economic slowndown in China. 

However, the party comes amid a lull in global shipping due to the drop in oil prices, an economic slowdown in China, which is the canal’s second-largest customer, and other factors that have hit the waterway’s traffic and income.

While authorities anticipate increasing commerce between Asia and ports on the US East Coast, doubts remain that not all those ports are ready to handle the huge New Panamex-class cargo ships. Net cargo volume through the canal from the US East Coast toward Asia fell 10.2 per cent in 2015, according to official statistics. Meanwhile, the Suez recently lowered tariffs by up to 65 per cent on large container carriers in an attempt to keep its traffic.

“It’s important to remember that the canal does not create demand. The canal opens the route. Supply and demand on a world level is what will decide whether the Panama Canal will really bring more volume or not,” said Antonio Dominguez, a general manager for global shipping leader Maersk Line, which moves about 14.2 percent of world commerce. “What is certain is that the current canal has maxed out.”

Manuel Benitez, deputy canal administrator, said officials are thinking long-term about the benefits the new locks can bring through economies of scale and saving time and costs for large ships.

“These are cyclical questions. The market will rebound again and when we are in an `up’ cycle again, shipping will generate money and the Panama Canal will generate money,” Benitez said.

Since the canal was handed over from US control at the end of 1999, it has generated about US$10b in direct income for the Central American nation and is responsible for about 40 per cent of its GDP, factoring in related economic activity. Some 35 to 40 vessels transit the waterway each day, and the canal is estimated to handle about 6 per cent of world maritime commerce.

Panama began the expansion nearly a decade ago. Originally planned to open in late 2014 around the waterway’s centennial, the new locks can accommodate ships that carry up to three times the cargo of those previously able to use the canal.

Source – AP

biggest container ship maersk dunafare 1468385819260

This may be a large container ship by New Zealand standards but they are only going to get larger. From September, Maersk will introduce vessels with 9500 TEU capacity.

BIGGEST CONTAINER SHIP TO VISIT TAURANGA

The biggest container ship New Zealand has ever seen will start calling on Tauranga from September. Maersk’s Triple Star service is being extended from South America to North Asia, and Tauranga will be included on the route.

At 348 metres long and capable of carrying 9500 containers, the vessel is one of the shipping world’s new types of “mega” freight ships. It’s size is more than double the 4500-capacity ships that regularly ply our waters, but still small-fry compared to the world’s largest container ship, which holds around 22,000 containers.

Port of Tauranga chief executive Mark Cairns said the New Zealand record was formerly held by a one-off visit from a ship that held about 5000 containers. The size of the Triple Star ship was a surprise even to the port, which was dredging in preparation for 6500-container vessels.

Mr Cairns said New Zealand had traditionally not had enough cargo to merit big ship visits but the South America to China route enabled Kiwis to piggyback off the needs of bigger exporters. The route also overcame a key logistical problem, the Torres Strait.

“A lot of people have been saying New Zealand will never get vessels that size because they have to go through the Torres Strait at the top of Australia. So this rotation means that it won’t go underneath Papua New Guinea and Indonesia, it’s actually going straight up to North Asia.”

The new services will complement another recently announced Maersk service between North Asia and South America but with smaller vessels.

Gerard Morrison, managing director of Maersk Oceania, said local exporters were showing a lot of interest in both a direct service to China and quicker access to south America.

“If it takes three months to get product from New Zealand to south America, you’re just not going to be competitive. However, now we’ve been able to access some of those ports in south America in up to a third of the time that we were doing it before. So a 40-odd day transfer has become 16 days,” he said.

The South American cargo would be similar to New Zealand exports, primarily fresh produce and perishables, meaning that there would be plenty of refrigeration plugs.

The new generation ships were also more fuel efficient and would reduce the carbon footprint of the ocean freight component of New Zealand exports by a minimum of 22 per cent per container unit.

David Ross, chief executive of logistics firm Kotahi, said the new era of big ship visits to New Zealand has been made possible because two years ago, Kotahi, Maersk and Port of Tauranga had laid the groundwork.

“The arrival of larger ships to our waters is a key milestone for New Zealand on its journey to become a more efficient export nation,” he said.

Port of Tauranga, which has plunged $350 million into revamping its infrastructure to cater for the bigger boats, expects to finish its dredging work this month. The port is also focussing harder on making freight on land more efficient, working with KiwiRail to meet an increase in cargo between Tauranga and Auckland.

Coda, a joint venture between the port and Kotahi, recently opened an inland hub at Savill Drive in Auckland, which will centralise imported, export and domestic cargo and help ensure truck and rail trips are being fully used.

Source – Stuff

EXPORTERS TO VERIFY CORRECT SHIPPING CONTAINER WEIGHT

Ships cannot now accept export containers that have not had their total weight verified, as New Zealand ports join a worldwide crackdown on dangerously overloaded container shipments.

Maritime NZ spokesman Vince Cholewa said container weights had been “grossly understated” overseas, in some cases leading to vessels breaking up at sea.

Now New Zealand international shippers must verify the weight of export containers before loading. Ports started asking for verified container weights on June 15 ahead of the compulsory regime which started on July 1. Export goods will be checked for the combined weight of the container and its contents.

Lyttelton Port of Christchurch marketing manager Simon Munt said all New Zealand ports had problems with over-weight or under-weight containers.

“There are issues with net weights being declared as gross weights.” Footage on YouTube showed vessels that had “effectively snapped in half”, Mr Munt said.

Shippers would be responsible for the new weight checks, but New Zealand ports including Lyttelton would be the gatekeepers, Mr Munt said.

Canterbury transport company owner, Geoff Evans, said sometimes his staff had been unable to lift a containers with a swing lift designed for 36 tonnes. Usually they would expect containers like that to weigh about 30 tonnes.

“They’ve been grossly overstated or understated in some cases,” he said. “It’s been going on a long time.”

Mr Evans said the weight checks would help trucking companies as well as ports. “It’s as much about safeguarding New Zealand’s roading infrastructure as well.”

Port of Nelson chief executive, Martin Byrne said weights needed to be correct so boxes could be stowed safely. Crane operators also needed to know what they were handling. Container verification would also help detect dangerous cargo, he said.

The Maritime NZ website states that the new system was about ensuring the safety of ships and seafarers. Incorrectly stowed cargo on a ship could “result in the collapse of container stacks, over-stressing of the ship’s structure or instability of the ship itself.”

The weight rules will not apply to containers, rail wagons or vehicles aboard a roll-on, roll-off ships sailing to another New Zealand destination, like the Cook Strait ferries. But Maritime NZ says a container would need to be certified if it was being shipped from one New Zealand port to another for export. The organisation responsible for final packing of the container – the “last person to close the door” – will be generally responsible for checking the weight, Maritime NZ stated.

Source – Stuff

PORTS OF AUCKLAND FINED $50,000 AFTER WORKER FALLS OFF LEDGE

Ports of Auckland has been fined $49,980 after a stevedore plunged nearly three metres onto a ship deck. The stevedore was working on the container ship Spirit of Independence on 11 October, 2014 when the accident happened.

He was watching the foreman and another worker de-lash a container when he stepped off the edge of the hatch lid and fell 2.78m. He was knocked unconscious and fractured his elbow. The lid was 1.7m wide and had no safety rails. It was used to access containers as the ladders on the ship were designed for small people and not generally used by stevedores.

Maritime New Zealand maritime compliance general manager Harry Hawthorn said better communication of the need to stay away from edges could have prevented the accident.

“[Ports of Auckland] knew that stevedores frequently used the easier, faster option of walking across the hatch lid rather than using the ladders – but the lack of safety rails on the hatch was not identified at the ship specific safety briefing for stevedores.

“While the company stated it had a policy that stevedores stay at least 1.4m away from the edges where a fall could occur, this was not widely known by workers on the date of the incident. No requirement appears in documents used to train container lashers.”

The port was also ordered to pay the stevedore $12,000 reparation.

in March last year the port was fined $55,000 and ordered to pay reparation of $25,000 after a stevedore suffered serious injuries after falling 15m from the top of a container.

Source – Stuff

PORT DREDGINGS FOR AIRPORT EXTENSION AT WELLINGTON?

CentrePort has confirmed the possibility of material from its proposed harbour dredge being used for the Wellington Airport runway extension.

The port company is applying for consent to dredge a seven-kilometre channel to allow bigger ships through the harbour entrance, and to deepen the area around the Thorndon container wharf. The dredged material, enough to fill a million concrete trucks, would then be dumped at two sites and potentially be used for the runway extension.

The channel that CentrePort proposes to dredge at the entrance to Wellington Harbour and Fitzroy Bay, where it plans to dump the sediment.

CentrePort spokeswoman Jenni Austin said there had been discussions with the airport, but the two projects were still in the process of seeking resource consents.

Wellington Airport communications general manager Greg Thomas said CentrePort’s material was “appropriate to be used”. “The material in the outer channel … is sandy sediment, perfect for reclamation into the sea.”

Larger ships with a draught of 14.5 metres, right, can’t currently get into the Wellington Harbour, but would if it was dredged.

However, Sea Rotmann, from Guardians of the Bays, which opposes the runway extension, has called for an independent review, saying the material might not be strong enough or of high enough quality.

“As a long-term ratepayer investment, dumping millions of tonnes of sediment into the Cook Strait is a really daft idea,” she said. “We need a lot more sophisticated modelling and data collection to know the full impact, especially in an environment like Cook Strait.”

Caption: The area that CentrePort would deepen near the Thorndon Container Wharf and, shaded in yellow, where it plans to dump the sediment.

Wellington Recreational Marine Fishers Association president Jim Mikoz agreed that the shingle was too unstable for runway use. He was concerned about the shingle forming a bar near the harbour entrance, building waves and causing hazard to ships.

Mr Mikoz also said there was “a horror list” of possible side-effects from CentrePort’s proposed dredging and dumping of six million cubic metres of seabed sediment, which included “contaminated” material from the Thorndon container wharf.

The project could have an impact on harbour users for years, because the sediment, potentially contaminated with toxic DDT, would be subject to the prop wash from the large ships berthing at the container terminal.

CentrePort chief executive Derek Nind confirmed the sediment within Wellington Harbour and at the container wharf was contaminated by runoff from urban and agricultural areas, but said it was within guidelines and there would be a “negligible effect” on marine life and recreational harbour users.

He confirmed any contaminated material removed from the wharf would be placed in deeper water, where the levels of contamination were similar.

“Overall, dredging will reduce surface contaminants at both dredging and disposal sites. This is because surface sediments from the wharf area will be dredged first and be covered at the disposal site by the less contaminated deeper material from the wharf,” he said.

Dredging would take place only when currents were less than 0.1 metre a second, which would limit how far the sediment moved.

Source – Stuff

KAYLA MCKELVIE IS YOUNG FREIGHT BROKER OF THE YEAR

KAYLA MCKELVIE

Kayla McKelvie of Whangaparaoa (shown above) has won the Customs Brokers and Freight Forwarders Federation (CBAFF) Young Achiever Award 2016.

The 23 year-old, who works for Oceanbridge Shipping in Takapuna, wins a trip to Singapore courtesy of Singapore Airlines Cargo, $1,500 spending money, and a leadership management course with Leadership Management Australasia (LMA).

She was presented with her award at the 2016 CBAFF conference in Queenstown and will also receive complimentary registration for the 2017 CBAFF conference.

Kayla, who attended Orewa College, and joined Oceanbridge following a gap year, had to write a 2,000 report on a complex import and export shipment as part of the award application.

“I’m delighted to have won and am really looking forward to the course and the trip to Singapore where I will meet my shipping agent and view an airport and seaport,” she said. “I wasn’t sure what I wanted to do after school but I have family in the freight forwarding industry and they suggested I look into a career in this field. I love the diversity of the work – no two days are the same.”

Runner up was Adela Bright, who works for Go Logistics, Auckland.

CBAFF Executive Officer Rosemarie Dawson said: “The award recognises a young person who is a high achiever within their chosen field in the customs broking/freight forwarding/international freight logistics industry and has the desire and skills to further themselves in their career.

“We congratulate Kayla on topping a very high calibre list of entrants and finalists. This is a very interesting and rewarding industry for young people to be involved in and we believe Kayla and Adela have very bright futures ahead of them.”

Source: NZCBFF newsletter

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Latest Newsletter: May to August 2016

Welcome to our latest newsletter – an industry round-up of news and interviews related to the maritime logistics industry……

COASTAL SHIPPING IS ESSENTIAL SERVICE IN EMERGENCIES

By Dave MacIntyre

The Christchurch earthquakes of five years ago brought home a worrying message for New Zealand’s Civil Defence and emergency services – our transport infrastructure is fragile and vulnerable.

If airports have their runways broken, aircraft can’t land. If slips take our roads, vehicles can’t get through. If tracks are warped and skewed, trains can’t run.  If a natural disaster incapacitates our land-based transport routes, the sole option could be coastal shipping. Either roro (roll-on roll-off) ships or self-geared ships (with their own cranes) would be essential.

Steve Chapman, now president of the NZ Shipping Federation, but then (as now) chief executive of Pacifica Shipping, recounts the challenge that faced the country following the quakes in 2010 and 2011. “Pacifica’s Spirit of Resolution  was one of the first vessels to berth at the port of Lyttelton after both the September and February earthquakes. We got access through No. 7 wharf – at the time the only concrete wharf outside the container terminal – which had suffered minimal damage at the junction between the wharf proper and the hard deck,” he recalls.

“We placed 25 mm steel plate over the gap and we ran our toplifters [a type of forklift] over this plate to enable full cargo exchange on both occasions. At this time, the main container terminal was closed as port officials checked the integrity of the terminal and the shore cranes. In both instances, it should be noted that a self-geared vessel was able to exchange cargo at short notice. HMNZS Canterbury was in Lyttelton at the time of the second quake, and they had brought desalination units in via their roro capability – in this instance, a roro vessel contributing to the relief cargoes that were starting to come through the port.”

Following the February earthquake, amidst the confusion of the aftermath, it proved very difficult to make contact with Canterbury Civil Defence, said Mr Chapman. “One example was that we had brought down 250,000 litres of water on the Spirit of Resolution, courtesy of Metrowater Auckland and various wine tanktainer owners who assisted by cleaning out tanks and making them available for the water cartage,” he notes.

“We ended up carting this cargo through to the worst-affected areas, invariably the eastern suburbs, on our own trailers, with my engineers rigging up multiple taps on the tanks so that water could be accessed, yet we received no input or response from Civil Defence.”

At that time, Sheryl Ellison, then president of the NZ Shipping Federation, Jim Quinn of KiwiRail and Mr Chapman were on a daily conference call with the government. However, Mr Chapman’s feeling is that while there was some sort of co-ordination going on, “I believe there was a disconnect between government and Civil Defence,” he says.

There was also frustration among local shipping companies that better use was not made of the roro capability in the Interislander and Strait Shipping vessels, which can load and unload very quickly compared to the days it took to load the Canterbury.

A small roro like the Anatoki, shown at right, operated by Coastal Bulk Shipping, would be ideal for a civil defence role. So says the company’s general manager, Doug Smith, who has been having discussions with Greymouth Civil Defence about using the Anatoki to bring fuel and supplies into Greymouth if a disaster strikes on the West Coast.       ANATOKI

“With its relatively shallow draught, the Anatoki would hopefully still be able to access Westport and/or Greymouth after a major civil defence emergency in the area. While the Anatoki is a bulk vessel, its hold at 27.0 x 6.3 x 5.2 m has over 800 cu m of cargo space,” Mr Smith said.

“With the width of the hold at 6.3 m it is able to carry up to two layers of ten 20 ft containers. While there aren’t facilities to lift containers from ships’ holds on the coast, if tank containers were used they could be set up with a manifold and the fuel pumped out at either Greymouth or Westport,” he adds.

“We have in the past moved diesel to the Chatham Islands in this manner and the system works well. If one layer of containers were used it would allow up to 220,000 litres of diesel to be moved at a time.  With a little work, other break-bulk freight could be loaded on top of the tank containers and lifted off with either a Hiab or excavator.”

The NZ Shipping Federation, under the leadership of executive director Annabel Young, is now bidding to get the government to recognise the strategic role coastal shipping has in responding to a civil emergency.

“The emergency aid that can be delivered by a ship will always be dependent on the proximity of a landing area close to the emergency. This usually means a working port. We were lucky that the Napier and Canterbury areas were port-accessible following the earthquakes in those regions, but maybe that will always be the case in a country shaped like ours,” said Ms Young.

The federation’s view on emergency preparedness is made clear in ‘Full Steam Ahead’, its discussion document published late last year.  It states: “The Canterbury earthquake has made people more aware of possibility of sea transport being needed in a civil emergency. Emergency planning needs to include coastal ship operators so that there is a realistic understanding of what resources are available.

“New Zealand coastal ship operators are already entering into formal arrangements to provide local emergency assistance. This could include power generation, freight capacity (if roads become impassable) and accommodation.

“These local arrangements lie outside any national emergency planning. It is not known to what extent central or local government expects these resources to be available to them without having entered into a prior arrangement.”

Ms Young says this is an attempt to start a conversation so that there is a better understanding of maritime capability. “This seems to be a blind spot,” she notes.

The federation is awaiting a response from the government.

Pacifica’s Steve Chapman is clear what he would like to see – coastal shipping being written into the emergency preparedness procedures for these types of natural disasters, and a national register compiled, updated annually, of the type of vessel, vessel capabilities, vessel operator etc which are available on the coast, should a disaster occur.

The federation adds that there should be an audit of what land-based facilities are likely to be available in an emergency, e.g. which ports are able to take roro vessels such as those the Interislander and Strait Shipping operate.

Civil Defence Minister Nikki Kaye said that she recognises coastal shipping provides an important logistical link and capability during and following emergencies.

She says both the Ministry of Civil Defence and Emergency Management (MCDEM) and the 16 regional Civil Defence Emergency Management (CDEM) groups across New Zealand work with transport providers (including ports) to build resilience and reduce the risk to their networks, and plan for the response to, and recovery from, emergencies.

In many cases, she says, the use of sea and air networks is planned for. For example, the Wellington Earthquake National Initial Response Plan foresees the use of ships, ferries and local barges.

“MCDEM is a member of the Transport Emergency Management Cluster Group, which is chaired by the Ministry of Transport, and works with the Transport Response Team during and following emergencies to determine what consequences an emergency has had on all transport networks,” Ms Kaye explained.

“MCDEM is advised by the Transport Response Team, the New Zealand Defence Force and National Crisis Management Centre lifeline utilities and logistics personnel during an emergency to determine what ships and ports may be of use to the response at the time.”

Although the requisitioning of ships was not considered during the response to the February 2011 Christchurch earthquake, 
Ms Kaye says that Section 90 of the Civil Defence Emergency Management Act 2002 (CDEM Act) provides requisitioning powers during a state of emergency.

“These powers have seldom been used, and the New Zealand government would more likely make use of paid commercial providers or voluntary offers of assistance,” she says. “Every emergency in New Zealand is different and requires a bespoke response that utilises the assets and resources available at the time. The requisitioning of resources would be a last resort, and only likely in situations where the necessary resources were not otherwise made available. If requisitioning powers were utilised, the CDEM Act provides for compensation under section 107.”

Ms Kaye says MCDEM welcomes further engagement with the 
maritime sector. “All sectors, including the business community, can play a significant role in an emergency, and MCDEM is keen to learn more about the maritime sector, including the New Zealand Shipping Federation and the possible role they can play.”

Footnote: At the NZ Shipping Federation’s council meeting in February, the decision was made to prepare an inventory of what coastal shipping can bring to the table in a civil emergency, plus contact details, and to present the inventory to Civil Defence.

Source: FTD Magazine. May 2016.

PORTS OF AUCKLAND TO OPEN UP ONEHUNGA WHARF LANDOLYMPUS DIGITAL CAMERA

Consolidation has enabled Ports of Auckland to open up Onehunga Wharf land to Aucklanders. Ports of Auckland is negotiating with Panuku Development Auckland to sell the Port of Onehunga and make it available for public use.

“This has come about because Manukau Harbour is too shallow for modern shipping, making the port at Onehunga unsuitable for freight operations,” POA chief executive Tony Gibson said . “Over the past few years we have been consolidating Onehunga operations at our main port on the Waitematā Harbour.

“The construction of a new cement import facility at the Waitematā port is the final phase in the move of freight operations from Onehunga. This enables us to make our land at the Port of Onehunga available to Aucklanders, just as Princes Wharf, Queens Wharf, the Viaduct Harbour and Wynyard Quarter have been opened up for public use and enjoyment.”

Mr Gibson said: “By improving our efficiency we have been able to consolidate our operations, halve our land footprint and still continue to serve Auckland and New Zealand’s growing freight needs. This has enabled large areas of the Waitematā waterfront to be opened up for public use and we are delighted to be able to do the same for Onehunga and the Manukau.

“Ports of Auckland is New Zealand’s first, busiest and most efficient container port, as well as a vital tourism hub. We are keeping up with the international trend toward larger ships and we are evolving to meet Auckland’s growing freight demands while taking up less space,” added Mr Gibson.

John Dalzell, Chief Executive of Panuku Development Auckland said: “Onehunga town centre and its surrounds is identified as a key location where we will facilitate long-term residential and/or commercial developments that deliver on one of the objectives of the Auckland Plan – to radically improve the quality of urban living. Within that, transforming the Onehunga port site to facilitate more public uses is seen as the key to unlocking the economic, recreation, tourism and transportation potential of the Manukau Harbour. On that basis Panuku Development Auckland is considering the acquisition of the site.

“Technical and environmental due diligence on the site has been completed and we hope to enter into a conditional agreement for the site in the coming months. Should that happen we will be committed to achieving a high standard of urban amenity and public access across the site and along the coastal edge.

“Panuku appreciates the importance of the site to the local community and once an agreement is finalised it will undertake a comprehensive master planning exercise that will include the local board and key stakeholders.”

Source: Scoop Media.

AUSTRALIA’S NEW BILLION DOLLAR CRUISE GIANT IS READY

ovation of the seas

Ovation of the Seas arrives in Southampton, England.

Royal Caribbean International has taken delivery of the world’s newest and biggest cruise ship, the $US1 billion ($NZ1.4 billion) Ovation of the Seas, which will arrive in Australia in December this year. The 167,800-tonne ship hit the water for the first time last month sailing down River Ems from the Meyer Werft shipyard in Papenburg, in northwestern Germany, where the ship was constructed.

Ovation, the 24th ship to join the RCI’s family, will be the most technologically advanced cruise ship to sail in Australia. The 346-metre long and 41-metre wide vessel is the third Quantum-class ship in RCI’s fleet, which also includes Quantum of the Seas and Anthem of the Seas. German-based Meyer Werft has built all of RCI’s Quantum-class ships.

“It’s wonderful to welcome Ovation of the Seas to the Royal Caribbean family of ships,” said Michael Bayley, RCI president and CEO, said in a statement. “We have once again introduced yet another one of the most technologically advanced cruise ships and the very first that has been built for the Asia Pacific market – a market we continue to demonstrate our commitment to expanding.

“Quantum class has redefined the status quo, and we are excited for our guests in China and Australia to enjoy their extraordinary holidays onboard this stunner.”

The first stop for the new 18-deck ship is Southampton, UK, where she will offer a series of short itineraries before heading to Beijing for her inaugural China season commencing in late June 2016.  Ovation will set sail on a Singapore to Sydney voyage via Fremantle, Adelaide and Hobart on 30 November 2016 before being repositioned to her new home-port Sydney for her maiden Australian season.

RCI recently announced that Ovation of the Seas will return for a second Australian season for the 2017/18 summer. The decision represents the continuing growth of cruising in the domestic market.  Ovation has capacity to carry over 4100 guests at double occupancy and features 2091 staterooms.

Quantum class ships features include: Ripcord by iFLY – a thrill-seeking simulator that allows passengers to experience skydiving on a cruise ship; Bionic Bar which is served by robot bar tenders; North Star, an observation capsule that rises more than 90 metres in the air -higher than the pylons on the Sydney Harbour Bridge; 18 restaurants including “Jamie’s Italian” restaurant; and SeaPlex, a large indoor activity space which includes basketball, roller-skating and bumper cars.

Source – traveller.com.au

IS PORTS OF AUCKLAND OCEANIA’S BEST SEAPORT?

Ports of Auckland has been nominated as the best seaport in Oceania by freight and logistics industry peers for the 2016 Asian Freight, Logistics and Supply Chain (AFLAS) Awards. One of eight finalists, Ports of Auckland is the only New Zealand port to be included following a nomination process involving more than 15,000 ‘Asia Cargo News readers.

Ports of Auckland Chief Executive Tony Gibson said: “To be chosen as one of the best ports in Oceania by our industry partners worldwide is a fantastic achievement. It is welcome recognition of the commitment our people make daily to ensure we deliver the best for our customers and New Zealand”.

The nomination process asked readers from the Asia Pacific freight and logistics industry to evaluate the port against a set of technical criteria, including; container shipping-related infrastructure, fee structures, investment in new infrastructure to meet future demand, facilitation of ancillary services, truck turnaround times and the efficiency of IT systems.

Ports of Auckland’s selection reflects the company’s position as New Zealand’s largest and most productive container port, handling nearly one million containers a year and ranking the highest on all productivity measures according to the Ministry of Transport. The selection also follows a reported 10% increase in crane rate efficiency as noted in POA’s interim report released earlier last month.

The annual awards, hosted and organised by ‘Asia Cargo News’, recognises leading service providers across air and shipping lines, air and sea ports, logistics and other industry professionals across 43 different categories.

Auckland’s port is nominated for Oceania’s Best Seaport alongside Honolulu Harbour, Sydney Ports, Port of Brisbane, Port of Gladstone, Port of Melbourne, Port of Brisbane and Port of Noumea. Following a round of voting, the initial shortlist will be reduced to three finalists with the winner announced at the AFLAS Awards in Shanghai on June 14. While the only New Zealand based seaport to be shortlisted for an award, Auckland is further represented amongst award nominees with Auckland Airport selected for Oceania’s Best Airport.

MURUWAI IS BEST ALTERNATIVE AUCKLAND PORT OPTION

 

murawai beach scene charlie yang pic.

Muriwai Beach – one of the best options for a new port development in Auckland but locals are not keen!

The idea that Muriwai could be the location for a new port is “ludicrous”, according to locals. Muriwai beach, the Manukau Harbour, or the Firth of Thames may not be ideal locations for a port but they’re all Auckland’s got, the man looking at the future of the city’s waterfront said.

The group working on the year-long Port Future Study surprised Aucklanders when it announced it was evaluating the three places as possible new sites for the port in 50 years’ time.

Locals say the idea of using Muriwai beach – a 60km strip of black sand on the west coast best known for its gannet colony – is “ludicrously far-fetched”.

If Ports of Auckland stays in its current location it would have to be expanded to cope with the city’s growth.

The Port Future Study was set up last year following the outcry over Ports of Auckland’s plans to extend its wharves. The Manukau Harbour, currently the site of Onehunga Port, is one of the locations being considered.

Independent chair Rick Boven said the group had looked at “every kind of option we could find along the coastline”.

After considering physical factors such as turning areas, channels, depth, and flat land alongside for unloading it whittled that list down. tt then looked at economic, social and environmental variables.

Muriwai, Manukau Harbour and the Auckland side of the Firth of Thames were the locations left.

“We’re not saying that they’re great options. It’s just that we don’t actually have great options here,” Mr Boven said.

Asked if the group was coming up with outlandish suggestions to prove to Aucklanders that the port was best left in its downtown location, he replied: “That’s not my understanding, nor is it my position.”

The study was tasked with looking out 50 years or more, and in that time Auckland’s population was expected to almost double to 2.6 million.

“For a trading nation that means bringing in a lot more goods and shipping out a lot more goods. And you either ship these goods or you don’t, and if you don’t you have all sorts of dire consequences,” he said.

The existing port currently handled only a third or even a quarter of the trade it would need to if Auckland grew by as much as predicted. That may mean it needed to be expanded out into the harbour, which would not be popular.

“Maybe you’ve got some options that are not very appealing with the existing port and therefore maybe you should have a look at the other port options,” he said. “I think it would be fair to say that anywhere you wanted to put a port people would regard it as unattractive and outlandish, with the possible exception of Northport (in Whangarei).”

The study’s consultants, a consortium led by EY, has identified three options that could meet Auckland’s long ­term freight and cruise needs.

These are:

  • Constraining the port to its current footprint in downtown Auckland.
  • Enabling growth of Auckland’s port at its current location.
  • Continuing with the current site in the short ­to­ mid ­term but in the mid ­to­ long term moving the port to a new location.

There are three primary location areas for further investigation – Manukau Harbour area; Firth of Thames area (within the Auckland region); Muriwai area.  EY is expected to report back, and the Port Future Study’ group was due to make its recommendations to Auckland Council by the end of June, Mr Boven said.

Source – Stuff.co.nz

KEEP CHECKING OUR ‘WHAT’S NEW’ PAGE LINK!

We hope you enjoyed this newsletter.  Our Archive newsletter page holds previous newsletters from 2014. For the latest though, click on our “The latest” link on the home page masthead… This is updated at least weekly with industry related news items and commentary on current issues.

Latest Newsletter: February to May 2016

Welcome to our latest newsletter – an industry round-up of news and interviews related to the maritime logistics industry……

FREIGHT FORWARDERS EYE THE HORIZON…

By Glenn Coldham, President of the Customs Brokers and Freight Forwarders Federation of New Zealand.

glenn coldham, pres CBAFF2015 was certainly a busy year for the Customs Brokers and Freight Forwarders Federation of New Zealand (CBAFF) and 2016 is shaping up to be more of the same.

The CBAFF executive and wider team are looking forward to meeting any challenges and working towards the best outcomes for our members and the industry as a whole this year. A major ongoing theme is the importance of ensuring the voice of the industry is represented and heard at government level.

Accordingly, during 2015, CBAFF put significant effort into representations regarding the review of the Customs and Excise Act. One of the major topics of discussion was around pre-lodgement of import entries and the move to put the onus for this on customs brokers, before the arrival in New Zealand of the vessel or aircraft carrying the imports.

We put the case strongly – including a visual demonstration at a recent workshop – that the customs broker is just one of nine or 10 different parties directly involved in the import process.

The broker creates the document, but does not have control over any other party in the supply chain – and the buyer, seller, forwarder and shipping line are all examples of parties that are fully aware of a subsequent import movement of cargo before the customs broker would be.

Brokers already operate under the scrutiny of the administrative penalties regime, and we have pressed the case that they should not be seen as the regulator – or the cause – of all issues. Discussions were fruitful and we look forward to seeing the outcome of the review.

We also had very positive discussions with the Ministry for Primary Industries (MPI) to discuss delays in the processing of eBACCa (electronic biosecurity authority clearance certificate applications). While delays continue to be of concern, we welcomed the keenness MPI has shown in working to address this issue – particularly in terms of improved communication and measures to reduce the number of eBACCas required to be lodged.

The significant delays to collect import air cargo from the freight terminal (particularly in Auckland) remain a cause for concern. However, our working party on this issue is having ongoing discussions with Air New Zealand in particular to work towards a positive outcome for the common good.

The NZ-Korea free trade agreement, which came into force on 20 December, is welcome news for the industry, as is the mutual recognition agreement signed 
between New Zealand Customs and the Australian Border Force, which formally allows for recognition of our respective countries’ supply chain security systems. It is a small step but a positive one, offering hope for potentially a common tariff and secure removal of non-tariff barriers in the future.

Despite all the headlines devoted to it, at this point in time the Trans-Pacific Partnership Agreement (TPPA) is very much in its infancy in terms of its impact. However, it is to be hoped we will start to see its benefits becoming clear throughout 2016.

CBAFF has also been active with regard to the Safety of Lives at Sea (SOLAS) implementation of container weight verification requirements. We have lodged a submission with Maritime New Zealand, and are meeting with other interested stakeholders to discuss the most workable solutions.

Those we have met with or will be meeting with on this issue include the International Container Lines Committee, the New Zealand Shippers’ Council and the Port CEOs Forum.

Necessary measures to prevent an incursion of the brown marmorated stink bug (BMSB) continue to create additional work loads. However, MPI is looking at ways to reduce the levels of intervention, including the exclusion of fumigation requirements for BMSB in specific circumstances.

The latest, at the time of writing, was that some at-risk goods may be exempted from fumigation requirements providing certain conditions are met in full. These are that the goods are packed in containers at point of manufacture in impervious packaging and shipped in containers for direct resale or wholesale.

Last, but not least, I look forward to seeing many industry members and stakeholders at the 20th annual CBAFF conference, to be held this year at the Millennium Hotel, Queenstown, during 18–20 May.

The conferences are always stimulating, thought-provoking events with a broad range of high-quality national and international speakers, as well as offering very good networking opportunities. The theme this year is ‘All Eyes to the Horizon’ – come and join us as we look to 2016 and beyond.

For further information, visit www.cbaff.org.nz

POA WEIGHS UP FREIGHT HUBS IN SOUTH ISLAND

By Catherine Harris, business writer.

Ports of Auckland is looking to extend its North Island freight hub to the South Island, like its rival Port of Tauranga.

The port produced an interim net profit of $31.6 million for the six months to December 31, 2015, a 9.5 per cent increase, despite falling revenue and container volumes. Revenue was down 2.2 per cent and container volumes fell 3.3 per cent.

The port was able to defer maintenance and save costs, but its chief executive Tony Gibson warned that the situation would likely continue and would affect the full-year result. He said the period had been “anything but plain sailing”.

“Global trade trends and shipping changes have affected container volumes, while China’s slowdown has impacted bulk volumes, particularly iron sand exports,” he said.

As a result revenue had fallen slightly, but profit was up due to lower costs, “largely as a result of the timing of repairs and maintenance.”

Container shipping lines had been subject to intense competition in the New Zealand market and the significant over-capacity had resulted in unsustainable freight rates. Some shipping lines had also decided to leave the New Zealand industry, which had contributed to a decline in volume.

“Our strategy is to ensure we offer the best service possible and keep our costs low,” Mr Gibson said. “To that end we are looking at automation to help increase capacity and reduce on-port costs and we are building a freight hub network to squeeze costs out of the supply chain.”

Mr Gibson said Ports of Auckland continued to build inland freight hubs at Wiri and in the Bay of Plenty, and in January it signed a conditional agreement to purchase land for a Waikato freight hub. The hubs would help it balance the flow of freight in and out of Auckland, reducing the number of empty containers.

“We now intend to consider whether there would be benefits to extending our network to the South Island, whether it would strengthen our position and benefit New Zealand importers and exporters through more competitive supply chain arrangements,” he said.

The end was looming for an expansion of the 20-year old Fergusson container terminal, which was likely to be finished in 2017, giving the terminal a third berth capable of handling the new generation of big ships.

Auckland Council had set up a stakeholder group to ponder the port’s long-term location, and the port would release more waterside land through the sale of the Onehunga port when the Holcim cement handling operation moved from Onehunga to Waitematā this year.

Source – Stuff

pacific_pearl__800_500

PACIFIC PEARL’S ‘HOME-BERTH’ SETS NZ RECORD

P&O’s Pacific Pearl cruise ship is setting a record with a five-month “home-berthing” in New Zealand. The ship, which can host 1800 guests, is based in Auckland, but is to make more than 20 trips in our waters. These will include short cruises toHawke’s Bay, but also a 10-day cruise around the country. Last year, the ship made 10 trips while berthed here.

Cruising is making a growing contribution to the tourism sector, said Ann Sherry, executive chairman of Carnival Australia, which owns Pacific Pearl.

Ms Sherry said the five-month deployment would generate $20 million for New Zealand, thanks in part to the purchase of tonnes of local produce and wine. This extended stay will see the number of passengers Pacific Pearl carries more than double from the 2014-15 season.

Brett O’Reily, chief executive of Auckland Council-controlled ATEED (Auckland Tourism, Events and Economic Development), said the cruise industry was worth about $190m to the Auckland economy last year. This year he expected that would to rise to about $250m. He said 105 cruise ships were scheduled to stop in at the city, bringing some 200,000 passengers and 70,000-80,000 crew.

Mr O’Reily said a “partnership” between the council and the cruise lines was key to boosting the visitor economy, with events such as the ‘Auckland Nines’ providing a drawcard both for foreigners wanting a taste of this country and New Zealanders in Australia wanting to make trips to New Zealand.

Ms Sherry said providing tailored experiences to attract a wider range of passengers had been an important growth driver. This involved providing more short cruises to give people a taste of cruising. An example was a planned four-day Art Deco cruise to Napier, she said. The Pacific Pearl would visit 11 ports around the country.

While Auckland has good infrastructure with its Shed 10 cruise ship terminal, facilities around the rest of the country are more basic. Ms Sherry said locals made up for that by providing docking ships with a warm welcome.

She said every time a cruise ship visited Auckland, there was close to a $1m boost to the local economy. For smaller regional cities the figure was up to $500,000.

Carnival Australia was talking to Ports of Auckland about new facilities, she said. As ships got bigger, new facilities would be needed to berth them, if New Zealand was to continue to be a star cruise performer on the global stage, she said. The booming cruising industry in Asia promised future growth from that part of the world, she said.

Ms Sherry said cruising continued to attract younger travellers, with P&O’s average traveller age now about 40. Cruising was once largely seen as a recreation for wealthy elderly folk, but it had become a family activity, she said.

PACIFIC PEARL VITAL STATISTICS

  • Launched in 1989 and refurbished in 2010 and 2015
  • Weighs 63,786 tonnes and is 247metres long
  • 12 passenger decks with space for 1800 passengers
  • Looked after by 727 crew members
  • 773 rooms, including 533 with ocean views, and 28 rooms and 36 “mini-suites” with balconies
  • Seven restaurants and cafes, eight bars and a cinema, two swimming pools, a fitness spa, a racing simulator, a health spa, and four children’s centres

Source  – Stuff

LYTTELTON DOUBLES  CONTAINER CAPACITY

By Tim Fulton

The new Lyttelton Port Cashin Quay 2 has been built to help the port handle 30 years of growth as Lyttelton Port of Christchurch competes for shipping traffic and road freight.

Lyttelton Port of Christchurch (LPC) officially opened a new $85 million wharf in a move that will double its container capacity over the next decade and brace it for future competition. Cashin Quay wharf 2, and an adjacent storage area for 1200 twenty-foot containers, were designed to handle a new generation of larger container vessels.

The wharf was completed last December, but LPC started progressively using it as construction allowed. It was now fully operational.

LPC chief executive Peter Davie described the new Cashin Quay 2 wharf as a ‘step change’ in the port’s services and it would help set up the company for the next 30 years with 20 ft container throughput increasing from more than 370,000 to about 1.2 million by 2043.

“It is a vital part of our plan to ensure Lyttelton is the international freight port for the South Island,” he said. “We are focused on providing continually improving services for our customers. . . and last month we achieved an all-time record for the average rate at which we move containers.

“We are committed to supporting the economic growth of Christchurch, Canterbury and the South Island. Our long term plans ensure we can meet the forecast growth in freight demands, the needs of the larger vessels who will want to come here, and that Lyttelton Port will remain the gateway for the goods that keep the South Island moving.”

The earthquake rebuild of the port is funded via an insurance payout of nearly $440 million which LPC settled after protracted negotiations with insurers, and the new wharf is built to meet the latest international seismic code.

Canterbury Employers’ Chamber of Commerce chief executive Peter Townsend said Cashin Quay was a major step in LPC’s building programme, which had condensed a 25-year growth plan into a few years. The city needed LPC’s infrastructure and freight-carrying capacity for bulk production from industries like irrigated farming, but also manufacturing.

He said the region would benefit from a “holistic” mix of services, including a private marina area, cruise ship facilities and public access to the wharf.

New Zealand Manufacturers and Exporters Association (NZMEA) chief executive Dieter Adam said it was good to see LPC “take the bull by the horns” with Cashin Quay.

Bulk producers like meat companies were more likely to benefit from bigger port facilities, he said, and while competition between port companies could make shipping cheaper, too much competition could result in a duplication of services.

The Christchurch City Council-owned LPC is also growing at Rolleston, south of Christchurch, where it is set to open a rail and road service handling centre to match a similar facility built nearby by major rival, Port of Tauranga.

CENTREPORT TO DEEPEN HARBOUR WITHIN YEAR

CentrePort is bringing forward plans to deepen parts of the Wellington Harbour to prepare for larger shipping containers, which chairman Warren Larsen says could arrive in New Zealand sooner than expected.

CentrePort is ramping up its plans to deepen parts of the Wellington Harbour amid signs bigger shipping vessels could arrive in New Zealand soon.

While the port company, jointly owned by the Wellington and Horizons regional councils, has been steadily advancing plans to allow the larger vessels to dredge two parts of the harbour, the plans have been given urgency amid a slowdown of international shipping.

CentrePort has revealed a 3 per cent increase in revenues for the six months to December 31 to $35.5 million, and chairman Warren Larsen said he expected similar steady growth for the full year.

CentrePort has deemed land it owns at 1-19 Shelley Bay Road is surplus to requirements and put it up for sale. However, Mr Larsen said the outlook for the types of ships which could be coming to the port was changing.

“If you look at the charter rates for mid-sized vessels compared to large ones, it’s possible the large ones, given the economies of scale they deliver, could arrive in New Zealand earlier than originally envisaged,” he said. “They’re more available and they’re more likely to be here earlier than anticipated.”

While much of the growth in CentrePort’s volumes has come from goods being sent to China, ironically, a slowdown there is behind the prospect of larger vessels coming to New Zealand.

The Chinese slowdown has hit shipping companies, forcing them to drop the rate at which ships can be chartered.

Six months ago CentrePort believed it may have two to three years to prepare for larger vessels, but conditions could bring the timeframe forward substantially, Larsen said.

The company was progressing the technical aspects of its resource consent application, and was giving the project added priority. Mr Larsen said he hoped to have the consent process well advanced by mid-2016 and for physical work to be underway within a year.

“We are pushing ahead with that quite quickly because…they [larger vessels] might come earlier,” he said. “It’s a relatively small exercise in terms of volume of material compared to other ports [because] Wellington is naturally a deep harbour, but there are a couple of parts that we have to deal with.

“We want to be in a position to be an all tides port. That, from a customer point of view, is important.”

CentrePort’s net profit after tax climbed almost 50 per cent to $4.6m with the same time a year ago impacted by changes in the values of its hedging contracts. The company will pay a dividend of $2.6m for the period.

In recent months the company secured a new shipping service connecting New Zealand directly to the Americas and Europe, as well as developing a regional rail hub in Wairarapa.

EU-NZ FTA APPEALS TO SENIOR EU OFFICALS

“An EU-New Zealand Free Trade Agreement would mutually benefit economic growth and productivity and support New Zealand businesses – particularly SMES”, according to Trade Minister Todd McClay following meetings with European Union counterparts.

Mr McClay met with the European Union Vice President for Jobs, Growth, Investment and Competitiveness Jyrki Katainen and Commissioner for Trade, Cecilia Malmström, in Brussels.  He also met with European Parliamentarian Daniel Caspary who has responsibility for New Zealand in its International Trade Committee.

Mr McClay, who was in Europe last month to progress talks on a European Union (EU)/New Zealand Free Trade Agreement (FTA), said his meetings in Brussels showed continued shared interest in commencing negotiations as soon as the relevant EU processes are completed.

An agreement would also underpin the strong relationship the EU and New Zealand have, reflecting shared interests and values across a wide range of issues” said Mr McClay.

In October last year, Prime Minister John Key and EU Presidents Juncker and Tusk agreed that the two sides would start the process leading to negotiations.

“Vice President Katainen, Commissioner Malmström and I agreed that an EU-New Zealand FTA would bring mutual benefit to our economies. A high quality deal would bring benefits for citizens and SMEs and help to drive innovation and productivity. With Commissioner Malmström I discussed the importance of stakeholder consultation through the FTA negotiation process. Last year I issued a call for public submissions on the proposed FTA negotiations between New Zealand and the European Union.   The submission period closes on the 29th of February and I would urge all businesses, NGOs, and members of the public who have not already had a say to do so”.

Following this initial call, there will be further opportunities for public input, said Mr McClay.   Mr McClay extended an invitation to Commissioner Malmström to visit New Zealand as part of the formal negotiations process.    Two way trade with the EU, to June 2015, was valued at $19.6 billion in goods and services. This includes exports of over $8 billion and imports of $11.5 billion in goods and services combined.

The EU is New Zealand’s third largest trading partner and the second largest source of foreign direct investment.  More information on the proposed FTA negotiations with the EU and the call for public submissions can be found on the Ministry for Foreign Affairs and Trade website.

SLOW BOATS FROM CHINA REFLECT HEALTH OF TRADE

SlowBoatBloomberg_620x310

The Morten Maersk Triple-E Class container ship, operated by A.P. Moeller-Maersk, as it leaves Port of Felixstowe, England. Photo / Bloomberg .

If you want to know how China’s economy is doing, take a slow boat from one of its ports.Even with fuel at its cheapest price in almost a decade, the ships that carry goods around the world have been reducing speed in line with the slowdown in China, the biggest exporter.

Shipping companies have been “slow steaming” since the global financial crisis in 2008, as a way to save costs and keep as many ships active as possible. Vessels are now operating at an average of 9.69 knots, compared with 13.06 knots seven years ago, according to data compiled by Bloomberg.

That means Nike sneakers and Barbie dolls made in China can now take two weeks to arrive in Los Angeles and a month to reach Le Havre, France — a week longer than if the ships were moving at full speed. And there’s scope for ships to go even slower, according to A.P. Moeller-Maersk.

“This is the new norm,” said Rahul Kapoor, a Singapore- based director at Drewry Maritime Services. “The overall speed of the industry has gone down and there’s no going back.”

In the boom years before the 2008 financial crisis, shipping lines expanded fleets and ran ships as fast as they could to keep up with the surging demand for goods manufactured half a world away. As demand dropped, the lines were left with too many vessels, and customers eager to reduce inventory, who would rather pay a lower rate to receive goods than guarantee quick delivery.

“In 2003, if you were on a tanker, container ships would zoom past and in a matter of a few minutes you couldn’t see them on the horizon,” Kapoor said. “Since 2008, it’s been a different story.”

Fuel costs are the biggest expense for shipping lines and the drop in oil has given them some relief from plunging freight rates driven lower by overcapacity and sluggish global growth. Reducing a ship’s speed by 10 percent can cut fuel consumption by as much as 30 percent, according to ship assessor Det Norske Veritas.

With the Organization of Petroleum Exporting Countries’ decision this month to abandon production limits, Brent crude oil has fallen about 35 percent this year to around $37 a barrel, close to the lows reached during the financial crisis. Venezuelan Oil Minister Eulogio Del Pino said last month that prices could drop $20 more in 2016.

Even so, shipping companies such as Neptune Orient Lines and China Shipping Container Lines are still losing money.

“There is still scope for further expansion of slow steaming, even in times of low oil prices,” said Mikkel Elbek Linnet, spokesman for A.P. Moeller-Maersk’s container unit, Maersk Line, which pioneered slow steaming in 2008. “Our customers do not want to pay a higher price for faster transport times.”

Companies from Hapag-Lloyd in Germany to Hanjin Shipping in South Korea say they also have no plans to increase the speed of their vessels. It’s size, not speed that everyone wants now.

The go-slow means shipping lines are switching to new designs that favour size over speed. Maersk Line’s so-called Triple-E ships, which can each carry 18,000 20-foot boxes, were made with new hulls and engines to go slower, ditching a widely- used design that had enabled ships to sail as fast as 29 knots. Other shipping lines are seeking similar giants.

“Everyone saw the benefits Maersk Line was getting with the newly designed ships and slow steaming,” according to Park Moo-hyun, an analyst at Hana Daetoo Securities Co. in Seoul.

Shipping companies have lost money or seen profits decline in the third quarter, typically their busiest period as retailers in the U.S. and Europe increase inventory ahead of the year-end holidays. Levies for a 40-foot container to Los Angeles from Hong Kong dropped to $818 for the week ended December 15, the lowest price since Drewry Shipping Consultants began compiling the figures in April 2011, according to data compiled by Bloomberg.

That’s prompting companies to idle some vessels. Shipping companies last month reduced capacity by the most in five years, with the biggest cuts coming on the Asia-Europe route, according to data provider Alphaliner.

Overcapacity could get even worse as lines launch new, bigger and more efficient ships. Vessels with a total capacity of about 2.9 million 20-foot containers are expected to be delivered this year and next, according to Drewry.

“The volume of trade is coming down,” said Shin Ji Yoon, head of research at KTB Investment & Securities Co. in Seoul. “Slowing global demand has created oversupply of ships and slow- steaming has been used to ease some of that problem.”

Source: NZ Herald

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We hope you enjoyed this newsletter.  Our Archive newsletter page holds previous newsletters from 2014. For the latest though, click on our “The latest” link on the home page masthead… This is updated at least weekly with industry related news items and commentary on current issues.

Latest Newsletter: October to February 2016

Welcome to our latest newsletter – an industry round-up of news and interviews related to the maritime logistics industry……

CENTREPORT READY TO BE LISTED…

centreport aerial warren larsen

Wellington’s CentrePort is in a position to be publicly listed, with minority shareholder Horizons Regional Council open to discussions. Horizons Regional Council chairman Bruce Gordon raised the issue in his report to council at their meeting last month.

Horizons and Greater Wellington Regional Council met with CentrePort to discuss the port’s performance. CentrePort had been having a “very good year” and paid a special dividend, Mr Gordon said.

“We’re starting to talk a little bit more about advancing how the port is going to operate going into the future. That’s going to involve some decision-making by this council.”

Horizons owns 23.08 per cent of the port, while Greater Wellington Regional Council is the majority shareholder with 76.92 per cent.

“Interestingly, they’ve now reached a figure of turnover that would make it eligible to do a float to be a publicly listed company, “Mr Gordon told his fellow councillors. “They’re the sort of things we may be talking about very near in the future.”

Mr Gordon said the idea was “floated” as to whether a float would be a good thing for the company.

“The question came about; ‘what size do we need to grow the company to before it is realistically worth thinking about publicly listing as a company?’ They knew the answer straight away.”

Other port companies had listed at $75 million and $40m, while CentrePort had a turnover of nearly $75m, Mr Gordon said.

“So the answer was ‘actually, we are plenty big enough to be worth considering as a public company’,” HE SAID

Mr Gordon said the next question to consider was ‘why would we?’

“Because at the moment, what belongs to local government by definition belongs to central government and things can be taken off local government at a whim. If it’s a publicly listed company it’s a little harder for Government to get their hands on.”

Mr Gordon said no decisions were made, but they would be open to that discussion.

CentrePort also has a land holdings company and while Horizons would not have interest in that, they would want to keep the port viable for forestry and dairy.

Greater Wellington Regional Council chairman Chris Laidlaw downplayed the suggestion of an immediate float.

“In a way it’s a long-term possibility, but there is no great impetus behind any of that at this stage. I wouldn’t want to overplay that,” he said. “Who knows what may happen in 20 to 30 years’ time. The world is changing all the time, but there’s no plans to do that at the moment.”

He said: “From our perspective the port is a very useful and very successful example of a publicly owned trading institution and they pay a useful dividend.”

Mr Laidlaw said the port took a knock after the earthquake but had recovered very well.

“We need to be looking ahead, as is the port board itself, toward a long-term strategy. There’s quite obviously a need for the port and the two shareholders to work very closely together.”

A session would be held next year and look at “what is going to be a very intensely competitive period amongst ports around the country”.

Horizons Regional Council purchased CentrePort shares for $25.4m in December 2009. The value of these shares as at June 2015 is $31.2m.

Footnote: In a later story, CentrePort Chairman Warren Larsen (above at right) is very positive about the prospect of a partial listing of the company, but insists the idea has been nothing more than casual discussion with shareholders about how the port might fund future projects.

The Port Companies Act encourages ports to raise cash for development through selling some of the shares to the public. This has proved successful for companies such as Port of Tauranga, Mr Larsen said.

Sources – Stuff and Editor

ROYAL CARIBBEAN PASSENGERS PREFER WELLINGTON

By COLLETTE DEVLIN

luxury liner over seatoun

Pix: KEVIN STENT/FAIRFAX NZ

Explorer of the Seas, one of the biggest cruise ships to visit Wellington this season arrived in the capital last month, where passengers spent the day enjoying the capital.

Cruise ship passengers arrive in New Zealand with Auckland on their mind but leave talking about Wellington, says a cruise boss.

Royal Caribbean Cruises commercial director Adam Armstrong was in the capital for the first time during the inaugural visit of the Explorer of the Seas. Royal Caribbean ships will make 82 port calls around New Zealand this summer and it is estimated the Explorer will inject $23.5 million into the New Zealand economy in passenger spend alone.

Wellington Regional Economic Development Agency (WREDA) expected this cruise season to bring about $65m to the Wellington economy. The capital along with Milford Sound and Auckland were drivers of the cruise industry in New Zealand, he said.

Mr Armstrong said about 90 per cent of passengers got off the ship to explore Wellington and the surrounding area. About half paid for a tours and went shopping or to cafes. In practical terms, Wellington was the only place in New Zealand the ship could refuel, he said.

The future of cruising would see bigger ships and New Zealand was keeping pace with making room from them. Ovation of the Seas – the largest cruise ship to sail New Zealand’s waters will make its first visit to Wellington next year and is expected to inject $2.5m into the city’s economy.

The Government’s May Budget recommends that cruise ship travellers pay extra to reflect the costs for Customs clearance and those incurred by the Ministry for Primary Industries. The industry believe it would be a shame if cruise ship companies had to consider relocating ships away from New Zealand, Mr Armstrong said.

Cruise New Zealand had estimated the new tax could knock $85m off the wealth the cruise sector generates in the 2018-2019 season.

NEW SHIPPING LINK OPENS DOORS TO AMERICAS AND EUROPE

A new shipping route linking Wellington’s CentrePort with the Americas and Europe will be launched this month. The council-owned port announced that the CMA-CGM and Marfret operated “Panama service” will take central New Zealand goods directly to the Americas and Europe.

CentrePort chief executive Blair O’Keeffe, who leaves his position in February next year,  said the new service “adds weight to Wellington’s position as the port of choice for central New Zealand importers and exporters”.

In September CentrePort announced a 13 per cent increase in container volumes and an 8 per cent increase in log volumes in the year to June 30. Mr O’Keeffe said that container volumes were up 19 per cent over two years.

“Our investments are focused on bringing the region closer to the world, by lowering cost and distance to market for local importers and exporters” who needed “reliable and regular access to these major markets”.

CentrePort said it currently had 11 international shipping lines offering services “to all parts of the globe” without giving details.

CentrePort has already announced plans to deepen the shipping route into Wellington harbour. The Wellington Regional Council, which owns around three quarters of CentrePort, has said the port is in pre-application discussions ahead of a resource consent application.

Source – Stuff

LYTTELTON EYES NEW BUILDING OPPORTUNITY…

Lyttelton Port has identified an area that could be the base of a new headquarters. As part of a post-earthquake rebuild programme, Lyttelton Port of Christchurch is planning a $20 million headquarters and operational centre in the heart of the port.

Chief executive Peter Davie said he hoped a new centre would be built by the end of 2017, in part to replace an aging operational centre built in about the 1960s.

Demolition of LPC’s unoccupied headquarters on Norwich Quay, damaged in the earthquakes, is under way. The management team had spent about 3½ years away from the main waterfront at a Chapmans Road facility, Mr Davie said.

“What we’re planning to do – it’s not confirmed yet – is to build an operational-administration building in the port … at the base of [Gladstone pier]. We’re just going through our internal processes [on that].”

Another project was making the inner harbour more accessible to the public, and increasing the marina berths at the port. LPC planning for that process would take place in the next six to eight months. “We’re looking to have the marina and the earthworks behind that completed by 2017,” he said.

The timelines for some other talked-about developments, such as a new cruise ship wharf, were less certain, Mr Davie said. “Cruise is the one that has question marks around it … We don’t control the planning consent and we also don’t control the funding issues.”

He outlined the rebuild strategy after releasing a full-year result. Port volumes have helped it towards a $20.57m annual profit. The result for the year to June 30, 2015, was less than the prior year’s $343.23m bottom line, but that number was boosted by a large insurance payout during the year relating to the 2010 and 2011 Canterbury earthquakes.

The port company reported revenues of $109.1m, down from $115.8 in the 2014 financial year. LPC is fully owned by Christchurch City Holdings Ltd (CCHL), the infrastructure arm of the council. A special dividend was paid in September, following the full takeover of LPC by CCHL. The takeover gave existing shareholders at that time a special dividend of 20 cents a share, meaning the the total dividend for the June 2015 year jumped to $22.16m.

The port is using a total insurance settlement of about $440m for the earthquake damage to support port redevelopment that will continue over the next four or five years in getting the facilities back to pre-earthquake levels.

Mr Davie said a harbour-based land reclamation continued, with nine hectares of an initial 10-hectare consented plan now complete. Further hectares would be able to be claimed under a Lyttelton Port Recovery Plan, recently approved by Environment Canterbury and now with Earthquake Recovery Minister Gerry Brownlee for final sign-off.

“The thing that’s likely to coincide is the [earthquake repair] work on Sumner Road, and there’s quite a bit of rock that has to come down from Sumner Road, when they do that. That rock could fill another six to seven hectares of reclamation,” he said.

Mr Davie said the company had a good trading year, despite the loss of container volumes due to rival PrimePort Timaru winning a contract to export milk product from Fonterra’s Clandeboye factory.

Trading conditions in the new financial year reflected some slowdown in demand. The weaker dairy sector would also have an effect in the 2016 year.

“We’re still seeing the volume of dairy go out at the moment. We know that the warehouses are full, but we do hear a lot of feedback from the dairies that production will be down … this season just started,” Davie said.

“The start of this year we are noticing a contraction of imports as well. I think that is a tightening in the economy; it’s not dramatic but it’s enough to say that people just aren’t spending as much on discretionary [items].”

Source – Stuff

PRIMEPORT TIMARU HAS $3.9 MILLION PROFIT

timaru profit story

PrimePort Timaru says new partnerships, new staff and increased port traffic all contributed to its best financial result since 1989. The company announced on Thursday operational profits rose 90.6 per cent to $3,991,000 for the year ended June 30, up from $2,093,000 in 2014.

Chief executive Phil Melhopt (shown above) said profits were buoyed by a new arrangement where PrimePort leases container operations to Timaru Container Terminal Limited, which is owned by freight management partnership Kotahi and PrimePort shareholder Port of Tauranga.

“The operational costs savings through not operating the terminal directly have had a significant influence on this year’s results,” Mr Melhopt said.

Operational expenses dropped from $14 million to $11m. Increased repairs and maintenance spending partially offset the savings from divesting the container operations. Reconstruction of the port’s number two wharf in support of cement company Holcim’s new facilities caused payments for fixed assets to jump from $0.8m to $13.9m. PrimePort expects the reconstruction project to cost $25m in total.

The container terminal also bought a Lieberr 550 mobile harbour crane. Melhopt said the crane was in a workshop, but its problems were “nothing that can’t be sorted”.

Lease income from the container terminal also contributed to PrimePort’s revenues. Operational revenues rose 3.6 per cent to $13.1m.

PrimePort chairman Roger Gower said the volume of containers passing through the port had rebounded to previous highs. “We are able to concentrate on building the bulk trades through the port.”

The Timaru District Council-owned holding company owns 50 per cent of PrimePort. PrimePort’s after tax profit totalled $3,155,000, rising 67.2 per cent from $1,887,000 in 2014. PrimePort paid TDHL and Port of Tauranga each a $300,000 dividend in 2014.

INLAND CONTAINER DEPOT AT WHANGANUI FOR CENTREPORT

CentrePort Wellington has partnered with Ali Arc Logistics to unveil a multimillion dollar container terminal investment in Whanganui.

Served by daily KiwiRail freight trains as part of the CentrePort CentreRail service, the initiative will play a key role in the region’s growth, said Centreport CEO Blair O’Keeffe. “This venture enables us to connect the world to the Manawatu-Whangaui region through cost effective trade and transport connections,” he said.

The Government has made a commitment to developing economies in the regions through the Manawatu-Whanganui Regional Growth Study.

“The provision of this additional transport option to get goods to and from market will greatly assist our ability to connect with the global supply chain, now and as our economy grows,” said Whanganui Mayor Annette Main. “It’s early days but the container terminal is already well utilised and steadily growing in cargo volumes. We are seeing increased rail services to our district as KiwiRail collects freight from CentrePort’s inland hubs and transports it to Wellington.

The Direct Connect Container Services terminal is located in Gilberd Street and is served by CentrePort’s daily train service, CentreRail, which runs between the terminal and CentrePort in Wellington. The terminal was officially opened by Transport Minister Simon Bridges..

The facility is fully operational and recently added to its storage capacity when Ali Arc Logistics opened a new $4 million 4250sq m warehouse to handle the increasing volume of milk powder from the Open Country Dairy plant in Heads Rd.

Mr Bridges said the inland port sat perfectly with Government’s strategy of road and rail links and created an efficient and effective supply chain.

The bulk of the more than 30 containers from the depot each day are full of bagged milk powder from Open Country Dairy, but now the factory has added a second dryer that volume will double. The terminal also attracted business from Taranaki.

INTERNSHIP/WORK EXPERIENCE FOR LOGISTICS GRADUATES

The New Zealand Maritime School (MIT) is offering opportunities for businesses to employ graduates’ skills on a temporary basis or internship ‘allowance based’ condition.

The New Zealand Maritime School is well known in the market for excellence in courses, modules and training provided in the logistics, forwarding and shipping domains. It has a number of graduating students now available for any working options. MIT is open to collaboration with firms to ensure they have bright and qualified candidates at a minimal outlay; while providing valuable experience for students.

To view CVs or interview candidates, please contact logistics programme leader: Vaughan Lovelock at Vaughan.lovelock@manukau.ac.nz

KEEP CHECKING OUR ‘WHAT’S NEW’ PAGE LINK!

We hope you enjoyed this newsletter.  Our Archive newsletter page holds previous newsletters from January 2014. For the latest though, click on our “The latest” link on the home page masthead… This is updated at least weekly with industry related news items and commentary on current issues.

Latest Newsletter: August to October 2015

Welcome to our latest newsletter – an industry round-up of news and interviews related to the maritime logistics industry……

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TANK FARM IMPEDIMENT TO CRUISE TERMINAL

The tank farm at Naval Point has thrown a spanner in the works of the Lyttleton port recovery plan. Plans for a new cruise ship berth at Lyttelton port are now in jeopardy because of safety risks posed by a nearby tank farm.

Environment Canterbury’s (ECan) preliminary draft plan for the Port of Lyttelton recovery contained proposals to build a cruise ship berth at Naval Point, a location supported by the Lyttelton Port of Christchurch (LPC). A report by a high-powered panel, which in June heard submissions on the draft plan, said oil company submissions created “considerable uncertainty” for water and land-based activities at the point, which is also the site of a tank farm.

Oil companies, Z Energy Ltd, BP Oil NZ and Mobil NZ, submitted risk scenarios stating the potential need for a 250-metre hazard zone from the perimeter of the tank farm. The submissions were based on the British disaster in Buncefield in 2005 when an exploding vapour cloud destroyed a fuel storage facility and surrounding area.

The panel – Sir Graham Panckhurst, Peter Atkinson and Tim Vial – said the uncertainty raised by the hazard zone recommendation was “antithetical to the objective of expeditious recovery of the Port”.

“…the panel’s view is that the new hazard criteria from the Buncefield incident creates a need to review the respective planning frameworks … which provide for the establishment of a cruise ship berth and associated landward facilities at Naval Point.”

The review needed to be informed by a comprehensive Quantitative Risk Assessment (QRA) for the bulk storage terminal, the panel said.

“Without clarity on these matters, which can only be provided by a detailed QRA, the panel does not have the necessary information to enable it to make recommendations in regard to the Policies and Rules that should apply to the establishment of a Cruise Ship Berth at Naval Point.”

The panel recommended the Christchurch City Council, “as a matter of urgency, takes the lead in defining the scope of, and in commissioning, a Quantitative Risk Assessment … as a precursor to an urgent review of land use planning controls for the Naval Point area.”

The oil companies were criticised for filing submissions on the last eligible day.

“Whatever finally results, the fact is that the lateness of the oil companies’ submission impacts dramatically in relation to the preparation of a draft recovery plan. In particular the entire redevelopment of Naval Point, including the possible location of a cruise ship berth off the Point, may be imperilled.”

Earthquake Recovery Minister Gerry Brownlee last year directed ECan to prepare a draft recovery plan for the port. ECan appointed the panel to conduct public hearings and provide non-binding recommendations on the plan.

Lyttelton-Mt Herbert Community Board chair Paula Smith said there would be a “major impact on Lyttelton” if recreational boat using was restricted, in line with the advice from oil companies.

“It’s the only flat playing-field in Lyttelton. The Naval Point Club has over 2000 members and its some of the best sailing waters in Canterbury.”

The board was “pleased with many of the recommendations”, but two major issues remained.

Many people still held concerns about Norwich Quay being the main freight highway to the new port, Ms Smith said. The route resulted in heavy traffic and “cuts Lyttelton off from its waterfront”.

“They’re agreeing with the NZTA saying that the road will cope with increasing freight. But its going to continue to be a problem for the community.”

The second issue was the location of the ferry terminal, which was proposed to be moved to Dampier Bay. Ms Smith described the current terminal as a “rat run” that needed an urgent upgrade.

“Even if they try to move it, it’s going to be 7-10 years. It is an appalling set up down there, with no shelter and no light. It’s quite dangerous for high school girls… Black Cat [Cruises] have got an award-winning business and they’re trying to run it out of a shed. It’s just not good enough.”

Several community board members would now meet as part of the working group to discuss the report.

LPC development manager John O’Dea said the port was “still assessing the panel’s report and its implications and what may need to occur going forward”.

“LPC has, and will continue to, liaise with the oil companies about the issues raised involving Naval Point.”

The panel also recommended a proposed Harbour Catchment Management Plan be initiated by a ministerial direction requiring ECan to establish a committee of interested parties;  the port company’s 27-hectare reclamation at Te Awaparahi Bay should be treated as a controlled activity with public notification of the consent application; particular attention had to be paid to escaping rubble in the Construction and Environmental Management Plan for the reclamation, at the consenting process and during construction monitoring and an adoption of the change of status to restricted discretionary for capital dredging to create or deepen new turning basins at the reclamations.

They also decided that ECan should determine a volume limit for spoil dumping grounds and write this into the rules;  the introduction of a new urban design guide was needed for Dampier Bay restricting floor area and heights; and public notification of any application for a new passenger ferry terminal was required.

Source: Yahoo News

 SEA MONSTERS: THE WORLD’S 10 BIGGEST CRUISE SHIPS

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Above: Ovation of the Seas is virtually identical to Quantum and Anthem of the Seas and will be the biggest, newest ship to cruise down under when it arrives in December 2016.

By Sally MacMillan, UK writer.

Bigger isn’t necessarily better, but when it comes to cruise ships, it certainly helps. The biggest cruise ship in the world, Royal Caribbean’s Allure of the Seas, carries a mind-boggling 8000 people when crew and passengers are added – that’s more than the population of many New Zealand country towns. But the size of a cruise ship isn’t just measured by how many people it accommodates, or how long or wide or tall it is – it’s all about tonnage.

In a nutshell, tonnage is not how much a ship weighs – it’s the volume inside it. On cruise ships, the volume, or interior space, determines how many people the ship can accommodate; some ships may be of similar tonnage but carry more or fewer people, depending on the style of the ship.

Here’s a look at the highlights of today’s modern mega ships.

1. ROYAL CARIBBEAN, ALLURE OF THE SEAS

Vital statistics: Maximum passenger capacity 6360 (5400 double occupancy); Length 360 metres; Tonnage 225,282 ; Launched 2010; Cruising grounds: the Caribbean and Mediterranean.

The biggest cruise ship in the world is just five centimetres longer than its older sister, Oasis of the Seas. Both ships feature the huge central park area, home to living, breathing plants and trees. Allure and Oasis boast flowriders, ziplines, dazzling shows and much more – some passengers don’t ever get off the ship!

2. ROYAL CARIBBEAN, OVATION OF THE SEAS

Vital statistics: Maximum passenger capacity 4905 (4180 double occupancy); Length 348 metres; Tonnage 167,800; Launching April 2016; Cruising grounds China, Australia, New Zealand.

Ovation of the Seas is virtually identical to Quantum and Anthem of the Seas and will be the biggest, newest ship to cruise down under when it arrives in December 2016. Ovation’s fabulous playthings include a skydiving simulator, North Star viewing capsule and seaplex indoor space for bumper cars, circus school and roller-skating.

3. NORWEGIAN CRUISE LINE, NORWEGIAN ESCAPE

Vital statistics: Maximum passenger capacity 5400 (4248 double occupancy); Length 334.6 metres; Tonnage 164,600; Launching November 2015; Cruising grounds Eastern Caribbean.

The first of NCL’s new Breakaway plus class of ships, ‘Escape’ will be the biggest in the fleet and has supersized many popular attractions. Thrill-seekers will flock to the ropes course, sky rails and massive aqua park, and those seeking exclusivity can check in to the Haven, a “ship within a ship”.

4. NORWEGIAN CRUISE LINES’ NORWEGIAN EPIC

Vital statistics: Maximum passenger capacity 5183 (double occupancy); Length 329 metres; Tonnage 155,873; Launched 2010; Cruising grounds: the Mediterranean and Caribbean

Epic introduced a host of “first at sea” features when it launched: solo cabins, an ice bar, a rapelling wall, the biggest bowling alley at sea and the popular blue man shows. Big sister Escape might have more special features but Epic has plenty to offer families and young adults looking for a fun-filled holiday.

5. ROYAL CARIBBEAN, FREEDOM OF THE SEAS

Vital statistics: Maximum passenger capacity 4375 (3634 double occupancy); Length 339 metres; Tonnage 154,407; Launched 2006; Cruising grounds: Western and Eastern Caribbean

Freedom was the world’s biggest cruise ship when it launched. It had the first flowrider at sea and in 2011 had a multi-million-dollar makeover that added many signature Royal Caribbean features: DreamWorks “live” cartoon characters, a cupcake shop and a vast poolside movie screen.

6. CUNARD’S QUEEN MARY 2

Vital statistics: Maximum passenger capacity 3090 (2592 double occupancy); Length 345 metres; Tonnage 148,528; Launched 2004; Cruising grounds: world cruises, transatlantic crossings.

The world’s only true transatlantic ocean liner, Cunard’s flagship might not be the biggest cruise ship but it’s the fastest: QM2’s maximum speed is just over 30 knots (56 km/h). Special attractions include the planetarium, traditional afternoon tea in the Queen’s Room, and the only kennels at sea.

7. NORWEGIAN CRUISE LINE, NORWEGIAN BREAKAWAY

Vital statistics: Maximum passenger capacity 3998 (double occupancy); Length 325 metres; Tonnage 146,600; Launched 2013; Cruising grounds: Bermuda, Bahamas, Caribbean.

Norwegian Breakaway is very similar to its year-younger sister Getaway. Both have studio cabins for solo cruisers; The Waterfront’s al fresco restaurants and bars; and 678 Ocean Place, three decks of dining and entertainment venues. Spice H2O is a day and night adults-only retreat.

8. PRINCESS CRUISES’ REGAL PRINCESS

Vital statistics: Maximum passenger capacity 3600 (double occupancy); Length 330 metres; Tonnage 141,000; Launched May 2014; Cruising grounds: the Caribbean, Northern Europe

Like its sister ship Royal Princess, Regal features the sea walk, a glass walkway cantilevered off the side of the ship. They also share the dazzling piazza, a three-deck atrium that is linked by spiral staircases and houses restaurants, bars, cafes and shops. Just off the piazza is the lavish Lotus spa.

9. P&O CRUISES WORLD CRUISING’S BRITANNIA

Vital statistics: Maximum passenger capacity  4100 (3611 double occupancy); Length 330 metres; Tonnage 141,000; Launched March 2015; Cruising grounds: the Mediterranean, Baltic Sea, Caribbean.

The massive Union Jack on the bow of P&O’s new flagship reinforces its very British character. Five British “food heroes” have designed menus for their signature restaurants and passengers can take cooking classes in The Cookery Club. In a first for P&O, all outside cabins have balconies.

10. MSC CRUISES, MSC PREZIOSA’

Vital statistics: Maximum passenger capacity 4345 (3502 double occupancy); Length 333 metres; Tonnage 139,400; Launched 2013; Cruising grounds: the Mediterranean and South America.

MSC Cruises became the world’s third-largest cruise line when it launched MSC Preziosa. The ships are very family-friendly – all children under the age of 18 (accompanied by adults) travel free. MSC Cruises’ yacht club is another “ship within a ship” and offers 69 suites, a private pool and sundeck, and its own restaurant.

Source -Traveller  Magazine.

PORT AGREEMENT FOR TRADE AND BEST PRACTICE

The Ports of Auckland, Port of Guangzhou and Port of Los Angeles have signed a memorandum of understanding (MOU) for promoting closer ties.

Ports of Auckland is to collaborate with their sister ports in China and the USA on a series of initiatives, including improving the end to end supply chain and sharing innovative best practices. Objectives within the memorandum of understanding include sharing of best practices and expertise; strengthened communication and collaboration on investments, technologies and environmental policies; and working together to enhance capabilities of each port in order to boost their respective regional economies.

Ports of Auckland is New Zealand’s biggest and most efficient container port, with a strong commitment to delivering innovative, efficient and sustainable operations that benefit Auckland and New Zealand’s economy and quality of life.

PORTS OF AUCKLAND ACCEPTS HIGH COURT DECISION

Tony Gibson, CEO of Ports of Auckland, has confirmed that the company will not appeal the recent High Court decision which revoked resource consent for the Bledisloe wharf extensions.

“While the decision causes us some problems with consenting and our ability to accommodate more and longer ships, we feel that appealing this case would not produce a sustainable resolution to those issues,” said Mr Gibson. “We will now look to Auckland Council’s ‘Future Port Study’ to help find workable, long-term solutions to Auckland’s sea freight needs.”

“We still have an immediate need to accommodate longer ships at our general cargo wharves and we will talk to our customers and stakeholders to try to find possible short-term solutions. We have made no decision yet on whether or not to reapply for consent for the B2 extension.”

“Our container operations at Fergusson Terminal are not affected by this decision and continue to thrive.

Ministry of Transport statistics show Auckland is the best performing container port in New Zealand. Statistics compiled on the performance of all New Zealand container ports show Ports of Auckland is now unequivocally the best performing container port in the country.

“We have been the fastest port at loading and unloading ships for three years now, but our crane rate (how fast an individual crane works) has lagged behind. This quarter we’ve caught up with Tauranga on that measure,” he said. “This result demonstrates the effectiveness of the approach taken by the port since 2011 to improve performance. Better still, we have plans in place to lift our game even further,” he added.

The MoT statistics are available online at: http://www.transport.govt.nz/ourwork/tmif/freighttransportindustry/ft022/

AIR FREIGHT INDUSTRY THROTTLES BACK

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Above: Cargo market estimated to be worth about $10 trillion a year is back to historic growth rates, according to Boeing. Electronics, fresh produce, pharmaceuticals and automobile parts are among the biggest categories of air cargo. Photo / Getty Images

By Grant Bradley, Aviation, tourism and energy writer for the Business Herald

Air freight – a barometer of global economic activity – has recovered and is growing at sustainable levels, a transport summit has heard.

James Billing, managing director of market analysis at Boeing said while not boom times, the air freight market – estimated to be worth about $10 trillion – was back to historic growth rates.

“We’ve been through some rough years but things are getting better now,” Mr Billing said. “I think you’re seeing air cargo growth above GDP right now, it’s always been seen as a leading indicator [of world trade].”

Air freight accounts for about 1 percent of total trade by weight but 35 percent by value, a session on aviation supply chains at the International Transport Forum in Leipzig, Germany heard.

Germany’s Parliamentary State Secretary at the Ministry of Transport and Digital Infrastructure, Dorothee Bar, said a tonne of air cargo was typically worth around $110,000 while sea freight as little as $11,600.

Mr Billing said the “alpha” nature of air cargo was illustrated recently with about 100 tonnes of iPhones, worth about US$150 million ($210 million) at market value, being loaded into a Boeing 777 freighter.

Goods landed at Heathrow, which is not a major freight hub, now exceeded the value of those landed at London’s port. For airlines such as Air New Zealand strong cargo can tip the balance on routes with passenger planes.

Mr Billing said freighters still play a dominant role and airlines which only have belly capacity represent just 10 percent of the air cargo business, whereas combination carriers with some freighters have about 40 percent while the dedicated parcel services have about 38 percent and then the specialist, the all-air freighter business has the remainder.

Between Europe and Asia about 75 percent of freight is going by dedicated freighters, with 80 per cent across the Pacific on freighters.

“Freighters aren’t going away and I’d encourage airports when they’re upgrading their facilities to factor in the freighters and the need to factor in belly hold loading at gates where passengers get on,” Mr Billing said.

“Freight doesn’t walk off the plane like passengers do. It needs to be connected to road or rail to get to their destination.”

Mr Billing said the air freight market had potential to grow but operators needed to work with governments and airports to improve the infrastructure. Ms Bar said a central issue in Germany was operating times at airports.

“As economies recover we’re going to see increases in air cargo of about 4 per cent to 5 per cent roughly in line with the rate of international trade growth,” she said.

Air cargo potential gets stronger as countries such as China move up the value chain. Electronics, fresh produce, pharmaceuticals and automobile parts were among the biggest categories of cargo shifted by air. Concerns about the carriage of lithium ion batteries have led to some airlines to ban them.

Al Bedran, European transport manager for United Parcel Services (UPS) said his firm met all regulations of governments on how they handle dangerous goods on aircraft. The company found out as much as possible about customers putting goods on the planes to ensure they were certified to handle dangerous goods.

“Where we see issues is where it’s an unknown customer and that’s where we take special precautions to ensure that all of our merchandise through our facilities and aircraft go through specific screening. There’s a lot of work being done right now,” he said.

Lithium ion carriage is something UPS is “concerned about” but it has not come up as a continued problem.

UPS has about 275 dedicated planes ranging from Boeing 757s to Jumbo jets. Mr Billing said his firm had delivered about 160 large freighters to global customers in the past six years.

Grant Bradley travelled to Leipzig courtesy of the ITF.

Source – NZ Herald

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TIGHT SECURITY AS CARGO SHIPS TRY NEW SUEZ CANAL

The first cargo ships passed through Egypt’s New Suez Canal last week in a test-run before it opens next month, state media reported, 11 months after the army began constructing the $8 billion canal alongside the existing 145-year-old Suez Canal.  The new waterway, which President Abdel Fattah al-Sisi hopes will help expand trade along the fastest shipping route between Europe and Asia and give a boost to Egypt’s economy, will be formally inaugurated on Aug. 6.

President Sisi wants the canal to become a symbol of national pride and to help combat Egypt’s double-digit unemployment. The old Suez Canal is already a vital source of hard currency for Egypt, which has seen tourism and foreign investment drain away in the years of turmoil since a 2011 uprising.

Three container ships crossed the new waterway, state news agency MENA reported. One was an American ship heading to Egypt’s Port Said from Saudi Arabia, another was a Danish ship sailing to the United States from Singapore, and a Bahraini ship going to Italy from Saudi Arabia.

The exercise took place amid tight security. An insurgency based in the Sinai Peninsula, which borders on the Suez Canal, has killed hundreds of soldiers and police since 2013. State television said there were helicopters circling above and showed naval vessels escorting the ships.

Mohab Mameesh, the chairman of the Suez Canal Authority who led the project, told state television from aboard the first ship that the test-run had been a success.

“This is the first trial crossing but it will be followed by more trials,” he said. “We are 99.2 percent done with everything. We should be completely done in two or three days.”

The existing canal earns Egypt around $5 billion per year. The new canal, which will allow two-way traffic of larger ships, is supposed to increase revenues by 2023 to $15 billion. It should also reduce navigation time for ships to 11 hours from about 22 hours, Mameesh said last month, making it the fastest such waterway in the world. The government also plans to build an international industrial and logistics hub nearby that it hopes will eventually make up about a third of the Egyptian economy.

Source – workboatsinternational.com

KEEP CHECKING OUR ‘WHAT’S NEW’ PAGE LINK!

We hope you enjoyed this newsletter.  Our Archive newsletter page holds previous newsletters from January 2014. For the latest though, click on our “The latest” link on the home page masthead… This is updated at least weekly with industry related news items and commentary on current issues.

 Latest Newsletter: April 2015 to July  2015

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HARBOUR DEBATE CONTINUES IN AUCKLAND….

The “Stop Stealing Our Harbour” group says it’s time for Ports of Auckland to be straight up. Auckland Council’s investment arm wants the ports to stop work on Bledisloe Wharf extensions, and engage with the public.

Michael Goldwater from ‘Stop Stealing Our Harbour’ said the port needed to make a decision on what they are going to do, and make it clear to the public, instead of taking out ads about the number of bananas they are bringing in.

“We want to know what they’re going to do with regards to the very large bits of concrete which they want to protrude out into our harbour,” he said.

This is the latest development in the long running saga over their controversial plan to expand the port. Following fiery protests and an announcement that Urban Auckland will take legal action against the port and its council owners over the planned expansion, Auckland Mayor Len Brown stepped into the debate.

“The first step to resolving this debate is getting all the relevant parties around the same table,” said Mr Brown. “It is critical we all work together to strike a balance that is in the best interests of Auckland.”

Mayor Brown met with Sir Stephen Tindall, Andy Anderson and Steve Mair of the Auckland Yachting and Boating Association, Julie Stout of Urban Auckland lobby group and representatives of the Ports of Auckland – Graeme Hawkins, Alistair Kirk, and Liz Coutts.

The Auckland council has started a study of the economic, environmental and social impacts of the various options for the port. Originally intended to start at the end of the Unitary Plan process mid-2016, first steps are underway now for the study.

“We are currently working to put together the best process, so we can carry out the study thoroughly and thoughtfully with a wide range of Auckland voices taking part. And we will be keeping Aucklanders updated about its progress,” said Mr Brown.

The terms of reference for the study are being developed in consultation with councillors and wider community stakeholders. Alongside this, councillors are continuing to debate the rules that will govern any future applications by the ports to expand, a process that will conclude towards the end of next year.

Urban Auckland is the design lobby group which claims the resource consents granted to Ports of Auckland for two 100-metre extensions to the Bledisloe container wharf were a miscarriage of justice.

The port company gained consent for the piled structures under the old regional council rules which did not require it to notify the public of the application. It also did not inform the council, its owner, about the planned work.

Julie Stout said the group had been following the issue of port expansion for two years.

“We felt completely gazumped by the port suddenly coming up with these plans. We thought we were involved in another process but we were wrong. That’s why we’ve had to resort to the court process.”

Meanwhile, the Ports of Auckland has put forward its side of the story in a series of advertisements entitled ‘No one is stealing our harbour.’

Port chief executive Tony Gibson (shown above at top left) said the expansion was a fraction of what was originally planned when he took over in 2011.

The extensions were needed because freight through the port’s multi-cargo wharves had doubled in the last five years. That was the impact of 1.4 million Aucklanders buying things from overseas, he said.

“The banana you ate, your daily coffee, the car you drive or the train you ride. Your TV, your shoes – they all come through our port. Nearly 70 per cent of all the imports into Auckland port are for you, the people of Auckland.”

The extensions would have no impact on the harbour, and if a planned study of the port and its impacts found a better alternative, the port would remove them, he said.

“When I came to Ports of Auckland in 2011, I inherited a plan for a 23 hectare reclamation and a 250 metre extension into the harbour. There were howls of rage and calls for us to think again, to come back with something smaller. Fair enough. We listened. Four years later we’ve got it down to three hectares and under 100 metres – 90 percent less reclamation and 60 percent less extension.

“We have resource consent for two wharf extensions, and enabling work has started. We do not have consent for reclamation. That is a separate process and we won’t apply for consent until the Unitary Plan becomes operative. Any application will be publicly notified and there will be extensive consultation.”

battle plan

Mr Gibson said that wharf extensions were needed because freight through the multi-cargo wharves had doubled in the last five years.

“We need longer wharves because the ships that bring in your freight are getting bigger. Bigger ships are good, they are greener and keep costs down, but you can’t park a big ship on a small wharf. The legacy of finger wharves from the days when ships were smaller means we have berth space that can’t be used, but could be if we build these extensions.

“It is my firm view that if we can’t grow the port, it will choke on Auckland’s growing freight demand,”he said.

Cruise ships would be hit first as Auckland would no longer be able to berth ships like the Queen Mary II on the freight wharves. Ships will have to queue in the gulf. Over time trade will have to go via other ports, with more trucks on the road to bring it to Auckland.

Cement ships that currently berthed at Onehunga on the Manukau harbour would start coming into the Waitemata harbour because the Manukau was smaller and more dangerous and the ships were larger now, he said. Trade from the Pacific Islands had also increased dramatically as bigger cargo ships hubbed in Auckland rather than going directly to the islands.

“The extensions are the best possible compromise,” he said. “They will see us through the immediate need to accommodate bigger ships. The debate on reclamation can go on in meantime.”

Auckland Council commissioned a study from NZIER to help it decide on the rules for port reclamation in the Proposed Auckland Unitary Plan (PAUP). The council has made reclamation a “non-complying” activity under the PAUP until it can better assess the potential costs and benefits of reclaiming part of the harbour for the port.

The study assessed how long Ports of Auckland can operate within its current footprint and considered whether there are external constraints on port expansion and what the impact might be of the central wharves’ development plans on port operations.

Although some pundits have suggested moving the port away from Auckland’s waterfront, NZIER was not asked to consider the long term location of the port or the scope of its operations. It’s key finding was that eventually Ports of Auckland will need more multi-cargo wharf space to grow or some of its business will go to competing ports.

The report’s author, Nick Allison, said the capacity of the multi-cargo wharves were coming under increasing pressure.

“They are used to land cargos that aren’t typically carried by containers, such as building materials, vegetables, wheat, vehicles and other goods used by households in Auckland and elsewhere in New Zealand,” he said. “The ships are getting much larger and wharves were not built to manage such vessels.”

The NZIER report was the second stage in a review of Ports of Auckland’s expansion plans, following an earlier report by PricewaterhouseCoopers on the freight needs of ports in the upper North Island.

Sources: Stuff, NZ Herald, Auckland Council, NZIER 

COMPULSORY WEIGHTING OF CONTAINERS IS A REALITY

By Dave MacIntyre , Transport journalist,writing in FTD magazine….

New Zealand’s exporters will soon be asked to face up to the logistics reality of having to physically weigh export containers – or at least accurately calculate the weight – in order to have their cargoes accepted onboard a ship. Failure will mean being ‘short shipped’ – the box left on the wharf when the ship sails.

The change comes about as a result of a landmark agreement by the International Maritime Organisation (IMO) that mandatory container weight checks are to be introduced globally. The IMO’s maritime safety committee approved changes to the Safety of Life at Sea (SOLAS) convention that will require verification of container weights as a condition for loading packed export containers.

Although SOLAS rules dictate that it is the shipper’s responsibility to declare the true weight of the box, any new rules will be of equal importance to the trucking industry, terminals and shipping lines, all of whom are currently affected by the carriage of containers which are often overweight (sometimes illegally so) and sometimes even under their declared weight.

compulsory-containers-600x450

Under the new rules, shippers can either weigh the loaded container using calibrated and certified equipment, or weigh all packages and cargo items (including pallets, dunnage and other securing material) and then add the weight of the empty box, using a certified method approved by the competent authority of the country in which packing of the container is completed.

Maritime New Zealand, as the representative for the New Zealand government, has confirmed that New Zealand will comply with the rule changes, which will enter into force on 1 July 2016.

The New Zealand Shippers’ Council (NZSC), representing several of the country’s major exporters, supports this initiative to improve the safety of cargo and workers across the supply chain.

It has issued a position paper giving further details of the IMO ruling, confirming the shipper is responsible for verifying the gross mass on all containers destined for export, and also that the responsibility extends to recording this “in shipping documents sufficiently in advance to the carrier and port, to be used in the preparation of the ship stowage plan. And critically, in the absence of a verified gross mass, the container shall not be loaded onto the ship.”

There are exclusions to the rule, says the NZSC. These are:

  • • Imports, on the basis that the export shipper in the other country has the responsibility for complying
  • • Transhipments, as the container requires verification at the first port of loading
  • • Bulk cargoes, as the rule applies only to containerised cargo
  • • Roll-on roll-off (RORO) vessels undertaking ‘short’ international voyages.
  • “A 5% margin of error applies between the declared and verified gross mass,” says the NZSC.The changes follow years of debate about the safety repercussions of the misreportage of container weights. In a famous case, the UK Marine Accident Investigation Branch’s investigation into the MSC Napoli  grounding in the English Channel in 2007 found that a fifth of the containers on the vessel were more than three tonnes overweight. Inspectors examined 660 containers remaining on the deck of the ship after she beached, and 137 were above their declared weights. The worst of these was a huge 20 tonnes over.In the years after that accident, initial efforts were made to secure a buy-in to voluntary safety guidelines. The World Shipping Council and International Chamber of Shipping began lobbying for container weight checks in 2008, but failed to gain much traction.However, the partial capsizing of the Deneb, a 500 TEU (20 ft containers) feeder ship, in the Spanish port of Algeciras in June 2011, added greater emphasis to the debate, and the focus then shifted to the IMO using its muscle to force change.Yet there was some opposition to the concept. Most flag state opposition dissipated quickly, but discord among some shippers and unions remained.On the union side, the International Transport Workers’ Federation (ITF) felt the rule didn’t go far enough. It wanted all loaded boxes to be physically weighed, nothing less, and no ‘calculating’ the weight. Its case was based on the risk that unweighed and misdeclared containers posed to wharfies, seafarers, truck drivers and the general public.Some shipper groups, by contrast, consistently saw problems with the concept. The European Shippers’ Council contended that container weight verification requirements would be ‘ineffective’.The Asian Shippers’ Council doubted whether it would work across all Asian countries, as some developing countries would not have the mature infrastructure to allow consistent and accurate weighing. Forcing them to gear up for this would add cost and delays to the supply chain, they argued. The other fear was that time spent on verification at terminals would delay the speedy movement of boxes into the stack.By contrast, the Global Shippers’ Forum engaged with the IMO throughout, and welcomed the new agreement.Now, with the IMO having finally made its decision, the focus is turning to finalising the best methods for verifying weight.The next question is, how will the change be implemented in New Zealand? The NZSC is warning exporters they need to prepare for the introduction of the new system.“Failure to develop approved systems and processes allowed for under method 2 in time for 1 July 2016 will result in unnecessary delays and costs across the supply chain,” it says.The key actions required are:
  1. Confirmation of which New Zealand agency will be responsible for implementing the proposed legislative and procedural changes.
  2. Development of an implementation plan that provides a roadmap and ensures New Zealand shippers are able to comply with the ruling in a timely manner.
  3. Agreement on the definition of a ‘certified and approved method’.
  4. Agreement on which New Zealand agency will be the competent authority.
  5. All parties in the information chain, including shippers, carriers, ports and New Zealand agencies, to work collaboratively to develop the necessary changes to systems and processes.

Maritime New Zealand is overseeing the introduction into New Zealand law and has advised that it is currently developing amendments to Maritime Rule Part 24B which will give effect to the amendments. This will address the use of alternative methods for arriving at a verified weight and enforcement.

As part of the process, Maritime New Zealand is liaising with other relevant government agencies to ensure consistency with existing requirements, including the Ministry of Business, Innovation and Employment, and the New Zealand Transport Agency.

Amendments to Maritime Rule Part 24B will be subject to the usual consultation process, so exporters, carriers and other interested parties can expect to be invited to make their views known later this year.

A summary of the Maritime Rule consultation process can be found on the Maritime NZ website at www.maritimenz.govt.nz/Consultation/

Source- FTD Magazine: Photo credit: French Ministry of Defence

PORT FINED OVER SAFETY ISSUE

Ports of Auckland Ltd has been fined $55,000 and ordered to pay $25,000 in reparation to  a stevedore who suffered serious injuries unloading a container ship at the port in January 2014.

POAL admitted a charge laid by Maritime New Zealand under the Health and Safety in Employment Act 1992 of failing to take all practicable steps to ensure the safety of employee, and was sentenced in Auckland District Court.

The stevedore was injured while attempting to dislodge a twist-lock that was stuck in the top of a two-high container stack on board the Lica Maersk. The man was using a 5m unlocking pole which, with the weight of the twist lock, pulled him from the top of a container 15m down to the water. During his fall, he hit a crane beam, and then the wharf, before landing in the water where he spent approximately 15 minutes due to difficulties in rescuing him from the narrow space.

The man suffered multiple injuries including breaking both legs, three fractured vertebrae, 10 fractured ribs, fractures to his sternum, a lacerated lung, and two fractured tendons in his left hand.

The man was hospitalised for three months after the accident and is unlikely to return to work as a stevedore.

The investigation by Maritime NZ found that no safety rail was in place in the area the man was working because it was covered by container lashing equipment.

POAL management had identified that use of unlocking poles to remove twist-locks was hazardous in mid-2013 but stevedores were not told they should not be used.  The company failed to provide adequate training in relation to ship inspections and health and safety procedures and failed to adequately monitor employees to identify and prevent unsafe work practices.

Maritime NZ Director Keith Manch said the sentence reflected the seriousness of the incident and ramifications for the stevedore involved.

“There were multiple failings of procedures and communication in this case and the long term effects for the injured man have been devastating,” he said.

“Health and safety must be taken seriously. All workers have the right to safe workplaces and to go home healthy at the end of the day.”

FIRST STAGE OF HOLCIM DOME AT PRIMEPORT

holcim dome

The next stage of Holcim New Zealand’s state-of-the-art cement storage dome (above) at PrimePort in Timaru is now up, which is a major milestone in the $50 million project.

Holcim is investing $100 million in building 30,000 tonne new storage facilities in Timaru and Auckland as part of its business strategy of global sourcing for supply into the New Zealand market. Along with the global sourcing, Holcim NZ has comprehensive supply chain management expertise that is critical to the construction and infrastructure sectors.

The construction phase in Timaru will employ 50 people while the facility will employ eight staff once fully operational in the first half of next year.

New Zealand Country Manager Glenda Harvey said the terminal in Timaru provided effective access to the major market of Christchurch, utilising the new $5million silo capacity completed in January 2014 at the Lyttelton Port of Christchurch.

“This terminal also provides effective distribution to the whole of the South Island market and the lower North Island as well.”

Glenda Harvey said the dome is a first for New Zealand and demonstrates the company’s drive to tap into the best of innovation used by Holcim around the world.

“The stage today involved putting up the dome, creating the shape for the polyurethane and concrete shells to be added from the inside. The innovation and technology being used is world class and is another example of the benefits Holcim New Zealand gains from the global Holcim family of companies,” she said.

“The company globally invests millions in research and development and sourcing high quality product along with managing transportation and logistics for customers. This reduces risk to customers as Holcim can tap into a wide network to source cement and most importantly make sure it gets to where it needs to when it is needed.

“This is critically important to the construction and infrastructure sectors particularly with the huge demand post-earthquake in Christchurch.”

Glenda Harvey said as a global leader, Holcim applied stringent quality criteria to its sourcing stategy to ensure that markets received the best possible product to meet local performance criteria.

ANOTHER NEW SHIPPING SERVICES SWITCHES TO TIMARU

The arrival of another shipping link at the Port of Timaru this week sees it take more work from the port of Lyttelton.

Shipping company Pacifica has become the fourth regular shipping company to service the port. This comes on top of the vibrancy created by a partnership with the Port of Tauranga, the return of Fonterra freight, and links with freight company Kotahi.

Pacifica chief executive Steve Chapman and commercial manager Roy Stewart were in Timaru to officially launch the new link, which arrived for the first time on Tuesday night.They saw the link as pivotal to the company’s efforts to expand both its domestic and international markets, Chapman said.

He said the Lyttelton Port had said it was not happy about Pacifica making the move to service the South Canterbury, Mid-Canterbury market from Timaru. That follows earlier reaction from Lyttelton that the Port of Tauranga’s acquisition of the container shipping operation in Timaru had dented its profits, through a loss of volume of milk products being shipped through it from Fonterra Clandeboye.

Last year Lyttelton Port Company (LPC) lost a multimillion-dollar milk export contract to PrimePort, half-owned by Port of Tauranga. Port of Tauranga then announced a 10-year deal with Kotahi, a freight venture owned by Fonterra and the country’s biggest meat exporter, Silver Fern Farms.

Pacifica’s ship, The Spirit of Endurance, will run a weekly service from Timaru, arriving on Tuesday night and departing on Wednesday morning, where it will provide a direct link with the Port of Tauranga.

Mr Chapman said it was imperative to have the goods in Tauranga by a Thursday night, when the international ships started to leave. They departed from Thursday night to Sunday afternoon, he said, so the earlier the ship arrived, the more options and more places to link to local producers would have.

It is the only shipping link to provide a direct route with Tauranga, New Zealand’s biggest port. It also then provides a link with the west coast of America, which no South Island port provides.

Mr Chapman was touting it as a viable option, as opposed to using rail and trucking. He put it down to the capacity the ship could hold (700 20ft equivalent containers), the reliability, as the ships do not need to contend with Cook Strait, and the ability for refrigerated containers to be scrutinised at all times. That adds reassurance that product which needs to be refrigerated will be well looked after, he said.

CENTREPORT LOOKS AT DREDGING TO DEEPEN HARBOUR

CentrePort is commencing consultation with iwi, stakeholders and interested parties before applying for resource consents to deepen two sections of the shipping channel in Wellington Harbour to accommodate bigger ships.

“Across the globe ships are getting bigger and we need to prepare for this” said CentrePort Chief Executive Blair O’Keeffe.

With a deeper shipping channel, CentrePort will be able to receive bigger ships carrying up to 8,000 containers each (instead of the current 4,500) and continue to support thousands of businesses and jobs across the central region of New Zealand. The central region conomy which covers the lower North Island and upper South Island represents 27% of national GDP and some 600,000 jobs.

“It is important this region maintains strong international connections to ensure it remains competitive and can grow. The consents will be designed to prepare the region for the future and would replace existing consents which need to be updated” Mr O’Keeffe said.

The proposed project aligns with CentrePort’s recent investment in modern port infrastructure and inland hub and rail services across central New Zealand. It also aligns with the government’s investment in road, rail and ferries to connect Wellington with the wider central New Zealand economy.

It would involve deepening two sections of the shipping channel, at the harbour entrance and berth, to accommodate ships with a draught of up to 14.5 metres. Currently, the shipping channel can accommodate ships with draughts of up to 11.5 metres. This would  require moving up to 8.6 million cubic metres of material from the harbour entrance to another location. A site at Fitzroy Bay is currently being investigated for the fill at a location 50 metres below the sea, and several kilometres out in the Cook Strait. At the berth where limited deepening is required, it is proposed to relocate the fill to deeper parts of the port operational area.

As Wellington’s harbour is well suited to shipping the project is smaller than some other planned or consented projects at other ports. The deepening is estimated to take 10 to 20 weeks to complete and may be undertaken in phases. It would be fully funded by the port.

As well as consulting iwi and stakeholders, the company is investigating the effects of the project as part of its application for resource consents.

“CentrePort is committed to ensuring the environmental, social and cultural sustainability of Wellington harbour – a place that has connected us to the world for over 150 years,” Mr O’Keeffe said.

“We will be engaging with the community about the project over coming weeks, including at the Port Open Day on 14 February. Following a comprehensive consultation process we will lodge our consent application in mid-2015. At this stage we are considering requesting a referral via the Environmental Protection Authority to a Board of Inquiry for determination”.

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We hope you enjoyed this newsletter.  Our Archive newsletter page holds previous newsletters from January 2014. For the latest though, click on our “The latest” link on the home page masthead… This is updated at least weekly with industry related news items and commentary on current issues.