Latest Newsletter: May – August 2017

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

MAERSK TO RETURN TO WELLINGTON BUT NOT JUST YET!

The world’s largest shipping line is to return to Wellington, once the port’s container cranes are back in action.

Maersk Line confirmed it would resume its weekly container shipping service to Wellington, once CentrePort has completed work to allow its ship-to-shore cranes to operate. The two giant cranes have been out of action since the November 14 earthquake, which caused severe damage to large parts of the port. Although the gantry cranes were not damaged, both jumped off the rails they sit on, with land beneath the cranes weakened. Repairs on the ground beneath the cranes has been underway for months. CentrePort predicts the works should be “largely complete” by September.

port of wellington containter wharf 1501472030552

Large sections of wharf at CentrePort subsided during the November earthquake. Photo Robert Kitchen/ Fairfax Media.

The Jens Maersk, capable of carrying 3,000 twenty-foot equivalent units (TEUs), would make its first call in Wellington on September 18, according to CentrePort and Maersk Line. Gerard Morrison, Maersk Line Oceania’s managing director, said CentrePort’s work to restore the cranes would allow it to serve customers in the region “faster and more efficiently”.

“CentrePort has kept us fully informed of its progress over the last nine months and we are very pleased to return to Wellington with our weekly Northern Star service.” CentrePort Chief Executive Derek Nind said the return of Maersk would allow it to “resume our strong growth in container shipping volumes.This is great news for the region’s economy.”

Source – Stuff NZ

PORT TARANAKI PREDICTS ‘MILDLY CONSERVATIVE’ GROWTH

port taranaki modest growth

Port Taranaki had targeted 5m tonnes of freight per year as part of modest growth strategy. Simon O’Connor/ Fairfax NZ

Port Taranaki is set to follow a conservative approach towards future business planning during the next three years.

The company intended to set annual freight volumes to 5 million tonnes, including 1 million tonnes of non-bulk liquids, to 2020, a Taranaki Regional Council audit, executive and risk committee meeting was told recently. The company released its 2017-2020 draft statement of intent at meeting. In 2016-17 actual freight volumes at the port were 5.15 million tonnes, down from a target of 5.6m tonnes. Previously the company had targeted growth opportunities of 1 per cent annually. At the same time the company would seek to increase its competitive trading links outside the region.

Regional council corporate service director Mike Nield told the committee the port company had forecast an annual dividend payout of $8 million or more to the regional council, as the main shareholder, over the next three years.  This would equal between 65 per cent and 100 per cent of the company’s net income, but actual dividend payments could change following the annual review by directors, the meeting was told. The company paid $4.9 million dividend to the Taranaki Regional Council in 2016-17, more than double the amount paid in 2012 of $2.2m.

Key financial targets for the company over the next three years included net profit after tax on average assets rising from 4.2 per cent in 2018 to 4.4 per cent in 2020. Last year the company achieved 5.2 per cent net profit. Port Taranaki is targeting 10.5 per cent net income in 2018, compared to 11.4 per cent achieved last year, rising to 11.5 per cent in 2020.

The company recorded a net half-year profit after tax of $4.57m in December, a 1.5 per cent increase from the previous year. Strong log and methanol volumes leaving the port gave the company a 12 per cent increase in export volumes for the final six months of 2016.

The port company was an “important business enabler” for the region and faced challenging times in the years ahead, regional council chief executive Basil Chamberlain told the meeting. The company was following a “mildly conservative approach” towards future strategic planning, he said.

Port Taranaki was working in a dynamic competitive environment which meant it could not afford to sit back and do nothing.  “The company needed to cut costs and build trade to be competitive and retain its business enabling role in the region,” he said.

Source – Taranaki Daily News

ICHCA CALLS FOR CARGO HANDLING IMPROVEMENTS

ICHCA International, the global cargo handling NGO, has called for improvements in global cargo handling when it comes to safety, smart technology, sustainability, security and skills.

The NGO will use its 65th anniversary conference in October to call for improvements for the sake of “the future of handling worldwide”. Its conference will include keynote speeches given by Mr Westwood-Booth, senior deputy director of the Sub-Division for Marine Technology and Cargoes in the Maritime Safety Division at the IMO.  Other key names scheduled to speak include Günther Bonz, president, FEPORT; Olaf Merk, administrator ports and shipping, International Transport Forum, OECD; Peregrine Storrs-Fox, risk management director, TT Club; and Kevin Furniss, vice president, health, safety, security, environment and sustainability, APM Terminals.

Another highlight of the two-day conference will be the 65th Anniversary Reception and Awards Evening, taking place on 3 October.  The conference will be followed by the 78th meeting of ICHCA’s ISP Technical Panel on 5 October and annual CARC meeting on 6 October. Global Shippers Forum will also host its AGM on 2 October as part of the week-long gathering.

The ICHCA International Conference 2017 takes place from 2 to 6 October 2017 in Las Palmas, Gran Canaria, Spain. More info from www.ichca.com .

TGH AND LINX JOIN FORCES AT RUAKURA

The Waikato-Tainui owned Ruakura inland port development has taken a major step forward with the announcement of a joint venture partnership with a world-class port operator. The tribe’s commercial company Tainui Group Holdings (TGH) and LINX Cargo Care Group have joined forces to develop and operate the new port, which is currently under construction and expected to bring significant economic return to Waikato-Tainui and the region.

LINX Cargo Care Group and one of its subsidiaries, C3 Limited, New Zealand’s largest on-wharf logistics company, are owned by a Brookfield Consortium which brings together global experience in port operations and infrastructure development. Rukumoana Schaafhausen, Chairman of the tribe’s executive committee Te Arataura, welcomed LINX Cargo Care Group to the Waikato-Tainui whaanau and acknowledged their mutual commitment to long-term investment.

“Waikato-Tainui is an inter-generational investor. What we achieve today will reverberate for generations of our mokopuna. LINX brings not only significant expertise in port development and operation but also a long-term vision that matches our view of the positive environmental, social and economic advantages that must and will come from this project,” she said.

TGH Chief Executive Chris Joblin said the conditional agreement reached this week will bring the full force of LINX Cargo Care Group’s world class experience to bear at Ruakura through a new joint venture to develop and operate the port.

“We are delighted to confirm this agreement with LINX Cargo Care Group following a comprehensive RFP process over the past ten months which attracted expressions of interest from seven potential port operators,” Mr Joblin said. “LINX and C3 share our long-term vision to help transform North Island freight flows, driving new levels of productivity, efficiency and speed to market for the rapidly growing export and import community in the golden triangle of Auckland, Hamilton and Tauranga,” he said.

The 50/50 joint venture of TGH and LINX Cargo Care Group will take an initial 30 year lease on the inland port land at Ruakura, subject to the OIO (Overseas Investment Office) approval for the participation of LINX Cargo Care Group which operates extensively across Australia and New Zealand. Waikato-Tainui will continue to own the land on which the Ruakura Inland Port is built, and benefit from ground lease payments for its use.

Anthony Jones, Group CEO for LINX Cargo Care Group and Chairman of C3 said the transformative nature of Ruakura was a major attraction.

“Ruakura will be transformational for the New Zealand logistical supply chain. It will offer stable, efficient and cost effective networks for importers and exporters to grow with confidence in the future. We are extremely excited to be part of this project for New Zealand’s North Island communities, which will deliver long-term benefits such as safer roads, employment opportunities and reliable inland transport networks,” he said.

In addition to the range of services Ruakura will provide to the region’s exporters and importers, it has the potential to support 6,000-12,000 jobs within the precinct once fully-built. Employment opportunities for Waikato-Tainui people are a core element of the tribe’s vision for Ruakura. The LINX Cargo Care Group’s commitment to work with Waikato-Tainui on creating jobs for tribal members forms an important part of the JV agreement.

The appointment includes an agreement with C3 to run the port’s day-to-day operations. It covers services such as: managing receipt and delivery of containers and non-containerised cargo; container storage; coordinating cargo transfers between the port and adjacent warehousing; container packing and unpacking services; providing a terminal operating system for the port; back office services and on-site reception and management offices.

Mr Joblin said C3’s position as New Zealand’s largest on-port services provider meant it worked in partnership with a large number of exporters and importers, providing a pipeline of potential customers for Ruakura.

“C3 has a strong and loyal customer base. They have deeply integrated relationships with forest owners, primary wood processors, importers, manufacturers and shipping lines. These are among the sectors Ruakura is designed to service, by providing customers with a supply chain that will deliver a choice of port and shipping providers; efficiencies gained from Ruakura’s significant scale; multiple transport options; and a site that offers the ability to scale up and meet current and future needs. We are in positive discussions with prospective customers and tenants for the inland port and adjoining logistics hub which will have excellent connections to the East Coast Main Trunk Line and to the new Waikato Expressway via a full diamond interchange.

“Now that LINX Cargo Care Group is on board, we will continue working together to achieve our goal of having Stage 1 of Ruakura operating in the first half of 2019,” said Mr Joblin.

Source – Scoop New Zealand

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