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


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


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


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


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


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.