New Zealand Ports - Leading New Zealand ports are pushing ahead with plans to accommodate the eventual and inevitable arrival of larger ships – not least to attempt to ensure they are not left off the port roster for operators of 6000-8000 teu vessels.
However, expansion plans are not going unchallenged, most notably for Ports of Auckland Ltd (PoAL) which remains mired in controversy over what would once have been regarded as a fairly routine and minor extension of its Bledisloe Multi-purpose Terminal. PoAL holds resource consent for lengthening of Bledisloe’s two wharves by less than 100 metres and also wants to reclaim an additional three hectares of land between the two.
But opposition from special interest groups, local residents and some city bodies, coalesced through the “Stop Stealing Our Harbour” movement, forced PoAL’s ultimate owner Auckland Council to support a compromise proposal to proceed with construction of one wharf extension and put the other on hold. Under the end-April proposal, PoAL will continue building the eastern extension (B2) but put on hold construction of the western extension (B3) until after a Port Future Study is completed.
This proposal addresses a number of community concerns, especially around sight lines from Queens Wharf, while providing sufficient berth space for current freight needs and growth in the immediate future. “The proposal is a compromise,” PoAL CEO Tony Gibson said.
“It’s not our preferred outcome because of the impact on the cruise industry, however it is a pragmatic, workable solution to the current problem. It allows the port to continue to handle Auckland’s growing freight needs in the short term, while the long-term future of the port is debated.”
The good news for the port is that first-quarter Ministry of Transport statistics show Auckland is the now the country’s best performing container port. “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,” Mr Gibson said. “This quarter we’ve caught up with Tauranga on that measure.
“In the six months to December 31, 2014 Auckland container volumes were up 3% to 490,723 teu compared to the same period the previous year; break-bulk volumes were up 7.7% to 3.08m tonnes and car volumes were up 19% to 118,765 units. Looking forward, freight volumes are expected to continue to rise as Auckland’s economy and population grow.
To meet this demand PoAL’s strategic capital investment program includes the extension of the Fergusson container wharf and Bledisloe terminal to cater for longer ships. A new truck facility has been built to speed up container handling and rail services to the inland port at Wiri have been quadrupled, resulting in 3000 fewer truck movements a month to and from the terminal. The port is making significant investments in rail and the off-port supply chain – at Wiri and Longburn intermodal freight hubs – and continues to relocate activities off-site which do not need to be at the sea port.
By comparison, progress on expansion at Tauranga has been relatively trouble-free although not without frustrations over time taken to obtain necessary consents. Port of Tauranga’s push is to reinforce its position as “New Zealand’s pre-eminent freight gateway” and equip itself to service and best leverage last year’s deal with Kotahi.
Tenders for the NZ$50m harbour dredging project to take depth from 12.9 metres to 16 metres close in July and the work is expected to be completed by August 2016. Overall NZ$350m is being invested in a capital expenditure program “to ensure NZ’s exporters and importers can access the blue water savings of larger ships”.
“To maintain our relevance within the international supply chain requires continued development, ensuring we can cater for larger container ships of the order of 6000 to 8000 teu and that there is enough cargo available to fill those bigger ships for decades to come.”
