Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Z looks for savings with increased storage

Z looks for freight savings with increased storage at Lyttelton, Tauranga ports

April 19 (BusinessDesk) - Z Energy, the petrol retailer whose owners are mulling a listing later this year, wants to reap significant savings in freight costs as it spends $40 million to boost storage at ports in Lyttelton and Tauranga.

The announcement coincides with today's official opening of a new 10.4 million litre storage tank at the Port of Tauranga by Terminals NZ, a branch of the transport fuels businesses owned by low-cost competitor Gull.

Wellington-based Z received resource consent to add 25 million litres of storage at Port of Lyttelton in Christchurch to its existing 30 million litre capacity, and is in early engineering and consent stages for the Port of Tauranga, Z said in a statement. The increased storage means Z should be able to maintain security of supply and avoid a repeat of the diesel shortage in the South Island last month.

"This additional tankage will start to address some of the infrastructure deficit that has developed over the last 20 to 30 years and enable a more secure and reliable supply of fuel to New Zealand," chief executive Mike Bennetts said. "It will also enable Z to procure larger shipments of imported goods that will lower freight costs."

Petrol prices have been falling at the pump in recent weeks and are at their lowest since July last year as a strong currency and weaker global demand for oil keep the major players fighting for market share.

Bennetts threw his support behind Port of Tauranga's announcement last month that it can widen and deepen its shipping channels, saying bigger vessels "can make for significant savings in freight."

Earlier this year, Z's owners Infratil and the New Zealand Superannuation Fund is considering floating between 40 percent and 60 percent of the petrol station chain after buying it at an attractive price in 2010.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business:
NZ Puts Seven New Oil And Gas Areas Put Up For Tender

A total of seven new areas will be opened up to oil and gas exploration under its block offer tendering system, as the New Zealand government seeks to concentrate activity in a few strategically chosen areas. More>>

ALSO:

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news