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

 


UPDATE: Big deals bring big ships to New Zealand at last

UPDATE: Big deals bring big ships to New Zealand at last

(Updates with briefing)

By Pam Graham

June 26 (BusinessDesk) – A rare 10-year shipping contract will pave the way for global shipping line Maersk to bring 6,500 TEU container ships to New Zealand by the end of 2016, but they will initially call only in Tauranga.

Kotahi, the logistic company led by Fonterra Cooperative Group and Silver Fern Farms which has 30 other exporter customers, has done a 10-year deal with Port of Tauranga under which it will provide 1.8 million containers to the port and will put cargo through Port of Tauranga’s Timaru Container Terminal in return for 1.5 percent equity stake in the port and 49.9 per cent ownership of its Timaru terminal.

The agreement replaces existing rebates Kotahi has, the size of which it would not comment on.

It has done a separate 10-year deal with Maersk Line which provides 2.5 million of export containers to Maersk over ten years.

Maersk Line managing director Gerard Morrison told a briefing in Auckland the 10-year deal was a first for Maersk in New Zealand, and “it is not something we have been able to do elsewhere in the world either”. It provided certainty so the shipping line could plan to bring bigger ships to New Zealand.

“We’ve been looking for ways to evolve from the traditional 12 month contract cycle that exists in this country,” Morrison said.

Maersk is introducing a new 4,500 TEU service to Tanjung Pelepas in Malaysia in October and will work on bringing the larger ships.

Port of Tauranga chief executive Mark Cairns said the agreement it had with Kotahi required Port of Tauranga to be ready to handle 6,500 TEU ships by 2016. The port will use a “big vacuum cleaner” to hoover up sand in its channel.

He said the volume the 10-year deal delivered to Tauranga “was a $5 to $6 billion deal to put some context around it”.

The agreements announced today ensured that New Zealand retained direct shipping calls and did not become a branch of Australian services, media were told.

The bigger ships will be 22 per cent more carbon efficient.

At this stage there isn’t a port in the South Island that can handle the 6,500 TEU ships.

Talks will be held with South Island ports but when the larger ships call it will initially only be a Tauranga, media were told. The growth of cargo in the South Island is large enough for a possible big ship port. It is also very unlikely that vessels larger than 6,500 TEU will call in New Zealand due to the depth of the ports.

Port of Tauranga will dredge its harbour more to accommodate the 6,500 TEU ships by the end of 2016. Its Timaru terminal gets an additional 52 vessel calls a year from this deal.

The port operator's shares gained 4.4 percent to $15.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Immigration: Increase In Seasonal Workers For RSE

The current cap will be increased by 1,000 from 9,500 to 10,500 RSE workers for the 2016-17 season. Mr Woodhouse says the horticulture and viticulture industry is New Zealand’s fourth largest export industry, producing almost $5 billion in exports. More>>

ALSO:

Hurunui: Crown Irrigation Invests Up To $3.4m In North Canterbury

Crown Irrigation Investments will invest up to $3.4m in the Hurunui Water Project, an irrigation scheme that will be capable of irrigating up to 21,000 hectares on the south side of the Hurunui River in North Canterbury. More>>

ALSO:

Not So Great:Butterfly Eradication Success

The invasive pest great white butterfly has been eradicated from New Zealand in a world-first achievement, Primary Industries Minister Nathan Guy and Conservation Minister Maggie Barry say. More>>

Gordon Campbell: On The Government’s Tax Cuts Fixation

Long before the earthquake hit, the dodginess of the government tax cuts programnme was evident in the language of its packaging. It is being touted as a “tax cuts and family care” package... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news