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

 

Meat and dairy exporters secure largest ever container ship

Meat and dairy exporters secure largest ever container ship for Asia run

By Pattrick Smellie

July 12 (BusinessDesk) - The Kotahi joint venture between Fonterra Cooperative Group and Silver Fern Farms is launching a new weekly service to Asian export markets using the largest container ship ever to call at a New Zealand port.

The service will operate through the Port of Tauranga, where a $350 million port expansion and dredging operation will allow visits by a ship capable of carrying more than twice the usual number of containers seen on cargo ships operating through New Zealand.

The new service will see ships with a capacity of 9,500 TEUs - 20-foot container equivalents - calling at Tauranga on their way from the west coast of South America before heading to ports in North Asia.

The new route requires the Maersk ships to divert to New Zealand before heading to destinations in China, Japan, and Korea, among others.

The South American and New Zealand cargoes are complementary primary produce loads requiring refrigeration, which the ships to be used on the run are well-equipped to provide.

The new service will effectively replace the current Triple Star service, which has been operating a dedicated New Zealand-Asia route on a roughly fortnightly basis, and is a direct product of collaboration with Maersk under a 10-year agreement signed two years ago, Kotahi's chief executive, David Ross, told BusinessDesk.

However, cost savings are not a feature of the improved timetable, with international freight rates already delivering negative returns for much of the global shipping industry.

Instead, the new route represented an investment in a sustainable and more regular service for New Zealand exporters, said Ross. The ships were more fuel-efficient than the 2,000 to 4,500 TEU-sized vessels that commonly service New Zealand ports and would cut carbon emissions between New Zealand and Asian ports by around 22 percent.

However, even at 9,500 TEUs, the new ships servicing Tauranga are dwarfed by container ships commonly in use on Northern Hemisphere routes, which are capable of carrying as many as 18,000 TEUs.

Ross said Kotahi didn't expect the route to attract any more cargo than already moves on the Triple Star service at first, although he expected it would begin to attract new sources of freight over time.

Kotahi provides export services for more than 40 companies exporting a wide range of primary and other products to some 440 ports around the globe.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Primary Sector Council Report: Vision To Unite The Primary Sector Launched

Agriculture Minister Damien O’Connor has welcomed the release of a bold new vision for the country’s vital food and fibre sector. More>>

ALSO:

Crown Accounts: Treasury HYEFU Sees Deficit Then Rising Surpluses

An operating balance before gains and losses deficit of $0.9 billion is forecast in the current year, before returning to a small surplus in 2020/21 which then grows to reach $5.9 billion (1.5% of GDP) in 2023/24. More>>

ALSO:

Fuels Rushing In: Govt "Ready To Act" On Petrol Market Report

The Government will now take the Commerce Commission’s recommendations to Cabinet...
• A more transparent wholesale pricing regime • Greater contractual freedoms and fairer terms • Introducing an enforceable industry code of conduct • Improve transparency of premium grade fuel pricing... More>>

ALSO:

Reserve Bank Capital Review Decision: Increased Bank Capital Requirements

Governor Adrian Orr said the decisions to increase capital requirements are about making the banking system safer for all New Zealanders, and will ensure bank owners have a meaningful stake in their businesses. More>>

ALSO: