Posted on May 16, 2016
CentrePort chief executive officer Derek Nind says the port’s plans to deepen Wellington Harbour will bring increased connectivity and economic benefits to central New Zealand.
A proposal to deepen Wellington Harbour is expected to keep freight costs down for importers and exporters in Manawatu, and the rest of central New Zealand.
CentrePort is looking to dredge the harbour so it’s at least 14.5 metres deep at all points, to allow for the growing size of international cargo ships.
CentrePort chief executive Derek Nind said if central New Zealand cannot provide a cargo connection to the rest of the world the supply chain would move northward.
He said every scenario in the Ministry of Transport’s 2014 Future of Freight Scenarios Study showed a significant increase in costs for Manawatu businesses.
In all but one scenario those costs would increase by more than 100 per cent on the status quo. Even in the best scenario, costs would increase between 11 and 50 per cent.
None of those scenarios included CentrePort maintaining its access to international freight.
International shipping vessels had been increasing in size over time, and more ships were carrying the equivalent of more than 6000 shipping containers, Nind said.
Currently, the harbour can only accommodate ships with a maximum capacity of 4500 shipping containers.
“If we deepen the harbour we can keep that international freight coming through Wellington. That will keep costs for the Manawatu closer to the status quo and allow them to remain competitive.”
Palmerston North mayor Grant Smith said CentrePort was the city’s local port, and a key part of the regional economy.
“Toyota, Steelfort, Fonterra, they all export and import through CentrePort,” he said.
“If we don’t support our local port, the ramifications for business are massive, [and] central New Zealand would be the biggest loser.”
Centreport runs a 30-car train to Palmerston North and back every day, carrying imports.
Nind said this made the local rail hub into a de facto inland port, and CentrePort was looking to build on that benefit.
If a suitable site can be found, the port will establish a container servicing depot in Palmerston North within the next six months.
This would allow the port to perform on-site repairs to the containers, and optimise their use, he said.
The idea is to unload containers filled with imported goods, and refill them with export goods, at the depot. This will maximise the time the containers are full and travelling, bringing down freight costs for Palmerston North businesses.
The port will apply to the Greater Wellington Regional Council for a resource consent to dredge the harbour in June.
Nind said that process would take nine to 14 months.They would dredge to a depth of 12.5m “relatively quickly after that,” and deepen it to the full 14.5m in the next couple of years.
Source: stuff.co.nz
