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West Coast Ports Pin Hopes on Government Funding for Survival

Posted on September 19, 2018

Public money is needed to save two struggling ports on the West Coast, regional leaders say.

The Government’s $3 billion Provincial Growth Fund (PGF) has bankrolled a feasibility study into upgrading Westport and Greymouth ports.

Both ports are owned and managed by their respective district councils, and both are struggling financially.

Westport port ended the 2016-17 year with a pre-tax loss of $948,000. It lost its biggest customer in July 2016 when Holcim stopped shipping cement from its Westport plant and closed it down.

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Greymouth port has been losing money for the Grey District Council for 50 years.

The entrance to both ports is made perilous by often rough sand bars.

Fishing boats are left stuck out at sea during low tide because of built-up silt. All coal is sent by rail from the West Coast to Lyttleton Port.

Westport Port manager Jackie Mathers said the Buller District Council decided to stop dredging the Westport lagoon and Buller River bar when Holcim stopped shipping cement from the town.

She said the Westport lagoon was deep enough for fishing boats, but the bar was being monitored. It had been down to 1.7 metres during low tide, but had been naturally cleared recently to 3.4m.

The council had too few ratepayers to prop up the cost of the port operations, but Westport’s port needed upgrading to ensure the viability of the fishing industry. Upgrading the port could also attract more opportunities in recreational fishing and other marine industries. The port was busy during hoki and tuna seasons and the Talley’s fish processing plant employed up to 120 locals.

“When you look at the Kaik?ura and Golden Bay examples, when they were cut off [by storms in February] what was the method used to both get people out and to bring supplies in … The answer is the sea. We have two roads which are vulnerable in the event of a major catastrophe. Resilience is a big part of why we need to ensure the port survives,” Mathers said.

“My mantra is that we are called Westport. If we didn’t have a port we may as well change the name to West.”

Westport’s dredge was stopped when the port’s biggest customer – Holcim – left town.

According to the council’s last annual report, 2017 was a “very testing and trying” year for the port because it was the first year of operation without Holcim’s trade.

It had earned $1.37m from leasing out its dredge, which helped offset the loss of revenue from Holcim.

The PGF has already provided $750,000 to allow the slipway and lagoon at Greymouth Port to be dredged to 4m. The Westport Port-owned dredge will be used for the work.

“The fishing industry is essential to Coasters, with the Port of Greymouth lagoon seeing up to 70 vessels a day during hoki and tuna season,” Regional Economic Development Minister Shane Jones said.

“Silt build-up can damage vessels, even at high tide, and the slipway is the only registered maintenance facility between Bluff and Nelson.”

Jones said fishing, aquaculture and seafood processing industries contributed more than 160 jobs to the West Coast economy.

“TThis funding assists in making sure those jobs are secure.”

Talley’s Group and Development West Coast also contributed to the dredging work.

Talley’s Westport manager Kerry Patterson said the ports needed to be dredged for health and safety reasons.

Larger vessels could only cross the bar an hour either side of high tide.

The Grey council bought a dredge for $250,000 three years ago and spent another $100,000 unsuccessfully trying to get it working.

Mayor Tony Kokshoorn said the fishing industry was one of the few growing industries on the West Coast and a new processing plant was planned for Greymouth.

The council had applied for $4m from the PGF to redevelop its port.

Source: stuff

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