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Month: December 2017

An engineering marvel: Lyttelton Railway Tunnel turns 150

Lyttelton Rail Tunnel, seen here in the old Illustrated Press, 
opened in 1867 to join Christchurch and the port.

Press Archives
Lyttelton Rail Tunnel, seen here in the old Illustrated Press, opened in 1867 to join Christchurch and the port.

Imagine arriving fresh to New Zealand at Lyttelton and disembarking from a ship with all your worldly belongings, ready to start a new life in a blossoming little town called Christchurch.

You’ve travelled for months to get to your new home, but this final stage throws up one of the trickiest parts of the journey – a long, arduous scramble over the steep Bridle Path of the Port Hills or a perilous journey by small boat across the Sumner bar to Ferrymead.

The idea would be enough to put anyone off.

The tunnel under construction, with provincial engineer, Edward Dobson in his distinctive white top hat, to the right of ...Press Archives

The tunnel under construction, with provincial engineer, Edward Dobson in his distinctive white top hat, to the right of the tunnel entrance.

But while the hills were an inconvenience for travellers, for businessmen desperate to export Canterbury’s goods to the rest of the world they were a major hindrance with the potential to cripple the market.

The region’s early settlers realised this, and almost as soon as they’d poured off the Four Ships there were murmurs of building a tunnel through the hills.

Steam engines replaced the electric locomotives on the Lyttelton line during repairs to the overhead equipment at ...

Press photographer
Steam engines replaced the electric locomotives on the Lyttelton line during repairs to the overhead equipment at Woolston in August 1932.

The idea was mooted in the early 1850s, but political wrangling proved a stumbling block as conservative colonists condemned it as financially reckless and an unnecessary extravagance.

Chief among the opposers was James FitzGerald, a former superintendent of Canterbury province who dismissed it as ill thought-out and unaffordable.

But his successor William Moorhouse, elected in 1857, was a great advocate.

Heavy rails on the curve at the entrance to the Lyttelton tunnel were replaced with new ones in 1933 after the weight ...

Press photographer
Heavy rails on the curve at the entrance to the Lyttelton tunnel were replaced with new ones in 1933 after the weight and speed of electric locomotives caused considerable wear.

“Railway Billy” asked the council to “consider and determine the best method of securing safe and expeditious transit of our marketable productions to the place of export”, and in October 1858 a decision was made to built New Zealand’s first railway tunnel and the first in the world to pass through the side of an extinct volcano.

Work began in 1860 but the British contractors demanded more money and gave up when they hit rock.

Undeterred, Moorhouse sailed to Melbourne and recruited new contractors.

The first locomotive and train in New Zealand, at Heathcote in 1863.

Press Archives
The first locomotive and train in New Zealand, at Heathcote in 1863.

The actual building work fell to Edward Dobson, Canterbury’s provincial engineer, who opened up access cuttings at each end of the tunnel.

Educated at university in London, he had studied the new Belgian railway system and brought his knowledge to New Zealand.

David Welch, an historian who has written a book about the tunnel, Port To Plains, said Dobson’s brilliance was key to its success.

Heathcote Valley rail station, signal box and the rail tunnel to Lyttelton, January 1981.

The Press
Heathcote Valley rail station, signal box and the rail tunnel to Lyttelton, January 1981.

“To me, he is the real hero of it all,” he said. “We were very lucky to get such a multi-faceted engineer. He was hugely influential.

“At the time railways were pretty new – there was no railway line in New Zealand when they started building the tunnel, and it was still pretty new technology in a way.”

Work was arduous to say the least, with progress at a painstaking three metres a week.

Lyttelton railway tunnel is just as important today as it was 150 years ago, with over a million tonnes of coal being ...

Lyttelton railway tunnel is just as important today as it was 150 years ago, with over a million tonnes of coal being freighted through every year.

Miners attacked the face with pick and shovel, using gunpowder to bring down rock that was then carried away by horse-drawn wagon.

More rock had to be excavated than was expected, the tunnel was incredibly stuffy and ventilation shafts had to be put in to allow workers to breathe.

It was also very wet – so bad that in one stretch a cover had to be built to protect miners.

Welch said: “At one stage there was 50,000 gallons a day pouring off the rock face above them … They couldn’t get rid of the water and had to bucket it out in big wooden vats.”

Despite the conditions there were few injuries, with just two deaths during an explosion.

Eventually, on May 24, 1867, the two holes being bored from each side met and an iron rod was passed through. A few weeks later the public were able to walk the entire length of the tunnel.

The Lyttelton tunnel was officially opened for passengers on December 9, the journey taking seven minutes – a far cry from the struggle over the Bridle Path.

But the tunnel wasn’t quite finished – workers still had to shape the inside, finally completing it in 1874.

It eventually contained 1.5 million bricks and cost 195,000 pounds to build.

KiwiRail engineer Trent Ludlow said it was a “massive achievement”, given its complexity.

He said: “Strategically for Christchurch, when you look at the challenges they had in getting their goods in and out, without that tunnel it would have really restricted the growth of the city.”

The tunnel was crucial for Christchurch and the success of the Lyttelton port, carrying both goods and passengers between the two.

And its role has changed little in 150 years, trains carrying 1.1 million tonnes of coal, 300,000 tonnes of logs and up to 80,000 containers through the tunnel every year.

“For us it is a vital link for us, so good-on the forefathers for having that vision,” Peter Davie, the port company’s chief executive said.

“As the rail tunnel was established it allowed Lyttelton to develop as a deep-water port. That was the primary issue – we didn’t have a deep-water port in Canterbury.

“It really opened up the region for trading.”

Today, up to nine trains a day travel through the tunnel, all now carrying freight after the 2010 and 2011 earthquakes.

 – Stuff

Big step ahead in new Napier wharf plan

THE PLAN: The proposal for a new wharf and dredging to cope with ships over 350m long and huge increases in cargo expected over the next decade. IMAGE/NAPIER PORT

Napier Port has reaffirmed its plans for its biggest-ever investment by lodging a resource consent application with its owners aimed at building a new wharf stretching 350 metres and able to cope with some of the longest ships in the World.

The application was lodged with the Hawke’s Bay Regional Council yesterday, a year and a half after the port company — once run by a harbour board elected by the public — first announced its plans for a project which with the dredging necessary is expected to cost about $125 million.

A timeline is not yet clear however, although the port expects a near 50 per cent increase in cargo by 2026 and that once the application process is completed it will complete a business case to establish the optimum time to begin construction which it is estimated will take about two years.

The lodging of the application follows large amounts of scientific research and almost two-years of pre-consultation, involving input from about 2000 people.

It includes 17 specialist studies on potential impacts on the ecology of the sea floor and Pania Reef, dredging, waves, surf breaks, noise, traffic and cultural values.

It now needs to be reviewed by the Regional Council before public notification and assessment by independent commissioners, and consent would allow the wharf to be built when cargo demand and increasing ship size warrant it.

Napier Port chairman Alasdair MacLeod said with expected cargo volume growth, and indications ships as long as 360 metres could be stopping at Napier within the next five years, the company needs to develop its facilities to handle that growth on behalf of the region.

“Napier Port is critical to Hawke’s Bay’s economy – we’re associated with 27,000 full and part-time jobs and more than half of the gross regional product,” he said.

“Until now, we’ve been able to handle the steady growth in cargo across our existing wharves. However, Hawke’s Bay’s economy is thriving and eventually we’ll need a sixth wharf to meet cargo demand and cater for the larger ships coming to New Zealand.”

While the new container wharf and dredging of the shipping channel to handle larger ships will cost about $125 million, about $275 million needs to be invested to ensure Napier Port remains relevant and competitive, Mr MacLeod said.

Due to steady growth and the need for investment in recent years, Napier Port’s debt at the end of its 2017 financial year was $83 million, and the funding of the development will need a reduction of that debt by either requesting dividend relief from the Hawke’s Bay Regional Investment Company (which is owned by the Regional Council), or securing additional investment, Mr MacLeod said.

Environmental consideration include a plan to move a proposed dredge material disposal 5km offshore, rather than using an inshore site with existing consent for maintenance dredging programmes.

Napier Port has a feedback portal on its website to answer any questions or hear further views from the community.

Maritime drug testing and Chathams shipping plans changed

The new Government has reversed plans for a mandatory maritime drug and alcohol testing regime and allowing foreign flagged ships to carry freight to the Chatham Islands.

MPs debated the Maritime Transport Amendment Bill tonight which was reinstated from the last Parliament.

The Bill originally proposed commercial maritime operators to have drug and alcohol management plans, including random testing for staff carrying out safety sensitive activities.

The select committee report (written by a National Government dominated committee) inserted the mandatory drug testing regime on top of this, as well as the Chatham Islands proposals, which were then opposed by Labour and Green MPs on committee.

National MP Jami-Lee Ross said the new Government’s amendments to remove the mandatory drug and alcohol testing regime were a step backwards on safety.

The Minister in the Chair – Julie Ann Genter – said the law would still allow for drug and alcohol management on ships. This included testing in the work place in some circumstances and for testing following an incident. The Authority could also ensure testing took place if it was felt to be needed.

She said a mandatory drug testing framework was unnecessary and would impose large unnecessary costs on small operators.

Ross said NZ First had supported the mandatory testing regime in the last Parliament, but Genter said all Government parties supported the latest changes.

The select committee had also proposed allowing foreign-registered ships to carry freight to New Zealand’s offshore islands – in effect the Chatham Islands.

In select committee National had argued this would make freight to and from the islands cheaper through competition. The Labour and Greens minority report said “We heard compelling evidence from Chatham Islands Shipping Ltd that there are insufficient freight volumes to the Chatham Islands to make more than one service economically viable. Opening up the possibility of foreign flagged vessels to run a service could undermine the financial viability of the current not-for-profit trust, and could eventually result in a private monopoly by a foreign registered vessel. It could also undermine the provision of a reliable shipping service to the Chathams, threatening the livelihoods of the small, isolated population.”

Debate on the Bill’s committee stage was interrupted.

Amazon will be a game-changer

New Zealand’s e-commerce boom and the arrival of Amazon in Australasia will accelerate demand for warehouse space in Auckland, and drive the redevelopment of inner-city brownfield sites into “last-mile” delivery centres, says Scott Campbell, national director, industrial and logistics for Bayleys Real Estate.

This country’s annual online retail spend is estimated to be $4 billion, and though  online shopping represents a relatively small proportion of overall retail spending in New Zealand it is growing at a faster rate than bricks and mortar retail.

Campbell says the growth in e-commerce has forced retailers to reassess their property requirements.

“To fulfil customers’ orders quickly, they need warehouses, with international studies showing that ecommerce businesses need three times as much warehouse space as traditional brick-and-mortar retailers.

“Industrial property in New Zealand is already in high demand, as evidenced by the fact the sector comprised 56 per cent of commercial property sale transactions in 2016 in the country’s largest market of Auckland. E-commerce has the potential to turn it into the hottest component of commercial property market.”

Amazon’s entry into the Australian market is set to be a game-changer for retail in the region. The company announced in August that it is opening a 24,000sq m fulfilment centre on the outskirts of Melbourne, and has committed itself to “fast delivery”.

Amazon has not said whether it will establish a presence in New Zealand, but brokerage firm Forsyth Barr has advised its clients that New Zealand presents a logical extension to Amazon’s investment in the region.

Campbell says location is the key to success. “To stand out in a crowded market, retailers are competing aggressively on reducing delivery times, which is creating increased demand for last-mile logistic,” he says.

E-commerce fulfilment is in its infancy, really, and there are a lot of different strategies being employed. One of the more popular approaches is the “hub and spoke”, whereby a main distribution centre — the hub — sends out material to smaller centres — the spokes — for last-mile delivery. Scarcity of land favours this approach.

True Commercial - Amazon fulfilment centre in Germany.jpg

One of Amazon’s giant fulfilment centres in Germany. Photo / Supplied

“Overseas, retailers are increasingly seeking out warehouse space close to consumer hubs and residential centres. And since competition for land in these areas is fierce, warehouses will need to grow upwards rather than outwards to accommodate stock, as many in Asia already are. For same-day deliveries, smaller distribution centres will spring up near CBDs.”

Campbell says we can also expect warehouses to assume some of the characteristics of stores as more retailing activity starts to happen inside distribution centres.

“It’s easy to write-off warehouses as just big boxes or sheds, but they can be technology-rich and sophisticated in their use of space. For example, some logistics premises offer no-aisle-racking — whereby the product is dropped down on to a buggy for automatic transfer to the staging/loading area.”

New Zealand retailers are already responding to the disruption in the industry. The Warehouse Group — which includes The Warehouse, Warehouse Stationary, Noel Leeming and Torpedo7 — recently partnered with NZ Post to trial a new shipping service for online shoppers, Shipmate, as part of its push to drive e-sales. NZ Post’s network gives it significant last-mile delivery reach and it is talking to a wide range of companies about partnering opportunities.

Already, it handles logistics for food delivery service My Food Bag.

“More and more New Zealand brands are seeking to do business with us on e-commerce projects,” says a NZ Post spokesperson. “We have more than 1.9 million delivery points across the country. We operate in a highly competitive market.”

The launch of Shipmate follows NZ Post’s opening of two processing facilities for logistics services. The 2500sq m Taranaki Operations Centre is  a  hub for the Taranaki region while the purpose-built 14,600sq m,  $8m Southern Operations Centre at Christchurch Airport’s Dakota Park, is a  hub for the South Island.

Other large logistic facilities include the 35,000sq m centre in Highbrook, South Auckland, operated by  Courier Post.

“That facility also has a satellite pick-up location closer to Auckland city in Morningside, which is likely to become a popular location with other logistics-type operators as large land parcels for large format developments open up across South Auckland, including the Airport Corridor, Wiri and Drury,” he says.

Campbell says competition for land in desirable locations, coupled with the push for last-mile deliveries, will encourage developers to transform  land and warehouse stock in brownfield sites into more modern facilities. “Brownfield sites in Mt Wellington, Penrose and East Tamaki will be ripe for regeneration,” he says.

Listed property group Goodman says it is intensifying its industrial development programme, and undertaking a significant proportion of new projects on an uncommitted basis, “to address current capacity constraints and to meet forecast demand”.

Logistics companies form around 30 per cent of Goodman’s customer base in New Zealand and occupy more than 300,000sq m of space within its portfolio.

Chief executive John Dakin says modern distribution warehousing needs to be in the locations close to the end consumer and this is one of the reasons  Goodman’s is focusing its industrial portfolio in Auckland.

He predicts distribution warehouses will evolve as online retail sales grow. “Existing third party logistics businesses with good distribution channels and/or specialist services will benefit but competition will intensify. We also expect that infill locations, close to consumers and key infrastructure will become increasing sought after,” Dakin says.

China Launches World’s First All-Electric Cargo Ship, Will Use It To Haul Coal

Here’s the good news: China has launched the first all-electric cargo ship. According to China Daily, the 230 foot long vessel is equipped with a 2,400 kWh lithium-ion battery that stores enough electrical energy to transport 2200 tons of cargo a distance of 50 miles on a single charge at a top speed of about 8 miles per hour. Time to recharge the battery is given as 2 hours, which is approximately the time needed to unload the ship at its destination.

electric cargo shjip

Photo credit: China News/Peng Yonggui

“As the ship is fully electric powered, it poses no threats to the environment. The technology will soon be likely … used in passenger or engineering ships,” said Huang Jialin, chairman and general manager of Hangzhou Modern Ship Design & Research Co, which designed the electric cargo vessel. The battery for the ship is comprised of 1,000 individual lithium-ion packs. Adding enough power to carry more cargo is simply a matter of adding more battery packs.

The ship was built at Guangzhou Shipyard International in Guangzhou, the capital of Guangdong province, which is located on the Pearl River north of Hong Kong. The shipyard is a wholly owned subsidiary of CSSC Offshore & Marine Engineering Company. CSSC stands for China State Shipbuilding Corporation.

The new ship has two primary benefits. First, it will emit no carbon emissions while underway. Cargo vessels tend to be some of the biggest carbon pollution sources in the entire transportation sector. Second, it will lower the cost of transportation for bulk cargoes because the price of electricity is lower than the price of diesel fuel

Here’s the bad news: The all-electric cargo ship will be used primarily to transport coal to generating stations along the Pearl River. So, imagine this — the world now has a ship that can claim to be zero emissions even though it is powered by electricity generated by burning coal, one of the dirtiest of fossil fuels in terms of carbon emissions, and is used to transport coal more cheaply.

“This kind of ship takes into consideration the harmony between humans and nature and can protect water quality and marine life, and should be copied by other ships sailing on local rivers,” says Chinese environmentalist Wang Yongchen. That much is correct. The same technology that makes the new electric collier possible can also be used to power ferries, container ships, or other vessels used for short haul coastal shipping.

The Chinese should be applauded for advancing the idea of electric propulsion for ships, but using clean power to lower the cost of shipping coal to electric generating plants illustrates how far the world has to go before a zero-emissions world becomes a realistic possibility.

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