Port of Tauranga partners with Waikato-Tainui owned Ruakura inland port

Tainui Holdings Group CEO Chris Joblin said the agreement with Port of Tauranga is a key step.
TOM LEE/STUFFTainui Holdings Group CEO Chris Joblin said the agreement with Port of Tauranga is a key step.

Developers of the Ruakura inland port in Hamilton have taken a big step forward by signing a 30-year partnership with the Port of Tauranga.

Port of Tauranga and the Tainui Group Holdings subsidiary, Port Ruakura LP, announced the agreement on Thursday.

Cargo shipped by a rail between Auckland and Tauranga will be handled at Ruakura and will meet the future needs of the company, Port of Tauranga chief executive Mark Cairns said.

An artist's impression of the full Ruakura Inland Port development.
SUPPLIEDAn artist’s impression of the full Ruakura Inland Port development.

“The Ruakura development will provide a highly efficient rail hub in the Waikato by utilising our existing train services linking our MetroPort Auckland inland freight hub with Port of Tauranga.”

Port of Tauranga will have priority rail slots at the Ruakura facility with Port Ruakura LP providing the infrastructure including a rail siding, hardstand and cargo storage.

Waikato-based importers and exporters will have direct access to international shipping services at Tauranga.

The 480-hectare Ruakura estate has 192 hectares earmarked for logistics and industrial uses and the planned 30 hectare inland port.

Tainui Group Holdings chief executive Chris Joblin said the initial 30-year agreement is a key step toward unlocking the economic golden triangle of Auckland, Hamilton and Tauranga for importers and exporters.

“The agreement will see Port of Tauranga trains initially call at Ruakura four times daily and this is likely to grow,” Joblin said. “This service will underpin the significant supply chain savings we have been modelling with prospective customers and tenants of Ruakura.”

About half of all freight volumes in New Zealand occur in the golden triangle and container volumes are forecast to grow 60 per cent by 2042. Tauranga handles the biggest container ships to visit New Zealand. 

KiwiRail operates up to 86 trains per week between MetroPort Auckland and Tauranga, hauling up to 9000 twenty-foot equivalent units and the route has unused capacity.

KiwiRail CEO Greg Miller says the upper North Island is a key growth region for KiwiRail and the country.

“This is another example of the supply chain collaborating with KiwiRail to design and deliver rail infrastructure to better connect New Zealand,” Miller said.

Development of the Ruakura Inland Port is scheduled after the completion of the Hamilton section of the Waikato Expressway in 2021.

Stuff

Pacifica Shipping to upgrade with larger vessel

Wednesday, 7 August 2019, 8:29 pm
Press Release: Swire Shipping

Increased tonnage to meet rising coastal and international transhipment demand

New Zealand – Pacifica Shipping today confirmed that it has acquired a larger 1700 teu vessel for deployment on its premium coastal shipping service in New Zealand. The MV Moana Chief – which is expected to commence operations formally in September 2019 – will meet growing domestic and international transhipping cargo demand. Pacifica was acquired by The China Navigation Company (CNCo) – parent of Swire Shipping – in 2014.

Swire has been a long-term and active participant in New Zealand’s maritime and transport industry. The first Swire vessel called to New Zealand some 130 years ago. Today, Swire Shipping and Swire Bulk currently operate multiple liner and bulk vessels per month, connecting New Zealand to Australia, Asia, North America, Papua New Guinea, Pacific Islands and the rest of the world. For more information, please visit https://www.swirecnco.com

Brodie Stevens, Country Manager, Swire New Zealand, said: “With the acquisition and an increase in tonnage from 1,100 to 1,700 teu, we strongly believe Pacifica will be in a good position to meet rising domestic cargo and transhipment demand. We want to expand the range of valuable domestic transport solutions currently already provided by Pacifica, and this will enable us to do so. Coastal shipping in New Zealand continues to play an important part in the country’s domestic economy. It is also highly complementary with road and rail networks.”

According to a report by Deloitte in 2016, 236 million tonnes of freight are moved within New Zealand annually. The size of container ships has been increasing. Coastal shipping will continue to play a role in reducing greenhouse gas emissions per container, and will also be a factor in New Zealand manufacturers’ decarbonisation of their supply chains.

Additionally, New Zealand’s domestic freight volumes are forecast to more than double by 2040, as stated in The National Freight Demand Study 2008, and confirmed again in the NFDS update, completed in 2014 – “Even with massive investment in land transport this increase could not be accommodated by road and rail alone. By growing coastal shipping, New Zealand can take a load off the other transport modes and contribute to a more efficient land transport network. By comparison, in Japan, a country with a similar geography, more than 30% of freight is carried by sea.”

Details of the acquisition are confidential.

Vehicle import rules getting even tougher ahead of stink bug season

Biosecurity rules are being tightened to prevent the arrival of a pest which could devastate New Zealand’s horticultural industry.

The brown marmorated stink bug feeds on more than 300 plants and has already cut a swathe through Europe and the United States.

If it gained a foothold in New Zealand, it could cost the horticulture and arable industries an estimated $4 billion.

In an effort to keep the bug at bay, Biosecurity New Zealand is tightening the rules for imports during this year’s stink bug season, which runs from September to April.

Under the new rules, the list of countries required to fumigate imported vehicles, machinery, and parts before their arrival in New Zealand would rise from 17 to 33.

These countries have all been identified as having stink bug populations.

In another change, imported vehicle cargo would need to be treated offshore, including cargo in shipping containers.

In the past only non-containerised vehicle cargo has required offshore treatment, Biosecurity New Zealand spokesman Paul Hallett said.

Offshore treatment requirements would also apply to all containers from Italy.

The brown marmorated stink bug feeds on more than 300 plants could cost the horticulture and arable industries an estimated $4 billion if it became established in New Zealand.
SUPPLIEDThe brown marmorated stink bug feeds on more than 300 plants could cost the horticulture and arable industries an estimated $4 billion if it became established in New Zealand.

“The new rules are intended to reduce the biosecurity risk to New Zealand, by ensuring potentially contaminated cargo arrives as clean as possible,” Hallett said.

Biosecurity NZ planned to have officers based in Europe this season to educate manufacturers, treatment providers and exporters about the new requirements and to audit facilities.

“If our checks find any issues, New Zealand will not accept any cargo from that facility until the problem has been fixed.”

Hallett said New Zealand’s treatment requirements were now closer to Australia’s, which would make compliance easier for importers bringing cargo to both countries.

“A key difference is that the Australian Department of Agriculture and Water Resources will continue to allow treatment on-arrival for containerised goods,” he said.

The new rules would be provisional until July 15 and could be contested during that time.

The changes come after a spate of stink bug discoveries last year.

In November, Biosecurity NZ ordered a vehicle carrier to leave New Zealand waters after the discovery of stink bugs.

Three live and 39 dead brown marmorated stink bugs were found aboard the Carmen when it arrived in Auckland from Europe. Another 69 regulated stink bugs were also found.

A week later, more than two dozen live stink bugs were found in a box of shoes imported into New Zealand from EBay.

Stuff

Risk Aversion Grips the Shipping Industry

Ship owners around the world have adopted a risk-aversion policy, which translates to refraining from adding more newbuildings on the global orderbook. In its latest weekly report, shipbroker Banchero Costa said that “there was not much fresh business to report this week for conventional type of ships. In the Japanese dry bulk market Tsuneishi shipyard ordered for their own account a relevant number of ships being Kamsarmax, Ultramax and Handysize. The only foreign order we recorded is for a Kamsarmax for UK based Helikon Shipping (no price nor delivery dates available). Also the tanker sector showed poor levels of activity, the only business done refers to few options declared by Oman Shipping at Daewoo for four VLCC dely from June 2021. In the smaller segment, Japanese owners Nissen Kaiun extended their commitment with Chinese shipbuilders by booking 3 x 19,900 dwt product tankers at Nantong Xiangyu for delivery in 2022, no price available. Niche segment of PCTC saw an order from Japanese Kawasaki Kises and NYK for dual fuel 7,000 ceu PCTC at Imabari and Shin Kurushima respectively (specialist builders in this sector). Estimated cost per ship is around $95 mln; both are fixed on long terms to local Japanese major charterers Toyota”, said the shipbroker.

Similarly, Allied Shipbroking reported that “the lack of activity for dry bulk vessels continued for yet another week, with no new deals coming to light, while appetite amongst buyers seems to have eased back significantly lately. This comes despite the positive momentum that is currently noted in the dry bulk freight market. It is likely that owners have shifted their focus over to the secondhand market for the time being, as they are keener on bargain investments that can take imminently take advantage of the current improved market, rather than being exposed to the higher and longer term risk typically associated with newbuilding projects. It is not expected that we will see any significant changes in the current trend soon, with any possible upturn in interest being postponed till after the summer period. At the same time, newbuilding activity in the tanker market showed some signs of revival, as last week 4 new orders were reported. The majority of them included product/chemical tankers, with this segment having shown the most promise of late amongst most interested buyers right now. Investors in tanker market continue to show a more bullish face and thus we may well continue see this sort of new ordering volume tricle through over the coming months”.

Meanwhile, in the S&P market, Allied said this week that “on the dry bulk side, the current positive momentum in the freight market increased interest for second-hand units, with activity remaining at healthy levels for yet another week. Interestingly, last week we saw deals include vessels from larger size segments of the dry bulk fleet, such as Capes and Panamax, with the focus extending to more vintage units as well. This pattern is expected to continue to be seen over the coming weeks, as optimism has returned to buyers following the recent recovery in freight rates. On the tanker side, we might not have seen the impressive levels that were being noted some weeks back, but a fair amount of deals did come to light. Focus was spread across the whole spectrum of the tanker sector, reflecting the positive market outlook being held now. It is anticipated that we will see further activity take place in the following weeks, as optimism for improved earnings to be seen in the final quarter of the year are now mounting”, the shipbroker said.

In a separate note, Banchero Costa added that “in the dry market, it was reported Japanese controlled Capesize “Euro Fortune” around 177k dwt 2005 built Mitsui was done at $14.7 mln. Furthermore always in the same segment “Mineral Noble“ around 170k dwt 2004 built Hyundai was sold at $13.5 mln with 3 years t/c back to present owners. Concerning Panamax, “Crystal Windabt” around 76k dwt 2009 built Shin Kasado was done at $13.3 mln, a month ago “Nord Galaxy” around 77k dwt 2006 built Imabari (BWTS fitted) was fixed at $10.6 mln. A tier II Supramax “Tomini Victory” around 57k dwt 2012 built Yangzhou was sold at $ 10.8 mln. At an auction in UK a modern Handysize “Alkyon” around 36k dwt 2015 built Jingling was sold at $12.5 mln (vessel has SS/DD due and no BWTS). Always in the Handy segment, “Daiwan Braveabt” around 34k dwt 2014 built Namura was sold at $15.5 mln to Greek buyers. In the tanker market, after inspection was invited during June, it seems that the “Phoenix Vanguard” around 306k dwt 2007 built DSME was sold at $38.5 mln”, the shipbroker concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide

Shipping’s Route To A More Sustainable Future

Today, 90 percent of all goods are transported via cargo ships, making them the top carrier of worldwide trade. In fact, the screen you’re reading this on at this very moment most likely made its way to you by sea.

Despite such ubiquity, the shipping industry produces less than 3 percent of all carbon dioxide (CO2) emissions. But with the global economy estimated to grow by 130 percent between now and 2050, shipping emissions are projected to soar as global trade increases. According to the International Maritime Organization (IMO), CO2 emissions could increase anywhere between 50 percent and 250 percent during that time.

CO2 is not the only environmental challenge the industry faces. Shipping also needs to control the amounts of other harmful substances its freight carriers release into the atmosphere, in particular nitrogen oxides and sulfur oxides.

To counteract this, shipping companies are seeking alternatives to the heavy fuel oils used by most carriers as well as ways to strip noxious particles from vessels’ exhaust gases.

New approaches with liquified natural gas

One of the most obvious alternatives to heavy fuel oils is liquefied natural gas (LNG). It’s already used as fuel by some 150 ships around the globe, and the numbers are growing, largely due to the near-zero levels of sulfur oxides (SOx) emitted by LNG vessels compared with diesel-powered ships. Sulfur oxides have been linked to both health problems (respiratory disease) and environmental phenomena (acid rain).

To cut its SOx emissions, the shipping industry has introduced restrictions in key shipping routes across the world. So far, the IMO has created four Emission Control Areas, ranging from the Baltic Sea to the coasts of North America, with a sulfur cap of 0.1 percent. The cap also applies throughout the European Union. In 2020 new IMO regulations will come into force mandating the sulfur content of marine fuels in all waters of the world to be less than 0.5 percent.

Ships have two options to reduce sulfur emissions within these limits. First, they can install desulfurization equipment, such as the Large-scale Rectangular Marine Scrubber developed by Mitsubishi Heavy Industries Group. It removes SOx from the exhaust gases emitted by marine diesel engines, purifying emissions from inexpensive heavy fuel oil to a level equivalent to more expensive low-sulfur fuels.

The second option is to use fuels with a lower sulfur content, such as LNG. As well as cutting a ship’s SOx emissions, LNG also has lower nitrogen oxide and CO2 emissions, making it a popular choice for shipping companies seeking to reduce their environmental impact.

MHI Group’s Large-scale Rectangular Marine Scrubber. Image: MHI GROUP

However, the growth of LNG as a shipping fuel is limited by a lack of infrastructure for fueling — or “bunkering,” as the LNG fueling process is known. Currently, only a dozen ports around the world offer bunkering, the majority based in Europe.

While more bunkering stations are planned, a major breakthrough occurred in 2017 when the world’s first purpose-built LNG bunkering vessel began operating from the Belgian port of Zeebrugge. The ENGIE Zeebrugge carries out ship-to-ship bunkering. Traditionally, LNG-fueled ships have largely depended on fixed bunker locations or the limited bunkering capacity of LNG trailers, but the ENGIE Zeebrugge can service a variety of these ships. This unique vessel is the start of what its operator, Gas4Sea, plans to be an LNG-bunkering fleet.

A return to electricity

Although LNG has advantages over diesel, there are also drawbacks. Not only is LNG dependent on widespread bunkering infrastructure, but it also pollutes more than diesel when it comes to one particular greenhouse gas: methane.

To avoid increasing methane emissions — which are 30 times more potent than CO2 in trapping heat in the atmosphere — some shipping operators are looking to emulate the auto industry’s shift to electric vehicles. Boats, in fact, used electricity before diesel; the Bergen Electric Ferry Company in Norway began operating in 1894. Its last boat with electric propulsion was converted to gasoline in 1926, and later to diesel. In 2015, the company returned to its roots, once again operating an electric ferry, powered by 12 5kWh lithium-ion batteries. The ferry runs all day and charges its batteries at night.

The rapid advances in lithium-ion battery technology, pioneered by the auto industry, have put the spotlight on electricity as a potential fuel source for shipping. However, regular nighttime charging is not an option for shipping liners traveling great distances, and the battery technology does not yet exist that could power these vessels.

One solution, again with a nod to the auto industry, may be hybrid electric vessels. Norwegian shipping company Eidesvik Offshore, which already runs its ships with LNG, successfully retrofitted a battery system in 2017 to its vessel Viking Princess. The ship now runs on a combination of a battery pack for energy storage and three LNG-fueled engines. The batteries are estimated to have cut Viking Princess’ fuel use by nearly a third and its emissions by 18 percent.

Shipping, which early on was powered by the wind and nothing more, has yet to return to its roots as renewably fueled transportation. But buoyed by ingenuity, it’s clearly sailing in the right direction.

Shipping Blockchain Initiative Gathers Steam

A blockchain initiative for seaborne cargo aimed at cutting costs and improving tracking of shipments is getting a boost with the addition of two big container shipping operations.

Germany’s Hapag-Lloyd AG and Japan’s Ocean Network Express said Tuesday they will join the TradeLens platform launched by A.P. Moller-Maersk A/S and International Business Machines Corp. , giving the program five of the world’s six largest carriers controlling about 60% of the oceangoing container cargo capacity.

Switzerland-based Mediterranean Shipping Co. and France’s CMA CGM SA, the world’s second and third biggest box-ship operators behind Maersk, joined the effort in May.

“Now, with five of the world’s six largest carriers committed to the platform, we can accelerate that transformation to provide greater trust, transparency and collaboration across supply chains and help promote global trade,” said Martin Gnass, managing director of information technology at Hapag-Lloyd.

For ocean carriers, blockchain technology allows participants to share information as goods move through maritime-focused supply chains.

The system also promises to reduce the cost of paperwork. Maersk said the maximum cost of the required documentation to process and administer many of the goods shipped each year makes up roughly one-fifth of the physical transportation costs.

Widespread participation across the supply chain is key to making TradeLens work.

Many companies, including transportation operators and freight forwarders that manage the flow of goods, have been reluctant to share detailed information about shipments, which often are handled by multiple cargo companies, for fear that competitors will use the data to lure away customers. The blockchain platform seeks to overcome that concern by allowing only trusted participants who contribute information to a common electronic ledger.

CMA CGM, the world’s fourth-largest container operator after Maersk, MSC and No. 3 Cosco Shipping Holdings Ltd. of China, late last year joined the Global Business Network, a similar blockchain initiative anchored by Cosco and other Asian carriers.
Source: Wall Street Journal

The Government plans to pump money into developing coastal shipping facilities

The Government has signalled it intends to pump more money into developing New Zealand’s “blue highway” by bolstering the country’s coastal shipping facilities.

Although details are still sparse at this stage, Transport Minister Phil Twyford said this morning a funding announcement would be made before next year’s election.

Speaking alongside a number of other senior Ministers this morning, Twyford signalled the Government’s intentions to develop coastal shipping alongside rail.

“There is a lot of freight that can actually be shifted on the blue highway and so we want to get roads, rail and coastal shipping working together in an integrated way.”

This comes after the Government announced it would spend $1 billion on New Zealand’s rail network.

Although none of the $1b announced in the Budget was going into coastal shipping, the Government has an announcement planned in this area.

“We’re working on it, and we’ll get back to you on that,” Twyford said.

Deputy Prime Minister Winston Peters also signalled the Government’s plans for spending more money on the new maritime and roading initiatives.

He said the money spent on KiwiRail was to help get “these leviathans” – an apparent reference to trucks – off the road and give ratepayers and taxpayers a chance to build and maintain roads at an affordable level.

He said every other country in the world apart from New Zealand was doing this.

Asked if that meant the Government would be investing further into roads, Peters said: “You’re going to see balanced investment; in maritime, on rail and on roads.”

“All three modes of transport – they have always had a place in New Zealand, and they’ve got a place in our future.”

Peters and Twyford, along with Finance Minister Grant Robertson and Regional Economic Development Minister Shane Jones, this morning announced a few further details of the $1b KiwiRail spend.

By 2023, there would be 100 new locomotives and 900 new container wagons in operation.

The new funding would be used to replace some of the older trains, which, according to Peters, were “tired and worn-out”.

More details of the Government’s rail plans will be announced in the coming months, Twyford said.

Robertson added that the $1b spend was only the beginning of how New Zealand’s rail system is funded.

“I don’t believe there is anything within our budget on the economic side that emphasises wellbeing more than rail.”

Largest ship to ever visit Timaru

27/5/19

A monstrous container ship’s brief visit to Timaru was a test run that could result in other ships of a similar size using the port.

The Rio de Janeiro, which docked about 11pm on Sunday and left at 9.40am Monday for Dunedin, is the largest vessel to ever enter at the port, being 286.5 metres long, 40m wide and capable of carrying nearly 6000 containers.

PrimePort chief executive Phil Melhopt said the Rio’s berthing in Timaru was a significant first step in an approval process for the bigger ships.

Port of Timaru tugs pull the giant Rio de Janeiro container ship away from the wharf for its departure.
JOHN BISSET/STUFFPort of Timaru tugs pull the giant Rio de Janeiro container ship away from the wharf for its departure.

“This will give us the option commercially to welcome vessels of similar size specifically to berth in Timaru.”

Melhopt said that while he had not received a formal debrief from the harbourmaster, there had been no issues with the ship’s arrival, docking and stay in Timaru.

The giant container ship, Rio de Janeiro, prepares to leave the Port of Timaru.
JOHN BISSET/STUFFThe giant container ship, Rio de Janeiro, prepares to leave the Port of Timaru.

“It is too early to say, but this is part of a trial which the Canterbury harbourmaster is overseeing.”

He said once approved, the berthing of larger sized vessels would give the port a greater flexibility in its operations. 

“This will prove to be another feather in our cap.”

Onlookers watch the Rio de Janeiro container ship arrive in the Port of Timaru.
1 OF 11JOHN BISSET/STUFFOnlookers watch the Rio de Janeiro container ship arrive in the Port of Timaru.

Melhopt agreed that last year’s $2.5 million project to widen the port’s inner breakwater entrance from 90m to 140m to allow for easier access for bigger vessels had played a significant role in getting the Rio de Janeiro in port, along with the $8m purchase of the new tug Hinewai which almost doubles the size of the vessels it can manoeuvre. The breakwater project, which removed a rock wall and dug out the approach at the entrance of the harbour, ended early in 2019.

“We acknowledge the hard work that was put in by the port’s crew and staff in making this happen,” Melhopt said.

When fully laden, the Rio de Janeiro weighs around 80,000 tonnes and manoeuvring the vessel into the port required the work of three tugs, the Aoraki, Te Mariu and the Hinewai.

Sunrise over the Port of Timaru sheds light on the Rio de Janeiro container ship, the largest vessel to ever berth in the port.
JOHN BISSET/STUFFSunrise over the Port of Timaru sheds light on the Rio de Janeiro container ship, the largest vessel to ever berth in the port.

The Singapore–flagged ship was the biggest ever container ship to visit the Port of Lyttelton and Port Chalmers (Dunedin) in October 2018.

The Rio was a new class of ship in 2018 that carried about 1000 to 1500 more containers than its predecessors.

The ship’s colours are that of Hamburg Sud, the shipping line that Maersk bought in 2018.

The Rio De Janeiro arrives under darkness into the Port of Timaru.
JOHN BISSET/STUFFThe Rio De Janeiro arrives under darkness into the Port of Timaru.

The Rio de Janeiro, which docked about 11pm on Sunday and left at 9.40am Monday for Dunedin, is the largest vessel to ever enter at the port, being 286.5 metres long, 40m wide and capable of carrying nearly 6000 containers.

PrimePort chief executive Phil Melhopt said the Rio’s berthing in Timaru was a significant first step in an approval process for the bigger ships.

Melhopt said that while he had not received a formal debrief from the harbourmaster, there had been no issues with the ship’s arrival, docking and stay in Timaru.

He said once approved, the berthing of larger sized vessels would give the port a greater flexibility in its operations.

“This will prove to be another feather in our cap.”

“We acknowledge the hard work that was put in by the port’s crew and staff in making this happen,” Melhopt said.

When fully laden, the Rio de Janeiro weighs around 80,000 tonnes and manoeuvring the vessel into the port required the work of three tugs, the Aoraki, Te Mariu and the Hinewai.

The Rio was a new class of ship in 2018 that carried about 1000 to 1500 more containers than its predecessors.

The ship’s colours are that of Hamburg Sud, the shipping line that Maersk bought in 2018.

Why NZ is cheating on its emissions from flights, shipping and imported goods

Schoolgirl activist Greta Thunberg blasted the UK for “very creative carbon accounting” because it doesn’t count emissions from global flights or shipping.

And New Zealand is also excluding international aviation and navigation (shipping) from its carbon budgets.

Environmental groups say that is breaching the landmark Paris Agreement, signed four years ago.

But Climate Minister James Shaw has defended the practice, arguing the emissions are monitored under two separate international agreements.

Swedish environmental campaigner Greta Thunberg.
GETTY IMAGESSwedish environmental campaigner Greta Thunberg.

Stuff asked the Ministry for the Environment (MfE) for emissions for aviation and shipping. Those units are measured in kilotonnes carbon dioxide equivalent (kt CO2-e).

Those from global flights have risen significantly from 1332.9 kt CO2-e in 1990, to 3702.7 kt CO2-e in 2017, the last available figure.

International navigation has dropped slightly:  from 1055.9 kt CO2-e to 916.4 kt CO2-e, across the same period.

And while those numbers are recorded in New Zealand’s greenhouse gas inventory, they are not reported under its international obligations.

Minister of Climate Change James Shaw says Greta Thunberg "has a point" on international transport emissions.
ROSS GIBLIN/STUFFMinister of Climate Change James Shaw says Greta Thunberg “has a point” on international transport emissions.

“That’s because the Paris Agreement doesn’t include aviation and shipping,” Shaw says. “They are handled via separate agreements – the aviation one is called Corsia, and the shipping one is Marpol.

“We are also working through those agreements.

“Now, I think Greta Thunberg makes a good point, that for visibility, we ought to get everything all in one place, and I think you can make that case, but we built the zero carbon bill around the Paris agreement, and that is why it is structured that way.”

Shaw is correct: international shipping and aviation were left out of the national targets under the Paris Agreement, because they don’t happen within the boundaries of any specific countries and tracking their emissions through the global supply chain is difficult.

As well as that, a good fuel alternative isn’t yet available.

Instead, under the Kyoto Protocol, an international agreement, we submit overall territorial emissions figures to the UN. In New Zealand, the bulk of those emissions come from agriculture (48 per cent) and energy (41 per cent). In 2017, our gross greenhouse gas emissions were 80,853 kt CO2-e.

Greenhouse gases - mainly carbon dioxide - from burning fossil fuels contribute to global warming when released into the atmosphere.
APGreenhouse gases – mainly carbon dioxide – from burning fossil fuels contribute to global warming when released into the atmosphere.

Shipping produces 2.4 per cent of global greenhouse gas emissions, and aviation yields about two per cent. Both are also projected to rise dramatically by 2050. 

Marpol is short for marine pollution – but New Zealand is one of a handful of countries yet to sign up to a sixth part of the agreement, which focuses on reducing shipping fumes.

ELECTRIC AEROPLANES AND ‘DIRTY SLUDGE’

The global economy runs on shipping and air freight. And tourism is New Zealand’s biggest export sector.

New Ministry of Business Innovation and Employment figuresforecast international arrivals will rise on average by 4 per cent annually. The industry hopes to earn $50 billion by 2025.

Shaw says flag carrier airline Air New Zealand, with majority government ownership, is trying to drive down emissions while expanding the business. 

“I’m actually pretty pleased with the leadership that Air NZ is showing on aviation emissions… [chief executive] Chris Luxon reckons that we will have electric aeroplanes, at least for our regional routes, at least within 10 years or so.

“Obviously the big one is international and it will take a lot longer for the technology to develop there.

“But they have got a significant off-setting programme…it’s not ideal, but the next best thing you can do is off-set and I would encourage people to off-set if their work involves travel.”

International shipping from New Zealand isn't counted in its emissions reporting.
ROSS GIBLIN/STUFFInternational shipping from New Zealand isn’t counted in its emissions reporting.

Under the UN Paris pact, Air New Zealand must report its domestic flight emissions to the Government. But other countries – like China – haven’t signed up to those obligations. 

“The truth is that we have a lot of airlines in parts of the world which are expanding rapidly, they are very low cost, they are leasing in, or buying, second-hand planes from the leading airlines [which] are much less fuel efficient. So, for all the good work that is happening with some airlines, unfortunately you are seeing much more expansion on the other side. It is an area of real concern.”

Amanda Larsson, of Greenpeace, says Nz should be "pushing hard"  for the inclusion of aviation and shipping into international emissions agreements.
SUPPLIEDAmanda Larsson, of Greenpeace, says Nz should be “pushing hard” for the inclusion of aviation and shipping into international emissions agreements.

Shaw is less effusive about shipping.

“Ships tend to use the lowest quality, highest emissions fuels. Bunker oil, which is basically dirty sludge. There is a lot of work to be done there.”

“There are some things we can do here in New Zealand – with the ferries, some of our coastal fleets, and fishing, but that is pretty small fry when you compare it to the freight routes.

“We can supply ships with cleaner fuel here in New Zealand. The question is: are the ships able to swap fuel types? That is why international co-operation is so important.  

“We have to make sure those fuels are available in every port …And that we are putting pressure on the shipping lines to swap out the dirty old technologies for much cleaner alternatives.”

HYPOCRITICAL AND UNJUST

Amanda Larsson, a climate and energy campaigner for Greenpeace, agrees we are cheating on our emissions reporting.

“And it is predominantly wealthy countries where people have the resources to be able to do international travel that aren’t accounting for those emissions,” she said.

“Developing countries are already bearing the brunt of the climate impact of our warming world and carbon industries, like poor air quality and health effects.

“The fact that wealthier countries, like New Zealand and the UK, with a high proportion of carbon emissions can say ‘we are reducing our emissions aren’t we great,’ while offloading a lot of those emissions onto developing countries or not accounting for them all as in the case of aviation is an injustice, and a bit hypocritical.”

New Zealand doesn't count the emissions from goods it imports from other countries.
ROSS GIBLIN/STUFFNew Zealand doesn’t count the emissions from goods it imports from other countries.

Larsson says New Zealand should be one of the strongest voices for the decarbonisation of global aviation. That would include counting emissions from tourism and flights arriving here. She’d also like to see a levy on international tourism, that is ring-fenced to invest in carbon-lowering activities.

“We are country that is reliant on international tourism and has a culture of travelling overseas…we can’t have sustainable tourism in New Zealand if it’s growth is fuelled by aeroplanes that are powered by fossil fuels.”

We are also ‘outsourcing’ a chunk of other emissions. Around 22 per cent of global CO2 emissions stem from the production of consumer goods that are exported to a different country, according to a 2012 study.

“It effectively means effectively means that we in New Zealand are offloading those emissions from our consumption on countries like China, or wherever those products are produced,” Larsson said.

“People often complain that New Zealand is too small to have an impact on the climate and what really needs to happen is for China to act. That is actually ignoring the critical point that we are driving the production of a lot of these products in China and driving up China’s emissions from the consumption of products [and] then we don’t account for them.”

In April, the European Transport & Environment non-governmental organisation agreed with Thunberg’s stance – and said they believe it is a breach of the Paris Agreement. 

Aviation manager Andrew Murphy told the Guardian: “We believe the Paris agreement is clear that international aviation and shipping should be included in national climate targets. Paris calls for a bottom-up approach so individual states can include what they want in their budgets. We don’t see this outsourcing of responsibility by governments for international aviation and shipping as consistent with Paris. It breaches the agreement.”

The UK claims its greenhouse gas emissions have fallen by 42 per cent since 1990. Thunberg claimed  the true reduction was about 10 per cent.

Stuff

Fear of fire sparks call for stricter policing of dangerous goods on inter island ferries

Trucks carrying dangerous goods on inter island ferries can expect more scrutiny following complaints from the Shipping Federation about sloppy safety practices.
SCOTT HAMMOND/STUFF Trucks carrying dangerous goods on inter island ferries can expect more scrutiny following complaints from the Shipping Federation about sloppy safety practices.

Fears that dangerous goods could cause fires on inter island ferries have prompted the Shipping Federation to lobby for stricter policing of transport operators. 

Federation chief executive Annabel Young said ferry companies were concerned about trucks carrying undeclared or incorrectly labelled dangerous goods.

Some truckies were caught attempting to take undisclosed dangerous goods on regular sailings, instead of catching early morning freight runs which carry fewer passengers, but allow cargo deemed higher risk. 

Young said ferry operators came across problems with dangerous goods by chance and were worried about what else they were missing through lack of pre-boarding inspections. 

“We’ve complained about it for years, finally it was getting to the point where we’re thinking that this is really serious and we’re sick of being brushed off, so we’ve escalated it.”

The Shipping Federation is concerned trucks carting dangerous goods have attempted to board regular sailings instead of special early morning freight runs which carry few passengers.
ALAN O’BRIEN/STUFF The Shipping Federation is concerned trucks carting dangerous goods have attempted to board regular sailings instead of special early morning freight runs which carry few passengers.

Following recent meetings with the NZ Transport Agency, Maritime New Zealand, WorkSafe and the Environmental Protection Agency, Young said KiwiRail, which runs InterIslander services, and Bluebridge Cook Strait Ferries agreed to report any dangerous goods issues to the agencies. 

She was aware of at least half a dozen reports over the past month – “enough incidents to be severely troubled” – and it appeared some dispatchers were not properly trained in dangerous goods documentation. 

“The ship’s master has the right to rely on the shipping documents provided by the trucking company.

“Some things have to be on the top deck because they cannot be in an enclosed space, some things can’t be put next to each other. 

“A simple example is a trailer load of hay which can spontaneously combust, so you don’t want to put that next to volatile gases.”

Inter island ferries have limits on dangerous goods such as corrosives, flammable liquids and solids, gases and toxic substances.
SUPPLIED Inter island ferries have limits on dangerous goods such as corrosives, flammable liquids and solids, gases and toxic substances.

Local ferry operators were also mindful of the number of fires on roll-on roll-off ferry vehicle decks overseas, said Young. 

In a recent article on its website, international transport industry insurer TT CLub said it was estimated that a major container ship fire at sea occurred on average every 60 days, and there had already been four major cargo-related fires this year.

TT Club said its records indicated that 66 per cent of incidents related to cargo damage could be attributed to poor practice in the overall packing process, including cargo identification, declaration, and documentation. 

Interislander general manager operations Mark Thompson said KiwiRail staff checked paperwork before loading to ensure it matched what was declared when the booking was made.

“If discrepancies are found by our terminal staff or ship crew, we will not carry the freight until it is corrected and we’re satisfied that it complies. This means that on occasion, we do reject cargo from sailings.”

KiwiRail decided about a year ago that it would no longer carry class one explosives on rail or its ships –  with the exception of small ammunition –  because restrictions around transport of these items made it costly and disruptive, and the amount being carried was steadily declining, said Thompson.

He was unaware of any serious incident in recent history resulting from carriage of dangerous goods on InterIslander vessels, but said he would support any move to improve enforcement of the regulations. 

Police acting national manager road policing inspector Peter McKennie said that as a result of concerns raised, police were paying additional attention to the transporting of dangerous goods which posed potential safety risks on the ferries and on the road network in general.

“Police have always carried out random safety checks on commercial vehicles, including  dangerous goods carriage compliance. This is conducted anywhere on the road network, not just at ferry terminals. We do not have a permanent presence at ferry terminals.”

Following an approach from the Shipping Federation, the Transport Forum reminded its members that drivers needed appropriate dangerous goods endorsements on their licences, and chief executive Nick Leggett said they also had to ensure their paperwork was in order. 

“Our message to our members is that  [spot checks] are very likely to happen more frequently and that they should comply with the law and do what is right.”

Mainfreight​ group managing director Don Braid said their Chemcouriers​ business moved a lot of dangerous goods and he had no concerns about increased inspections before trucks embarked on ferries.

“If it catches out those that are disobeying the laws, then so be it.”