Libyan crude to travel to New Zealand in rare move

Libyan crude will soon be making the long journey to a refinery in New Zealand in a rare export route for the North African country’s oil, which usually finds homes in Europe and sometimes Asia, trading sources said.

The Suez Fuzeyya was placed on subjects on a Zueitina/Ras Lanuf to Whangarei voyage to carry 1 million barrels of crude for a lump sum of $5 million for December 17-19 loading, sources said.

The cargo, which will include the Amna grade along with a mix of other Libyan crudes, was chartered by Azerbaijan’s Socar Trading, sources added. A source at the company declined to comment on the details of the trade.

This will be the first new time New Zealand has imported Libyan crude in almost three years, according to S&P Global Platts estimates.

The crude will be processed at the 125,000 b/d Marsden Point refinery in Whangarei, operated by Refining NZ. A representative at Refining NZ was unavailable for comment.

New Zealand mainly relies on crude oil imports from Saudi Arabia, United Arab Emirates, Australia, Russia, Indonesia and Malaysia.

The country’s crude imports have been in a range of 120,000-150,000 b/d over the past year, according to S&P Global Platts estimates.

GROWING DEMAND FOR LIBYAN CRUDE
Libyan oil production recovery still under threat

The appeal of Libya’s light sweet crude has broadened over the past year driven by higher production and exports, along with strong middle distillate cracks.

Asian appetite for Libyan sweet crude has also grown in the past few months as refineries in the world’s largest oil demand center start to run sweeter slates.

Libyan crude — which is typically light, contains low sulfur and yields a good amount of middle distillates and gasoline — is extremely popular among refineries in the Mediterranean and Northwest Europe.

Libyan oil production has averaged around 1.1 million b/d in the past month, nearing a five-and-a-half-month high and marking a major change of fortune from early June when fighting at key oil export terminals sent production into freefall.
Source: Platts

Ports of Auckland to build hydrogen production and refuelling facility

In a first for Auckland, Ports of Auckland has committed to build a hydrogen production and refuelling facility at its Waitemata port. The company, and project partners Auckland Council, Auckland Transport and KiwiRail, will invest in hydrogen fuel cell vehicles including port equipment, buses and cars as part of the project.

Ports of Auckland Chief Executive Tony Gibson said “We have an ambitious target to be a zero emission port by 2040. In order to meet that target we need a new renewable and resilient power source for heavy equipment like tugs and straddle carriers, which are difficult to power with batteries. Hydrogen could be the solution for us as it can be produced and stored on site, allows rapid refuelling, and provides greater range than batteries.”

Ports of Auckland will fund the construction of a facility which will produce hydrogen from tap water. The process uses electrolysis to split water into hydrogen (which is then stored for later use) and oxygen, which is released into the air. Demonstration vehicles will be able to fill up with hydrogen at the facility, which will be just like filling up a car with CNG or LPG. Hydrogen is used in the fuel cell to create electricity which powers the car. The only by-product of the process is water.

“If this trial is successful”, said Mr Gibson, “the technology would have a very wide application. It could help Auckland and New Zealand towards energy self-sufficiency and our emission reduction goals. Trucks, trains and ferries could also run on hydrogen – something which is already being done overseas – which would be a significant benefit for the community. Hydrogen powered vehicles are quieter and emit nothing more than clean water.”

The project partners will provide technical support and will purchase hydrogen fuel cell vehicles for the project. Global hydrogen experts Arup are also helping support this project through the development, design and delivery phases.

Mayor Phil Goff said, “I welcome this trial. It is a first for New Zealand and shows Auckland’s desire to lead on climate change action and meet our ambitious emissions reduction targets.

“With 40 per cent of emissions in Auckland coming from our transport system, alternative energy sources to power vehicles, such as electric and hydrogen, are critical to meeting the target of global warming to 1.5 degrees.

“With infrastructure in place, hydrogen has the potential to power our buses and other parts of our vehicle fleet both reducing global emissions and cutting back on air pollution in Auckland such as in Queen Street where carbon levels are very high,” says Mayor Phil Goff.

Auckland Council’s Chief Executive, Stephen Town, says, “We’re proud to collaborate with the Ports of Auckland, Auckland Transport and KiwiRail on this innovative hydrogen project – a first for New Zealand. It is important for organisations like ours, as signatories to the Climate Leaders Coalition, to continue leading on climate change action; it’s also important for us to push the boundaries with ambitious projects that demonstrate leadership here in Auckland. Trialling new technology to reduce emissions and signalling a smarter economic future is important for our city’s people, places and prosperity.”

KiwiRail Acting CEO Todd Moyle says KiwiRail is delighted to be part of this ground-breaking project. “KiwiRail is committed to a sustainable future and has set a goal to be carbon neutral by 2050. While rail is an inherently sustainable form of transport with 66% fewer carbon emissions than heavy road freight, new fuel sources like hydrogen have enormous potential for the future of transport in New Zealand.

“Just weeks ago, two hydrogen-powered trains with a range of 1000km per tank began operating commercial services in Germany. If successful with passengers, there is no reason why the next development could not be hydrogen-powered freight trains.

“Joining forces with Ports of Auckland in this project will allow us to explore how KiwiRail could use this new technology as we deliver stronger connections for New Zealand.”

Auckland Transport Chief Executive Shane Ellison says AT is committed to clean technology and is very interested in the possibilities of hydrogen power. “This could be part of the answer for our fleet of buses and harbour ferries. The idea of a vehicle which only produces water as a by-product is very exciting.”

The project is currently in the planning phase, and Ports of Auckland is about to start stakeholder engagement before applying for resource consent in early 2019. The facility is planned to be operational by the end of 2019.

An aerial view of Ports of Auckland from the west.
SUPPLIED
An aerial view of Ports of Auckland from the west.

A rift has opened up between Auckland Council and the Government over how the future of the city’s port will be decided.

Mayor Phil Goff says there’s a risk that a Government-appointed working group looking at the upper North Island ports might have pre-determined whether Auckland’s council-owned port could move, and if so where.

Goff said he put a “robust” view to the working group’s chair, former Far North mayor Wayne Brown, in a private meeting last week.

A council commissioned study found shifting the vehicle import trade, could lose Auckland $1 billion
BEVAN READ/STUFF
A council commissioned study found shifting the vehicle import trade, could lose Auckland $1 billion

He said Brown’s public rejection of two potential locations identified by a council study didn’t give confidence, and the group didn’t appear to have enough time or resources to do a proper job.

The council on Tuesday approved a blunt letter to be sent to Brown, ahead of the council’s first formal meeting with the working group in just over a fortnight.

Goff favoured the eventual shift of the port from its current location on the downtown waterfront, but was unhappy with the approach being taken by the working group.

The council will tell the group that its priorities include protecting the value of Ports of Auckland, which last year paid it a $51.1 million dividend.

It is also telling the working group it wants a transparent, objective and evidence-based approach to reviewing the future of the ports in Auckland, Tauranga and Whangarei.

Auckland Council has conducted the most detailed work so far on the future of its port.

Previous mayor Len Brown funded out of his office budget the Port Future Study, which in 2016 found the port might not outgrow its current site in 50 years, but that work should begin on identifying alternatives, in case it did.

Before the 2017 elections New Zealand First advocated an early shift of the vehicle-import trade from Auckland to Northland’s port.

The coalition government including New Zealand First took a bigger picture approach, setting up the Upper North Island Supply Chain Strategy working group, in line with a request from Auckland Council.

New Zealand First MP and Regional Economic Development Minister Shane Jones who oversees the working group, has since been vocal on matters relating to the future of Auckland’s port.

At the start of November Jones said he would do all he could to head-off a planned multi-storey carpark building planned by Ports of Auckland, to house vehicles arriving in the port.

“Public statements have created the impression of pre-determination,” said the council in a letter to the chair of the working group Wayne Brown.

Brown has made public comment favouring a move to Northland, including an opinion column published in November 2017 before being appointed to chair the group.

“Imagine the Auckland waterfront without used cars getting the best views,” Brown wrote.

“Watch for self-justifying job-saving promises from Ports of Auckland to fend off any sensible moves like Sydney has made keeping the harbour just for cruise liners and sending cargo to Wollongong and Newcastle.”

The council’s letter pointed to comments by Brown.

“Indicating a strong preference for relocation of some or all of POAL activities to Northport prior to any analysis is unhelpful,” said the letter which Goff will sign.

“Any plans to move all or some of the Port’s functions requires the concurrence of its owners, the people of Auckland, through Auckland Council,” said the letter.

“I’ve already said to the chair, we’ve put a lot of work into two future options (Manukau Harbour and Firth of Thames) and you’ve dismissed this out of hand, which gives us no confidence,” Goff told today’s planning committee meeting.

The council has spelled out 10 areas it wants the working group to examine closely.

These include the feasible capacity of all upper North Island ports, as well as the climate change impacts of moving freight to and from the ports.

It wanted work done on the social and community impacts of any change, and how and when a future new port would be funded.

The council will have its first meeting with the government’s working group on December 13.

 

Interislander to get new, bigger Cook Strait ferries by 2022, report says

A Cook Strait ferry battles big waves out of Wellington.
MONIQUE FORD/STUFF
A Cook Strait ferry battles big waves out of Wellington.

A date appears to have been set for Interislander to get new, bigger Cook Strait ferries – but it seems nobody told the ferry operator.

With passenger and freight expected to increase significantly in coming years, the ground-based work needed to accommodate the larger ferries has been outlined in a report to Greater Wellington Regional Council’s regional strategy committee.

At least one operator – Interislander – planned “to purchase and operate new larger vessels on the Cook Strait. These are scheduled to arrive in 2022,” the council report said.

“These new vessels will require new terminal facilities as well as additional infrastructure.”

But according to Interislander’s overseer KiwiRail, the process was not so far down the track.

It was only “looking at upgrading its ferries” and was still working through options, a spokeswoman said.

No timeline was set and no decisions had been made, she said.

Aratere had a $54m overhaul in 2011 but is now nearing the end of its life.
KEVIN STENT/STUFF
Aratere had a $54m overhaul in 2011 but is now nearing the end of its life.

Acting KiwiRail chief executive Todd Moyle said in October that all three of its ferries – Aratere, Kaiarahi, and Kaitaki – were nearing the end of their lives.

KiwiRail needed new ships “built for our specifications and requirements”, he wrote in a Stuff opinion piece.

“Our future freight and tourism needs will require bigger ships, and our ports at Wellington and Picton need to be able to handle them.”

One of the decisions still to be made was whether to have a train deck, which would allow a loaded train to roll on at the start of a journey and roll off at the other end, or whether to just transfer cargo from trains to trailers.

The Kaiarahi Interislander Ferry - now nearing the end of its life - recently had a refit in Singapore.
DEREK FLYNN/STUFF
The Kaiarahi Interislander Ferry – now nearing the end of its life – recently had a refit in Singapore.

“In the next couple of months the results of our investigations and consultation with our people, our union partners, customers and stakeholders will be known,” Moyle said.

“The size and number of ships in our new fleet, and the type best suited to our future freight and tourism needs, will be decided. Whatever the result, new ships will deliver more capacity, increased resilience, better fuel efficiency and greater reliability for our customers.”

The new ferries would have new facilities and would make for a better crossing.

“Once the decision is made we will embark on the next stage of our future fleet programme – building the new ships that will continue to unite New Zealand across that most tempestuous of barriers, Cook Strait.”

Cook Strait ferry Kaitaki, which is also nearing the end of its life.
Cook Strait ferry Kaitaki, which is also nearing the end of its life.

Greater Wellington is also leading a project to develop a new “multi-user” Cook Strait ferry terminal in Wellington, which will serve as the port for both Interislander and Bluebridge ferries.

The two sites being considered at Interislander’s current Kaiwharawhara site and Kings Wharf, near the existing Bluebridge operation and Wellington Railway Station.

“Forecasts of future demand indicate that substantial growth in both freight and passenger numbers is likely over the next 10-20 years,” the report said.

“However, the terminal infrastructure is a long-term investment, and so an understanding of demand over a 50-year timeframe should be considered when designing. By 2025 it is expected that annual passenger numbers will rise to 1.7 million.”

Passenger numbers were about 1 million in 2010.

COOK STRAIT FERRIES: A HISTORY

* 1875: A passenger service between Wellington and Picton begins with a weekly service till 1962 when the last ship in service, Tamahine, was withdrawn.

* 1962: The first roll-on, roll-off ferry, Aramoana, enters service.

* 1983: New ferry Arahura arrives, while the Aramoana and Aranui were laid up two years later.

* 1994: Christchurch businessman Brooke McKenzie starts the Sea Shuttle fast ferry. It lasts the summer.

* 1995: The North by South Straitrunner starts a Paremata to Picton service but the company goes into receivership in May 1996.

* 1998: Mana Seacat starts a Paremata to Picton service in its Te Hukatai catamaran but the firm folds five months later.

* 1999: Fast Cat Ferries begins its short-lived TopCat service. It winds up in November 2000.

*  2005: The last Lynx service sails from Picton.

* 2011: Aratere refurbished for nearly $54 million, and its hull was lengthened by 30 metres. But that was followed by multiple issues including, in 2013, when it lost a propeller in Tory Channel

 

Automation and capacity update from Ports of Auckland

22 November 2018

Operational Update

Automation and Capacity Project – Update

Our project to transform Fergusson Terminal which will provide future capacity is well underway and visitors to the port will have seen a lot of activity and changes including civil works, construction workers and sections of tarmac undergoing renewal.  What has been happening recently:

A-Strads

Visitors will have seen the new blue “A Strads” now assembled on the north end of the terminal, undergoing a comprehensive range of testing in readiness for Go-Live next year.

 

 

 

 

Road Exchange

The work to upgrade the truck lanes has been completed and the next stage is installing the gates and fences required to keep truck drivers and A Strads separated.

Pre-gate Kiosk Screens

These have been updated. Drivers now need to complete some additional steps at the kiosk.  This means that when automation goes live, the drivers will already be familiar with the new system.

Reefer Gantries

The large shiny frames of the new reefer gantries at the southern end of the Fergusson terminal are now complete and sign-off for the reefer operation is expected before the end of this year.  In the meantime, we have been able to use the area as valuable stacking space for dry containers.

New Container Cranes

There was a lot of media interest and celebration with the arrival of our three new container cranes on the specialised delivery vessel Zhen Hua 25.

It was a great sight to see them sail into the harbour in the early morning. These cranes, which have quad-lift capacity (they can lift four containers at once), are now in place on Fergusson North Berth and will be commissioned early 2019, after a range of testing required to integrate them into our current systems.

 

Hatch Platforms have now been installed on all container cranes – these allow the ship’s hatch covers to be stored above the ground, freeing up space around the cranes for container handling.

Lash Platforms In a first for New Zealand, we’re installing lash platforms on all our cranes and our new cranes have them already fitted.  This will make stevedores’ job safer, as they can work above ground away from moving straddles.

Rail OCR (Optical Character Recognition)

A frame, fitted with multiple cameras, has been placed over the rail line to capture images and recognise container numbers arriving and leaving by rail. This system provides a high degree of accuracy and enables rail planners to quickly check on any “exceptions”.

Supply Chain Challenges

There are a range of challenges being experienced throughout the supply chain. We are automating Fergusson Terminal to increase capacity and productivity, whilst at the same time experiencing unprecedented volume demand. It is a bit like having heart surgery while playing rugby!

While we’re carrying out the automation work our terminal capacity is actually reduced, putting pressure on our operations especially during peak import season.

We are undertaking this transformation to ensure we are ready to accommodate Auckland’s rapid growth in freight demand.  We’ll be able to handle more containers on the same land, but it also means some changes in the way cargo owners and trucking companies interact with the port.

Greater planning and different ways of operating are needed throughout the freight supply chain. The port operates 24/7 and yet the wider supply chain largely works 24/5 at best, and often 9 to 5 Monday to Friday.

Extended operational hours are needed at distribution centres, empty depots and importers’ and exporters’ premises to maximise the capacity of the whole supply chain.  It is much the same as an internet connection – you’re currently on dial-up and want to upgrade to fibre, but you only get the best speed if you’ve got fibre end-to-end.

We have been engaging with importers, exporters, trucking companies and freight forwarders to discuss the changes and welcome you to make contact to discuss any issues you may have.

Further Progress

Our automation go-live date is late 2019.  There are a number of civil, operational, engineering and I.T. projects being undertaken, some of which need to be completed in a specific order and others are more flexible.  This means that we are continually adjusting the timing of work.  We will keep you updated on progress and changes.

Please contact us if you have any questions or would like to discuss any ideas or concerns, at any stage.

For more information contact

Customer Service

P: +64 9 348 5100 Ext. 1

E: customerservice@poal.co.nz

 

For VBS queries contact

Transport Co-ordinators

P: +64 9 348 5100 Ext.2

E: driversassist@poal.co.nz

 

 

Ports of Auckland have joined the Climate Leaders Coalitiona collection of business leaders who have each committed to act on climate change.

Ports of Auckland is the first port in the world to make this commitment and the first port in New Zealand to be CEMARS® certified. Joining the coalition contributes to the ports promise to become zero emissions by 2040.

More information on the Climate Leaders Coalition can be found here. Read the CEO Climate Change Statement here.

 

Auckland’s supply chain complications

Media release – POAL and NRC 14/11/19

Auckland’s supply chain complications

National Road Carriers Association and the Ports of Auckland are combining forces to promote change in the supply chain to improve delivery times and prevent delays.

This initiative has come about because of supply chain capacity issues which were highlighted following an accident at Ports of Auckland in August. Imported freight has taken longer to deliver and exporters have encountered delays getting their goods away, leading to frustration all round.

“The supply chain is running at capacity, so unexpected problems can have a domino effect,” says David Aitken, National Road Carriers CEO.
“At its heart, the problem is Auckland’s growth. The supply chain needs to evolve and we’re all going to have to change the way we work to prevent future problems. Better planning and coordination are the key.”

“We’re letting stakeholders know what causes hold-ups and we’re working with partners to improve our end-to-end processes,” he added.
Situations contributing to delays can arise at any stage in the supply chain, sometimes occurring thousands of kilometres away from New Zealand.
“In the last 12 months over half of all container ships arrived at Auckland late (often as a result of bad weather), causing congestion,” says Craig Sain, Ports of Auckland’s General Manager Commercial Relationships. “This makes it hard for us to staff the terminal properly, causing delays.”

Labour scheduling issues at the port are made worse by a shortage of labour in Auckland, which also affects the trucking industry.

The port is currently installing an automated container handling system to address this problem, but the work required to install the system has reduced terminal capacity by about 20%, adding to congestion. This situation will remain until late 2019 when the project will be completed.
“With reduced space in the terminal and more containers coming in due to growing Auckland demand for freight, it is taking us longer to service trucks visiting the port,” says Mr Sain.

Another problem is that getting containers off the port can be delayed because there is nowhere for the containers to go. The port works 24/7 and has capacity at nights and weekends, but often distribution centres, importers warehouses and empty container depots are closed at these times.
“In the past working 9-5, Monday to Friday was fine, but now Auckland has over 1.5 million people it is no longer feasible,” says Mr Sain. “The whole industry needs to be able to work 24/7, not just the port and carriers, and this means distribution centres and importers need to be open nights and weekends to receive imports.”

The road freight transport industry is caught in the middle says David Aitken.  “Importers don’t want to pay for weekend or afterhours work but they also don’t want to pay to hold containers at the port or container depots as a result of their limited business hours.”

“We are storing containers at freight hubs longer, which adds costs for double handling, or are delivering goods later than originally expected because of holdups. We’re also facing higher costs because of Auckland’s congestion, costs which could be avoided by working 24/7,” he added.

The solution is going to come through a combination of technology, greater co-ordination and a move to 24/7 working throughout the supply chain.
As well as investing in automated container handling, Ports of Auckland is working with National Road Carriers Association to update its processes and business rules to minimise manual intervention and incentivise off-peak container movements. Last minute freight moves will become a thing of the past, with all movements having to be planned in advance.

“As a port we have a key role to play and we are trying to educate other players in the supply chain so that they understand the need for change and what they can do to make the process more efficient,” said Craig Sain. “Ultimately, these changes will benefit New Zealand through the fast, efficient and cost-effective delivery of freight.”

New Zealand needs to decarbonise transport to get on track with climate goals

The best way to reduce carbon emissions from the transport sector in New Zealand is to switch to alternative fuels and decarbonise the electricity grid. Personal behaviour change will have an impact, but not enough, a new study has found.

According to the chief executive of Infrastructure New Zealand Stephen Selwood, a new report from thinkstep has found that activities such as car sharing, teleworking, home deliveries and using more public transport will save around 15 per cent of carbon emission compared to the near 90 per cent reductions needed to meet climate targets.

“Many people think that enabling alternatives to the car is the best way to reduce carbon emissions in New Zealand,” Selwood said.

But thinkstep’s report calculates that a shift to electric, biofuel and hydrogen-powered vehicles has potential to reduce carbon emissions from consumption by up to 88 per cent by 2050. The Creating a positive drive: Decarbonisation of New Zealand’s transport sector by 2050 was launched on Thursday.

A shift to electric, biofuel and hydrogen-powered vehicles “has the potential to reduce carbon emissions from consumption by up to 88 per cent by 2050,” the report says.

In order to achieve this shift, renewable energy generation would have to double in capacity, and the country would have to see the conversion of five per cent of agricultural land to the production of biofuels.

Encouraging ride-sharing and the use of public transport would have benefits that are more achievable in a short space of time than a complete switch to zero emission transport, but they would only change a small proportion, up to 29 per cent, of total journeys,  the report says.

Everything helps

The government could encourage people to share rides by establishing carpool lanes, and create a pricing model to encourage electric vehicles.

Transport scenarios for New Zealand in the report for 2050 relative to 2015 (savings include domestic greenhouse gas emissions only)

“The role of government and business, as we see it, is to make these low-carbon choices easy and convenient,” says the report.

“While we still depend on fossil fuels, ride-sharing has the potential to be a quick win for New Zealand on climate change,” Dr Jeff Vickers, technical director of thinkstep and lead author of the report said.

“It reduces carbon emissions and road congestion immediately, and the carbon story gets even better as we move to electric vehicles. This is something that could happen virtually overnight, as all you need is a smartphone.”

A year ago Prime Minister Jacinda Ardern set out a plan for New Zealand to transition its electricity grid to renewables by 2035. Between 50 to 60 per cent is already delivered by hydroelectric power. Ms Ardern’s long-term goal is for New Zealand to achieve zero carbon emissions by 2050.

Currently, according to climate action tracker website, New Zealand’s Nationally Determined Contribution target under the Paris Agreement of a 30 per cent reduction from 2005 levels by 2030 is rated as “insufficient”. In other words, it is not consistent with holding warming to below 2°C, let alone limiting it to 1.5°C, as required, and is instead consistent with warming between 2°C and 3°C.

Part of the reason is that transport contributed 19 per cent of all greenhouse gases emitted in New Zealand in 2015. A reduction in transport emissions by 90 per cent would reduce New Zealand’s total gross GHG emissions by 17 per cent.

But the road to decarbonising transport is harder than that. “When considering the carbon footprint of products and services that New Zealanders consume – rather than including those that are destined for offshore markets – transport’s contribution jumps to over 40 per cent,” Dr Vickers said.

The government is currently considering a Zero Carbon Bill. The target of net zero emissions by 2050 is supported by 91 per cent of respondents to a consultation for the bill, while even more, 96 per cent, support the establishment of an independent watchdog, a Climate Change Commission, like the UK’s.

The government realises that it’s cheaper to take action sooner rather than later.

Light commercial and heavy vehicles are assumed in the report to run on hydrogen in the future, yielding a 64 per cent drop in emissions using today’s electricity grid, or 91 per cent for a fully renewable grid.

In this future, biofuels would be used to power ships and planes because of their higher energy density. But biofuels have their own social and environmental impacts: air pollution, displacing crops, and a reduction of biodiversity.

See the full report here.

Shippers worried low pollution fuel could carry high price tag

Cleaning up smokey funnels could could land New Zealand shippers with much higher fuel bills as the Government inches towards cutting pollution levels.

The Ministry of Transport will shortly begin public consultation on whether to ratify Annex VI of an international maritime convention (MARPOL) which makes use of lower sulphur level fuel mandatory from 2020.

Shipping line Maersk​ converted to using the cleaner burning fuel in New Zealand waters in 2011, but switched back after its fuel bill soared by $1m during the one year trial, forcing the company to turn down a nomination for a Clean Air Society achievement award.

Maersk makes about 1000 New Zealand port visits a year and its oceania operations manager Stuart Jennings said the more expensive fuel cut sulphur levels in exhaust gases by more than 80 per cent, but the company regrettably suspended the pilot due to lack of support from other local industry stakeholders.

“We believe that a strong enforcement regime is crucial to ensure a level playing field for carriers as well as shippers, and to make sure that health and environmental benefits are continuously maximised.”

Maersk shipping line cut sulphur emissions at the Port of Auckland by 72 tonnes a year after it switched to a cleaner fuel, but the change proved too expensive and was abandoned after other shippers failed to follow suit.
SUPPLIED
Maersk shipping line cut sulphur emissions at the Port of Auckland by 72 tonnes a year after it switched to a cleaner fuel, but the change proved too expensive and was abandoned after other shippers failed to follow suit.

Jennings said that from 2020 all vessels in its global fleet would comply with the Annex VI requirement to reduce maximum sulphur levels from 3.5  per cent to 0.5 per cent, regardless of whether New Zealand had ratified the clause.

Atmospheric scientist Jennifer Barclay​ nominated Maersk for the clean air award and said the company’s switch to cleaner burning diesel reduced the amount of sulphur released into Auckland skies by 72 tonnes a year.

It was disappointing other shippers had not followed suit, but she understood Maersk’s reversal. “It’s not their fault, central government needs to pull finger and do something.”

Ministry of Transport international connections manager Tom Forster said the Resource Management Act allowed for discharges into air for normal ship operations, and New Zealand had not previously signed up to Annex VI “because our weather conditions and comparatively small ship numbers meant maritime air pollution was not seen as a significant issue.”

He said domestic legislation would need to be changed if ratification was agreed on once consultation was completed.

Members of the NZ Shipping Federation, including the InterIslander, are anxious to know where they stand over the supply and cost of low sulphur fuel.
SCOTT HAMMOND/STUFF
Members of the NZ Shipping Federation, including the InterIslander, are anxious to know where they stand over the supply and cost of low sulphur fuel.

NZ Shipping Federation executive director Annabel Young said she expected New Zealand to ratify the clean fuel clause by 2023, but 98 per cent of shipping capacity worldwide had already done so. “We are the outlier.”

Her members, who include the InterIslander, Strait Shipping and Coastal Bulk Shipping, were anxious to know where they stood over the supply and cost of low sulphur fuel.

Diesel was the only fuel in New Zealand that met the specified sulphur content, but cost up to 50 per cent more than what many vessels currently used, and it was unclear whether the Marsden Point refinery would retool to produce low sulphur marine fuel, said Young.

A Refining New Zealand spokesman said they were still investigating options for the refinery to make 0.5% sulphur fuel oil.

“That process will give a good indication of the production costs involved, and quantities we can make on behalf of our oil company customers.”

Young said another complication was that a recent amendment to Annex VI prevented ships entering the ports of more than 80 signatory-countries from carrying dirtier-burning heavy fuels.

That meant New Zealand coastal ships, such as the interisland ferries, would have to switch fuel before entering dry docks in Australia or Singapore, and it cost hundreds of thousands of dollars

“Switching fuels takes months, it’s not something you do lightly …going to dry dock will be a very expensive transition.”

Young said that methanol was a clean fuel option that more shippers were seriously considering, but there were questions about the security of supply once the Crown Minerals Amendment Bill passed.

However, a Methanex New Zealand representative said that would not be an issue. “If the shipping industry used methanol we’d be guaranteeing supply.”

Stuff

New railway line to Marsden Point being investigated by KiwiRail

KiwiRail to investigate Marsden Point railway – Photo / File

KiwiRail has started work on geotechnical investigations along a section of the new route for the proposed rail-link to the port at Marsden Point in Northland.

KiwiRail Acting Chief Executive Todd Moyle says the scoping work will inform the business case for Northland rail currently being developed by the Ministry of Transport.

“We’ve held a designation for this rail spur for several years, and are very pleased to be now taking steps to determine how the line would be built,” says Moyle.

“These investigations will provide us with more detailed information about the design and potential construction methods for the link, as well as costs and timeframes.

“To begin with, we’ll be working at Mata Hill over the next few weeks, using a drilling rig to take samples from a number of locations,” he says.

These will bore up to 30 metres into the ground to remove samples for analysis.

“We are also investigating what associated works would be needed on the North Auckland Line to allow for more freight to be carried by rail to and from Northland,” says Moyle.

“The Government has indicated its strong support for the value rail delivers in the regions and the benefits it brings for New Zealand by taking trucks off the road, improving safety and reducing carbon emissions.

“The work we are doing in Northland is one of a number of projects underway to ensure we deliver stronger connections for a better New Zealand,” he says.