Coastal shipping trade still ahead in quake aftermath

Repairs to Kaikoura's road and rail links are well under way with a deadline for completion at the end of 2017.

MARCUS GIBBS
Repairs to Kaikoura’s road and rail links are well under way with a deadline for completion at the end of 2017.
 Coastal shipping trade out of Auckland nearly doubled after the North Canterbury earthquakes in November 2016.

But the big test will come when the Kaikoura state highway and the rail line come back into operation at the end of the year.

Steve Chapman, the chief executive of coastal shipping company Pacifica, said there were weekly fluctuations but he estimated the increase had settled back to about 20 per cent to 25 per cent above pre-quake levels.

Don Braid the managing director of Mainfreight which uses all forms of transport in its freight forwarding business.

Don Braid the managing director of Mainfreight which uses all forms of transport in its freight forwarding business.
 “It’s been seven months and shipping agents have got used to the frequency of coastal shipping so I think it will remain where it is.”

“We’ve been able to put some freight on international ships travelling south,” Chapman said.

The Shipping Federation thinks the Government could be doing more to help coastal shipping. A Pacifica Shipping vessel ...

CHRIS HUTCHING
Pacifica rival, KiwiRail, was among the winners in this year’s Budget with the Government committing $450 million in capital funding, which may skew cargo movements back to rail via the interisland ferries

The commitment was critical to fund the uninsured portion of the main north line between Picton and Christchurch.

The financial effect of the earthquakes on freight forwarders may become evident when Mainfreight reports it annual result soon, against a strongly rising share price in recent weeks.

Chief executive Don Braid said Mainfreight’s mix of rail, truck and shipping was commercially sensitive.

Meanwhile, Auckland, Tauranga, Napier and Lyttelton ports are enjoying a surge in business.

Lyttelton Port’s container volumes were 15 per cent ahead in the second half of 2016 – and up 35 per cent in December 2016.

It was because freight was being sent direct via shipping from Auckland to Lyttelton after the Kaikoura railway line was knocked out, chief executive Peter Davie said.

Shipping Federation chief executive Annabel Young said the the big lesson from last year’s earthquakes was how quickly the market could move.

“Overnight the amount of freight going through Auckland almost doubled as freight forwarders looked to coastal shipping to move goods south.

“Port of Tauranga couldn’t believe it. Napier Port was also a big winner because of the effects on Wellington’s container terminal. Cargo bound for Wellington has been landing at Napier and trucked south.

“Napier has had to scale up operations in six months that they expected would take about seven years,” Young said.

Heavy reliance on trucking allowed for quick overnight movement of goods but the earthquakes forced businesses to re-prioritise fast delivery for perishables, Young said.

The Shipping Federation has reservations about the rivalry and investment each port is making.

Young said the future of maritime transport relied on feeder ships taking cargo from smaller ports to larger ports.

Dredging to allow deeper drafts is a waste of rate-payer money in most ports, she said.

“Aggregation of cargoes at inland ports is the trend. This increases the likelihood of fewer big ports servicing international routes.

“It also makes over-capitalised ports with high port charges unattractive to exporters and importers.”

A refrain from the sector, and Wellington commercial landlords, is that Wellington’s CentrePort subsidises its port operations from its property developments on reclaimed waterfront land.

The latest Shipping Federation report said one of the biggest impediments to coastal shipping is lack of government interest because it owns rail and road infrastructure.

About 15 per cent of New Zealand’s inter-regional freight is carried by sea and domestic freight volumes are forecast to more than double by 2040.

Even with massive investment in land transport this increase can’t be accommodated by road and rail alone, Young said.

It wants an integrated port policy at government level including helping out with maritime infrastructure.

“A floating dry dock is a good example of where government agencies should assist. Operators are currently using dry docks in Singapore as the closest option.

The Federation argues coastal shipping reduces heavy trucks numbers, cost of roads, congestion, greenhouse gas emissions, and improves safety.

The Ministry of Transport estimates the cost of shifting a standard container door-to-door from Auckland to Christchurch by ship is $850 to $1300, compared with $2200 to $3000 by road, or $1300 – $1900 by rail, because of fuel efficiency.

 – Stuff

Kaikōura earthquake: New Zealand loses $500m GDP

The impact on New Zealand’s Gross Domestic Product (GDP) over the 18 months following the Kaikōura  earthquake has been estimated at $450-$500 million, a new Government-commissioned report says.

The estimated loss is made up of $110-$130 million (25 percent of the total impact) in Canterbury and $340-$370 million (75 percent of the impact) across the rest of New Zealand, Economic Development and Transport Minister Simon Bridges says.

“The quake has had a significant effect on people’s lives and businesses which the Government is strongly focused on supporting,” he says.

“As well as the Kaikōura economy, the report shows the national economy has also felt the impact.

“Increased freight transport costs and impacts on businesses from infrastructure damage and transport disruptions are the two key contributing factors.”

The report assessed the impact on small businesses and tourism caused by disruptions to transport infrastructure.

Newshub

SH1 south of Kaikōura closed again due to slip

A new slip has been discovered on State Highway 1 south of Kaikōura, closing the road until several thousand cubic metres of material can be removed.

The slip on State Highway 1, south of Kaikoura, which came down in heavy rain on 5 April 2017.

One of the recent slips on State Highway 1, south of Kaikōura. Photo: NZ Transport Agency

The Transport Agency said it could take at least two days to clear the slip, which is the site of previous slips.

The inland road to Kaikōura, Route 70 via Waiau and Mt Lyford, is still open.

When the slip has been cleared, the state highway to the south of Kaikōura will only be open between 7am and 6pm.

‘Alpine’ fears for alternate highway between Christchurch and Picton

Vehicles moving through the Lewis Pass in snow. (File photo)

JOHN KIRK-ANDERSON/FAIRFAX NZ
Vehicles moving through the Lewis Pass in snow. (File photo)

Preparing drivers for “alpine conditions” on the alternate highway between Picton and Christchurch has become a focus for the national roading authority as winter approaches.

The New Zealand Transport Agency has concerns about the inland diversion as sections of the route can be closed several times a year, even on a normal year.

NZTA spokesman Mike Seabourne said the Lewis Pass, on State Highway 7 near Hanmer Springs, normally closed six times a year because of the weather, although usually for less than a day.

Flooding on the road at Lewis Pass in January.

SUPPLIED/MATT MARKHAM
Flooding on the road at Lewis Pass in January.

It was possible for people to take a longer detour, through Arthur’s Pass, but that road closed “a lot more often”, Seabourne said.

Arthur’s Pass closed up to a dozen times a year, and was sometimes closed for four or five days at a time, he said.

“Will they close at the same time? That happens quite rarely.”

Seabourne was speaking at a public meeting in Ward on Tuesday, where he said NZTA had beefed up its emergency response team.

It would be working to educate people about driving in “more alpine conditions”, he said.

NZTA was focused on clearing slips, at three particular sites along SH1, and the road from Blenheim to Kaikoura was expected to open this December, Seabourne said.

The other focus of the meeting was getting quake-damaged homes closed up for winter.

A damaged woolshed in Ward after the quake.

SUPPLIED/STUART OULTON
A damaged woolshed in Ward after the quake.

Rural councillor Gerald Hope made a “personal plea” to builders to make repairs a priority before the cold weather set in.

“People are understanding of the scale of the earthquake, but there is a sense of frustration about trade availability and also getting quotations done.

“The issue is very much around closing homes up for winter, making them warm and dry.”

About 60 people attended the meeting in Ward, while about 30 people attended a similar meeting in Seddon on Monday.

Representatives from the Insurance Council of New Zealand and agents representing individual companies were present, so people could talk through their issues in private.

The meetings were chaired by Marlborough District Council emergency manager Dean Heiford.

An Earthquake Commission spokesman said there were 4940 insurance claims in Marlborough from the November quake, but he was unsure how many of those had been settled.

Despite concerns about the length of time it took to get resource consents for fireplaces, Heiford said the council was trying to push through consents for simple building work as fast as possible.

“Our key driver is heating in winter.”

Several residents said after the meeting they were satisfied with the way their insurance claims were being handled.

Insurance companies were acting as EQC agents, so in the first instance people were dealing directly with their own insurer.

Ward man John Elliott said he was not sure if that system was a good idea.

Stressed and vulnerable people in the community were finding the process difficult to deal with, and it was not always easy to get in touch with insurance firms.

Hope said the heavy demands on the building industry were not confined to Marlborough and were a nationwide issue.

“These are challenging issues. There’s no short-term quick fix.”

Robinson’s Construction owner Phil Robinson said on Monday afternoon the building industry and its associated sub-trades had been under the hammer for the past year.

However, the company would make time for earthquake repairs, he said.

Marlborough Mayor John Leggett said on Friday residents were bound to be “anxious and frustrated” about getting work done.

“Inevitably there will be some people without internet access or reliable phone contact and they may be struggling to get any traction with their situation.

“If you’re in that situation, please come forward and make yourselves known to the agencies and support organisations. We know from the past Christchurch and Seddon experience that going into winter is a tough time and we need to do what we can to help.”​

 – The Marlborough Express

Safety concerns on alternate Picton to Chc route – RNZ

At least 12 truck drivers have quit because they are concerned about the safety of a new alternative highway between Picton and Christchurch, their union says.

Railway tracks ripped from the line along State Highway 1 - North of Kaikoura.

Railway tracks ripped from the line along SH1, north of Kaikōura, which has been blocked by massive slips since the 7.8 magnitude earthquake in November. Photo: RNZ / Claire Eastham-Farrelly

The inland route via the Lewis Pass was never intended to be a main arterial route but that changed when the Kaikōura earthquake forced coastal sections of State Highway 1 to be closed.

Five people have died in crashes on the alternative route since the quake in November, with the latest smash occurring on 28 March when two people died after a car and a truck collided just north of Culverden.

Before SH1 became impassable, the Picton to Christchurch route took drivers about 4.5 hours, giving them enough time to make the return journey on the same day.

The windy narrow inland route had nearly doubled their drive time, but First Union organiser Bryce Hamilton said freight companies and their customers were still insisting the trip was done in one day.

This pressure, combined with driving a road that was never meant to be the main highway, was the reason so many were now either quitting the industry altogether or finding work on less dangerous routes, he said.

The inland route became the main way to get from Picton to Christchurch after November's Kaikōura earthquake.

Google estimates the inland route via Lewis Pass takes more than six hours, but the nature of the route means it is likely to take trucks drivers longer than that. Photo: Google Earth

“They know that on a long enough timeline their survival rate will drop to zero if they keep driving that road because they’ve been in the game for, some of them, upwards of 30 years and they know that it’s dangerous in their heart of hearts.

“They say to their employer, look, you know, thanks for the employment but I don’t want to do this, it’s just too unsafe.”

There was not enough incentive for those employing drivers to make their jobs safer, he said.

“We want to see better regulation, we want to see WorkSafe investigating road incidents with trucks. We want to stop the blaming of drivers because they’re very professional at their job. We actually want some of these operators to be held to account because we’re putting people out on the road there that have accidents and they do kill.”

The Road Transport Association’s Marlborough chairman and a trucking company owner, Peter Heagney, agreed some owner-operator drivers were pushing the limits and making the route unsafe.

“People [are] doing unrealistic schedules on their trucks to try to get the work done in that period. Some of the ones that are working for some people, they’ve got them screwed down to such a ridiculous rate, people are most probably pushing the envelope a bit harder to try and make a dollar,” Mr Heagney said.

NZTA earthquake recovery manager Steve Mutton.

NZTA earthquake recovery manager Steve Mutton Photo: RNZ / Rebekah Parsons-King

And because the route now took almost twice as long to cover, more drivers had to be hired – which meant there were more inexperienced drivers on the road.

“The last thing we want is an accident and we don’t want other people having accidents.”

Marlborough’s head of road policing, Sergeant Barrie Greenall, said the end of the busy summer period and a fall in numbers using the roads had bred complacency amongst some drivers.

“What we’ve seen recently is, as the traffic volumes start to drop off, the opportunities for those that want to make poor choices and try and cut down the time has increased and we’re starting to see a rise in incidents and accidents,” Mr Greenall said.

NZ Transport Agency earthquake recovery manager Steve Mutton said $60 million had been spent upgrading the road and the agency was about to begin consultation on bringing in permanent speed restrictions on parts of the alternative highway.

One of the major slips on SH1 north of Kaikōura

One of the major slips on SH1 north of Kaikōura Photo: RNZ / Rebekah Parsons-King

Opinion: Coastal shipping ‘just makes sense’

Trucks park at Murchison, which has become a major thoroughfare following the closure of the Picton to Christchurch leg ...

MARION VAN DIJK/FAIRFAX NZ

Trucks park at Murchison, which has become a major thoroughfare following the closure of the Picton to Christchurch leg of State HIghway 1.

OPINION: ​New Zealand is a coastal country with challenging geography and it seems logical that we should use the “blue highway” far more than we have done in the recent past.

Increasing our reliance on coastal shipping to move our freight, taking more trucks off our roads, is an essential step forward in building national resilience in the event of another natural disaster.

Public support for considering alternatives to long-haul trucking is building in the wake of the Kaikoura earthquake, in part because we have now seen first-hand how essential it is to have a good plan in place for our transport infrastructure.

Pacifica's coastal ship Spirit of Canterbury offloads at Lyttelton late last year.

CHRIS HUTCHING/FAIRFAX NZ

Pacifica’s coastal ship Spirit of Canterbury offloads at Lyttelton late last year.

The blue highway is always there, it’s free, there are no potholes and no chance of slips. Yes, the weather can be challenging, but then the weather can be equally problematic for our roads.

Sea transport was a vital route between Auckland and Tauranga to Lyttelton following the closure of State Highway 1 and the rail corridor, and it remains so to some extent for what would have been rail freight.

Data from a NZ Transport Agency State Highway Traffic Monitoring System telemetry unit on SH1 at Waipara shows an initial increase in heavy traffic in the period following the earthquake has now plateaued so much so that truck volumes are only slightly up compared to a year ago. This would indicate that most of the rail freight, rather than being put on trucks, must be going via coastal shipping.

A number of freight forwarders have re-categorised what goods are being sent as just-in-time, or urgent freight, in order to reduce the amount that travels by truck.

Perishable goods such as fruit and vegetables will always be time critical, but there are many items that were only being classified as such for cash-flow reasons, and this is where the industry needs to look at the bigger picture.

Ships can carry more freight in fewer trips for less money, and little time is lost: A ship travelling from Auckland to Lyttelton does so in a similar amount of time as freight travelling by rail and ferry.

However, there are some challenges to overcome with regards to the current commercial model of the ports industry. One is that there is no financial incentive for operators to build more resilience and redundancy into their facilities. Where one operator might spend money on increasing resilience and struggle to make a return off that investment, another might not do this work and make more profit.

That approach does not benefit our country, and this is something that needs to be addressed.

Another issue is that while there is plenty of capacity to ship goods from north to south, this is not so in reverse. This is due to international lines being able to carry freight when continuing their journey and predominantly travel north to south.

As the Marlborough Chamber of Commerce has pointed out, it would make us less vulnerable if we spread our goods and distribution centres more equally rather than, in Marlborough’s case, mainly sourcing our perishable supermarket goods from Christchurch.

Another important benefit is that ships produce fewer emissions, and this is in line our obligations to reduce our emission by 2030 under the Paris Agreement on climate change.

Relying on the sea, not just our roads, should be the way of the future.

It just makes a lot of sense.

Stuart Smith is the MP for Kaikoura

 – The Marlborough Express

Calls to continue coastal shipping and keep heavy trucks off Kaikoura roads

Support for coastal shipping down the east coast of New Zealand is gaining momentum in Kaikoura, as the quake-isolated town basks in the relative calm of roads rarely troubled by heavy trucks.

Residents have started a petition asking the Government to consider permanent alternatives to long-haul trucking, pushing them off State Highway 1 when it eventually reopens.

The 7.8-magnitude earthquake last November caused major landslides north and south of Kaikoura, cutting rail services and forcing freight companies on a lengthy detour down the middle of the South Island.

Road and rail disruption from November's earthquake has prompted calls to explore coastal shipping.

EMMA DANGERFIELD/FAIRFAX NZ

Road and rail disruption from November’s earthquake has prompted calls to explore coastal shipping.

Kaikoura resident Lynda Kitchingham, who started the petition, said all through-freight should continue to be shipped, or transported by rail, when the highway opens again, essentially bypassing Kaikoura.

While trucks would continue to use the highway to make local deliveries, this was a golden opportunity to move large, long-haul freight off the road and onto sea and rail, she said.

This was more environmentally-friendly as ships and rail could carry more freight, making fewer trips, Kitchingham said.

The petition also called for a safe cycle and walking track from Marlborough to Canterbury, a concept that had been widely promoted since the earthquake.

It was also an opportunity to create a world-renowned Kaikoura coastal scenic highway, similar to Australia’s Great Ocean Road, Kitchingham said.

“Imagine the growth in prosperity for the whole region. Reinstate the rail for freight and a fantastic tourism [driving] experience with strategic stop-offs to complement the cycle and walkway.”

The road rebuild was being run by the North Canterbury Transport Infrastructure Recovery alliance, which included the NZ Transport Agency, KiwiRail and several infrastructure companies.

The alliance directed requests for comment onto KiwiRail, which had yet to respond.

The calls to look into coastal shipping for long-haul freight had garnered cross-party support in light of November’s earthquake.

Kaikoura MP Stuart Smith said coastal shipping had not been properly considered in the plans to reinstate the travel corridor following the earthquake, something he was concerned about in terms of resilience.

“We don’t have a good plan in place for our transport infrastructure,” Smith said.

“We will have an event [such as another earthquake] at some point when our road and rail networks are severed.

“Some of the stuff going up and down our roads could easily be going by sea.”

Smith said there was also the need to reduce carbon emissions in line with the Paris Agreement on climate change by 2020, and shipping was an efficient step towards that goal.

It also eliminated double-handling of freight where goods in containers were loaded on and off rail wagons before being put back onto trucks for transport to Christchurch, he said.

Green MP Steffan Browning said the Green Party had always supported coastal shipping for bulk freight for energy efficiency and to relieve pressure on the roads.

“It’s a no-brainer, but it’s a matter of how the Government can get behind it,” he said.

“We need those trucks off the road as much as possible, the Government needs to stop being beholden to the road transport industry.”

Browning said most of the long-haul freight trucks were not going door-to-door but base-to-base, and not stopping in Kaikoura to prop up small businesses.

Transport Minister Simon Bridges said coastal shipping had been a strong part of the transport response to the quake with extra services from Auckland and Tauranga to Lyttelton reducing road freight demand on SH7.

Commercial players would make decisions based on their current and future needs.

As well as NZ Connect, KiwiRail had also set up an inland freight hub in Blenheim for the movement of freight between islands, and developed additional coastal shipping plans which could be quickly put into operation if there was further disruption in the South Island, he said.

The increase in coastal freight was equivalent to 10 to 20 trucks per day off the road, Bridges said.

Kitchingham said this was a step in the right direction, but with Ministry of Transport figures showing about 550 heavy vehicle movements on SH1 between Picton and Waipara prior to the earthquake there was still a long way to go.

It was important to consider permanent alternatives, rather than just focus on using them following a disaster, she said.

The petition would run for a month and could be signed at various locations around Kaikoura, as well as online on the Truck Free Kaikoura Facebook page.

It will be presented to the Kaikoura District Council, the North Canterbury Transport Infrastructure Recovery alliance and local MPs for presentation to Parliament.

 – Kaikoura Star

Opinion: Chance for new transportation strategy lost – Winston Peters

Work is underway to repair State Highway 1.

JOHN VASTA – Work is underway to repair State Highway 1.

OPINION: When the Kaikoura earthquake obliterated the rail line between Picton and Christchurch and sections of  State Highway 1 along the same route were submerged in rocks and debris, the fragility of the country’s transport network were fully exposed.

It was an embarrassment for New Zealand. It showed that the main transport connection between the North and South Islands was deficient, overly dependent on road transportation and along a route totally unsuited for big rig trucks.

Every year on windy road sections along the Kaikoura coastline heavy trucks roll over injuring and even killing the drivers.

The earthquake presented the opportunity to have a rethink and come up with a better North Island-South Island transport ...

RICKY WILSON/FAIRFAX NZ – The earthquake presented the opportunity to have a rethink and come up with a better North Island-South Island transport strategy, writes NZ First leader Winston Peters.

 

On the notorious Hundalee Hills section south of Kaikoura, trucks create enormous problems for other traffic, causing delays and safety risks.

The earthquake presented the opportunity to have a rethink, to reassess the whole situation and come up with a better North Island-South Island transport strategy – incorporating road and rail and what has been run down over many years – coastal shipping.

New Zealand once had a vibrant coastal shipping service. In the 1980s a fleet of 40 or so New Zealand vessels carried freight around the country and across the Tasman. A roll-on-roll-off cargo service operated between Wellington and Lyttelton

All this faded away so that today we have only five interisland ferries and five other vessels carrying containers, oil and cement.

Following the earthquake, the government-appointed North Canterbury Transport Infrastructure Recovery (NCTR) looked at transportation possibilities for the future, one of which included beefing up shipping to carry freight.

If adopted this could have presented the chance to make the rebuilt road a heritage-scenic route.

However, NCTR gave shipping scant attention and plumped for one thing only – a rebuild of SH1 – making the road wider to handle bigger and even more trucks.

That means more truck roll overs; more problems in the Hundalees; the chances of having a revitalised coastal shipping service have disappeared and so too has the possibility of developing a coastal-heritage route to draw holidaymakers and tourists.

It is sad for the Marlborough and Kaikoura districts, as well as New Zealand, that the big truck lobby has won.

Foresight has gone out the window and a wonderful opportunity has been lost.

Winston Peters is the leader of NZ First and MP for Northland

 – The Marlborough Express

CENTREPORT REGAINS CONTAINER SCHEDULE

CentrePort Wellington will begin hosting weekly ANL Trans-Tasman schedule calls as from February 12, marking the return of the port’s first regular container shipping service since the November earthquake.

A CentrePort spokesperson says the self-geared vessels will provide Wellington shippers with direct connection to Australia and via transhipment with North America, North Asia, South East Asia and globally.

“The services will berth on Aotea Quay Two, which is part of the 1000 metres of operational berth on Aotea Quay,” says the spokesperson.

“We have modified our processes to accommodate the ANL ships. We have already accepted geared ships since the earthquake. We are working closely with ANL throughout this process.”

The spokesperson expects the service will see “several hundred containers” loaded and unloaded per week.

It is understood CentrePort is actively negotiating with other self-geared containership operators in attempt to attract further callers, as it works to resume modified gantry crane operations within the next four to six months.

“Our key trades of ferries, fuel, logs, cars and cruise ships continue to operate. Indeed, since the earthquake many of these trades have performed very strongly. This shows the importance of the port to the economy of the central region, and the hard work we’ve put in to quickly resuming services.”

RTF UNIMPRESSED WITH INTERISLANDER LEVY

Road Transport Forum (RTF) chief executive Ken Shirley has expressed his members’ displeasure with a pending 15.5% “earthquake levy” to be introduced on commercial vehicles travelling on the Interislander.

Mr Shirley says the levy, which is due to be implemented as from the middle of next month, highlights the “deep seated” issues being faced by Interislander parent company, KiwiRail, which have been “brought to the fore following the damaging earthquakes”.

“The proposed levy is more an ongoing ‘capacity levy’ rather than an ‘earthquake levy’ and the restoration of the Picton to Christchurch direct road and rail routes will not solve the problem,” he says.

“There is a potential for this levy to become permanent once imposed under the guise of an ‘earthquake levy’.”

He says road transport operators are facing resistance from customers when negotiating recovery of this new cost which comes on top of the additional costs stemming from the alternative route connecting Picton with Christchurch and regions further south.

“Fundamentally it is now a different freight task. Many report additional costs of at least 20%.”

However, Mr Shirley emphasises that road transport operators “cannot and should not absorb these additional costs”.

“A greater effort is required to ensure that freight costs are met by the customer and consumer. An awareness and understanding of the problem is always a good starting point.”