MARCUS GIBBS
Repairs to Kaikoura’s road and rail links are well under way with a deadline for completion at the end of 2017.
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.
“We’ve been able to put some freight on international ships travelling south,” Chapman said.
CHRIS HUTCHING
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