Tag Archives: Lyttelton Port of Christchurch

Port Otago downgraded to regional status only

UPDATED

### ODT Online Tue, 17 May 2011
Maersk to drop weekly service to Australia
By Simon Hartley
Shipping giant Maersk, Port Otago’s largest customer, is dropping its weekly direct Southern Star transtasman service to Australia, the country’s largest trading partner. While the financial ramifications for Otago exporters are unclear, Port Otago will lose 10%, or about 22,000 TEUs (twenty foot equivalent container units), during the next year.
Read more

(16 May) News of Port of Otago’s downgrade filtered through on (Black) Friday.

It has yet to hit Otago Daily Times’ reporting with any force . . . we might get some analysis if we’re lucky, or interested.

Maersk. Fonterra.
Two cosy words that when read together spell no accident.

It’s been in the offing. Maersk has pulled the rugs on a number of New Zealand ports, Otago included – no doubt to ratchet lower port charges, not merely to facilitate freighting of New Zealand exports into Asia.

It’s far from clear what the costs of reducing local ports of call (in favour of long distance trucking and rail freighting to the North Island’s port of Tauranga) will be for exporters in the Otago Southland region.

We noticed, with suspicion, it was Lyttelton that walked away from a merger with Port Otago. We knew it wasn’t all down to [pretext] #eqnz.

We note too – sadly, for the regional economy – that Otago is frightfully good at exporting raw, not processed, logs. Such a very happy picture we have left of what POL is good for, apart from calls by oil boats and cruise liners.

We lost transhipping with no warning. Wonder if ORC is ruffled or upset. Who knew.

ODT has hidden or failed to surface with the implications of the Maersk decision, preferring to run a diatribe about KiwiRail and “inland ports” for Otago. It’s not as if the subjects are not connected. We expect the local newspaper to make the major news statements and connections palpable, in a timely manner.

A whole weekend has elapsed. Further, Maersk’s decision is in no way surprising, there was ample time for ODT to research the background.

Clues. Fonterra has been using POL logistics to prototype and determine how inland ports can be rolled out across New Zealand.

Worries. Port Otago has been on an export ‘growth wave’, not of its own making, for some years. Does the port board know how to create growth of its own or diversify its activities to meet the challenge dumped on it by (cosy) Maersk and Fonterra?

Did the port company properly attend to risk management before Black Friday?

(Aside) POL chief executive Geoff Plunket reiterates – as we learned from POL’s Peter Brown a few years ago – the company is of the view that State Highway 88 (Dunedin to Port Chalmers) has sufficient capacity to take all trucking freight. Public safety didn’t come into the equation then, and it doesn’t appear to now. But how many trucks won’t be using SH88 at all in the near future.

Lots to think about. Investigation required. News media, DCC, EDU, ORC, Otago Chamber, POL, exporters, port workers, unions, KiwiRail . . . it’s your time to start digging.

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Friday 13 May
nzherald.co.nz Maersk changes to benefit NZ exporters
voxy.co.nz Maersk Line NZ Strengthens Links With Key Regional Hub Ports

Monday 16 May
odt.co.nz KiwiRail backs inland ports

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Related Posts and Comments:
21.2.10 So where’s the media explosion?
26.2.10 Port Otago: “Next generation” project
27.3.10 Why should Port Otago dredge?
21.4.10 SH88 realignment
21.7.10 SH88 realignment – update

Posted by Elizabeth Kerr

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Filed under Economics, Geography, People, Politics, Project management

Why should Port Otago dredge?

### ODT Online Sat, 27 Mar 2010
Fishermen oppose Port Otago’s sand, silt proposal
By Allison Rudd
Otago fishermen have formed a working party to write their formal response to Port Otago’s plans to dump more than seven million cubic metres of sand and silt off Taiaroa Head. Port Otago will soon apply for resource consent to widen the Otago Harbour shipping channel and dump 7.2 million cubic metres of dredge material 6.5km out to sea.

The Port Chalmers Fishermen’s Co-operative fears the sand and silt may create a “dead zone” along the coast, threatening fishing stocks and their income.

Read more

Related posts:
21.2.10 So where’s the media explosion?
26.2.10 Latest on Dunedin’s offshore oil and gas prospects
26.2.10 Port Otago: “Next generation” project
11.3.10 ORC: Ports merger only approved if it benefits Otago
18.3.10 Dunedin harbourside for oil base?

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The interesting thing is, aside from port merger politics, a number of New Zealand’s major ports are dredging their channels in anticipation of larger container vessels.

Did the ports’ boards stop to ask the shipping line(s) ‘What size of boats are you planning to send us?’ So we, the port companies, can reliably assess if we need to fund expensive consenting processes and dredging?

Sometimes, the ports’ suit brigades aren’t up to managing their way out of a paper bag? That’s not the right question, or is it. After all, this is a matter of regional-national logistics and planning for sustainable business development in New Zealand.

Bottom line: port activity must be coordinated and quality controlled for the service and development of the national export economy as much as the global shipping trade.

The ports falling into into ad hoc, reactionary localised practice; attempting to do things on the cheap; not attending to maritime safety; not upskilling and training the workforce; failing to coordinate the spread of risk across our major deepwater facilities and access points; not inviting new business partnerships and supplier relationships; and so on – is not about promoting and building an efficient, flexible and sustainable freighting base for New Zealand producers.

Why encourage container traffic through the port of Lyttelton if their cranes are unsuitably old and clunky (showing the lack of major investment in that port company’s infrastructure)?

Why send (larger?) container ships to Port Otago if there’s no harbour master to oversee maritime safety? Why would we think to promote Dunedin as an oil base without a harbour master? (Hello, Otago Regional Council, owner of Port Otago Ltd, are you going to manage your responsibilities to the marine environment anytime soon? …An international vessel grounds in Otago Harbour, we haven’t systems and accountabilities in place to manage spillage and contamination – the boat’s full of high value Fonterra milk powder immediately due to China processing plants – we’ve f***ed the supply chain. Who doesn’t get their money, who is liable?)

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Knowing and managing risks and liabilities going forward through close modelling, system analysis and quality control of New Zealand supply chains, industry processing, freight handling and haulage, transportation planning, trade diplomacy, incentive systems, international gateway ports and airports – amongst other factors – is ESSENTIAL to growing the export economy.

Not too many people know how the ports operate. We assume all the systems and risks are being professionally managed by the port companies, according to statutory requirements.

The truth is – leaving statutory responsibilities aside for a moment (by the way, it’s not all tip-top with these) – each port has been crawling along, instituting its own limited management and operating systems. A power of work at every level is urgently needed to bring industry consistency to the safe management and competitiveness of our New Zealand ports.

Why allow a bunch of ‘sailors’ (many of them accountants with no wider training or expertise), dressed as port executives, to run New Zealand port infrastructure like they know what they’re doing. They don’t.

The ports’ middle management tiers are gripped by the heavy overwhelming reality of historical cumulative logistical weakness in the New Zealand port industry.

All up, ports’ management is not well organised – or sufficiently well skilled and educated – for the practical, hardnosed ‘change management’ required in the national port sector.

The port boards and bosses are under par as strategists. Let the blood-letting begin.

Post by Elizabeth Kerr

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Filed under Stadiums

ORC: Ports merger only approved if it benefits Otago

It would be wrong not to consult the port’s owners, the ratepayers, over merging with another port.

### ODT Online Thu, 11 Mar 2010
Public consultation over merger of ports
By Eileen Goodwin
Otago Regional councillors yesterday voted to consult the public over a possible merger between Port Otago and Lyttelton Port, despite deeming such a move to be insignificant. Port Otago is expected to make a formal recommendation on a merger proposal to the regional council this year.
Read more

Other stories:
Cairns gets in ahead of criticism
ORC toughens consents stance

Posted by Elizabeth Kerr

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Filed under Economics, Geography, Politics, Project management

D Scene maintains stadium construction cost is $198 million

### D Scene 10-3-10
Perilous seas (front cover)
Dunedin surfers are concerned debris dumped at St Clair beach will seriously injure someone riding the waves at the popular location. See page 3.
#bookmark

Editorial: Have your say on how your money is spent (page 2)
[excerpt] Dunedin City Council has just put out its draft annual plan for how to spend your ratepayer’s money for consultation.
{continues} #bookmark

Esplanade ‘falling to pieces’ (page 3)
By Wilma McCorkindale
A St Clair Beach surfie claims the popular recreation area is a neglected danger zone. A regular surfer at the beach for the past 30 years Mark Stevenson said he had twice succumbed to “dangerous” sharp bits of steel protruding out of the sand and among rocks at the St Clair Esplanade. He believed the steel scraps had been discarded by tradesmen working on the site, and the council should be ordering them to pick up the scrap.
{continues} #bookmark

Register to read D Scene online at http://fairfaxmedia.newspaperdirect.com/

Topping if off (page 6)
Dunedin Mayor Peter Chin tightens bolts on work at the city’s multi-million dollar stadium. The Mayor’s picture opportunity at the stadium site marked work starting on the first of two steel columns that will support the stadium roof.
The stadium construction cost is currently $198 million.
{continues} #bookmark

Zone change will ‘cost jobs’ (page 8)
By Wilma McCorkindale
Otago Chamber of Commerce had made a scathing attack on Dunedin City Council’s proposed harbourside [plan] change 7. “Plain and simple, it’s going to cost the city jobs,” chamber chief John Christie said. “The city council’s own advice, in its own reports, indicated this will cost the city jobs.”
{continues} #bookmark

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Talk: Dunedin on Dunedin (page 10)
Your say
GST on Stadium costs by ID Fincham, Mornington
Dunedin City Council finance and corporate support general manager Athol Stephens replies. #bookmark

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Strong business case for potential Port merger (page 25)
By Alan Wood
A confidential report says “there is a strong business case” for a potential merger between Port Otago and Lyttelton Port of Christchurch, with one of the port owners saying a joining could happen by December. The Otago Regional Council, the owner of Port Otago, is in principle in favour of a port merger with Lyttelton Port of Christchurch though it says further discussions are needed before any merger proceeds.
{continues} #bookmark

Post by Elizabeth Kerr

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