Port of Tauranga is announcing a joint venture with Kotahi - the logistics company that has already brought about a 10 per cent increase in dairy cargoes across the wharves.

Coda comprises of four logistics businesses aimed at creating more efficient pathways to and from freight hubs and key New Zealand ports.

Coda is about supplying thousands of containers required for a new generation of container ships.

It is a 50:50 joint venture between Port of Tauranga and Kotahi.

Port of Tauranga contributes the assets of wholly-owned subsidiary Tapper Transport, which includes Priority Logistics, while Kotahi brings the assets of logistics and transport group Dairy Transport Logistics (DTL).

The transactions will be completed May 1, 2015, with Coda led by interim chief executive, Scott Brownlee, previously CEO of DTL.

The business expects to move more than five million metric tonnes per year of containerised and bulk freight.

Kotahi chief executive Chris Greenough says the formation of Coda is the next step in Kotahi and Port of Tauranga's long-term plans to prepare for the introduction of larger ships to New Zealand.

Coda will boost the efficiency of the nationwide supply chain, remove wasted capacity and reduce the costs of consolidating the cargo necessary for big ships.

Chris says: 'The recently released Ministry of Transport Future Freight Scenarios report highlights that New Zealand faces costly inefficiencies in the domestic supply chain.

'These inefficiencies need to be addressed, and it will only be through players in the industry working together that sustainable cost savings can be achieved.

Coda interim CEO Scott Brownlee.

'The establishment of Coda supports the agreement announced in June 2014 between Kotahi and Port of Tauranga, to commit specified volumes of freight until 2024 as part of the pathway to introducing large ship visits to New Zealand.”

Port of Tauranga chief executive Mark Cairns say the new partnership is the logical extension of the June container volume agreement.

'Coda will deliver significant efficiencies across the supply chain by driving the consolidation of traffic and improving connectivity between freight hubs across the country,” says Mark.

'As a direct result, we expect the agreement to be attractive to a wide range of import/export and domestic customers and to support growth in container volumes through Port of Tauranga's freight handling facilities.”

Coda interim CEO Scott Brownlee says the ability to bring together the right skills, infrastructure and breadth of customers will allow Coda to support the arrival of larger ships to New Zealand.

'We're opening up local, regional and international pathways for everyone to share in the benefits,” says Scott.

'Currently, the nationwide logistics network carries a lot of ‘air'. Coda will optimise freight flows and better co-ordinate freight movements in New Zealand's hinterland logistics network.

'Connecting cargo flows into one network system will greatly reduce the number of empty vehicles, containers and ships travelling around the country.”