Exporters turn to Tauranga

The Port of Tauranga is welcoming a report from the New Zealand Shippers' Council calling for it to become New Zealand's North Island hub port.
The council is an association of major New Zealand-based cargo owners - both importers and exporters accounting for more than half of New Zealand's total annual exports.



In its report released on Wednesday, the council says Port of Tauranga is the logical choice to be the first to make the investment to accommodate larger ships that are becoming the trend in international shipping. These are ships with capacity to carry 7000 20ft equivalent units (containers).
The report also states Port of Tauranga is the only North Island port capable of making the required investment and has already costed capital plans to become 7000 TEU ship capable.
The report says information provided by Ports of Auckland suggests it only has plans to accommodate 6000 TEU ships in the foreseeable future.
Port of Tauranga's investment to become 7000 TEU ship capable is NZ $50-80 million, compared with $200 million for Auckland to have comparable capability.
Ports of Auckland is also hampered by a politicised decision making process because it is owned 100 per cent by Auckland local government, through Auckland Regional Holdings.
The Shippers' Council says urgently required port investment decisions in Auckland are likely to be stalled by political issues, including uncertainties and debate surrounding the establishment of the Auckland super city. The Shippers' Council is not confident Port of Auckland is able to become 7000 TEU ship capable within five years.
Port of Tauranga is awaiting the Minister of Conservation's granting of a resource consent to dredge the harbour to handle ships with 14.6 metres draught at high and low tides. Ports of Auckland has yet to apply for the required resource consent to further dredge its channel.
The Shippers' Council report says Port of Tauranga provides an efficient alternative to the Ports of Auckland for Auckland-bound imports via its inland port at South Auckland.
"It is time for New Zealand to make some tough decisions on infrastructure investment to ensure that our exporters remain competitive globally," says Port of Tauranga chief executive Mark Cairns.
"We congratulate the Shippers Council on their analysis and recommendations, which gives the sector a robust, objective report on which to base future discussion and investment decision-making about the supply chain.
"The Port of Tauranga has superb infrastructure, both road and rail access, a strategic land bank, the best productivity in Australasia, as measured by the Australian Productivity Commission, a strong balance sheet and is located at the heart of the New Zealand export and import belt."
The Port of Tauranga Ltd has sufficient balance sheet capacity to invest in the necessary infrastructure without taking on additional debt, says Mark.
"We have board approval to commence the first stage of the dredging project as soon as we have resolved the appeals."
According to Statistics New Zealand, Tauranga handled around 80 per cent more international cargo than its nearest competitor, up from 56 per cent last year and three times the volume of exports.

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