take a look at our future... 2009

TAKE A LOOK AT OUR FUTURE...
2009
NEW ZEALAND’S
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NEW ZEALAND’S CARGO
GATEWAY TO THE WORLD
SEE STORY PAGE 2
Photo shows potential expansion of Port of Tauranga’s infrastructure
CO N TEN TS
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NE W Z E A L A N D ’ S G ATEWAY TO TH E WO RL D
EX PA N DA B L E CA PACIT Y - G ROW ING W ITH TH E FU TU RE
A N E W C L ASS O F V ESS EL S IZE IS O N O U R RA DA R
OU R V IS I O N
I N TE R N ATI O N A L CA RG O B Y PO RT
OU R C U STO M E R S
M E TR O PO RT R A I L CA PAC IT Y
L A N D UTIL ISATI O N
CO N TA I N E R TE R M I N A L FU TU RE DEVELO PMENT
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A NEW CLASS OF VESSEL
SIZE IS ON OUR RADAR
SEE STORY PAGE 6
EXPANDABLE
CAPACITY - GROWING
WITH THE FUTURE
SEE STORY PAGE 4
NEW ZEALAND’S
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P ORT FO R T HE FUT URE - NE W ZE AL AND’S CARGO GATE WAY TO THE WO R L D
NEW ZEALAND’S CARGO
GATEWAY TO THE WORLD
NORTHPORT
METROPORT
AUCKLAND
PORT OF TAURANGA
PORT OF TAURANGA IS THE
NATURAL GATEWAY TO AND FROM
INTERNATIONAL MARKETS FOR MANY
OF NEW ZEALAND’S BUSINESSES.
OUR LOCATION IS CENTRAL TO KEY
EXPORT COMMODITY SOURCES, AND
WE HAVE DIRECT AND DEDICATED
ACCESS TO NEW ZEALAND’S
LARGEST IMPORT MARKET.
With an annual cargo
throughput of more than
13 million tonnes, Port of
Tauranga is New Zealand’s
largest port.
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PO RT FO R THE FUTUR E - NEW ZEA L A ND’S CA R G O G ATEWAY TO THE WO RL D
PORT OF TAURANGA IS NEW ZEALAND’S PORT FOR THE FUTURE. WE HAVE
THE LOCATION, THE STRATEGIC PARTNERSHIPS WITH OUR CUSTOMERS
AND SUPPLIERS, THE CAPACITY TO EXPAND OUR INFRASTRUCTURE, AND
UNRIVALLED SEA, ROAD AND RAIL CONNECTIONS.
IN THE FUTURE, UP TO
650,000 TEUS EACH
WAY PER ANNUM
CAN BE RAILED VIA
THE TAURANGA TO
AUCKLAND RAIL LINK
METROPORT
increased our capacity to handle
conditions and growing commodity
MetroPort offers direct rail
expanding volumes of forest
demand. The company works
access from Tauranga to the
product exports, as well as growth
closely with customers to manage
Auckland consumer market. This
in manufacturing and other export
future needs.
dedicated rail link, operated by
sectors.
KiwiRail, bypasses Auckland’s heavily
With 50 hectares of available land,
congested roads. In the future, this
Northport is well positioned for
rail link will give Port of Tauranga
further growth. The proposed
the ability to handle up to 12 trains
designation of a Northland rail
of 150 TEUs (twenty foot equivalent
corridor presents numerous new
units) per day each way.
opportunities.
Efficient turnaround of cargo is
facilitated with state of the art IT
C3 – COMPLETE CARGO CARE
systems determining arrival and
C3 Limited, a strategic partner of
departure times. Qualified staff are
Port of Tauranga, operates in 13
available to assist our customers
ports throughout New Zealand.
around the clock.
C3’s many years of experience in
ROAD AND RAIL LINKS
In addition to investment in increased
capacity on rail connections, the
Port will benefit from improvements
to roading infrastructure in the
Bay of Plenty. The duplication of
the Tauranga harbour bridge and
dedicated motorway access ramps to
the Tauranga Container Terminal will
enable the terminal to expand without
creating bottlenecks.
NORTHPORT
for a range of import and export
Northport, Port of Tauranga’s joint
requirements allows it to take
The Tauranga Eastern Arterial Project
is being fast-tracked and will create
a four lane motorway bypassing Te
Puke. This will significantly reduce
travel time and transportation costs
venture at Marsden Point, has
advantage of changing industry
to the port from the east.
providing cargo handling solutions
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P ORT FO R T HE FUT URE - EXPANDABLE CAPACIT Y - GROWING W I TH THE FUTUR E
EXPANDABLE CAPACITY GROWING WITH THE FUTURE
Photo shows future planned expansion of the Tauranga Container Terminal
PORT OF TAURANGA IS POISED TO
EXPAND CAPACITY TO ACCOMMODATE
OUR CUSTOMERS’ FUTURE NEEDS, AT A
RELATIVELY LOW COST.
THE ADDITION OF OUR FIFTH LIEBHERR
SHIP-TO-SHORE GANTRY CRANE EQUIPS
THE PORT TO SERVICE LARGER VESSELS
ANTICIPATED IN THE FUTURE.
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PO RT FO R THE FUTUR E - EXPA N DA BL E CA PAC I T Y - G R OW I NG W I TH THE FU T U R E
PORT OF TAURANGA’S KEY STRENGTH LIES IN OUR ABILITY TO GROW TO MEET
CUSTOMER REQUIREMENTS AND MARKET DEMANDS. WE HAVE THE LAND
HOLDINGS TO EXPAND, AND THE INTEGRITY, INNOVATION AND COMMITMENT
TO MEET OUR CUSTOMERS’ FUTURE NEEDS.
WITH RELATIVELY
LOW CAPITAL
EXPENDITURE MORE
THAN ONE MILLION
TEUS PER ANNUM
CAN BE HANDLED
AT THE TAURANGA
CONTAINER TERMINAL
TAURANGA QUAYSIDE
The Port has the ability to
extend the quay length at the
Tauranga Container Terminal
from 600 metres to 1,155
metres as required. Currently
the terminal has 21 hectares
that can be quickly sealed, at
relatively low cost, to become
part of the terminal operation.
With the purchase of additional
gantry cranes and associated
plant, the terminal will be able
to handle more than one million
TEUs per annum without the
need to move to a more intensive
high-stack gantry operation.
The terminal is served by
two rail sidings, which can be
duplicated. With the addition
of rail-mounted gantry cranes,
the terminal will then be able to
handle ten times the volumes
currently moved by rail.
MOUNT MAUNGANUI QUAYSIDE
The current 2,060 metres of
quay length can be extended
to the south by a further 1,000
metres, to handle increased bulk
and liquid cargoes.
LAND ACQUISITIONS
The Port has purchased 13.7
hectares of land since April 2008
to bring total land holdings to
185 hectares. This makes Port of
Tauranga the largest New Zealand
port in terms of land area.
With the increase in forestry
exports, the Port is sealing land
recently acquired and looking to
intensify storage methods to
meet the expected log volumes
of five million tonnes per annum.
The Port also has eight hectares
of vacant land in Totara Street
to cater for the expected
increase in bulk and liquid
cargoes at the Mount Maunganui
wharves.
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P ORT FO R T HE FUT URE - A NE W CL ASS OF V ESSEL SIZE IS ON O UR R A DA R
A NEW CLASS OF VESSEL SIZE
IS ON OUR RADAR
Existing channel deepened
to 16.0m inner & 17.4m outer
Widened channel
No change
THE PORT IS SEEKING
APPROVAL TO DEEPEN
THE CHANNEL FROM 11.7
METRES TO 14.5 METRES
AT LOW WATER.
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PO RT FO R THE FUTUR E - A N EW C L A S S O F V ES S EL S I ZE I S O N O UR RADAR
CARGO SHIPMENTS ARE INCREASING IN SCALE AND PORT OF TAURANGA
IS IDEALLY POSITIONED TO ACCOMMODATE LARGER SHIPS THROUGH OUR
STRONG BALANCE SHEET AND READILY EXPANDABLE INFRASTRUCTURE.
THE DREDGING
APPLICATION
PROVIDES FOR
INCREMENTAL
DREDGING SO
THE PORT CAN
RESPOND TO THE
ANTICIPATED
INCREASE IN SIZE
OF SHIPS
CHANNEL DEEPENING
INCREMENTAL DREDGING
competitiveness of New Zealand’s
Port of Tauranga has applied for
The Port’s dredging application
exporters and provide lower freight
resource consents to widen and
provides for the work to be
costs for imports.
deepen Tauranga harbour’s shipping
carried out in stages to enable
Port of Tauranga is also working
channels to accommodate larger
the Port to respond commercially
with KiwiRail to ensure sufficient rail
vessels.
to the anticipated progressive
capacity to deal with the turnaround
The dredging application to
Environment Bay of Plenty seeks
approval to deepen channels
between 3.1 and 3.3 metres, to
accommodate larger vessels of up
implementation of larger vessels.
The material to be dredged is
predominantly clean sand and
markets are being explored for this
resource.
of larger volumes of cargoes.
The Port’s investment in expanding
our fleet of gantry cranes and
straddle carriers will also ensure
efficient servicing of larger vessels.
to 7,000 TEUs, with a draught of
LARGER SHIPS
Our new Liebherr gantry crane –
14.5 metres and 347 metres length.
Larger ships, both containerised
which has twin-lift capability and is
Ships of this size are expected to
and bulk, will have relatively higher
large enough to service ships up to
dominate shipping services for the
fuel efficiency and lower operating
18 containers wide – increases the
next 15 to 20 years.
costs per unit. This will enhance the
Port’s fleet of gantry cranes to five.
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P ORT FO R T H E FUT URE - OUR VISION
OUR VISION
Photo shows future northern expansion of Tauranga wharves with additional cranes
OUR VISION
To be New Zealand’s preferred cargo gateway
OUR MISSION STATEMENT
Leading through innovation and commitment
OUR VALUES
Integrity, Innovation, Communication, Teamwork
FOR US SOCIAL RESPONSIBILITY IS:
Ensuring our strategic and operational decisions take into account our environmental
responsibilities and the aspirations of our shareholders, the community, and our staff.
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P O RT FO R T HE FU T U RE - I NT E RNAT I O NA L CA RG O B Y PO RT
INTERNATIONAL CARGO BY PORT
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INTERNATIONAL CARGO BY PORT FOR YEAR TO 30 JUNE 2009
(Source: Statistics New Zealand)
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EXPORT
IMPORT
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4
2
WESTPORT
GREYMOUTH
NZ VARIOUS
PICTON
TAHAROA
TIMARU
GISBORNE
NELSON
BLUFF
DUNEDIN
WELLINGTON
NAPIER
NEW PLYMOUTH
LYTTELTON
AUCKLAND
WHANGAREI
0
TAURANGA
MILLIONS OF TONNES
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P ORT FO R T HE FUT URE - OUR CUSTOM ERS
CARTER HOLT HARVEY LODESTAR
Carter Holt Harvey
Lodestar has banked
on Tauranga being its
Port for the Future
through a long-term
operating agreement
signed in early 2009.
The agreement cements the long
and productive relationship between
Carter Holt Harvey (CHH) and Port of
Tauranga, dating back to the 1950s.
CHH Lodestar’s Manager-Integrated
Solutions David Kriel says the
agreement helps create operational
efficiencies for Carter Holt Harvey’s
pulp, paper, cartonboard and wood
product exports from its Central
North Island mills, as well as its
imports of raw materials.
“It allows us to optimise our
integrated supply chain,” says David.
“It has given us an opportunity to
consolidate our Central North Island
volumes.”
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“We believe that the Port of
Tauranga is strategically important,
not only to CHH Lodestar, but to New
Zealand business in general,” he says.
Zealand’s most strategic ports in the
Carter Holt Harvey’s logistics
solutions arm, Lodestar, has leased
key facilities in prime wharf locations
at Mount Maunganui and Sulphur
Point. CHH Lodestar has agreed
to export an annual cargo volume
through the Port. The agreement
also includes the sale to Port of
Tauranga of a leasehold interest in a
2.6 hectare Mount Maunganui wharf
store and 1.8 hectares of freehold
land within the wharf area.
half a dozen sites to one prime
David says the agreement has
removed the transactional nature
of the relationship with the Port and
strengthened a mutually beneficial
strategic partnership.
“We’re a significant user of port
services and we’ve always worked
well together, but the agreement
means that we can get on with
building our businesses,” says
David. “Tauranga will be one of New
future, there’s no doubt about that.”
CHH Lodestar has been able to
consolidate its pulp storage from
position on the wharf with direct
rail access. This consolidation has
allowed CHH to substantially reduce
its pulp warehousing footprint, with
the associated flow-on logistics
benefits.
“At this time of flux in the shipping
world, with services coming and
going, we have put a peg in the sand.
All of our service providers can now
plan around where the majority of
our cargo will exit New Zealand,” says
David.
“Over time, we believe this strategy
and the consolidation of our business
at Tauranga will allow us to become
even leaner, with a sustainable,
logical distribution network. This
will allow CHH Lodestar to deliver
an improved, stable service to our
customers,” he says.
PO RT FO R THE FUTUR E - O UR C USTO M E RS
FONTERRA
Key Port of Tauranga
customer Fonterra,
which controls more
than a third of the
world’s dairy trade,
welcomes the moves to
prepare for the arrival
of bigger ships in New
Zealand waters.
Fonterra’s General Manager Supply
Chain Strategy Nigel Jones says New
Zealand must urgently upgrade port
and transport capacity to improve
productivity and enable bigger ships
to start calling in the next few years.
“The current work that’s under way
at Port of Tauranga in infrastructure
development and planning for
harbour deepening, as well as the
road and rail enhancements in the
wider environment, is exactly what’s
needed,” says Nigel.
“New Zealand has a small economy,
so for economic growth to be
maintained and substantially
developed we need much greater
levels of productivity from our export
sector,” says Nigel.
“If New Zealand is serious about
“If the country is serious about
maintaining and developing its
competitive position in the world
then we must deliver a step
change in the cost to serve of our
international supply chain.”
this as soon as practical – that is, in
He says the required productivity
gains can be delivered through an
integrated supply chain response,
but the challenge is to progress it
with sufficient urgency.
“As soon as practical we need our
logistics infrastructure to develop
the capability to handle big ships,” he
says.
“New Zealand cannot sit back and
see competitor countries benefit
from economies of scale we can only
dream of. We need to influence and
drive change and we need to do it as
quickly as possible.”
Nigel believes New Zealand can gain
$2 to 3 billion per annum across
the wider economy from potential
freight efficiencies.
protecting its trading position in
the world we must move to achieve
three to five years.”
Nigel says experiences overseas
show that it is vital that
the supporting road and rail
infrastructure keeps pace with
port capacity. Bigger ships mean
big container exchanges, he says,
and connectivity bottlenecks are a
threat.
Port of Tauranga and KiwiRail
have achieved significant capacity
increases to the rail connections
between Tauranga and MetroPort.
Roading is being enhanced through
the $255 million Harbour Link project
to improve connections between
Tauranga and Mount Maunganui,
and access to the Port. Public
consultation is also under way on
the planned Tauranga Eastern Link
motorway between Te Maunga and
Paengaroa.
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P ORT FO R T HE FUT URE - OUR CUSTOM ERS
KIWIRAIL
KiwiRail is investing in
rail infrastructure and
rolling stock to ensure
it can meet future
demand from customers
choosing rail.
“Our investment underlines the
Chief Executive Jim Quinn says
KiwiRail is committed to building
capacity where customers see rail
as an efficient option. He says the
Auckland-Tauranga rail corridor,
part of the “Golden Triangle” with
Hamilton, is a good example.
current 106 20 foot equivalent
Up to 32 trains a day run on the line
between Auckland and Tauranga and
the associated forestry products’
line to Kawerau. The cargoes include
containerised dairy exports as well
as steel, coal and forest products.
Jim says projected freight growth
of up to 75% over the next 20 years,
and the prospect of increased
capacity requirements from new
larger ships, will put pressure on
transport corridors.
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importance of major ports to New
Zealand’s economic future,” he says.
Improvements on the Golden Triangle
route will see an increase in the
length of trains serving Tauranga
and MetroPort Auckland from the
containers (TEUs) to 150 TEUs within
the next two years.
KiwiRail is effectively doubling the
capacity of the Hamilton-Tauranga
line by increasing crossing loops.
Jim says two new and two extended
loops will increase capacity from
two trains an hour in each direction
to four trains. One 250 metre
extension near Morrinsville has been
completed and the others will be
finished by early 2011.
He says as well as increasing
capacity, KiwiRail is working on
reliability of the line, much of which
dates back to the 1930s. Before the
end of 2009, new $23 million ballast
maintenance equipment will be
deployed on the national network.
KiwiRail is also introducing 20 new,
more powerful and fuel efficient
locomotives nationally.
In October last year, 60 new
generation wagons were
commissioned for the MetroPort
service, increasing capacity from
two to three 20 foot containers per
wagon, or one 40 foot and one 20
foot container.
Port of Tauranga and KiwiRail have
entered a headroom agreement to
ensure sufficient capacity at the
peak cargo season. The agreement
guarantees availability of up to 12
trains of 150 TEUs per day.
Approximately 40% of imports and
exports through Port of Tauranga
travel on rail.
PO RT FO R THE FUTUR E - M ETR O PO RT R A I L CAPAC IT Y
METROPORT RAIL CAPACITY
TEU DAILY CAPACITY UNDER GROWTH SCENARIOS VIA INCREASED TEU CAPACITY PER TRIP
2000
1800
TEU CAPACITY PER TRIP
1600
1400
1200
1000
800
600
400
200
0
1
2
3
4
5
NUMBER OF TRAINS
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106
117
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126
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132
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10
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GROWTH STAGE 1
GROWTH STAGE 2
GROWTH STAGE 3
• Current daily trains are 2.5
trains per day – with capability
to do four per day.
• New locomotives –
increased pulling power
with the purchase of new
locomotives.
• Additional loops,
redevelopment of terminals
and rolling stock, will be
required.
• Additional loop and
terminal infrastructure
developments to enable
faster transit times and
increased frequency of
trains to seven per day
(Eureka, Tamihana and
Apata).
• Detailed planning required
for optimal route transit
times, terminal and track
infrastructure, and
equipment utilisation.
• Increased TEU from 106 to 117
per train with the lengthening
of the Ruakura and Motomaho
loops, thereby enabling longer
trains.
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150
• Investment in additional
wagons.
• Note: new locomotives,
Eureka and Tamihana,
are already committed
investments – to be
completed late 2010.
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P ORT FO R T HE FUT URE - L AND UTILISATION
LAND UTILISATION
21 ha
8 ha
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PO RT FO R THE FUTUR E - L A ND UTI L ISAT IO N
KEY
Land currently used for port operations
Land available for future development
Future quayside expansion
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P ORT FO R T HE FUT URE - CONTAINER TERM INAL FUTURE DEV E LO PM ENT
CONTAINER TERMINAL FUTURE DEVELOPMENT
METROPORT
GE
RAIL EXCHAN
SIDE 600m
EXISTING QUAY
SIDE 1,155m
FUTURE QUAY
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PO RT FO R THE FUTUR E - CO NTA I NER TER M I N A L FUTUR E DEV ELO P M E N T
KEY
Dry
Reefer
Intermodal
Exchange
Packing
Inspection
Empty
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NEW ZEALAND’S
Port of Tauranga Limited
Sailsbury Avenue, Mount Maunganui, New Zealand
Private Bag 12504, Tauranga Mail Centre, Tauranga 3143
Phone: +64 7 572 8899, Fax: +64 7 572 8800
Internet: www.port-tauranga.co.nz
Email: [email protected]
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