Ports of Auckland welcomes new shipping sector

MEDIA RELEASE
4 November 2008 - for immediate release

Ports of Auckland welcomes new coastal shipping service

The launch of Pacifica Shipping’s new coastal shipping service has been welcomed by Ports of Auckland Managing Director Jens Madsen.

The 700-TEU container ship the ‘Spirit of Endurance’ will move around 1,000 containers each week between Auckland, Tauranga, Canterbury and Otago.

“We hope this will be the first of many new coastal services for New Zealand,” Mr Madsen said.

“Ports of Auckland is a strong supporter of the Government’s SeaChange Strategy to lift domestic sea freight capacity.

“Increased coastal shipping will help take pressure off the nation’s roads and create a more robust, resilient supply chain.

“Coastal shipping creates significant supply chain efficiencies by giving the major shipping lines more options for moving cargo around New Zealand. This is good news for New Zealand’s importers and exporters.

“Over the last 12 months, as international shipping services have undergone further consolidation, we have seen even more increases in trans-shipment or ‘hubbing’ at Ports of Auckland,” said Mr Madsen.

“We expect this trend to hubbing to intensify as a result of the new supply chain options provided by coastal shipping.

“With the international shipping lines using larger and larger vessels, and visiting fewer ports, there is an emerging gap in the market for cargo feeder networks.”

Mr Madsen said coastal shipping also has an important role to play in meeting the projected growth in demand for freight transport across New Zealand.

“The September 2008 Freight Study estimated that New Zealand’s ‘freight task’ would increase by 70-75% over the next 25 years.

“Moving goods by sea is more environmentally friendly and efficient than taking them by road or rail. There is a great opportunity for the coastal shipping sector to meet future growth – and to do so in a clean, green and cost-effective way.”

Trans-shipments – where cargo is loaded from one ship to another – have grown more than 150% at Ports of Auckland since 2004/05. Trans-shipment volumes for the September 2008 quarter were up 24% on the same period last year.

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