Strategic Alliance for Ports of Auckland and Napier Port

3 August 2016
Media Release
Ports of Auckland and Napier Port announce strategic alliance

Ports of Auckland Limited and Napier Port today announced a strategic alliance which will provide operational, economic, sustainability and community benefits.

“Ports of Auckland and Napier Port are the gateways to two of the largest North Island provincial economies with significant growth and demands on infrastructure,” says Ports of Auckland Chief Executive, Tony Gibson.

The partnership will allow Napier and Auckland to work together to find ways to optimise services for freight customers and achieve further scale and efficiencies in the supply chain. It will prompt even greater competitive contestability and resilience in New Zealand’s supply chain to help lower costs to exporters and importers.

“There is a natural fit between Ports of Auckland and Napier Port. We share a similar way of working, common customers and supply chain opportunities and have similar ownership structures so that’s a great base to work from,” he added.

Napier Port Chief Executive, Garth Cowie, says the alliance also creates an opportunity to collaborate, share best practice and innovate in technology, health and safety and sustainability practices, areas where both ports are seeking to advance further.

“Napier Port’s vision is to be Central New Zealand’s leading provider of port and logistics solutions. This alliance fits with the natural flow of freight in the North Island, based on ports close to demand centres and Auckland’s weighting towards imports and our strong export base.”

“Both operators are committed to growing our talent so we will be developing a joint talent pool, driving skills development and opportunities like staff exchanges where it makes sense,” he added.

“The alliance is a significant and exciting development for local exporters and the local community,” says Mr Cowie. “Better international freight links will benefit the Hawke’s Bay region, encouraging additional investment and supporting the growth of local employment opportunities.”

“This alliance truly demonstrates what we believe in at ExportNZ, that businesses should consider partnerships and collaboration in order to achieve better results,” said Amanda Liddle, Executive Officer at ExportNZ Hawke’s Bay. “It is a win-win situation for all exporters, as it will lead to an even more streamlined approach.”

The strategic alliance builds on Napier Port and Ports of Auckland’s existing joint venture in Palmerston North’s Longburn regional freight hub and will support Ports of Auckland’s regional freight hub network strategy to manage the growing freight market. This strategy helps to balance freight flows, provides exporters with choice, improves access to overseas markets and reduces exporters’ costs due to supply chain efficiencies.

Today’s development complements the Matariki – Hawke’s Bay Economic Development Strategy $25 million Government package announced last week to support road access improvements to Napier Port.

ENDS

NOTES:

Ports of Auckland Limited

Ports of Auckland Ltd has been playing a vital role in the Auckland economy for 175 years, delivering things Aucklanders and New Zealand need and enjoy. It is part of the special character of Auckland.

It is New Zealand’s import hub and New Zealand’s largest and most productive container port, handling nearly 1 million containers a year.

According to the most recent Ministry of Transport container handling productivity statistics, Ports of Auckland ranks highest on all measures, and in June 2016, Ports of Auckland was named Best Seaport in Oceania at the Asian Freight, Logistics and Supply Chain Awards.

In the 2014/15 financial year Ports of Auckland also handled 5.9m tonnes of non-containerised cargo, including 243,000 cars.

It is also New Zealand’s premier cruise port. The Port handles around 90 cruise ships annually and each ship visit is worth about $1.5m to the local economy.

Ports of Auckland is 100%-owned by Auckland Council Investments Ltd and serves Auckland’s growth. In the 2014/15 financial year its annual dividend to the city was worth the equivalent of almost 3.75% of the average Auckland residential rates bill, or $88 per household.

Napier Port

Further information about Napier Port
· Napier Port has been at the heart of Hawke’s Bay’s economy since 1886.

· Napier Port has become the Central North Island’s leading international port and Hawke’s Bay’s gateway to the world.

· Napier Port is a crucial part of the wider region’s infrastructure and export economy, with 14 different international container lines operating through the port.

· Napier Port processed over 4 million tonnes of cargo in 2015, including more than 250,000 TEU containers and 1.1 million tonnes of logs.

· In 2015, Napier Port directly generated 526 jobs in Hawke’s Bay and another 27,171 through stevedoring, cruise ship and exporter activity.

· With export demand climbing steadily, Napier Port is currently planning to develop a new wharf to accommodate larger ships and cargo demand.

ends

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