Freight and logistics management company Kotahi and New Zealand’s freight gateway Port of Tauranga have struck a strategic ten-year freight alliance.
This, along with a separate long-term agreement between Kotahi and Maersk Line, will deliver a ‘step-change’ for New Zealand’s $83.3bn international trade sector.
“New Zealand doesn’t have a big ship capable port, and now is the right time for key players to work together to build a capability within New Zealand to receive these large vessels with all the efficiencies they will bring to New Zealand.
These ships will ensure New Zealand does not become a spoke to the larger hubs across the Tasman, which would add 7-10 days to export transit times,” Kotahi Chief Executive Chris Greenough said.
The new arrangements are founded on the following:
• Kotahi has committed to provide up to 1.8 million TEU export cargo containers to the Port of Tauranga over the next 10 years, commencing August 1, 2014;
• Kotahi has committed significant export cargo to Timaru Container Terminal (TCTS), for the next 10 years commencing August 1, 2014;
• The Port of Tauranga has committed to investment in infrastructure to enable visits from the larger 6,500 TEU container ships within the next few years;
• Port of Tauranga will, subject to certain conditions, issue shares to Kotahi and Kotahi will take a stake in TCTS; and
• Kotahi has committed to provide up to 2.5 million TEU export cargo containers to Maersk Line for the next 10 years, commencing August 1, 2014.
Port of Tauranga Chief Executive Mark Cairns said: “The agreement with Kotahi will be immediately earnings accretive for Port of Tauranga and will transform the New Zealand supply chain.
“The cargo commitments give Port of Tauranga the certainty to proceed with the infrastructure to accommodate the 6,500 TEU ships. This will in turn spur the development of New Zealand’s coastal shipping industry as freight consolidates on Port of Tauranga as a hub port for the country.”
Maersk Line New Zealand Managing Director Gerard Morrison said: “Maersk Line has committed to introducing a new 4,500 TEU service from October 2014, to Tanjung Pelepas in Malaysia, to provide additional capacity, and complement, the current Northern Star and Southern Star services.
We now have a clear path to work on the introduction of Maersk Line’s 6,500 TEU vessels to New Zealand.
These ships are significantly more fuel efficient on a per-container basis and will reduce the carbon footprint of the ocean freight component of New Zealand exports by approximately 22% per container unit, compared to the existing New Zealand industry average.”
Press Release; June 26, 2014