Fostering cross-Strait relations

It is obvious Tauranga is targeting the flow of export containers from the central and southern South Island in its strategic play to enter into an alliance with PrimePort Timaru.

About 80,000 containers annually went through Timaru as recently as five years ago while currently, that figure sits at about 25,000 or less. It is likely Tauranga sees that as just a starting point, with further growth possible by targeting emerging export flows from the immediate hinterland.

A crucial element will be the relay model that will have to be set up. Tauranga will look to lock in some kind of fixed relay offering with a service provider or providers, such as domestic coastal operator Pacifica.

Pacifica is in the throes of being sold to China Navigation, the deep-sea shipping arm of the Swire group, and the conjecture is that Swire sees port rationalisation occurring in New Zealand as a gradual result of larger ship sizes coming to the main container ports.

Only a limited number of ports can accommodate the larger vessels. The reduction in direct port calls will stimulate the demand for coastal feeder activity, Swire believes.

Now Tauranga’s need for a South Island-North Island feeder is an added incentive towards rationalisation.