Blessed with a spread of local core base cargoes and, ironically, isolation from the rail network but challenged by an inner-harbour low-tide draught of just 7.6 metres, Port Nelson has progressively developed its own unique position in the New Zealand port scene.
Located in the ‘V’ of the northern end of the South Island, the port has handled a steady 2.6m-2.8m tonnes’ annual throughput over the past five years. This volume has largely been based on logs, sawn timber/MDF, fuel, apples, wine and motor vehicles with Nelson also understood to be the largest fishing port in Australasia.
That range of readily-available cargo commodities is one of the main strengths of the business, according to chief executive Martin Byrne.
“We are not, for example, heavily reliant on one product – ie, dairy – as is the case in a number of other regional ports,” he told Port Strategy.
“We have good volumes of reefer cargo including fish and apples which are of real interest to liner operators.”
Rail result
Being the only major port in the country without rail access – there having been no rail in the region since about the mid-1950s – also plays in Nelson’s favour with its wharves serving as the logical exit point for the bulk of the region’s export cargo.
Strategically, the port has both progressively carved itself a niche as a feeder operation while also aligning with those mainline services that deploy vessels able to accommodate its shallow draught.
Combined with the containerisation of traditional cargoes, the port’s annual container throughput has more than doubled over the past decade to currently reside at 83,380 teu.
“This has presented some challenges in terms of yard layout, mobile plant requirements and overall operational space requirements.
“There has also been significant growth in our container packing/unpacking operation, Quaypack, and greater interest from parties in us providing warehousing facilities,” says Mr Byrne.
Box bounty
Currently hosting weekly container calls from both Mediterranean Shipping Company and Maersk Line, weekly coastal visits from the domestic operator Pacifica Shipping and fortnightly calls on Swire Shipping’s trans-Tasman schedules, the port has largely maintained service consistency.
“The last major service change was some three to four years ago when the Pacific International Lines/Malaysia International Shipping Corporation service went to larger vessels that could not call here due to draught restrictions.
“But in general we have done well to retain services and a number of lines use the Pacifica East Coast service to feeder via Tauranga in addition to the lines that direct call.”
Supplementing its shipping trades, Port Nelson offers regular marine services – including pilotage services, tugs and linesmen – and provides tailored divisional operations.
“Our stevedoring arm, Tasman Bay Stevedoring, carries out around 60% of the stevedoring in the port including containers, logs, conventional fruit vessels and car vessels. Tasman Bay Stevedoring is held in very high regard and aside from stevedoring in Nelson we also carry out log stevedoring in Picton and provide staff to a number of operators in ports such as Napier, Lyttelton and Dunedin.
“On top of that, Quaypack handles around 10,000 units per annum including MDF, sawn timber and wine etc, our empty container depot [Quay MT] operates a yard and there is also a third-party repairer on site.”
Looking offshore
Mr Byrne says the offshore oil industry is another area of growing promise.
“The recent highly successful visit of the FPS Raroa for repairs is a good example of the potential offered in Nelson around safe calm berthage facilities and strong infrastructure around marine engineering and other key services critical to the offshore industry.”
The port’s current investment programme is focused on the replacement of such mobile plant as full and empty container handlers, as well as the upgrading of storage areas and pavements within the terminal.
“We have a large property holding and are currently looking at a number of upgrades and newbuild developments for a number of tenants. Interest in warehousing and distribution type facilities is also increasing and presents some exciting options for us.”
With his business having recently returned an annual net profit after tax of NZ$7.1m and revenue of NZ$39.6m, Mr Byrne is predicting an ongoing “steady” outlook for the business. Albeit, he says the expected ongoing increase in the size of liner vessel callers will remain an “ongoing challenge”.
“But the lack of any rail link makes movement by sea the continued logical option, whether that be direct to overseas or through another New Zealand transhipment port.
“We continue to talk to vessel operators and to work with local importers/exporters to try and encourage as many realistic options as possible.”
