Auckland box depots’ space shortage
A serious container depot space shortage has developed in Auckland driven by a larger-than-expected build-up of import boxes leading into the festive season, constraints on normal export and domestic flows from Auckland and progressive reduction in depot operators.
ContainerCo managing director Ken Harris reported that several of his firm’s depots are now “consistently” operating at over 110% of capacity.
“The back story is that depot businesses have worked very hard to minimise the impact of runaway land costs in Auckland by focusing on asset utilisation — this in turn reduces the buffer capacity available to manage peaks and troughs,” he said.
Added Pinnacle Corporation director Grant Tregurtha: “There is simply not enough depot space left in Auckland to accommodate not only the generic growth of empty volumes but also any spike in demand or event that may cause demand to increase sharply without corresponding outflows of empties.”
Noting the “multiple challenges” involved in redressing the situation, the stakeholders expressed concern the issue will be an ongoing one during peak periods for years to come.
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