The South Island’s gateway port, while not back to pre-covid business, is positioned well to meet the long-term needs of both import and export clients.
Lyttelton Port Company (LPC) chief customer and supply chain officer Simon Munt told a recent seed industry forum “everything is not rosy but improved”.
“We are the hub and spoke and the future of the shipping industry, we are focused on the future and developing the port, as the main port in the South Island, very much around that export hub.
“We are well positioned to meet the long-term needs.”
In 2023 LPC completed a three-year, $100 million eastern development project that has expanded the port’s eastern footprint by another paved 5 hectares to support the container trade.
“This included four new ship-to-shore cranes, a new fit-for-purpose maintenance workshop and lifted annual capacity from 500,000 to 620,000 TEUs [20-foot containers].”
Opportunities going forward for the Lyttelton container terminal include the development of 34ha of reclaimed land, new container vessel berths and a new, 700m wharf.
“LPC is in the unique position to have got all the resource consents we need going forward into the next 40-odd years. This will set up New Zealand, and certainly the South Island very well in the future,” Munt said.
“This is massive investment for NZ in the port sector. This needs to happen in at the Tauranga Port too, to ensure a secure and safe supply chain.”
LPC has opportunities to develop as volume increases, investing heavily in its Midland Port near Rolleston.
“We need off-port facilities to feed the port and we are encouraged and excited by investments such as Ashburton [Fairfield Freight Hub] bringing greater value and volume through our port.”
“We do a significant volume of arable seed and grain but we can do a lot more.
“While global shipping challenges continue, we are in a far better position than we were to continue to invest in the future.”
Mediterranean Shipping Company (MSC) southern regional manager Peter Andre told the seed industry forum that despite the challenges, global demand is tracking well.
Demand is growing above expectations with first quarter 2024 seeing the fastest growth in 11 quarters with world throughput to grow 4.1% in 2024.
“World throughput and loaded volumes have been tracking above prior expectations with the latter rising nearly 10% year on year in 1Q24 marking the most robust growth since the pandemic.”
This is despite the impact on shipping from the Suez Canal diversion.
“Developments there over the past two months have forced a deep rethink of all our key forecasts for the container market.
“MSC is announcing the reshuffle of its Asia-Oceania network aiming at offering customers operating in China, southeast Asia and Oceania fast and reliable services to respond to their needs.
“The Wallaby service will be enhanced and reinstated as a standalone service offering faster and more direct connections between Australia, NZ and North Asia.
“The revised rotation will provide a comprehensive coverage of NZ ports, including Bluff and a seamless connection to our global network via our main hubs in Hong Kong, Yantian, Shanghai and Ningbo.”
The first rotational sailing is due to depart Hong Kong on August 19.
“Everybody wants NZ product; there is good demand for meat, seeds, fruit and timber; there is good demand in the market of people wanting these stuffs so we have got to be mindful of connection to global hubs.
“We have got to get that product to market,” Andre said.
