Business North July 2024

| 3 “The trends in international shipping are really, really positive in the sense that what we can see in the future is greater scope for coastal shipping.” SHIPPING INDUSTRY New Zealand Shipping Federation T T Hugh de Lacy Positive outlook for coastal shipping Domestic coastal shipping operators include bulk carriers and container vessels. Two big-picture developments over the next decade are giving coastal shipping a “highly positive” outlook, the Executive Director of the New Zealand Shipping Federation, John Harbord, says. “There’s a period to navigate over the next few years, but if you look at the trends in international shipping you can see a significantly increasing role for coastal shipping in the country’s transport delivery. “Probably 99% of our imports and exports come into or go out of the country by container ships operated by the global shipping lines, and what’s happening there is that ships are being built over the next ten years that will be twice the size of the ones now coming to New Zealand. “When they get here they’ll be stopping at fewer ports because most of our ports are too small and shallow to accommodate them. “That will create increased demand for receiving our key imports and moving them to other parts of the country. “The trends in international shipping are really, really positive in the sense that what we can see in the future is greater scope for coastal shipping,” John says. The NZ Shipping Federation is the industry body representing domestic coastal shipping operators, including bulk carriers and container vessels, the Cook Strait ferries and the Chatham Islands Shipping company. John believes that the trend towards ever-bigger vessels could provide another opportunity for our coastal shipping operators should the big global companies decide New Zealand is just too far away, and start off-loading their New Zealand-bound cargo at eastern Australian ports. “During the Covid pandemic, international shipping companies considered reducing or even curtailing services to Australia, on the basis that Australia was seen as a small, remote market, so the likelihood of reduced services to New Zealand over timer is a real possibility. “So there’s this potential scenario where you need more ships for sailing the coast that can also do a quick trans-Tasman trip to pick up cargo,” he says. Over-shadowing the international transport issues is that of global warming, a major factor spurring the building of bigger cargo ships because, compared to road and rail transport, shipping is vastly less damaging to the environment. John says that while road transport emits 5.5 units of pollutant per tonne of cargo, and rail between 1.8 and 2 units, shipping emits only one unit per tonne. Its low emissions notwithstanding, coastal shipping presently moves just 3.5% of New Zealand’s total freight. “With the Ministry of Transport forecasting total freight volumes will increase 55% between 2012 and 2042, John sees opportunity. “We simply cannot put all that increased freight on our roads without considerable congestion and expenditure on road maintenance from so many additional trucks. “There is scope for coastal shipping to pick up a larger slice of this growing pie.” John says the National-led Government has been receptive to the federation’s submissions on what is needed to increase the amount of freight moved by coastal ships. Government coalition partner New Zealand First has been “very supportive”, John says, and has been pushing the other coalition partners “to invest in community and supply-chain resilience” by such means as introducing an apprenticeship-style seafarers competency-based training system, progressing the investigation into a dry dock at Northport, and developing a strategy for transitioning coastal shipping to alternate fuels. Get your maritime ticket NMIT provides over 40 IMINZ* programmes and short courses LQ ȴVKLQJ PDULWLPH WUDQVSRUW DQG WRXULVP DOO DLPHG DW KHOSLQJ VWXGHQWV enter or advance in the maritime industry with MNZ accreditation. *International Maritime Institute of New Zealand nmit.ac.nz/maritime APPLY NOW 027 683 8983 www.nzsf.org.nz The key representative body for New Zealand’s coastal ship operators for over 100 years. New Zealand Shipping Federation P.O. Box 9183, Christchurch 8024 New Zealand Telephone: 03 961 1487 www.coastalbulkshipping.co.nz Email: craig@coastalbulkshipping.co.nz

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