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NZ's Port Nelson records steady growth with wide cargo mix

PORT Nelson has progressively developed its own unique position among New Zealand's ports despite its relatively shallow draft of 7.6 metres during low tide and lack of rail network.

It has attracted a spread of local core base cargoes and is interested in developing its offshore business, reported UK's Port Strategy.

Located in the northern end of the South Island, the port has handled a steady 2.6 million-2.8 million tonnes of 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 ?i.e. 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."

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 83,380 TEU currently.

"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," said Mr Byrne.

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.

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.

With his business having recently returned an annual net profit of NZD7.1 million (US$6.02 million) on revenue of NZD39.6 million, Mr Byrne is predicting an on-going "steady" outlook for the business.

However, he said the expected on-going increase in the size of liner vessel callers will remain an "on-going challenge."