Port of Tauranga

Further Consolidation of Shipping Lines

Posted on 18th April 2008

The announcement this week of a further round of consolidation by overseas shipping lines serving New Zealand, brings mixed fortunes for the Port of Tauranga.

CMA CGM, the world's third largest shipping line, announced this week that its fortnightly Panama service will drop Auckland in favour of the Port of Tauranga, utilising the Port's inland port, MetroPort, to serve the Auckland market.

This is the second CMA CGM service to move from Auckland to Tauranga this year, with the weekly NEMO service having commenced regular calls in March 2008. CMA CGM has set aggressive targets for market share and believe they are well placed to achieve these by hubbing on Tauranga. The Panama decision adds another 26 vessel calls per annum.

The announcement this week by the NZX shipping consortium to consolidate its current two loop service into one, will, however, result in a loss of import cargo through the Port. The good news is that Port of Tauranga will remain the key export port for the NZX with all upper North Island exports now moving through Tauranga.

Port of Tauranga Chief Executive, Mark Cairns, says "The NZX move is disappointing; however, the decision to consolidate the two loops has meant that it was either a case of Tauranga or Auckland for the import call. Unfortunately, the decision to include both was not possible and the large import volume into Auckland resulting from the consolidation of the two services into one has swayed the NZX decision."

The net result of these changes is a potential annual loss to the Port of around 15,000 containers.

"While consolidation of shipping services is a feature of the industry at present, the Port of Tauranga is recognised as the port with a long term future.

The importers and exporters in the upper North Island continue to have a wide range of services to choose from through this port. We have considerable land holdings, well-established supply chains serving the Auckland and Waikato regions, and the balance sheet capacity to cater for future growth.

We are delighted to welcome the Panama service and very pleased that the NZX remains as a key service, hubbing its export business on Tauranga."

For further details, contact:
Mark Cairns
Chief Executive
Port of Tauranga Limited
Ph: 07 572 8829
www.port-tauranga.co.nz