MSC bring Trans Tasman shipping service to Timaru
The Worlds second largest shipping line, Mediterranean Shipping Company is now calling
at Timaru fortnightly with their container vessel “MSC New Plymouth”. Known as the Trans
Tasman “Butterfly Service", the regular visit to PrimePort Timaru provides a direct link
from Timaru to Sydney and Melbourne. Plus connections are also provided to MSC's global
network through transshipment. The MSC New Plymouth also carries containers on a slot hire
basis for P&O Nedlloyd, ANZDL and Contship Container Lines.
The MSC New Plymouth made her maiden voyage to Timaru in early September discharging a
number of empty containers to service local exporters and loaded a range of dairy
products, fish, wool and general cargo. The Butterfly service is expected to handle approx
4000 twenty foot container equivalents via Timaru per year.

The MSC New Plymouth arrives on her maiden
voyage to PrimePort Timaru
PrimePort Timaru Chief Executive Jeremy Boys said that the new service was a positive
step forward for exporters and importers in the Central South Island region. “It will
provide a further enhancement to the range of shipping options already available in Timaru
plus it will provide local customers with direct inks and short voyage times to the Ports
of Sydney and Melbourne.
The addition of this new service builds on the dramatic business growth achieved at
PrimePort Timaru in the past two years. Mr Boys paid particular tribute to the efforts of
all his staff and was pleased that the new service would create additional employment
opportunities for them. “It has been through the willingness and flexibility of our staff
to accommodate customers needs and provide a high level of customer service that has
enhanced our reputation as the “Can Do” port” he said.
PrimePort Timaru's central location in the heart of a growing and developing
agricultural industry and it's proximity to a wide range of processing and manufacturing
plants is also adding to the attractiveness of Timaru as a key cargo port in the South
Island.
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PrimePort Stevedores John Black & Brent Harris working
a Container vessel
In announcing the past financial years trading results to shareholders at Septembers
Annual General Meeting, Chairman Alistair Betts said that the past year was notable for
the number of milestones achieved by the company.
- Most significantly PrimePort Timaru handled more than one million tonnes of cargo
across it's wharves in a year for the first time in the Port's history.
- Container handling operations recorded a significant increase of 73% on last year to
reach 43,700 TEU's (20 foot container equivalents).
- Ship visits to the Port increased by 10% on the previous year PrimePorts revenue
increased by $2.5 million during the year to reach $13.5 million. Nett profit before tax
reflected these gains with a positive lift of 50% to $1.5 million.
- Shareholders also subscribed a further $4.0 million of equity during the year. This
saw shareholders funds increase to $35 million giving a nett asset backing of $3.53 per
share.
- Completion of $23 million Port development programme Mr Betts announced during the
meeting the retirement of Director Pat Cody and paid tribute to the past work of Mr Cody
in helping guide the Port through troubled times to the successes of recent years.
- Timaru accountant Mr Nigel Gormack was nominated by Timaru District Holdings Limited
to fill the vacant seat on the PrimePort board and was duly elected by the shareholders
at the meeting.
- The future outlook remains bright with Mediterranean Shipping Company commencing
fortnightly visits to Timaru in September.
- Constructruction is well underway on a 24,000 tonne dry dairy products store at South
Beach supported by a strong partnership with dairy giant Fonterra.
- Steady growth expected in cargo volume through the Port mainly driven by expanding
productivity in the agricultural related sector.
Nigel Gormack
Recently appointed
Director of PrimePort
Timaru
“These achievements have undoubtedly been driven by a vibrant agricultural industry in
the Central South Island which has capitalised on the improved range of services we are
now offering at PrimePort Timaru”, said Mr Betts.
In highlighting the operational activities of the year Chief Executive Jeremy Boys
commented “the year in review has been one of tremendous growth at the port, we have
received strong support from our customers and shipping lines Maersk Sealand and Tasman
Orient Line.

Tasman Orient Line are one of the regular
callers at PrimePort Timaru
Our partners in storage, road and rail transport, and other port users such
as the fishing industry have all contributed to a successful year.” This combined with the
focus on quality service demonstrated by our workforce has underpined such growth at the
Port” said Mr. Boys.
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September 2002: Maersk Sealand increases the frequency ocalls to Timaru
from fortnightly to weekly on the Asian/Europeanservice. This provides Central South
Island importers andexporters with a fixed day weekly container service to Maersksglobal
network.
September 2002: The Port unveils an innovative marketing strategy
reflecting the natural competitive advantages of the port and the future cargo growth
potential in the Central South Island. This strategy was spearheaded by the rebranding to
“PrimePort Timaru”.
November 2002: “PrimePort Canterbury,” the inland port container depot
in Middleton Christchurch is launched in conjunction with Tranz Rail. This innovation
offers Christchurch and Canterbury shippers an enhanced range of weekly shipping
options.
January 2003: PrimePort Timaru purchases two new Liebherr 500 mobile
harbour cranes. These are the first and largest cranes of their type to be commissioned at
any port in the world. The arrival of the new cranes also signals the completion of the
$23m upgrade of container handling facilities at the port.
April 2003: Specialist breakbulk and container carrier Tasman Orient
Line realign Asian service schedules making Timaru the direct South Island hub Port with
Northern Asia. Transit time from Timaru to Shanghai is reduced to 18 days with fortnightly
calls in Timaru.
May 2003: PrimePort crane productivity levels continue to increase with
the new Liebherr 500 mobile cranes transferring 57 containers per hour using 2 cranes.
June 2003: PrimePort Timaru handles more than one million tonnes of
cargo for the year for the first time in the ports history. Total cargo tonnage exchanged
during the 2002/03 financial year was 1,180,000 tonnes
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Go back to the 1950's and there was a saying that “New Zealand rode on the sheep's
back!”
Today more than 50 years on it could be said that the country isnow riding on the back
of the Friesian cow. The dairy industryis providing real grunt in the regional economies
of New Zealand along with strong performances from the rest of theagricultural sector
which combined are delivering tangibleeconomic growth and wealth creation for the
nation.
The South Island’s huge growth in dairying has contributed to Fonterra experiencing it
biggest-ever milk flush. The dairy giant reached a nationwide peak flow of more than 70
million litres on October 28 as the nations cow herd hit peak spring production, giving
2.4 million litres per day more than last year.
The Clandeboye site in South Canterbury recorded a peak flow in the last week of
October, of more than nine million litres per day. That flow will add to the expected
production of about 250,000 tonnes of dairy products this season from Clandeboye as the
Central South Island rides the crest of a white wave.

Construction is underway at Clandeboye
on Fonterras new milk powder drier
That growth is set to continue with Fonterra announcing plans to expand its Clandeboye
site with a new milkpowder drier to be operational for the 2004/2005 season. That
expansion will see up to 11 million litres per day of milk processed through
Clandeboye.
Fonterra's Director of Operations, Mr Max Parkin says the expansion is all about
maximising payout to farmers through increasing Fonterra's milkpowder capacity and product
mix flexibility. “The co-operative is earning good returns on milkpowder and this trend is
expected to continue well into the future.”
Mr Parkin says Fonterra considered several locations for expansion, and the Clandeboye
plant was the logical choice. The decision to expand Clandeboye takes advantage of the
existing site scale and leverages the skills of the current staff. “Fonterra's challenge
is to match customer demand with milk supply. Therefore it makes sense that any plant
expansion in New Zealand should take place in the region where milk supply can satisfy the
new drier capacity. Forecasts are showing milk volumes in Canterbury will grow by about 6%
a year over the next five years, which is a perfect match for this drier capacity,” says
Mr Parkin.

The dairy industry is driving
economic growth in the South Island
There are currently 610 dairy farms supplying Clandeboye, with the average size of these
farms being 173 hectares and carrying an average herd of 541 cows. Twenty-six new farms
are supplying Clandeboye this season.
Mr Parkin says new port infrastructure development at PrimePort Timaru also supports
plant expansion at Clandeboye. “Fonterra, in partnership with PrimePort, are currently
building new storage facilities at the Port. This infrastructure will support the
increased volumes of product shipped to overseas customers from the Clandeboye plant,”
says Mr Parkin.
Fonterra estimates approximately 25 local jobs will be created by the expansion at
Clandeyboye. However not only will new job opportunities be created at the Clandeboye
plant but also through the trickle down effect of the on farm development and land use
intensification, right down through the logistics and distribution chains supplying labour
and resources associated with the dairy industry.
“It is this flow on effect into the remainder of the business community that has built
confidence in the local economy” says PrimePort Timaru Chief Executive Jeremy Boys. “South
Canterbury as a region is performing well above the rest of the country for economic
growth, we have an ideal environment for businesses to establish and prosper. We are
excited by the expansion at Clandeboye and value the key partnership which has developed
between ourselves and Fonterra,” said Mr Boys.
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Stage 1 of the Beach Store is taking shape.
Building is underway on PrimePort Timaru's new large-scale dry dairy products store. To
be known as the PrimePort Beach Store, the 15,000m2 building is being built on previously
vacant undeveloped Port land at South Beach. The store will be built in 3 stages of
5000m2 each with stage one due for completion early in the new year. When
finally completed in March 2004 the store will be capable of holding up to 24,000 tonnes
of milk powder products.

Artists impression of the finished store looking
north with the main trunk rail line in foreground
The project is backed by a long-term service contract with Fonterra to accommodate the
volume of milk powder being produced at the nearby Clandeboye dairy plant, one of the
largest dairy manufacturing sites in the world.
Fonterra General Manager Logistics Nigel Jones said the dry store will result in
significant efficiencies for product originating at Clandeboye and is the latest
initiative to result from a strategic review of Fonterra's logistics operation.
“Our strategic relationship with PrimePort Timaru reflects amove to closer long-term
relationships with carefullyselected suppliers.
Nigel Jones
Fonterra General
Manager Logistics
“In the case of PrimePort this relationship is key to delivering the optimal logistics
network capable of handling long-term growth in product volumes,” said Mr Jones. The
announcement supports the $23m investment by the Port over the last two years in major
infrastructure, including a major development in the container terminal, purchase of Port
cranes, and other facilities to create top level service for shipping companies.
The development will also complement the large-scale cargo storage already available at
the Port, including 100,000 tonnes of cold storage.
PrimePort Chief Executive, Jeremy Boys said “This is another tremendous step forward for
the Port and anchors in a real opportunity for further growth with our key partners.”
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PrimePort Timaru experienced considerable growth in its cargo volumes in the 2002/03
year. For the first time in thePort's history over one million tonnes of cargo was
exchanged across the Timaru wharves.
One hundred years ago in 1903, 81251 imperial tons of product (which had an approximate
value of £886,985.00) crossed the wharves from Timaru. Although the product mix had
similar characteristics to what is exported today, product was often in sacks, cases or
crates.
As the population of the area increased during that time smaller freehold blocks of land
were taken up by colonists, and the agricultural industry developed Initially wheat was
exported but as seen in the graph other crops such as oats, barely, peas, beans, grass
seed, clover seed and potatoes were cultivated and have figured largely in the exports
from Timaru. The dairying industry developed more slowly because the district appeared
more suitable for grain and sheep farming. However closer settlement of the land and more
intensive agriculture saw the establishment of co-operative dairy factories. Ironically
100 years on, the region is now a major dairying area.
The construction of a second freezing works at Pareora, equal to the capacity of the
works at Smithfield, was opened in 1903 contributing to the large percentage of frozen
mutton in that year.
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3 cranes a first

Poetry in motion, PrimePorts three cranes
working the Nicoline Maersk
PrimePort Timaru recently operated three mobile cranes for the first time on the load
and discharge of a container vessel. Normally the PrimePort stevedoring team operates two
mobile cranes on Maersk Sealands vessels while working in Port. However due to a high
exchange of over 700 moves a third crane was used to work the Nicoline Maersk during her
visit to Timaru in mid October. PrimePort Timaru Operations Manager Keith Michel said the
operation went extremely smoothly with the Ports two new Liebherr 500 cranes working the
forward hatches and the aft section was worked by the Ports 1200 Liebherr. Since then
PrimePort Timaru has worked further vessels with three cranes ensuring that the fastest
possible vessel turnaround is achieved.
New breakbulk service trialed in Timaru

PrimePort Stevedores loading medium density
fibreboard onto the Shawnee Princess
The arrival of the multipurpose carrier “Shawnee Princess” to Timaru marked the
beginning of a trial period linking the Port with destinations in Australia and the Middle
East. While in Timaru the Shawnee Princess loaded medium density fibreboard and logs
destined for Saudi Arabia before calling Tauranga and Freemantle on her way to the Arabian
Gulf.
Gavin McIntryre of Beacon Chartering the New Zealand agency establishing the new service
explained “that two vessels would be employed in the run to the gulf, providing a visit to
Timaru every 4 - 5 weeks. We are principally offering shippers a breakbulk liner service
between the Arabian Gulf, Australia and New Zealand with two Port calls in New Zealand of
Timaru and Tauranga. We envisage this service will appeal to exporters and importers of a
variety of bulk and breakbulk cargos such as logs, timber products, coal, grain and stock
feeds”.
Timaru farewells a faithful servant

PrimePorts Liebherr 320 crane is loaded onto a
Sea Tow barge bound for a new home in Bluff
PrimePort Timaru recently farewelled their Liebherr 320 Crane which was loaded onto a
Sea Tow barge for a voyage to a new home at Bluff. The Liebherr 320 mobile crane was
purchased new by PrimePort Timaru in 1999 but was traded in earlier this year when the
Port purchased two new Liebherr 500 cranes to service the increasing volume of containers
moving through the Port. PrimePort Timaru Operations Manager Keith Michel said “the 320
has served the port well but the growing container volumes meant an upgrade was necessary
to maintain our productivity levels.” The Port has retained its original mobile crane the
Liebherr 1200 as a back up unit and a third crane option. “The 1200 gives us the
flexibility to operate three cranes per vessel or to work two ships at once”, explained Mr
Michel.
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The PrimePort Pilots brave all conditions to
board ships and safely guide them into Port.
Scaling a moving rope ladder attached to a large container ship in bumpy seas maybe some
peoples idea of a challenge on “Fear Factor”, but for the Marine Division at PrimePort
this is “just another day at the office”.
With the continued growth in container trade at PrimePort Timaru, Pilots Roger Dunn,
Rodger Laycock and Clive Stubbs find themselves completing this task on a frequent basis.
Once aboard they take control and guide these large vessels into the inner harbour. With
the assistance of the Tug Te Maru and Pilot Launch Ohau they manoeuvre vessels measuring
over 200 metres long and weighing in at 30,000 tonnes safely alongside the wharf with
seeming ease.

Peter Hunter & Gordon Hunter undertaking survey
work at PrimePort Timaru
PrimePort Timaru also have the experience of two relieving tugmasters Tony Lister and
Rosie Yeandle the only female Tugmaster in NZ. Vic Gray and Tom Johnston operate the pilot
launch Ohau. The Ohau is multi-purpose in that not only does it take the Pilot out to
board the ship but assists in an axilliary tug capacity.
This skilled team, work on a “rotating basis” 24 hours a day 7 days per week facilitate
the safe arrival and departure of ships in and out of PrimePort's harbour.
Marine Manager Roger Dunn is also the Local Harbourmaster and together with Rodger
Laycock are subcontracted by ECAN to ensure the application of the Regional Council
bylaws.
Hunter Hydrographic Services (HHS)

Part of the PrimePort Marine team L to R Roger
Dunn, Tony Lister, Rodger Laycock, Mike Hogan
Peter Hunter operates Hunter Hydro Services throughout New Zealand and Ports of
Australia as a subsidiary of PrimePort Timaru.
Hunter Hydrographic Services' biggest client is PrimePort itself where Peter is
based.
The surveys are wide ranging and generally include use of a light runabout, GPS, echo
sounder and heave compensator plus electronic systems to provide accurate maps of the
seabed.

The Pelican suction dredge working in the
PrimePort Channel
Recently Peter has completed survey work in the Ports of Oamaru, Gisborne, Marlbourgh,
Lyttleton and Devonport in Tasmania, and along the tail race at Benmore and Clyde
Dams.
Peter is also responsible for the co-ordination and management of the contract dredging
works carried out in the harbour and channel.
Peter can be contacted via the Port or directly at 027 433 9936.
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