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EXCHANGE - News and Views From PrimePort Timaru

Container Volumes Continue to Increase

PrimePort Timaru has just recorded one of its busiest periods of shipping ever, highlighted by the introduction of Tasman Orient Lines upgraded North Asian service, and the setting of a new record for the highest number of containers exchanged on a single ship by Maersk Sealand in Timaru.

PrimePort's three mobile container cranes discharged and loaded more than 1000 containers (including empties) on a Maersk ship during a weekly call to Timaru.

PrimePort Timaru Chief Executive Jeremy Boys commented “that while weekly container volumes were continuing to grow steadily, this shipment was certainly a record for the Port”.

Mr Boys said the larger loadings were coinciding with the peak season in South Canterbury for the regions exporters with heavy volumes of dairy products, meat, vegetables and fish coming forward. “We are also receiving high numbers of empty refrigerated containers coming into the Port to service those seasonal exporters”.

Tasman Orient Line have introduced two additional vessels to their North Asian liner service. Tasman Orient Line Chief Executive Ulrich Stelling commented “that in response to the increasing volumes of cargo coming from the region, the additional ships in the line will now provide Timaru importers and exporters with three port calls per month instead of the previous fortnightly service.”

It has also been extremely busy at the Port in other trades with international ships calling to exchange a range of cargoes including fuel, industrial chemicals, logs, fertiliser, livestock, steel and machinery as well as containers on the regular liner services of Tasman Orient Line & Maersk Sealand.

Managing Director of Maersk Sealand, Flemming Gamst said that “Timaru is now one of Maersks' largest volume export Ports in New Zealand and the key hub port for our South Island operations with Timaru being located in the centre of a large and increasing cargo catchment area”. Last financial year PrimePort Timaru handled 43,700 TEU containers and are forecasting that will reach over 50,000 TEU to the year ended 30 June 2004.

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Half Year Highlights

  • PrimePort Timaru Ltd posted a $565,000 surplus before taxation for the six months ending December 31, 2004.
  • The result is a 24 per cent increase on last year's results.
  • Containerised cargo volumes have increased 14 per cent for the six-month period.
  • Container volume forecast to exceed 50,000 TEU's for the year.

  • Record container loadings experienced in March, including a record exchange of over 1000 containers on one vessel, at an average rate of 60 moves per hour.
  • Maersk Sealand introduced six extra sailings to handle seasonal peak.
  • Tasman Orient Line add two extra vessels to their North Asian service through Timaru.
  • PrimePort Dairy Stores has completed 13,800sqm of dry storage with another 4600sqm due to be completed by the end of November.
  • When finished PrimePort Dairy Stores will cover a total of two hectares.
  • Port Security Plan approved by MSA

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Recent PrimePort Shipping

New PANZ Service Provides Link with Middle East The recent arrival of the multipurpose carrier “Iran Loreston” signaled the beginning of a new regular liner service between Timaru and the Middle East. Named PANZ (Persian Gulf, Australian and New Zealand) the new service will provide exporters and importers of breakbulk products with links between New Zealand, Australia and the Persian Gulf states of Iran, Saudi Arabia, United Arab Emirates, Qatar and Bahrain and will call in Bombay India by inducement.

Initially the service will operate with the single vessel which will make five voyages per year on a ten week round trip. Providing that sufficient cargo support is received the service will expand to two vessels in 2005 with Port calls every five weeks. The new service is capable of carrying a variety of cargoes including logs, timber products, machinery, fertiliser, coal and stockfeeds.


MDF being marshaled at shipside prior to loading on the “Iran Loreston”

Ships Agent for the new service Gavin McIntrye of Beacon Chartering and Shipping explained that there was significant expansion occurring in the building business in the Middle East and this was providing a strong demand for supplies of timber products from New Zealand.

While in Timaru the Iran Loreston loaded medium density fibre board and sawn timber destined for Saudi Arabia.


PrimePort Stevedores carefully stowing MDF in the ships holds

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“Moo-ving out to China”

Five shipments, totaling approximately 10,000 heifers, have left PrimePort Timaru for China in recent months. Agents for China's growing dairy industry are expected to buy more than 20,000 New Zealand dairy heifers this year returning farmers a significant increase on the return they could expect on the domestic market. The animals must be of high quality and are electronically tagged, tested for avian and bovine TB while they are kept in quarantine on farms in South Canterbury. Not only must they be in top condition but must bear the distinctive features particular to Friesians such as four white feet and a white swish on their tail. The heifers are vaccinated and pregnancy tested before making the journey up to China.

It has been reported that China is the worlds fastest-growing market for milk and milk products and the export marketing of dairy heifers has assisted them in establishing their own industry. The average consumption of dairy products per person in China is 7kg per year compared to international consumption of 100kg per person.


Heifers loading directly from trucks
onto the livestock carrier
“Friesian Express”

The livestock trade is viewed as a positive link between the two countries, according to PrimePort Timaru General Manager of Marketing, Bruce McDougall.

"By assisting in developing a larger domestic milk market in China it will increase the Chinese peoples awareness and use of dairy products in their diet, which will bring long term benefits to the New Zealand Dairy Industry," he says.

On board the vessel the heifers are treated to a balanced diet of meadow and lucerne hay and concentrated stock nuts. 2000 bales of hay, 400 tonnes of stock nuts and water is loaded on board for the journey. The animals each drink 50 litres of water per day on the 16 day voyage. Two New Zealand stockmen travel with the animals to ensure they receive all the “on board” comforts afforded international travelers.


Bruce McDougall familiarising himself with
life on board prior to his July trip

Bruce McDougall is to undertake the trip in July, with Bruce's strong farming background, he said he is looking forward to taking the sea voyage on a “slow boat to China”. On arrival Bruce will see first hand how the animals adapt to their new environment. He believes the language barrier wont be an issue for these females and he is sure they will just put their heads down and get on with the job of turning grass into milk.

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Honey, Honey, Honey...


Steve and Carolyn accepting their award
from PrimePort Chairman Alistair Betts

Honey Valley New Zealand Ltd were this years recipient of the PrimePort Timaru Export Award at the 2004 South Canterbury Business Excellence Awards.

Steve Lyttle and Carolyn Ball, Directors, established Honey Valley NZ Ltd eight years ago to cater to specific client needs within the honey and honey based products industry, both nationally and internationally.


Steve shows the comb honey which is highly
sought after in the Japanese markets

Since its inception Steve and Carolyn have built this company into one of the leading exporters of New Zealand honey and over the past two years have been New Zealand's largest exporter of comb honey and bulk clover honey.

Operating with a permanent staff of only three, product is exported to Australia, Hong Kong, Singapore, Malaysia, Korea, Japan, UK, France, Germany, Belgium, and the Netherlands. Steve and Carolyn purchase bulk honey in 300kg drums from beekeepers throughout New Zealand, pack and process honey into high value consumer packs for these markets.


Steve and Carolyn preparing another export
order from their Timaru warehouse.

On accepting the award Steve commented that clients in Singapore initially referred to them as the “After Dark Trading Company” due to the long hours that Steve and Carolyn put in, during the early days. Working in the evenings after their normal full time day jobs and at weekends enabled them to build their successful business.

Steve and Carolyn attribute their success to consistently being able to position their products at the top end of international consumer markets and maintaining a strong commitment to customer service. Making regular visits to their overseas customers and given their wealth of experience ensures they are able to meet and exceed their client's individual needs, building strong and lasting business relationships.

PrimePort Timaru congratulate Honey Valley New Zealand Ltd as the future looks sweet for this dynamic couple as they continue to build their business in the land of “milk and honey”.

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Irrigation - Recipe to Unlocking Regions Potential

Take the map of the South Island and draw a radial arc around the land area 100kms from Timaru, add water, wait 6 months and let the good times roll.

“Sound Simplistic, maybe so, but in reality it is not far from the truth”.

Since farming first began in Canterbury and North Otago some 150 years ago the major limiting factor to unlocking the regions agricultural potential has always been water or the lack of it. Nestled in the rain shadow of the Southern Alps New Zealands largest area of flat fertile arable soil receives on average only 650mm of rainfall per year. This natural rainfall is sufficient to sustain high risk arable and extensive pastoral farming operations but its unreliability has always created a barrier to the development of more intensive and profitable forms of agriculture.


Irrigation development will bring prosperity
to all sectors of the community

Of a total of just over one million hectares of potentially rrigatable land in Canterbury and North Otago just over a hird (375,000) hectares are currently under irrigation. For those farms that are irrigated there has been a significant change in land use in the past 10 years. These properties have been developed into multi-million dollar dairying or intensive arable and finishing operations or horticultural and viticultural units. With the guarantee of irrigation these farms have eliminated the largest risk factor out of the farming business and are able to protect heir financial investment against the vagaries of an unreliable and deficient natural rainfall.

Until recently most existing irrigation systems in Canterbury have been reliant on drawing from groundwater wells or community surface water, run of the river schemes. With the long term sustainability of these forms of water supply unable to meet future demands, other forms of water management will need to be developed. It is therefore critical that future water resources are managed and shared on a sustainable basis so as to provide long term benefits to all sectors of the community.

Water harvesting combined with large stored water sources appear to be the way forward for the future. The Opuha Dam Scheme near Fairlie is a good example of this, where excess rainfall runoff and spring snow melt is held in a storage lake to enhance the summer flows of the Opuha and Opihi river systems and allow downstream farmers and recreational users year round benefits of a valuable resource that would otherwise have flowed out to sea and been wasted during flood and peak river flow periods.

There are a number of other similar schemes currently on the drawing board in Canterbury and North Otago which if correctly managed will dramatically enhance environmental values plus could provide a further 200,000 hectares with vital irrigation water.

The economic benefits resulting from irrigation development indicate that annual farm gate return increases of $2500 per hectare are experienced. When this is converted to the downstream flow on benefits into the regional economy increases of $9000 per year for every additional hectare irrigated are generated.

When multiplied out we see that the development of a further 200,000 hectares will potentially generate an additional $1.8 billion per year of economic activity in the regional economy of Canterbury and North Otago. Much of this additional economic activity will be generated in the servicing centres of Ashburton, Timaru and Oamaru and the stimulus provided will create population growth, plentiful employment opportunities and an increase in high income households in the region.

As well as the financial benefits to the economy of the region, it is important to remember that augmented river flows also provide significant environmental benefits to the community as the general health of the river system is greatly enhanced by a guaranteed constant flow even during extreme periods of drought.

While none of this will happen overnight a huge potential for the region exists provided that todays water resources are carefully managed and allocated to ensure that all sectors of the community will benefit from them in the future.

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PrimePort Dairy Store Begins Operation

The first section of the PrimePort Dairy Store was completed in early January and within two weeks was full of milk powder. Built by contractor Calder Stewart, the two-hectare drystore has been created in three stages on land north of Queen Street. The completed store will hold over 32,000 tonnes of product.

PrimePort Chief Executive Jeremy Boys said the drystore had been a very positive development for both the port company and Fonterra. “The first stages of the building have already been well utilised for storage, which also underscores the benefit of rapid completion of this project.” Mr Boys said that “we have met some very tight timetables and are seeing some excellent trade now running through the port and this is of benefit to everybody.”

The Store Operator, Portside Logistics Manager Barry Flowers said the store was “user friendly” enabling quick and efficient unloading of trucks and storage of the powder. The proximity to rail was also a huge advantage he said. Barry and his staff of five scan the pallets of powder into a computer system enabling them to easily locate the product, thus eliminating the need for a time consuming manual system.


PrimePort Timaru Dairy Store


Paul Annett of Portside Logistics loading milk powder into the new store

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Port Security well placed to comply with ISPS Code

The Port Security Plan for PrimePort has been approved by MSA. Fences and gates upgraded to a higher standard, a new Security gate with a watch house to monitor cargo and people entering the container yard has been installed and PrimePort staff have been briefed on the requirements of the code. Core operational areas are affected, which in PrimePort's case is mainly the container wharf. Non-compliance of the new code would result in major trading partners such as the United States, Europe and Asia refusing direct sailings from Timaru.

Access to the Port

Despite these new international regulations PrimePort is well aware of the desire for the public to have reasonable access to the port. The No 1. Extension Wharf will remain open to the public, subject to ongoing security reviews. As the port remains a favourite fishing spot, the priority by PrimePort to leave it open will be a popular one said Chief Executive Jeremy Boys.


PrimePort watchman Parameno Loffley during part
of his regular security checks at the Port.

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PrimePort Annual Golf Tournament


The PrimePort Annual Golf Tournament held on Sunday 14th March 2004 at Pleasant Point Golf Course attracted approximately 60 golfers and supporters. Conditions were ideal for everyone to enjoy a great days golf. Special thanks to our sponsors:

  • Aorangi Customs
  • Blastcraft Ltd
  • DC Turnbulls Ltd
  • Dee Street Liquorland
  • Golf Addicts
  • Hilton Haulage Ltd
  • Hunter Hydrographics
  • Ideal Electrical Suppliers
  • Maersk Sealand
  • NZ Safety Ltd
  • Polarcold Stores Ltd
  • Protector Safety
  • Quadrant Pacific Ltd
  • Robbie Mehrtens Electrical Ltd
  • Scarletts Hydraulics Ltd
  • SGS Ltd
  • Specialised Containers Ltd

Congratulations to winners:

Warwick Lister, Senior Nett
Cameron White, Junior Nett
John Blunden, Senior Stableford
Barry Whyte, Junior Stableford

Jeremy Boys, Best Non-golfer
Peter Clemens, Best Gross
Eleanor Gardner, Most Honest Golfer

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2004 Maersk Sealand Interschool TeamsYacht Racing Championship


Ronnie Moore, SI sales manager for Maersk
Sealand, presents the trophy to Kerikeri
captain Reuben Corbett

The waters of Caroline Bay came alive with the multi-coloured sails of eighteen 420 yachts the week after Easter when the Timaru Yacht and Power Boat Club hosted one of the biggest events any club can be asked to run.

In spite of fickle winds 148 races were held over a five day period with 30 friends and members from the club turning up daily to run the event. The 420 yachts were shipped from Auckland by Maersk Sealand in two 40' containers. PrimePort Timaru and Trevor Cloughley from Hilton Haulage Transport arranged transfers from the ship to the club and back again for the return trip to Auckland.


The seventeen teams from Kerikeri
to Dunedin.

Kerikeri High School defended their title in a display of skill that left many a seasoned sailor in awe. They will represent New Zealand against the Australian champion school later in the year.

Maersk Sealand New Zealand sponsored the event for the fourth year and this sponsorship, together with over 1600 man hours of effort from the club, ensured a successful and memorable event for competitors and helpers alike.

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Staff

30 Years Service

Warwick Hewitt (Wick) has just completed 30 years at PrimePort. Wick started on 21 January 1974 as a dredge hand. At that time the dredge was contracted out to other ports and so during 10 years Wick spent time in other ports, sometimes for months on end. Wick then took on a storeman role in the rope store and progressed to foreman of the mooring gang. He has also worked as relief on the Tug and Pilot Launch, and relief Night Watchman. He says that the variety of work and the people are what have contributed to his length of service for the company.

Over his time at the port he has seen major changes in the workplace. He said “In the last 10 years the port has changed dramatically, with the change from Timaru Harbour Board to Primeport Timaru, the introduction of the large mobile cranes and the growth in container volumes”. His recent claim to fame was extinguishing a fire on a local fishing vessel moored in the port. “I was down here on a Saturday doing some paperwork and looked across to see smoke so I ran round grabbed a hose and contained the fire until the fire brigade arrived it's something anyone would do” he said. His love of Timaru, the occasional game of golf and the people he works with will mean that Wick will be here for a few more years yet.

Robbie O'Neil began work for the Timaru Harbour Board as a fitter welder in the port workshops in 1974. He remained in this position for 12 years before moving into the Marine Division as a deckhand on the Tug. Following another 12 years service in this position on the Tug, Robbie became a General Hand in the works department. In recent years Robbie has been working as a eading hand in the Grain Bulk Handling Facility. In this role he is responsible for the overall day to day operation of the port silos and managing the inwards and outwards delivery of grain from the Port. In his spare time Robbie is a keen golfer and gardener.

New Faces

Bevan Draaijer started at the Gatehouse as a data entry/container co-ordinator in January 2004. Bevan originates from Nelson and moved to Timaru at the end of 2003 after completing 4 years at university studying for a BCOM in transport and logistics in Christchurch. Bevan enjoys rugby and ice hockey.

Rachel also started in the Gatehouse in January 2004. Initially on a fixed term contract Rachel is now a full time employee as a Container Data Entry Operator. When she is not at PrimePort Rachel enjoys Yoga and recently bought a windsurfer so is following the wind in the weekends. She has lived & worked in Timaru for most of her life.

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STOP PRESS!

50,000 TEU Milestone Reached

As we were going to print the Port achieved another significant milestone in its history by handling 50,000 TEU's in a year for the first time ever.

The 50,000th container was loaded aboard the Nicoline Maersk on her visit to Timaru on the 27th May. PrimePort Timaru Chief Executive Jeremy Boys commented that this was a significant achievement in the Ports growth strategy in recent years and praised the efforts of all Port staff and the support of our partner businesses in “making it happen”.

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