CONNECTING POTENTIAL - Napier Port

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CONNECTING POTENTIAL - Napier Port
CONNECTING
  POTENTIAL
ANNUAL REPORT / 2018
CONNECTING POTENTIAL - Napier Port
CONNECTING POTENTIAL - Napier Port
CONNECTING
  POTENTIAL
ANNUAL REPORT / 2018
CONNECTING POTENTIAL - Napier Port
CONTENTS
CONNECTING POTENTIAL        1   OUR PARTNERS            29   STATEMENT OF
                                                             COMPREHENSIVE INCOME    63
OUR VISION                  2   HEALTH & SAFETY         32
                                                             STATEMENT OF
OUR NETWORK                 4   CRUISE                  34
                                                             CHANGES IN EQUITY       64
CHAIRMAN’S REPORT           6   OPERATIONAL PERFORMANCE 38
                                                             STATEMENT OF
CHIEF EXECUTIVE’S REPORT    8   FINANCIAL PERFORMANCE   41   FINANCIAL POSITION      65
OUR HIGHLIGHTS             10   OUR COMMUNITY           42   STATEMENT OF
                                                             CASH FLOWS              67
RECORDS                    11   OUR ENVIRONMENT         46
                                                             RECONCILIATION OF
OUR REGION                 12   SENIOR MANAGEMENT       50
                                                             PROFIT FOR THE PERIOD
PLANNING FOR                    BOARD OF DIRECTORS      52   TO CASH FLOWS FROM
TOMORROW’S PORT            14                                OPERATING ACTIVITIES    69
                                FINANCIAL STATEMENTS    54
INFRASTRUCTURE                                               NOTES TO THE
                                CORPORATE
& CAPABILITY               16                                FINANCIAL STATEMENTS    70
                                GOVERNANCE STATEMENT    56
OUR CUSTOMERS              18                                FINANCIAL SUMMARY       90
                                DIRECTORS’ REPORT       59
TECHNOLOGY & INNOVATION    22                                INDEPENDENT
                                INCOME STATEMENT        62
                                                             AUDITOR’S REPORT        91
OUR PEOPLE                 26
CONNECTING POTENTIAL - Napier Port
PORT OF NAPIER / ANNUAL REPORT / 1

CONNECTING
POTENTIAL
Napier Port is a pivotal link in a network
that crosses the globe, connecting our local
businesses, facilitating trade to world markets,
and providing a gateway for tourists to explore
our region.
We’ve been helping our customers, our community
and our economy to grow for more than 100 years.
Plenty has changed in that time, but our driving
purpose remains the same.
Together, we build a thriving region
by connecting you to the world.
CONNECTING POTENTIAL - Napier Port
NAPIER PORT / CONNECTING POTENTIAL / 2

OUR                                                             TOGETHER,
VISION                                                          WE BUILD A
                                                              THRIVING REGION
Our future is one forged side-by-side with our
                                                              BY CONNECTING
customers and our community. Together, we can
drive growth and success that benefits our region,
                                                                YOU TO THE
our people and our environment.                                   WORLD
With key partners, Napier Port will grow a resilient,
connected network of supply chain infrastructure that
seamlessly delivers our customers’ cargo to market.
In building our future, Napier Port will collaborate with
like-minded organisations, creating a network of partners
with shared aspirations. This network will empower the bold
pursuit of ideas and opportunities, and enable our region
to reach its full potential.
CONNECTING POTENTIAL - Napier Port
PORT OF NAPIER / ANNUAL REPORT / 3

OUR PEOPLE
Our success will be founded on a culture of care for our customers,
our community and each other.

OUR FOCUS                                                OUR GOALS
At the heart of Napier Port’s strategy                   Five high-level strategic goals support
are four key elements that will shape                    our focus areas and will guide strategic
the course we chart toward achieving                     decisions and investment.
our vision.

            S TO M E R                                            DEVELOP A RICH
       CU                                                         UNDERSTANDING OF OUR
                                                                  CUSTOMERS’ BUSINESSES

                                                                  COLLABORATE TO LOOK AFTER
                                         ORA
                                L   LA B    T   I                 PEOPLE, PLANET AND PLACE
     O                                                            TO ENSURE OUR BUSINESS
  C

                    N

                     O
                           CO

         NN
              E C TI
                                                VE

                                                                  AND COMMUNITY THRIVES

            WOR K E                                               SUPPORT AN ADAPTABLE
       ET                                                         SUPPLY CHAIN WITH A RESILIENT
                           PA

                                                S

                              RT
  N

                    D

                                                    I
                                                P

                                                                  INFRASTRUCTURE NETWORK
                                    NERSH

                                     S S I NG
                                NE
IN

                      RE

                                                D                 EVERY MEMBER OF OUR
   R                                                              TEAM STRIVES TO IMPROVE
  F

                           R

       AS
                    U

                                                AT

                     T
                         HA

            TR UC                                                 CUSTOMER OUTCOMES
                                                  A

                                                                  USE DATA AND TECHNOLOGY
                         AN

                                                    GY

                                                                  TO BUILD VALUE IN OUR BUSINESS,
                                TE
                                            O

                                                L
                           D

                                                                  OUR CUSTOMERS’ BUSINESSES, AND
                                     CH NO
                                                                  THROUGHOUT THE SUPPLY CHAIN
CONNECTING POTENTIAL - Napier Port
NAPIER PORT / CONNECTING POTENTIAL / 4

OUR
NETWORK
From Central New Zealand to the world:
Napier Port’s network of infrastructure, freight
solutions and shipping services connects
our customers with every corner of the globe.
                                                   OHAKUNE

   RAIL CONNECTIONS

   • Over 40 trains per week into port                       WHAKATU
   • Container service from
     Palmerston North via Takapau                            •   12.4 hectares
     and Waipukurau                                          •   Ready for future development
   • Log service from Whanganui via                          •   Road and rail connections
     Palmerston North and Woodville                          •   In the centre of Hawke’s Bay’s
   • Pulp service from Ohakune                                   future industrial heart
                                          WHANGANUI

   MANAWATU
   INLAND PORT

   • Partnership with Ports of
     Auckland and Halls Group
   • 1.9 hectares
   • Container yard
   • Container wash facilities
   • 1200m2 cross dock facility
   • Road and rail connections
                                                                       PALMERSTON NORTH
   • 2170m2 of warehousing
CONNECTING POTENTIAL - Napier Port
PORT OF NAPIER / ANNUAL REPORT / 5

Napier-Wairoa rail line
(future connection)
                                                    WAIROA

                               PANDORA FREIGHT HUBS

                               •   10 hectares of empty container storage
                               •   Open 6 days a week
                               •   Conveniently located en route to port
                               •   Supported by 8 dedicated and experienced staff
                               •   $14.6 million invested
                               •   Industrial zoning
                      NAPIER

                               NAPIER PORT

                               •   50 hectares
                  HASTINGS     •   6 mobile harbour cranes
                               •   13 minute truck turnaround time
                               •   Around 250 permanent highly skilled staff
                               •   1000+ connection points for refrigerated cargo
                               •   42,830 square metres of warehousing
                               •   5 wharves providing 6 berths
                               •   Fleet of 34 heavy container handling machines
                               •   Around 15 hectares dedicated container terminal space
                               •   Receiving and delivery 6 days a week
                               •   Large on-port packing facility – 8000m2
                               •   Strategic location on the eastern shipping lane
                               •   10 hectares of dedicated log storage – working 24/7
                               •   Navis N4 – world-leading terminal operating system
                               •   Vehicle Booking System – keeping trucks flowing
                               •   Dedicated stevedoring services from SSA New Zealand
                               •   Skilled log marshalling services from specialists ISO and C3
CONNECTING POTENTIAL - Napier Port
NAPIER PORT / CONNECTING POTENTIAL / 6

                     CHAIRMAN’S
                        REPORT
        This has been a year of significant achievements at Napier Port.
    The volume that we shipped out of the region grew to record levels,
and we dealt with it better than ever before. We did this by investing in
additional capacity, but also through continuously improving practices
and processes.
The fact that the volumes are projected   our owners are actively confronting.
to continue to grow for years to come     The need for large investments is one
is both an enormous opportunity and       of the realities of owning and running
an enormous challenge for the board,      an infrastructure business – but without
for the port and for the region as        the additional wharf, economic growth
a whole. As a board, we have come         in Hawke’s Bay would be curtailed
to the conclusion that our long-          to an unacceptable level.
planned wharf expansion through the
construction of a sixth wharf is now      STRONG RESULT
a matter of urgency if we are going
to be able to deal with the increasing    Napier Port delivered another strong
volumes produced within Hawke’s Bay.      financial result this year, recording
                                          a net profit of $17.6 million and paying a
Clearly, funding the additional capital
                                          $10 million dividend to the Hawke’s Bay
required for such a step change
                                          Regional Investment Company.
in our capacity is a challenge that
PORT OF NAPIER / ANNUAL REPORT / 7

While this represents a record financial     and acumen. He is determined to build       THANK YOU
result, it is very much tempered by the      on the strong foundations already in
significant investments that lie ahead       place to set the strategic direction that   Thank you to the board for their
of us in future years, including the build   will carry Napier Port into the future.     commitment, focus, intelligent
of a new wharf and the associated                                                        challenge and support. Thank you
                                             This financial year we welcomed Diana
investment in additional dredging,                                                       to our customers for their business,
                                             Puketapu to the board. With a blend
machinery, systems and people.                                                           and to the Napier Port team for
                                             of governance experience across
                                                                                         their hard work. Napier Port – and
                                             corporate, community, iwi and sporting
SAFETY FIRST                                 organisations, Diana brings a valuable
                                                                                         our region more broadly – is at an
                                                                                         important moment in its history and
                                             skillset to the board table and has
As a board, we are absolutely                                                            we are grateful to our owners and
                                             proven a real asset.
committed to ensuring that every                                                         to our community for their support.
person coming to Napier Port goes            It was with real regret that I accepted     We have the power to really unleash
home safely. This requires a genuine         Stephen Bradford’s resignation as           the potential of our region and we’re
understanding of the very real               a director this year. Stephen’s depth       excited to take big steps toward
risks involved in working in a port          of knowledge was second to none             the future.
environment. This year, every member         when it came to ports, and as a board
of our board has experienced port            we were sorry to lose such a wealth
operations at the coalface, providing        of expertise.
invaluable insights into risk, safety
                                             Chinthaka Abeywickrama also stepped
protocols, and the crucial importance
                                             down from the board after the close
of looking out for each other.
                                             of the financial year. I’ve appreciated
                                             Chin’s quiet, thoughtful input
GOVERNANCE                                   throughout his term and his specialist
                                                                                         ALASDAIR MACLEOD
                                             logistics knowledge has been of great
At the start of this year, Todd Dawson                                                   CHAIRMAN
                                             value to the board. New directors will
took the reins as Napier Port’s new
                                             be appointed in the near future and in
Chief Executive. He is relentlessly
                                             the interim, Todd Dawson and Chief
customer-focused, and has tackled our
                                             Financial Officer Kristen Lie have
growth challenges with energy, insight
                                             stepped in as executive directors.
NAPIER PORT / CONNECTING POTENTIAL / 8

CHIEF
EXECUTIVE’S
REPORT
It’s been an exciting first year at the helm of Napier Port,
connecting with our people, our customers, our partners
and our community, and developing the strategy that
will take us into the future.
I stepped into the Chief Executive role       and we welcomed 103,000
in January, and found an organisation         cruise passengers to our
in good heart: a dedicated team of            shores, setting a new benchmark
experts, a strong culture and a plan for      for our growing tourism sector.
future growth. In meeting the passionate      We achieved a record financial result,         connected whole. Napier Port invested
people across our operation, two things       delivering a strong dividend to our            in the resilience of our network this
become immediately evident. The first         owner and made further investments             year, opening an additional offsite depot
is an absolute commitment to safety,          in our future capabilities.                    in Pandora, expanding our refrigerated
felt deeply by our people at every                                                           container facilities, and strengthening
                                              These record results are reflective
level, and a unique culture founded                                                          our on-port infrastructure.
                                              of a healthy regional economy.
in care for colleagues. The second is
                                              Hawke’s Bay is growing in leaps
the immense pride our people have in
                                              and bounds – and it won’t be stopping
                                                                                             STRATEGIC REFRESH
working for Napier Port and the part it
                                              any time soon. Major export industries
plays in supporting Hawke’s Bay. It’s a                                                      This year has seen us thinking deeply
                                              including forestry, horticulture and
real privilege to lead an organisation with                                                  about our role in the economy, our
                                              agriculture are forecast to see
such a culture and it will stand us in                                                       purpose as an organisation, and the
                                              significant growth over the next
good stead as we go forward.                                                                 most effective strategy for building
                                              decade. Our tourism industry is taking
                                                                                             a prosperous future for our port
It’s been a watershed year for                off, and our Manawatu inland hub is
                                                                                             and our region.
Napier Port, with major achievements          growing the volume of cargo coming
right across the spectrum. Together           from outside our traditional catchment.        Over the course of the year,
with our customers, we celebrated                                                            we brought a team of people together
                                              To keep freight flowing and enable
handling five million tonnes of cargo                                                        to identify our ultimate purpose as an
                                              our region’s growth, it’s critical that we
– a huge milestone that our people,                                                          organisation. In the common threads
                                              have the right network of infrastructure
our customers and our region can be                                                          from these discussions, we found our
                                              – road, rail, port, airport and freight hubs
rightfully proud of. Our Port Pack team                                                      answer: Together, we build a thriving
                                              – in place and working together as a
handled a record 51,126 containers                                                           region by connecting you to the world.
PORT OF NAPIER / ANNUAL REPORT / 9

Our purpose recognises three important          BUILDING OUR FUTURE                        on its commitment to enabling the
factors. First, that Napier Port exists first                                              future of Napier Port through this
and foremost for the good of our region.        Late this year, we embarked on a           process and the consultation they
Second, our role as a connector or              refreshed master planning process          have managed with the public of
gateway to the world. And third, that           that, alongside our strategic plan,        Hawke’s Bay – it is a pivotal moment
our purpose can’t be achieved alone             will guide our investment over the         for the port and for the future of
– our success is intertwined with that          next 30 years. We are talking with         Hawke’s Bay that will unlock the
of our customers, owner, community,             customers and stakeholders to make         region’s economic potential.
partners and stakeholders.                      sure that their needs are incorporated,
                                                                                           It has been a defining year for
                                                and look forward to sharing our plan
So how best to achieve our purpose?                                                        Napier Port, and as a team we have
                                                with our community next year.
We refreshed our strategic direction                                                       achieved a lot. We have come to the
this year, setting a new path toward            In November this year, we were             end of the year with a clear vision
our future – all with our guiding               granted resource consents to build a       for where we’re going and how
purpose in mind.                                much-needed sixth wharf. It was the        we’ll get there, and with many of the
                                                culmination of three years’ hard work,     building blocks already in place. I look
We committed to pursuing a path
                                                extensive studies into potential impacts   forward to pursuing our future path in
of collaboration – building the network
                                                of the development, and thorough           partnership with our customers and our
of infrastructure, technology and
                                                consultation with our community. I am      community; working toward a thriving
relationships our region needs together
                                                confident that through robust science,     future for Hawke’s Bay.
with strategic partners. In this way,
                                                we have found the construction and
we intend to build a network of partners
invested in each other’s success.
                                                dredging programme that best protects      THANK YOU
                                                the mauri of Pania Reef and the health
We also recognised the central                  of the harbour as a whole. The approval    I’d like to extend my heartfelt thanks
importance of our cargo owners as               of the consent is a major step forward,    to the Napier Port team, our customers
customers. It’s shippers who keep               and future-proofs our ability to ship      and the community who have made my
our port humming, and their valuable            Hawke’s Bay’s goods to the world.          family and I welcome in Hawke’s Bay.
cargoes are what keeps shipping                                                            It has been a pleasure getting to know
lines returning to our port. We’ll be           A NEW CAPITAL STRUCTURE                    you all, and I look forward to working
working hard to get closer to our cargo                                                    alongside you in the years to come.
customers, understanding what makes             Alongside the resource consent
their business tick and how we can              process, Hawke’s Bay Regional
improve their supply chain.                     Council went through an extensive
                                                process of their own, considering
Looking ahead, we are focused on
                                                options for the future ownership of
harnessing data and technology to
                                                Napier Port. In October, the council
create new value for our customers,
                                                opened public consultation on four
and truly embed Napier Port as                                                             TODD DAWSON
                                                options, including its preferred option
a partner in their supply chains.                                                          CHIEF EXECUTIVE
                                                of a partial listing on the New Zealand
                                                Stock Exchange. I commend Council
NAPIER PORT / CONNECTING POTENTIAL / 10

OUR
HIGHLIGHTS

     5.1             266,006                  3.1                             51,126
MILLION TONNES OF    TEU CONTAINERS      MILLION TONNES OF               TEU HANDLED THROUGH
 CARGO HANDLED          HANDLED         BULK CARGO HANDLED                     PORT PACK
   7% INCREASE                             22% INCREASE                       6% INCREASE

     246            4,025,986           1,056,455                                684
   PERMANENT        TONNES OF EXPORTS   TONNES OF IMPORTS                      SHIP CALLS
     STAFF              UP 11.5%           DOWN 7.7%

   $17.6               $10                 $15.7                                  13
    MILLION            MILLION               MILLION                     MINUTE AVERAGE TRUCK
    PROFIT             DIVIDEND             INVESTED                       TURNAROUND TIME
                                                                            IN PEAK SEASON
PORT OF NAPIER / ANNUAL REPORT / 11

                  RECORDS

  79,987               2.2           23,000+
   CONTAINERS      MILLION TONNES    TEU OF APPLES
HANDLED THROUGH   OF LOGS EXPORTED     EXPORTED
 PANDORA DEPOTS     35% INCREASE

     57               151              309
  CRUISE SHIP        LOG VESSEL      BULK VESSEL
    CALLS              CALLS            CALLS

    $23            103,000
   MILLION IN         CRUISE
  PASSENGER         PASSENGERS
    SPEND*
                                      *Statistics New Zealand
NAPIER PORT / CONNECTING POTENTIAL / 12

OUR REGION
Hawke’s Bay is thriving. Our economy         We have the good fortune to live           Hawke’s Bay is connected by
is growing across the board, with            and work in a picturesque natural          a network encompassing road, rail,
local businesses expanding and new           environment, from rolling farmland to      sea and air. At the heart of that network
businesses starting up. Large-scale          sprawling vineyards and vast beaches.      is Napier Port, a busy seaport that
businesses are moving in, attracted          With rich soils and a sunny climate, the   connects our businesses to world
by the ease of doing business in             adage that Great Things Grow Here™         markets, unloads the goods that keep
a region where business and people           rings true. In a world where consumers     our economy running, and welcomes
are connected, space is abundant,            are increasingly conscious of the origin   tourists to explore our region.
and freight flows freely.                    of their products, Hawke’s Bay has
                                                                                        At Napier Port, we’re passionate about
                                             a compelling story to tell.
Our food exports are in demand,                                                         our region. We know that there’s room
bolstered by our reputation as a clean,      The lifestyle and career opportunities     to grow and potential to be realised,
green region. Our forests are ready for      on offer in Hawke’s Bay are attracting     and we’re working hard to connect
harvest, and our fibre exports are heading   clever people from far and wide,           our region to a prosperous future.
to all corners of the globe. Our tourism     joining the ranks of talent grown
industry is booming, with an abundance       here. The ease of connectivity and
of new visitor experiences.                  remote working is opening a world
                                             of new opportunities, fuelling the
                                             growth of tech and innovation
                                             companies with a base in the Bay.
PORT OF NAPIER / ANNUAL REPORT / 13
NAPIER PORT / CONNECTING POTENTIAL / 14

PLANNING FOR
TOMORROW’S PORT
      As Hawke’s Bay’s economy grows, Napier Port is growing too.
      Growth is welcome but it creates challenges that we need to plan for –
      larger ships, a significant uplift in cargo and the congestion that creates.
      Napier Port plans to meet the region’s        and disposal, traffic and economic
      needs with a new wharf. At 350 metres         impacts. Over the same period,
      long, the port’s sixth wharf will service     Napier Port spoke with more than
      the container terminal and free up other      2,000 stakeholders and members
      wharves for our growing log and general       of the community about the project
      cargo trade. It will allow the cruise ships   as part of an extensive consultation
      Napier Port currently turns away to           programme.
      visit the region and will mean we can
                                                    Late this year, three independent
      accommodate the larger vessels that
                                                    commissioners engaged by
      are currently too big to enter the port.
                                                    Hawke’s Bay Regional Council granted
      Over the last three years, Napier             resource consent to build 6 Wharf
      Port made it a priority to get the            along the northern edge of Napier Port’s
      best scientific information possible          container terminal and progressively
      and commissioned 17 studies into              make the shipping channel deeper and
      the potential impacts of the project,         wider. It is hoped construction of the
      including cultural values, coastal            wharf will begin in 2020, with the wharf
      processes, dredging plumes                    operational by 2022.
PORT OF NAPIER / ANNUAL REPORT / 15

The decision gives importers,             for their future
exporters, shipping lines and the         port and logistics
tourism industry certainty that           requirements. We are
Napier Port will be able to meet          talking to regulators,
their needs well into the future.         local and central
                                          government, and business
While 6 Wharf is key to building
                                          and industry groups, along
Napier Port’s capacity, it is just
                                          with our local community,
one asset in a broader transport
                                          to build a strong understanding
infrastructure network that needs
                                          of their expectations and the future
to be working together to help
                                          trade landscape. Insights from these
our economy thrive.
                                          discussions are helping Napier Port
Planning tomorrow’s port is a             to shape a comprehensive master plan
partnership, and Napier Port is working   to guide investment in infrastructure,
closely with customers to understand      equipment and capability in the
their aspirations and what that means     years ahead.
NAPIER PORT / CONNECTING POTENTIAL / 16

INFRASTRUCTURE
& CAPABILITY
Napier Port is connecting our businesses to their                    ENHANCING TRANSPORT CONNECTIONS
markets and our region to growth. Having the right
network of infrastructure in place is a vital part                   As our economy grows, it is critical that the network
of future plans.                                                     of connections to Napier Port is protected, enhanced
                                                                     and expanded. The long-awaited Whakatu Arterial Link has
The easy flow of cargo between road, rail, sea and air is critical
                                                                     been constructed over the past year, and will provide a more
to our region realising its economic potential. With an eye to the
                                                                     direct route to the port from the region’s growing industrial
future, Napier Port is extending our network of freight hubs,
                                                                     hub. The Government also announced plans for a new road
planning for an additional wharf, strengthening transport links,
                                                                     to replace the slip-prone Manawatu Gorge route which,
and investing in smart solutions.
                                                                     once opened, will remove a significant vulnerability from
                                                                     the Central North Island freight network.
BUILDING CONNECTED INFRASTRUCTURE
                                                                     The volume of cargo reaching Napier Port on rail is growing,
Napier Port is looking outside the port gate to find customer        with rail links connecting the port to customers from the
solutions and integrate them with a supply chain network that        Central Plateau down to Whanganui. An average of 40 trains
brings the port closer to its customer base. The Manawatu            per week now arrive at Napier Port, delivering logs, pulp
Inland Port, a collaboration between Napier Port, Ports of           and a variety of containerised cargoes. Rail connections
Auckland and Halls Group, connects the importers and                 to Napier Port are set to expand, with KiwiRail planning
exporters of Manawatu with Napier Port through a feeder hub          to reopen the line linking Wairoa to Napier Port for a regular
in the Palmerston North industrial zone. This year saw the           log freight service. Once open, the line will strengthen the
facility handle a growing volume of cargo as shipping lines          freight network and provide exporters in the Wairoa region
trialled the hire and dehire of containers.                          with an alternative to trucking logs over State Highway 2.
Napier Port brought an additional 4.4 hectare container depot
facility online this year. Located next to our existing depot in
                                                                     SUPPORTING GROWTH IN BULK CARGO
Pandora and with strong transport links to the port, the facility
                                                                     Napier Port’s bulk cargo operations are in rapid growth
will cater for growth in the supply of empty containers to
                                                                     mode, with new records set for log exports and timber
export customers.
                                                                     packing every year. To cater for growth, Napier Port is making
A 12.4 hectare site in the industrial zone of Whakatu                space and bolstering infrastructure, equipment and resources
is earmarked for a future freight hub, connecting a major            across the bulk operation. The port’s overflow log storage
export base directly to Napier Port via rail and supporting          area was moved to 4 Wharf this year, bringing it closer to the
the region’s future growth.                                          central log yard operation.
PORT OF NAPIER / ANNUAL REPORT / 17

In conjunction with our customers, a log storage allocation
model was introduced to drive enhanced throughput and
productivity, and is currently being refined in consultation
with the industry.

CONNECTING REFRIGERATED CARGO

A large-scale cargo tower installed this year is powering
an extra 144 connections for refrigerated containers,
keeping our customers’ high value cargo in premium
condition and maximising the efficient use of our footprint.
The new towers allow refrigerated containers to be stacked
four high and take the number of refrigerated container
connections at Napier Port to more than 1,000.
A further six towers will be erected in 2019,
powering up to an additional 288 TEU
of refrigerated containers.

GROWING THE HEAVY FLEET

Napier Port expanded our heavy equipment
fleet this year, investing in two new
Konecranes reach stackers. Four new
heavy machines replaced older models,
future-proofing and enhancing our fleet.
The new machines are equipped with
additional safety features and noise-
reducing technology, and are part of
Napier Port’s drive to operate in balance
with the needs of our neighbours.
NAPIER PORT / CONNECTING POTENTIAL / 18

OUR CUSTOMERS
As the saying goes, ‘time is money’. Getting our                 RECORD APPLE EXPORTS
customers’ goods to market quickly and in top
condition is paramount, and Napier Port works hard               It’s been a bumper crop for apple exporters this year, with a
to provide the systems, infrastructure and services              record of over 23,000 TEU of Hawke’s Bay apples crossing
our customers need to make that happen.                          Napier Port’s wharves on their way to world markets. Export
                                                                 volumes are expected to continue to grow, with the industry
Our importers and exporters are central to our success
                                                                 pursuing a major planting programme across Hawke’s Bay.
– when they’re growing, so are we. Across the tourism,
agriculture, horticulture and forestry sectors, our customers
are setting ambitious growth targets for the coming years.
                                                                 KEY IMPORTS UP
Napier Port will be alongside them all the way, delivering the
                                                                 Oil and fertiliser imports continued an upward trend this year,
logistics solutions they need to build their business.
                                                                 reflecting the growth of our regional economy and the strength
                                                                 of our agricultural sector. Oil imports were up 9,000 tonnes
ALL-TIME HIGH FOR LOG EXPORTS                                    on last year, and fertiliser imports rose 20,000 tonnes on 2017.
The forestry sector is booming, with the harvest of estates
across Hawke’s Bay and the lower North Island accelerating.
                                                                 CELEBRATING CUSTOMER SUCCESS
This year saw our forestry customers export a record 2.2
                                                                 Hawke’s Bay is driven by the success of the primary sector
million tonnes of logs through Napier Port, a 35% increase on
                                                                 and when the sector is growing and succeeding, our port
the 1.6 million tonnes exported in 2017. Exports are expected
                                                                 and our economy are too. Napier Port is especially passionate
to continue to peak over the next decade, with customers
                                                                 about supporting our primary producers. We have been
forecast to be sending 3 million tonnes of log exports through
                                                                 proud sponsors of the Napier Port Hawke’s Bay Primary
Napier Port around 2027.
                                                                 Sector Awards for the last four years, recognising talent
                                                                 in the industry and celebrating innovation.
PORT OF NAPIER / ANNUAL REPORT / 19

INTRODUCING OUR
CUSTOMER CHAMPION

We welcomed David Kriel to our senior
team this year as Napier Port’s new
General Manager Commercial. David is a
strong believer in the power of partnerships,
and is passionate about working alongside
customers to help achieve their goals.
David came to Napier Port from Lodestar, the
logistics arm of Japanese giant Oji Fibre Solutions.
With Oji the parent firm of Pan Pac Forest Products,
David brings a strong understanding of Napier Port’s
largest customer, their port and logistics needs,
and their future growth plans.
David has an extensive background in transport and logistics,
and is active in industry bodies including the Chartered
Institute of Logistics and Transport and the East Asian
Society for Transport Studies. He’s committed to giving
back, and is a member of the Humanitarian Logistics
Association, an agency dedicated to empowering
humanitarian logisticians to deliver emergency relief
more effectively.
Originally hailing from South Africa, David and his family
have been based in Mount Maunganui for the past 13 years
and are excited to join the Hawke’s Bay community.
NAPIER PORT / CONNECTING POTENTIAL / 20

GROWING
BUSINESS
PORT OF NAPIER / ANNUAL REPORT / 21

Local beverage company The Apple Press celebrated its first
export order this year, with 20,000 bottles of its signature apple
juices leaving Napier Port bound for Japan. The company makes
the most of Hawke’s Bay apples that don’t make the grade for
export, transforming them into juices distinguished by the unique
flavours of each apple variety.
A former orchardist, founder Ross Beaton drew on a strong
network of support to build the business, securing both start-up
capital and supply agreements from within Hawke’s Bay. Pipfruit
exporter T&G Global was one of the first to jump onboard, giving
The Apple Press their pick of the crop from a network of local
orchards and providing a sustainable supply of tree-ripened
Hawke’s Bay apples.
It’s been a fast-paced ride for Ross and The Apple Press team,
with the high-spec equipment imported through Napier Port
       in May now producing up to 12,000 bottles an hour.
              Napier Port has been with them every step of the
                 way. And we’re looking forward to being part
                    of the next step, as they grow their business
                       on a global scale.
NAPIER PORT / CONNECTING POTENTIAL / 22

TECHNOLOGY
& INNOVATION
Tomorrow’s port is a smart, connected logistics                   POWERING UP WITH A NEW WEBSITE
business, harnessing insights and data to create
clever solutions for customers.                                   This year we launched a new website, boosting the user
                                                                  experience with improved functionality, simple information
At Napier Port, we’re not afraid to challenge ourselves,
                                                                  architecture and clean design. We also introduced real-time
and venture into the unknown to find new and better ways
                                                                  tools, such as weather and tide readings, and brought our
of doing things. We’re embracing emerging technology,
                                                                  tools and guides together into a central customer portal.
capturing and utilising data, and expanding our digital
                                                                  We brought health and safety inductions online, enhancing
capabilities.
                                                                  the safety and security of our port while saving time for
As we shape a new future, we’ll seek partnerships with leading    regular port users and our health and safety team. The new
tech providers, recognising that our size and capabilities        website also walks the talk, showcasing our people and giving
present an ideal testing ground for cutting edge technologies.    our customers and community an insight into the dynamics
                                                                  of a working port.
BUILDING INTELLIGENT
SOFTWARE SOLUTIONS                                                REAL-TIME INFORMATION
                                                                  AT YOUR FINGERTIPS
Napier Port developed a smart software programme –
SSIMs – that optimised vessel planning by 95%. A world            We’re continuing to develop smart solutions for our teams and
first, the system works with the Navis Autostow programme         this year, we built our first interactive and real-time geographic
to automatically generate container ship stowage plans for both   information system (GIS). The interactive digital system
standard and special containers. The team also developed          displays real-time environmental data and critical information
a system to automate vessel load lists and created an app         about our infrastructure and services. It’s accessible from
for our refrigerated container technicians, which reduced the     anywhere via a phone or tablet, and is proving a timesaver
number of devices required from four to one.                      for our people. It’s already helping to inform management
                                                                  and environmental decisions, and has potential to contribute
                                                                  to health and safety, emergency response, commercial
                                                                  decision-making and supply chain analysis.
PORT OF NAPIER / ANNUAL REPORT / 23

SIMULATOR TRAINING DRIVES
SAFETY AND EFFICIENCY

Using our state-of-the-art mobile harbour crane
simulator, we extended our simulation-based training
to hatchmen this year. As the ‘eyes and ears’ of the crane
driver on a ship, the hatchman works in partnership with the
driver to ensure the loading and unloading of cargo is done
safely and efficiently. Now using advanced technology –
multi-display screens, built-in motion, and realistic controls
– we can replicate the hatchman environment and give
stevedores as much practise as necessary before
live operations.
We continued to deliver our training programmes for the
recruitment and development of crane drivers, both nationally
and internationally. Under the guidance of our highly-skilled
senior crane drivers, trainees practise challenging real-world
operations in complete safety; while businesses reduce the
costs of training, save time and keep container operations
at peak productivity.

TOMORROW’S TECH

We’re researching, testing and developing new solutions
for our customers, and this year we have been working
on several developments that will help us provide more
effective storage and handling of bulk cargo products.
Future developments will see a focus on solutions that help
manage operational peaks, improve efficiency, and provide
real-time information on product integrity for customers.
NAPIER PORT / CONNECTING POTENTIAL / 24

Local distributor Oil Intel keeps the wheels
of industry turning across Hawke’s Bay,
supplying oil products for the machines
that do the grunt work across our economy.
The nationwide agent for Total Oil, Oil Intel
is based in the industrial zone of Whakatu
and imports most of its product through
Napier Port. It’s a symbiotic relationship,
with the oil products also used to keep our
machines running smoothly across the port
and goods moving across our wharves.
But it’s not just the direct connection between
the two companies that drives a successful
relationship. Products imported by Oil Intel are
used throughout our economy, for everything
from the cherry pickers across our orchards
to the conveyer belts at Wattie’s. You’ll find
them up and down the supply chain, powering
everything from the chainsaws harvesting
logs to the trucks carrying them to our port
for export. It’s a network of connections
that, together, keep our economy running.
PORT OF NAPIER / ANNUAL REPORT / 25

 FUELLING
INDUSTRY
NAPIER PORT / CONNECTING POTENTIAL / 26

OUR PEOPLE
                       He aha te mea nui i te ao? He ta- ngata, he ta- ngata, he ta- ngata.
246                    What is the most important thing in the world? It is the people,
permanent staff at
                       it is the people, it is the people.
30 September 2018
                       We know where we’re going, and              Effective leadership is critical to
18                     it’s our people and our culture that
                       will get us there. We’ve worked hard
                                                                   achieving our goals, and we’re making
                                                                   sure that leaders at all levels of our
fixed term and
                       to make sure that Napier Port is an         business are equipped with the
casual staff at
                       environment where our people can            right skills. This year, we engaged a
30 September 2018
                       thrive; a place where every person can      leadership expert to provide one-on-one
                       find meaningful and challenging work,       coaching for all senior managers,
33 people              where they are empowered to think           and training for those newly promoted
have been with         outside the box, and where they can         into management roles.
Napier Port for more   realise their potential.
                                                                   This year, we invested in training our
than 20 years
                       We’re proud to have a resilient, agile      people in everything from mental
                       culture that encourages care, safety and    health to media. The new Certificate
7 people               innovation. But we’re not stopping there.   in Port Operations, developed by the
have been with         We’re building on those foundations         Port Industry Association and MITO,
Napier Port for more   to shape the culture, skills and thinking   has seen strong uptake from our
than 40 years          we need to achieve our future.              operational staff since its launch last
                                                                   year, and 35 of our people are now
84% men                SKILLS FOR THE FUTURE                       working toward the qualification.
                                                                   We know that strong, meaningful
                       The world of work is changing rapidly,
16% women              and Napier Port is planning ahead to
                                                                   relationships with iwi and hapu are
                                                                   integral to the future growth and
                       ensure our workforce is future-ready.
                                                                   success of our region and this year,
32% under 40           We’re working toward a customer-
                       centric culture with care, collaboration
                                                                   we began a formal programme
                                                                   to strengthen our cultural capability.
                       and leadership at its heart.
68% over 40
PORT OF NAPIER / ANNUAL REPORT / 27

All senior managers, along with           mechanics and heavy machinery
communications advisors, undertook        operators that recognise leadership,
a four-month course in Te Reo             commitment, safe work and a team-
and tikanga Ma-ori, building basic        centric approach.
language skills and an understanding
                                          We celebrated a number of internal
of Te Ao Ma-ori.
                                          promotions and secondments.
                                          Last year we brought Colin Sellars
NEW FACES AT THE HELM                     onboard in a Marine Officer role,
                                          providing an opportunity to train as a
We welcomed a number of new faces
                                          pilot while supporting the wider Marine
to our senior management team this
                                          team. This year saw him climb the
year. Todd Dawson stepped into
                                          ladder to qualify as a pilot, with support
the Chief Executive role in January,
                                          and mentoring from our senior pilots.
marking a step change in Napier Port’s
                                          Launchmaster Hayden Moffitt also
leadership, and Logistics expert David
                                          marked a major milestone in his career,
Kriel joined the team as Napier Port’s
                                          becoming a qualified Tugmaster.
new General Manager Commercial.
                                          Rising star Ian Raku Raku stepped up
PROGRESSION PATHWAYS                      to the Operations Services Manager
                                          role this year, also becoming Napier
Napier Port is committed to creating      Port’s fourth graduate of the Chartered
opportunities for our people to broaden   Institute of Logistics and Transport’s
their skills, challenge themselves,       Leaders for the Future programme, a
and gain qualifications.                  course aimed at developing leadership
                                          capability in the logistics sector.
This year saw us strengthen training
and progression pathways within our
mooring team. We also introduced
new progression pathways for our
NAPIER PORT / CONNECTING POTENTIAL / 28

BUILDING TOWARD
A BRIGHT FUTURE

We introduced a number of new
positions this year to cater for the
growth and change in our business.
Two Container Terminal Coordinator
roles are improving the efficient          COMMITTED
allocation of people, equipment and        TO COLLECTIVE
space across our terminal operation.       SUCCESS
Additional roles across our Finance,
Port Pack, Marine and Mooring teams        Napier Port is committed
are broadening our skill base              to sharing our knowledge
and strengthening our capacity.            and experience for the benefit
Our Communications team is                 of our industry, our customers
growing to support a comprehensive         and our region. We welcomed a
engagement programme that will             range of customers, partners and
connect our people, community              industry leaders onsite to share our
and stakeholders as we move                approach to operations, safety and         GOING THE EXTRA MILE
forward together.                          culture, and worked in collaboration
                                           with industry regulators Maritime          In June this year, Business
A CULTURE TO BE PROUD OF                   New Zealand and WorkSafe                   Development Manager Steve Young
                                           New Zealand to develop tools               took home the Unsung Hero award
Napier Port undertook a qualitative        and initiatives to improve safety          at the Hawke’s Bay Export Awards,
survey of our people this year, with       across the port sector.                    recognising his tireless work on
people from across the port taking                                                    behalf of exporters across the
                                           Our people travelled nationally and
the time to answer questions on how                                                   Hawke’s Bay and Gisborne regions.
                                           internationally to share their expertise
our culture had changed and where                                                     Steve’s nomination was supported
                                           and insights at industry forums,
we could improve. The development                                                     by Ross Beaton of The Apple Press,
                                           conferences and events. They continue
of our safety culture was seen as                                                     who paid tribute to Steve’s dedication
                                           to actively contribute to industry
a fundamental change that had a                                                       and willingness to go the extra mile
                                           bodies including the New Zealand
profound impact, along with the change                                                for customers.
                                           Cruise Association, the Port Industry
to a team-based culture. There’s still
                                           Association, Navis Users Group,
room to improve, and the need for
                                           PIANC, and the Chartered Institute
effective, transparent and face-to-face
                                           of Transport and Logistics. This year
communication was a frequent theme.
                                           saw General Manager Culture
Overall, our people said they were
                                           and Community Viv Bull appointed
proud to work for Napier Port, and felt
                                           Deputy Chair of the Hawke’s Bay
that our culture was on the right track.
                                           Chamber of Commerce.
PORT OF NAPIER / ANNUAL REPORT / 29

                                           OUR PARTNERS
                  Napier Port’s work connects us with a diverse range of                 visited Napier Port to understand more
          businesses and organisations locally, nationally, and internationally.         about our safety culture and operations,
We approach these relationships from a partnership point of view –                       putting what they’ve learned into
looking at what insights we can share that might benefit one another.                    practice and transforming the culture
                                                                                         at their terminals in Suva and Lautoka.
HEALTH AND SAFETY                          GREAT THINGS                                  Members of our Napier Port team
COLLABORATION                              GROW HERE™                                    have visited Fiji Ports three times since
                                                                                         this partnership started, gaining new
Located north of Napier Port               This Hawke’s Bay initiative highlights        insights into port operations
in Whirinaki, Pan Pac is the largest       our region’s success at growing               within the Pacific.
exporter of logs, timber and wood pulp     great food products, and thriving
products in Hawke’s Bay. With both         local businesses. Great Things Grow           PARTNERING WITH PORT
Pan Pac and Napier Port operating in       Here™ brings Hawke’s Bay businesses           USERS ON SAFETY
high-risk environments, we’re working      together as brand champions, sharing
together to share safety insights.         the stories that make up our region’s         We’re working more closely than
Napier Port has welcomed Pan Pac           success. Napier Port is a proud brand         ever with Napier Port users, as part
staff onsite for port tours, and to        champion and helped to develop the            of our ‘whole of port’ approach to
demonstrate our safety framework           Think Hawke’s Bay campaign, talking           health and safety. With any new
in practice. In exchange, we’ve visited    with businesses outside the region that       safety initiative, we consult, cooperate
the Pan Pac site for a first-hand          might be interested in relocating here.       and coordinate with other PCBUs
look at their safety culture at work.                                                    operating here, gaining their buy-in and
Napier Port is deeply committed            CONNECTING WITH                               strengthening the final result. This was
to forging new territory in the field      OUR FIJIAN NEIGHBOURS                         highlighted through the development
of workplace health and safety;                                                          of our new Individual and Company
we welcome business co-collaborators       What started as a commercial                  Safety Protocols, and a Licence to
like Pan Pac.                              relationship with Fiji Ports Terminals Ltd,   Operate contract. These clearly set out
                                           training crane operators in our innovative    our health and safety standards, and
                                           crane simulator, has developed into a         will help to formalise our engagement
                                           genuine exchange of culture, ideas and        with PCBUs where we didn’t have
                                           learning. Fiji Ports senior managers have     a direct relationship.
NAPIER PORT / CONNECTING POTENTIAL / 30

Port Pack team members Phil Munro
and Paul ‘Red’ Hamer don’t have to look far
to find a connection to our biggest customer.
As skilled forklift operators, they spend their
days packing Pan Pac pulp and lumber, ready
for export to world markets.
And after hours, you’ll find them exploring
the mountain bike trails that snake through
the Pan Pac forests where those products
are grown. It’s not only a great chance
to stretch the muscles, but a chance
to see the full life cycle of the
products they handle.
PORT OF NAPIER / ANNUAL REPORT / 31

  THE FULL
LIFE CYCLE
NAPIER PORT / CONNECTING POTENTIAL / 32

HEALTH & SAFETY
                         Our people are our greatest strength, so everything we do has health
144                      and safety at its heart. Napier Port is proud to have earned a reputation
Mole Map checks          as an industry leader in safety and innovation. If there’s a safer way
                         to deliver for our customers, we’ll find it.
1,460
health and safety        SAFETY LEADERSHIP                            General Manager Culture and
inductions completed     SHINES AT NATIONAL                           Community Viv Bull broke new ground,
                         AWARDS                                       becoming the first woman to be
311 places               Napier Port’s commitment to safety
                                                                      a finalist for the Health and Safety
                                                                      Leader of the Year Award. Napier Port
funded on health and     was recognised at a national level this      was also selected as a finalist for the
safety-related courses   year, with the port selected as a finalist   Industry Leadership Award, for the
                         in three categories at the Safeguard         transformational effect of our training
50                       Awards. The awards are run by                and culture development work with
different health         WorkSafe and celebrate excellence            Fiji Ports Terminals Ltd.
and safety courses       in workplace safety.
                         Napier Port won the IMPAC Best
                                                                      SERIOUS INJURY
                         Collaboration Between PCBUs Award
                                                                      In March, one of our employees
                         for our proactive approach to managing
                                                                      experienced a serious injury. This was
                         shipside safety with our operational
                                                                      a huge blow to him, his family and our
                         partners. The award recognised the
                                                                      wider team. We are doing everything
                         positive impact of pre-vessel meetings,
                                                                      we can to support our team member
                         which bring together all parties working
                                                                      over the course of his recovery.
                         a log ship to discuss and agree on
                                                                      We are also doing everything we can
                         a plan for the operation. Since the
                                                                      to learn from this devastating incident
                         introduction of this initiative, we’ve
                                                                      to ensure there is no repeat.
                         seen a 75% reduction in the number
                         of vehicle-related incidents.
PORT OF NAPIER / ANNUAL REPORT / 33

DRIVING SAFETY                                ENCOURAGING                                 Napier Port continued to support our
                                              A HEALTHY WORKFORCE                         people through providing onsite health
As part of our drive to make Napier                                                       clinics, flu vaccinations, therapeutic
Port a safer place, speed limits were         This year brought a new focus on the        massage, Mole Map tests, and prostate
reduced to 20 km/h across the port in         health of our people, with a series         cancer checks for staff. We also
April, with the support of our customers,     of awareness and action campaigns           provide access to a comprehensive
port users, staff and operational partners.   targeting issues such as fatigue,           employee assistance programme
                                              hearing loss, and cardiovascular health.    and an onsite support person.
DIGITAL SAFETY                                We continued a comprehensive health
INDUCTIONS LAUNCHED                           monitoring programme for staff in at-       PINKING UP TO
                                              risk roles, ensuring that they can keep     PROMOTE RESPECT
Health and safety inductions became           on top of their health. At the beginning
more accessible this year, with the           of our peak season, all operational staff   Napier Port took Pink Shirt Day
development of an online tool that            received a season wellness kit that         to a new level this year, with our people
enables port users, visitors and              encouraged healthy eating, hydration,       embracing the campaign’s anti-bullying
contractors to take their induction           exercise, relaxation and sleep.             message. Pink Shirt Day is a global
anywhere. Since it was launched in                                                        campaign that promotes safety and
                                              We also embarked on a comprehensive
April, 1,460 people have completed a                                                      respect across schools, workplaces
                                              programme to manage fatigue amongst
Napier Port health and safety induction.                                                  and communities. The port team flexed
                                              our workforce, recognising that it is a
                                                                                          their creative muscles, sporting pink
                                              major risk factor amongst shift workers.
PREPARING                                     The programme was kicked off with
                                                                                          garbs of all varieties including wigs,
FOR EMERGENCY                                 sessions from world-renowned fatigue
                                                                                          leg-warmers, tutus, cowboy hats
                                                                                          and even ‘painting’ some of our port
                                              expert Professor Drew Dawson on the
Napier Port’s response team tested their                                                  equipment pink (with the use of a little
                                              complexities of fatigue.
mettle in October last year, gathering                                                    Photoshop technology).
for a crisis simulation to practise           We also focused on wellness and
systems for dealing with an emergency         mental health initiatives this year,
situation. It was a great stress test for     running interactive campaigns and
our emergency procedures and a strong         training our people in how to recognise
assurance that any incident on port           signs of mental distress in those
is in good hands.                             around them and how to help.
NAPIER PORT / CONNECTING POTENTIAL / 34

CRUISE
57                         Sun-soaked landscapes, unique architecture, a burgeoning food, wine
                           and culture scene – it’s no wonder that tourists flock to Hawke’s Bay.
cruise ship visits
                           Every year, Napier Port welcomes            RECORD VISITOR
103,000                    more cruise tourists than the last.         SPENDING
passengers                 And the 2017-2018 cruise season was
                           no exception, with 103,000 passengers       Passenger spend soared this season,
43,000                     and 43,000 crew arriving on our shores.     with cruise visitors bringing more than
                                                                       $23 million* into our local economy.
crew                       Napier Port works in partnership with
                                                                       Passengers spent on average $227
                           our local tourism industry to ensure that
                                                                       per day while in Hawke’s Bay, enjoying
3 visits                   our cruise passengers enjoy a great
                           visitor experience in Hawke’s Bay.
                                                                       attractions from Cape Kidnappers
by Ovation of the Seas                                                 to Tangoio. And with passengers
                           Together with Hawke’s Bay Tourism,
(348 metres LOA)                                                       spending up to an average of $620
                           Napier i-Site, Nimon’s buses, ID Tours
                                                                       per day in other centres, there’s plenty
                           and local tourism businesses, we
$23 million                ensure passengers come away
                                                                       of growth potential ahead.
                                                                       *Statistics New Zealand
in credit card spending    with a visit that’s memorable for all
(Statistics New Zealand)   the right reasons.
                                                                       GIANT LINERS
                           And it’s working: demand for the            CALLING AT NAPIER
3 maiden calls             Hawke’s Bay experience is growing,
                           and cruise lines are booking more           Napier Port is now a regular fixture
                           Napier calls every year. Our tourism        on the itinerary of the Ovation of the
                           industry is flourishing, with new           Seas, the largest cruise ship to sail
                           ventures opening every year and             New Zealand waters. The giant liner
                           enhancing the breadth of our offering       called three times over the 2017-2018
                           as a tourist destination.                   season, bringing 15,000 tourists into
                                                                       our region.
PORT OF NAPIER / ANNUAL REPORT / 35

GROWING INDUSTRY

The 2018-2019 cruise season is set
to be another record season, with
72 ships scheduled to visit Napier.
With up to 125,000 passengers
exploring all that Hawke’s Bay has
to offer, visitor spend is expected
to top $28 million. We also welcomed
the Majestic Princess for the first time
in October 2018. At 330 metres LOA,
it is the second largest vessel ever
to call at Napier.

PIER PRESSURE

Napier Port has continued its
programme of upgrades to our existing
cruise infrastructure, to support the
growth our tourism sector has ahead
in the near future. But looking further
ahead, our infrastructure needs to be
capable of handling Oasis class ships,
which are around 360 metres LOA.
Building a new wharf will enable us
to bring in more cruise ships, including
the Oasis class liners that are too large
to berth in Napier at the moment.

                                                                   Photo Credit:
                                                               Warren Buckland,
                                                              Hawke’s Bay Today
NAPIER PORT / CONNECTING POTENTIAL / 36

From import as a raw material to export
as a valuable product, a coil of tin makes
a full circle in Hawke’s Bay.
Lifted from a ship berthed in Napier Port,
a container holding two 10 tonne coils
of tin plate is stacked ready for collection
from the port’s container terminal.
It’s picked up by one of the Tomoana
Warehousing Ltd fleet, and trucked to
the Tomoana Food Hub – a base of food
production on the outskirts of Hastings.
Safely delivered to specialist packaging
firm Jamestrong, the coil is unloaded and
fed into the production line, where it’s
transformed into thousands of tin cans.
Over the fence at Wattie’s, those cans
are filled with New Zealand classics
like baked beans and spaghetti
or Hawke’s Bay produce like peaches,
apricots and asparagus.
From here, they’re distributed to stores across
New Zealand, fuelling the people who keep
our supply chain running. The cans are also
packed into shipping containers and trucked
back to Napier Port to be loaded back onto
a ship, and taken to markets across the world.
PORT OF NAPIER / ANNUAL REPORT / 37

CONNECTED
 ECONOMY
NAPIER PORT / CONNECTING POTENTIAL / 38

OPERATIONAL
PERFORMANCE
5.1 million                Napier Port delivered for our customers this year: handling more cargo,
                           packing more containers, and setting new benchmarks in efficiency
tonnes of cargo handled
                           and performance.

266,006 TEU                Napier Port celebrated handling
                           5.1 million tonnes of cargo this year,
                                                                     MAJOR MILESTONE
                                                                     FOR PORT PACK
                           up from 4.7 million tonnes in 2017.
2.2 million                It’s a testament to the success of our    Napier Port’s onsite packing
tonnes of logs exported    customers, who continue to entrust        and devanning operation hit a new
                           us with their cargo, and the growth       milestone this year, passing the
35% growth                 of our region.                            50,000 TEU mark. The Port Pack team
                                                                     were proud to take care of a record
in log exports             The throughput of bulk cargo, including
                                                                     51,126 TEU for our customers this
                           logs, grew rapidly. Napier Port handled
                                                                     year, a 6% increase on the record
51,126 TEU                 3.1 million tonnes of bulk cargo this
                           year, a 22% increase on the 2.5 million
                                                                     48,310 TEU handled last year.
handled through
                           tonnes handled last year.                 Port Pack is gearing up for further
Port Pack
                                                                     growth, with major customers Pan Pac
                           Overall, our container terminal
                                                                     Forest Products and Winstone Pulp
13 minute                  handled 266,006 TEU over the year.
                           This is slightly down on last year’s
                                                                     International forecasting significant
average truck turnaround                                             growth in their export operations over
                           extraordinary result, which was driven
time (peak season)                                                   the coming years.
                           by the temporary closure of CentrePort
                           due to major earthquake damage.
684                                                                  DELIVERING ON TIME
ship calls
                                                                     Smart systems and planning saw an
                                                                     average truck turnaround of 13 minutes
23,000+ TEU                                                          this year, allowing customers and
of apples exported                                                   transport firms to maximise their time
(new record)                                                         by planning additional trips.
PORT OF NAPIER / ANNUAL REPORT / 39

NEW PRODUCTIVITY
RECORDS FOR
CONTAINER TERMINAL

Napier Port’s container terminal
handled 30,263 TEU in its peak month.
The terminal also set a new record for
vessel throughput on a regular service,
with 67 container moves per hour
achieved across a 12 hour exchange.

EFFICIENCY GAINS
IN LOG OPERATION

Our log yard is running more efficiently
than ever, thanks to an increased
turnover of logs. Through working
closely with our log exporters, we have
been able to turn over 92.6% of logs
within four weeks of their arrival on
the wharf – up from 84.9% last year.
We are also loading more logs per
vessel – an average of 14,600 tonnes,
up from 13,800 tonnes in 2017.
The log vessel CS Celeste also
stacked up a new record on 11 March,
leaving Napier Port a whopping 39,775
tonnes heavier. A record 36,491 JAS
of logs were loaded onto the vessel
over five days.
NAPIER PORT / CONNECTING POTENTIAL / 40

CHANGING                                    Whether this service will resume again     A BUSIER PORT
SHIPPING NETWORK                            remains to be seen, but with the OC1
                                            service also plying the trade route        With more cargo and more
Across the globe, the shipping sector       between Napier and Europe, the impact      ships arriving at Napier Port, our
remains in a state of continual change.     on shipping customers is minimal.          infrastructure is facing congestion
This year saw the launch of shipping                                                   challenges. This year saw a record
line ONE (Ocean Network Express)            VESSEL RECORDS                             66% occupancy of the 1 Wharf log
– the result of consolidation amongst                                                  hub. Working within a limited space
Japanese lines NYK, Mitsui and K-Line.      This year saw the first container ships    means that ships often need to be
China COSCO Shipping, the result            capable of carrying over 5,500 TEU         moved off 1 Wharf or 2 Wharf in order
of a 2016 merger between COSCO              arrive at Napier Port. The E.R.            to guide larger cruise and container
Group and China Shipping, finalised a       Los Angeles, able to carry 5,762 TEU,      vessels onto and off berths. This year
takeover of OOCL this year.                 berthed on 10 December 2017. It            saw a record number of such vessel
                                            was followed by the Chicago, able to       shifts, peaking at 10% during February
Closer to home, New Zealand has seen
                                            carry 5,752 TEU on 21 January 2018         and March. Our designated anchorage
some significant changes to shipping
                                            and the OOCL Kuala Lumpur, able to         points out in the harbour, used by ships
services. Maersk has reshaped its
                                            carry 5,888 TEU, on 12 September           waiting to berth, were in use a record
New Zealand routes, discontinuing the
                                            2018. All three vessels had a beam         70% of the time this year.
weekly Northern Star service (Timaru
                                            of 40 metres, making them the widest
– Nelson – Wellington – Napier) in
                                            container ships ever to have berthed at
favour of a new weekly Southern Star
                                            Napier Port. The Jens Maersk also set
service to Southeast Asia, calling at
                                            a record on April 21, when it departed
Tauranga, Napier, Lyttelton and Otago.
                                            Napier Port with a draft of 12.2 metres.
This service begins in late 2018.
Conversely, the weekly Panama Direct        Napier Port handled 684 ships
service (Tauranga – Napier – Nelson)        overall this year, notching up a record
to Europe and North America was             309 bulk cargo vessels. This includes
downgraded following the peak export        151 log ships, up from the previous
season to a fortnightly call at Tauranga.   record of 118 in 2017.
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