Interconnect December 2017 - In this Issue - Ports of Auckland
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Interconnect December 2017 In this Issue POAL Unveils Draft 30-year Master Plan
Interconnect
December 2017
CONTENTS
2 POAL Focus POAL Focus
4 The Draft 30-year Master Plan:
Addressing the freight challenge for This has been another year of an industry level, intense competition
strong performance and growth. and oversupply within the container
Auckland over the next 30 years.
We continued to deliver solid sector have created a relentless
6 The Draft Master Plan and and consistent improvement in drive to cut costs. We’ve seen
Fergusson Container Terminal our operational performance. mergers and acquisitions among
We improved productivity on the terminal container lines leading
8 The Draft Master Plan increased volumes across the
to significant consolidation. Only
at a Glance port, led by a significant 12%
8-9 container carriers are expected
to remain by 2018 compared
10 The Draft Master Plan increase in general cargo to with 14 in 2016. This change has
and Multi-Cargo 6.5m tonnes and a 5% growth in impacted on us in New Zealand with
container volume to 952,331 TEU. the withdrawal of some shipping
12 The Supply Chain and lines from our market and various
We remain focused on providing
Future Investment Plans our customers with great service, changes in shipping alliances.
14 Market RoundUp but as we move forward, it will be What this means is that as a port,
with more emphasis on ensuring we we need to continue to focus on
Editorial: Anne Hunter are operating sustainably to deliver being flexible, resilient and customer
Front cover photo: POAL’s world class port improvements through technology
standards and service delivery were recognised focused. Like other industries we
again in 2017 – for the second consecutive year and innovation, keeping costs low, are facing disruption from new
– with the award for Best Port in Oceania in the and extending our reach into the
Asian Freight, Logistics & Supply Chain Awards. technologies. We are not sitting by
supply chain so we can offer better to passively await the future, but
Back cover photo: Three new container cranes
will work the new deep-water berth at Fergusson value and service to freight owners. instead we are anticipating and
Container Terminal which, by late 2018, will have
a total of eight container cranes. Over the past year, we started proactively planning for the kind of
and finished several infrastructure future we believe will be best for
projects that will enable us to our staff, our customers and the
handle future growth. We have communities we serve. We are also
continued to invest in the supply obliged to operate as a successful,
chain and in the development of our commercially viable, profitable and
freight hub network to compete for efficient business and to provide a
volume beyond the port gate. We sustainable level of financial return
also have other projects underway to our shareholder and owner,
that will enable us to keep delivering Auckland Council.
for our customers.
We believe we have been delivering
As we look ahead, further changes on these mandates. And this year,
and disruption are on the horizon. At for the second consecutive year,
2
SeePort to
Celebrate its
5th Year
Each year over Auckland Anniversary weekend,
Ports of Auckland invites you behind the iconic
Tony Gibson, CEO Ports of Auckland red fence to discover your port from land,
sky or glistening sea. Captain Cook Wharf is
our customers again recognised our core components of the draft plan. transformed into a bustling summer carnival
efforts by voting POAL the This site is www.masterplan.poal.co.nz. with family-friendly rides, tours and day-long
Best Port in Oceania in the Asian entertainment on and off the water. In 2018,
As outlined in the pages of this issue, Auckland’s largest Anniversary weekend event
Freight, Logistics and Supply Chain
the draft plan covers developments returns to the waterfront bigger and better than
Awards. Our team is justifiably proud
to increase capacity across the ever as the festival celebrates five years!
of the accolade.
port – not by increasing the existing
But we recognise that if we are to footprint but, by making better use We’re proud to be joined by some of our
continue to deliver for our customers of existing space and increasing our maritime partners and customers, but there
and for Auckland, we need to presence off-port. is always room for more! If you would like to
continue to evolve our business. see how you could be a part of the festivities,
We intend to work closely with all please email feedback@poal.co.nz.
While we are mindful that the port our stakeholders to bring our vision
may one day move, shifting a port is to life and it is our intention to be as Sun and sea are the perfect mix for a long
a slow and expensive process that collaborative as possible. I urge you weekend, and best of all it’s mostly free! Check
could take decades. In the meantime, to visit www.masterplan.poal.co.nz, out www.seeport.co.nz to see what’s on.
as Auckland grows and the ships read the detail of the plan and give us
calling at our port get larger, we still your feedback via the survey at the
need to be able to handle Auckland’s end. It is vital that we hear the views
growing freight task and this remains of as many different stakeholders as
our focus. possible. I would like to thank you in
To this effect we have developed a advance for any input and feedback
Draft 30-year Master Plan. It allows you provide regarding our plans
for the port to cater for increased and for your ongoing support of our
business.
trade and for larger and longer
ships until – or if and when, we Finally from all of us at Ports of
relocate. In addition to the content Auckland, we wish you a happy and
on the following pages, we have also relaxing Christmas season and a
developed a website that outlines the productive and rewarding 2018.
Operations Review
POAL Releases Draft
30-year Master Plan
In 2019 POAL will be the first New Zealand port and the only container terminal in the world to semi-automate its container operation
As Auckland’s population grows While debate continues about the the broader community. POAL has
there is increasing pressure port’s location, POAL is required to engaged with stakeholders on what
on the city’s infrastructure keep delivering for Auckland and for they want and need from the port,
to keep up with the demand its customers in the meantime. To do and has responded with the release
for more goods. This impacts so it is looking to make significant of the Draft 30-year Master Plan.
POAL’s operations. changes to its operations, in its use of The draft plan lays the pathway
the land on which it is located and on for POAL to continue to meet
how it interacts with customers and the growing freight challenge for
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Auckland over the next 30 years
and/or until a new port is built. With
a focus on innovation, it maximises
POAL’s current footprint in order
to enable the port to do more with
less. It provides solutions for POAL’s
capacity constraints which, if not
addressed, will prevent POAL from
providing a top class service.
Some elements of the draft plan
are already underway such as
the expansion and automation of
Fergusson Container Terminal.
Others are proposed for the next
10 years which would provide the
capacity needed for the next 30
years.
Craig Sain, POAL General Manager Craig Sain, POAL General Manager Commercial Relationships
Commercial Relationships, looks
at where the port is now and the Without any changes, we will run short and tight for modern, large
changes that the draft plan identifies out of space within the next five to vessels. That’s why we need to get
are necessary for POAL to provide seven years within this area. The more capacity at some wharves to
more yard and berth space (without real challenge we face is that both increase berth space and we need
increasing the existing footprint), in freight and cruise ships are getting to make space by removing old
order to cater for forecast volume bigger. Even the traditionally smaller structures like Marsden Wharf.
growth and larger ships. He points ships serving the Pacific Islands
to current projections which, on ‘We’ve already achieved better use of
trade, which berth at the multi-cargo
completion of certain projects space on the existing footprint. But
wharves, are getting bigger. And
we need to do more. In response to
already underway, show around 30 certainly the cruise ships are growing
public demand, we have proposed
years of capacity within the container apace. The old ‘finger wharves’, such
that Princes, Queens, the Viaduct
terminal. as the main cruise berths of Queens
Harbour and Wynyard Quarter are
and Princes, aren’t long enough for
“The real challenge is at Multi Cargo; all opened up and developed for
the new generation ships and the
as Auckland continues to grow, public use and enjoyment. As the
wharves are too close together for
we are fast running out of space at draft plan shows, we believe we can
manoeuvrability of vessels and tugs.
our six multi-cargo wharves. They deliver more with increased public
include Bledisloe – our premium ‘Even Bledisloe, formerly our second access to view port and waterfront
ro-ro wharf, Captain Cook, Marsden, container terminal and now our and by making the port more
Jellicoe, Freyberg and Wynyard. prime ro-ro multi-cargo wharf, is too aesthetically pleasing.”
The Draft 30-year Master Plan
New Bledisloe North Wharf
Timing: within 10 years
Bledisloe
crane removal
Completion: in late 2018
Removal of Shed 51 and
part of Bledisloe ‘B1’ Wharf
to extend ‘B2’ Wharf
Marsden Wharf
removal Timing: within 10 years
Timing: within 10 years
Reconstruction of
Bledisloe South Wharf
Timing: within 10 years
New car handling
New hotel and
building
public carpark
Timing: apply for consent 2018
Timing: within 5-10 years and construct within 5 years
Temporary
engineering workshop
Completion: in late 2017
Rail grid
automation
Timing: currently looking at
feasibility; no time frame for
developing a plan yet
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Berth
New cranes on deepening
Fergusson North Wharf Fergusson North Wharf extension
Timing: within 10 years
Completion: in late 2018 Timing: when needed to accommodate longer ships
Final stages
of Fergusson
Container Terminal
reclamation
Completion: by 2020
Fergusson Container
Terminal automation
Completion: in 2019
Remove existing
head office building
New head office
Permanent building Timing: within 10 years
engineering workshop
Timing: within 10 years
Timing: within 5 years
Container Terminal Innovation and Automation
Container Terminal
Innovation and Automation
The new deep-water berth at Fergusson Container Terminal
Since 2011 POAL has delivered POAL Chief Executive Tony Gibson, wharf, a new 300m berth along the
significant improvements in confirms that, to cater for future northern face of the terminal and
container handling performance growth, the port has already invested we have almost completed a 10ha
alongside consistent container heavily in technology and automation reclamation project.”
volume increases. This year, to create a step-change in its
“In 2019 we will also become the first
container volume increased container handling processes. “Since
by 5% to 952,331 TEU. Despite 2001 we have been developing container terminal in New Zealand
consolidation in global container our Fergusson Container Terminal to use automation. We will start
shipping, containerised volume facilities to create capacity to meet using 16m tall automated straddle
through POAL has continued to increasing demand and room for carriers to load and unload trucks
increase in line with Auckland’s bigger container ships. This long- and to operate the container yard
growth and a robust economy. standing project is now in its final where they will stack containers
POAL is continuing to forecast stages. We have now completed four-high (from three-high). This alone
future growth in this sector. a 50m extension of our container increases our capacity by a third.”
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The new Fergusson Container
Terminal berth will be serviced by
three new container cranes, which are
to be delivered in late 2018. The new
cranes are expected to help cater
for increased container throughput
by carrying up to four containers
at a time. “They will work our new,
premium, deep- water container berth
which will handle the biggest ships.”
Fergusson Container Terminal will
then have a total of eight cranes.
Alistair Kirk, POAL General Manager
Infrastructure and Property, explains
that while the new berth is initially
dredged to 13.5m below chart
datum, POAL is likely to seek Alistair Kirk, POAL General Manager Infrastructure and Property
resource consent in the future to
dredge the berth deeper to 15.5m
for converting the truck grid for the In its reference to the container
below CD. “We foresee that will
automated operation, the first two terminal, the draft plan also identifies
be necessary to handle the bigger,
prototype truck grids have been set a potential rail project to increase
deeper ships we anticipate will call
up to engage trucking companies rail utilisation through automated
at POAL over the next decade.
on how they will interface with the loading and unloading of trains. In
Aligned to the berth deepening will
new system including the automated line with POAL’s intention to increase
be the deepening and widening of
straddles (A-Strads) which will take rail transactions on and off the port,
the channel to accommodate vessels
over the loading and unloading of the possible rail automation would
at high water in the 15-15.5m range
containers to and from the trucks” enable rail volume to be handled
over the next few years.
reports Alistair Kirk. He confirms more effectively, with rail-mounted
“As our customers can see, there’s that from the end of 2017, the new gantries potentially operating the
a lot of construction activity and A-Strads will undergo a trial and test A-Strads between the rail and
civil works in progress at the programme to put the machines container terminals. If determined
container terminal right now with through their paces. Several feasible, this ambitious project would
various preparations underway. A kilometres of ducting have already be firmly aligned to POAL’s goal to
new reefer container area is under been laid to accommodate the fibre get more cargo off the road and onto
construction between our head optics and cabling associated with rail and to intensify operations on the
office and heliport. In preparation the A-Strad operation. existing footprint.
Multi-Cargo Transformed
Multi-Cargo Transformed
(including a multi-storey for cars with a
rooftop green park and a hotel next door)
In 2016/17 POAL handled 6.5m tonnes of break-bulk cargo including cars - an increase of 12.1% on last year
The 2016/17 financial year saw a sustainability of moving the import to Bledisloe, Jellicoe, Marsden and
significant lift in cargo volumes car business out of Auckland to an Captain Cook multi-cargo wharves,
across POAL. The highest growth alternative port e.g. Northland. These the port will experience worsening
was in general cargo which studies confirm that Auckland is the congestion in this area.
grew to 6.5m tonnes – including cheapest and most environmentally
To deal with this ongoing growth in
vehicles – an increase of 12.1% friendly supply chain for the import
vehicle imports and to address the
year on year. POAL expects car trade in New Zealand – not
capacity issues on its multi-cargo
infrastructure developments in withstanding that Auckland is the
wharves, the POAL Draft 30-year
the region to continue to fuel main market for import vehicles into
Master Plan proposes a number of
growth and demand for the ports New Zealand.
projects: mindful of the need for faster
services including the import of
The growth in non-containerised clearance of cars from the wharf and
vehicles which increased again
cargo has put more pressure on the public preference to move the
this year to 297,383 units – up
POAL’s multi-cargo wharves which cars from view, the POAL Draft 30-
nearly 20% from last year.
are operating above capacity. POAL year Master Plan includes a plan to
Recent studies have identified the Chief Executive Tony Gibson, recently develop a multi-storey car handling
prohibitive cost and the lack of announced that without changes and storage facility with a green park
10Interconnect
rooftop. This development would capacity expansion but we need
accommodate vehicles currently more berth capacity for parking more
parked on Captain Cook Wharf and and larger ships.”
in the Toyota Building at the Bledisloe
Auckland Council’s 2015 Port Future
Terminal and provide additional
Study recognised the need for more
capacity to cater for forecast import
berth space at Bledisloe, while also
vehicle volume increases.
acknowledging the opposition to
Next to the car handling building any further reclamation. To address
and adjacent to Quay Street, POAL both these issues, the study
has earmarked space for a new recommended a new wharf across
hotel which would have connecting the north face of Bledisloe. The
access to the adjoining rooftop park. draft plan also includes a proposal
“This would be a very different and to upgrade Bledisloe North Wharf.
exciting way of achieving a port/city This is the keystone project in the
interface” observes Alistair Kirk, multi-cargo area and, if approved,
POAL General Manager Infrastructure will provide POAL with a berth for the
and Property. “We have listened to longest vehicle ships. It also unlocks
what Aucklanders want and what capacity at three other berths for
our customers need and we believe general cargo and cruise ships.
Auckland’s construction boom continues to drive general
these projects deliver the best of
The draft plan proposes building a cargo growth particularly in cement volume which
both worlds. They would enable us increased 14.1% over the year before and is up almost
new wharf on the end of Bledisloe 50% over the last two years
to provide more public access to the
multi-purpose terminal, running
waterfront and improve the look of
east-to-west. It will be a piled The removal of Marsden Wharf is
the port. The hotel would also be a
structure, which is in line with also proposed in order to unlock the
real asset in supporting our growing
POALs commitment to no further wharves on either side -- Bledisloe
cruise business into Auckland by
reclamation in the harbour. The wharf South and Captain Cook East – again
providing much needed additional
will reach a little further into the to increase their useable area for
accommodation in the central city.”
harbour - an extra 13-metres - but general cargo or cruise ship overflow.
As he explains, the capacity this is critical because it unlocks After the proposed development work,
constraints at the multi-cargo three other projects: the extension Bledisloe Wharves B3 and South would
wharves, demand expansion of both of B2 Wharf, the development of finally accommodate two 200m car
berth and yard to cater for increased Bledisloe South Wharf, and the carriers thereby increasing capacity
throughput: “The multi-storey car potential to use the east side of and enabling the port to meet the
park caters for some of the yard Captain Cook Wharf as a cruise berth. challenge of the growing freight task.Supply Chain
POAL and the Supply Chain
In 2014, POAL unveiled a The first step towards that goal was Providing better international freight
dynamic supply chain strategy the establishment of a North Island links for the regions, the freight hubs
based on the ports commitment Freight Hub network. The POAL (originally called inland ports) help
to active participation in the Draft 30-year Master Plan covers relieve pressure on the capacity
supply chain. A significant the increased utilisation of that hub
constrained seaport and enable
investment has been made into network which presently includes
a greater balance of freight flows.
Wiri in South Auckland, Tauranga in
extending POAL’s reach off- The network also helps reduce the
the Bay of Plenty, Longburn in the
port with the development of a unnecessary and highly inefficient
Manawatu and the latest addition,
national supply chain network. movement of customers’ empty
the new Northgate freight hub at
Horotiu near Hamilton in the Waikato. containers around New Zealand.
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Rail With the introduction of automation
at the Fergusson Container Terminal
on reduction of energy, emissions and
waste, greater integration with the city
In its strategic relationship with in 2019, the Draft 30-year Master of leading the growth of a sustainable
KiwiRail, POAL’s goal is to ensure Plan will look at the feasibility economy in Auckland.
that all its freight hubs are connected of streamlining the transfer of
by dedicated, point-to-point trains containers across the port to and
from rail in an automated operation
Cruise and
as the primary freight movers. As
Tony Gibson, POAL Chief Executive
employing rail-mounted gantries. the Future
This proposal represents our focus
comments: “This not only reduces To accommodate the current and
on relieving pressure on the roads
congestion on the roads but provides future growth in the cruise business in
and to achieve better optimisation
a cost effective and efficient solution and out of Auckland – New Zealand’s
of freight volume between the freight
for our customers”. premier cruise port, an upgrade of
hub networks.
Queens Wharf, the main cruise berth
In its Annual Report’s Statement Another key element of its supply in Auckland, is imperative. However,
of Intent, POAL confirms that it will chain strategy is the control of its Queens Wharf is owned by Auckland
increase its use of rail transport on own logistics and freight handling Council and so it is not possible
and off the port. The goal is that operations. In October, POAL for POAL to solve this problem
30% of all cargo will move in and acquired the remaining shares in alone. POAL is supporting Auckland
out of the port on rail by 2030. Rail Nexus Logistics and its subsidiary Council to find a way to handle the
presently accounts 10-12% of cargo Conlinxx. As 4PL and 3PL specialists growth of cruise in Auckland and to
transfers in and out of POAL. respectively, these two cover the accommodate the new generation,
logistics of moving freight across large cruise ships that are too big for
networks more efficiently and Queens Wharf. At present ships like
POAL has a cost effectively and provide freight Ovation of the Seas, are required to
handling services including trucking, moor-off in the harbour and transfer
passengers by tender to and from
view to increase rail and freight hub operations.
the terminal. This is not a desirable
its use of rail Zero Emissions situation for either passengers or
cruise line. POAL is concerned that
these big ships will bypass Auckland
transport so that Sustainability is another POAL
commitment. The draft master plan unless Queens Wharf can be upgraded
to accommodate them. The cost to
30% of all cargo blueprint of the port’s integrated
has been designed against the
Auckland of such a bypass would be
sustainability strategy which considerable. As such, alternative
will move in and includes being the most sustainable options are currently being considered.
port in New Zealand, being a zero
out of the port emissions port and becoming
‘net positive’ for energy by 2040.
by rail by 2030. Towards those goals, the focus isMarket Round Up
Appointments Supply
Ports of Auckland has appointed Chain
Investment
three new directors to its board. They
are Sarah Haydon, Karl Smith
and Bill Osborne. POAL Chair
Liz Coutts said all are experienced POAL has acquired the remaining
directors from diverse backgrounds 50% of logistics company Nexus
‘including strong supply chain and Logistics and subsidiary Conlinxx
financial credentials’. from Netlogix. Commenting on the
Following the change in share investment, POAL Chief Executive
structure with POAL’s acquisition Tony Gibson said: “This is a key
of the remaining 50% of Nexus part of our supply chain strategy
Logistics, Mike Lightfoot has giving us the ability to control our
been appointed as CEO of Nexus. infrastructure and provide our
He was previously CEO at Milmeq customers with the most efficient
International, a global exporter of end-to-end solutions”. A 4PL
protein processing equipment. company, Nexus applies logistics
solutions to find the most efficient
Major New Zealand exporter Zespri, and cost effective movement of
has appointed Dan Mathieson as freight. Conlinxx is a freight handling
CEO replacing Lain Jager who company providing services such
has helmed the kiwifruit exporter for as trucking, rail handling and freight
almost 10 years. Dan Mathieson hub operations. It manages the Wiri
was formerly Zespri Global Sales and Freight Hub for POAL.
Marketing President. POAL Chair Liz Coutts
COSCO buys OOCL
In this year of continued shipping is subject to anti-trust reviews. If second largest shipping line after
mergers and acquisitions, the approved, COSCO will have a fleet Maersk. COSCO Shipping itself is
latest and one of the biggest yet, is of 400 ships, capacity of over 2.9m the result of a merger between China
COSCO’s accepted bid for Hong TEUs and an 11.6% market share – Shipping and COSCO.
Kong OOIL and its shipping line which will see COSCO leapfrog over
OOCL for USD$6.3b. The purchase CMA CGM to become the world’s
14Interconnect
RIP Jens Madsen
Ports of Auckland and the New Executive Geoff Vazey, whom he
Zealand shipping community were subsequently replaced. He remained
saddened to learn of the untimely, as Chief Executive until 2011 when
sudden death of former POAL Chief he returned to his native Denmark.
Executive Jens Madsen at age 60. Before joining POAL, Jens Madsen
Widely respected as helmsman of had worked for AP Moller Maersk,
POAL through a challenging and the world’s largest shipping line,
volatile environment during a difficult for 28 years including establishing
five year period, Jens Madsen joined and heading up its New Zealand
POAL in 1996 as COO to then Chief operation from 1996 until 2000.
New Rail Line New Cranes
Through Auckland For New
POAL has welcomed the government’s proposed funding of an additional Deepwater
Container
passenger and freight rail line into Auckland. It will be a third line on the North
Island Main Trunk between Westfield and Wiri (W2W), a section that is most
heavily used. Currently the twin track line is at maximum operating capacity.
KiwiRail says the third main line will allow freight trains to have a dedicated
track, separate from passenger trains, on the most congested section of the
Berth
Auckland Rail Corridor. POAL’s goal is to increase its use of rail for the transfer
POAL also has plans to introduce three
of containers in and out of the port from the current 12% to 30%.
new container cranes for use at the new,
deep-water container berth at Fergusson
Container Terminal. These are expected for
delivery late 2018. When delivered, they
will increase the terminal’s total number
of cranes to eight. With the installation of
the new cranes, the old container cranes
on Bledisloe Wharf will be removed. Those
cranes are now redundant, as Bledisloe
no longer operates as a container terminal
but as multi-cargo wharf serving primarily
ro-ro vessels carrying general cargo and
vehicles.Interconnect is the magazine of POAL,
Sunderland Street, PO Box 1281,
Auckland, New Zealand.
Phone +64 9 348 5000
www.poal.co.nzYou can also read
