Wednesday, August 3, 2016

Ports See Cooperation as Advantageous for Freight Interests

Tie Up Extends Existing Collaboration
Shipping News Feature
NEW ZEALAND – In a week when the government confirmed that NZ$25 million of a NZ$245 million infrastructure investment in the Hawke’s Bay region over the next three years is earmarked for highway improvements to and from Napier Port, the port itself has now announced a strategic alliance with island partners the neighbouring Ports of Auckland, which lie 400 kilometres to the North.

The two ports say that this partnership will allow them to cooperate in optimising more efficient services for freight customers and achieve further scale efficiencies prompting ‘greater competitive contestability and resilience in New Zealand’s supply chain to help lower costs to exporters and importers.’ Ports of Auckland Chief Executive, Tony Gibson commented:

“Ports of Auckland and Napier Port are the gateways to two of the largest North Island provincial economies with significant growth and demands on infrastructure. There is a natural fit between Ports of Auckland and Napier Port. We share a similar way of working, common customers and supply chain opportunities and have similar ownership structures so that’s a great base to work from.”

This new strategic alliance builds on Napier Port and Ports of Auckland’s existing joint venture in Palmerston North’s Longburn regional freight hub and will support Ports of Auckland’s regional freight hub network strategy to manage the growing freight market. The pair say the strategy helps to balance freight flows, provides exporters with choice, improves access to overseas markets and reduces exporters’ costs due to supply chain efficiencies.

Napier Port Chief Executive, Garth Cowie, said the alliance also creates an opportunity to collaborate, share best practice and innovate in technology, health and safety and sustainability practices, areas where both ports are seeking to advance further. He continued:

“Napier Port’s vision is to be Central New Zealand’s leading provider of port and logistics solutions. This alliance fits with the natural flow of freight in the North Island, based on ports close to demand centres and Auckland’s weighting towards imports and our strong export base. Both operators are committed to growing our talent so we will be developing a joint talent pool, driving skills development and opportunities like staff exchanges where it makes sense.

The alliance is a significant and exciting development for local exporters and the local community. Better international freight links will benefit the Hawke’s Bay region, encouraging additional investment and supporting the growth of local employment opportunities.”

Amanda Liddle, Executive Officer at ExportNZ Hawke’s Bay, described the new deal as a ‘win-win’ for all exporters, as she sees it leading to an even more streamlined approach, demonstrating her organisation’s belief that businesses should consider partnerships and collaboration in order to achieve better results.