New Zealand is a step closer to a more resilient,
competitive, and sustainable coastal shipping sector
following the selection of preferred suppliers for new and
enhanced coastal shipping services, Transport Minister
Michael Wood has announced today.
“Coastal shipping
is a small but important part of the New Zealand freight
system, which is why the Government is investing in making
coastal shipping a more viable alternative to strengthen and
diversify our domestic supply chain, helping to secure New
Zealand’s recovery from COVID-19. As a lower emissions
transport mode, investing in coastal shipping will also help
us achieve our decarbonisation goals,” Michael Wood
said.
The Government has committed $30 million of
funding for coastal shipping funding through the National
Land Transport Programme (NLTP) to improve domestic shipping
services, reduce emissions, improve efficiency and upgrade
maritime infrastructure.
Waka Kotahi worked with the
wider freight industry (NZ Shipping Federation, Port Company
CEO Group, National Road Carriers, KiwiRail, and Te Manatū
Waka – Ministry of Transport), to select four applicants for
co-investment in new and enhanced coastal shipping services
through the NLTP.
The four preferred suppliers
are:
- Coastal Bulk Shipping Ltd
- Move
International Ltd - Swire Shipping NZ
Ltd - Westland Mineral Sands Co (2022)
Ltd
“With the freight industry’s support,
these additional services will help to resolve immediate
challenges to the coastal shipping and the wider freight
sector, address some of the current issues facing the
international and domestic supply chains and provide a
platform for future growth across all modes with increases
in capacity and capability for both new and existing bulk
materials and containerised cargo,” Michael Wood
said.
“Each of these four selected suppliers will
bring at least one additional coastal shipping vessel into
service, and together this will improve the resilience of
the overall freight supply chain.
“The four
preferred suppliers will invest over $60 million through
their proposals, resulting in combined investment in the
sector of over $90 million.
“When the new services
are fully operational, it is estimated they will remove
around 35 million kilometres of truck travel from New
Zealand’s roading network every year, reducing wear and
tear and improving safety for road users, while at the same
time creating new employment opportunities for mariners and
supporting regional development. This will also support our
commitment in the recently released Emissions Reduction Plan
to reduce emissions from freight transport by 35 per cent by
2035.
“Through this funding we are taking an
important step towards better utilising the blue highway,
improving our freight system, and futureproofing our
national supply chain.
“In the meantime, we’re
continuing work to mitigate supply chain problems caused by
COVID-19, which includes increasing capacity through
KiwiRail, extending the aviation support package so
businesses can tap into international markets, and working
with the sector to address issues as they arise,” Michael
Wood
said.
