Lyttelton sails ahead of other ports after receiving dredging consents

Friday, 18 May 2018

Lyttelton Port chief executive Peter Davie.

Lyttelton Port has obtained resource consent for dredging to a depth that puts it in competition with Port of Tauranga, and ahead of ports of Auckland and Wellington for big ship visits.

The consent came after a mediated settlement with objector Ngai Tahu, and allows Lyttelton Port to contract one of the world's largest dredges to begin work in June.

Lyttelton Port deals with about two thirds of exports out of Canterbury exports.

Lyttelton Port also this week signed an industrial agreement with Rail and Maritime Union members after one of the most acrimonious disputes.

The company held a media briefing where Auckland-based chairman of the International Container Lines Committee, Mark Scott said shipping companies were making decisions on where large ships will call and the dredging programme gave them assurance that Lyttelton Port was a major player.

The channel deepening and widening planned for Lyttelton.

* Lyttelton industrial dispute comes to an end with settlement

Lyttelton Port is completing about 20 projects including this new headquarters that will see it competing with other main ports in New Zealand.

* Emotions high at launch of plan to protect Lyttelton Harbour for decades to come

* Stand-off between Ngai Tahu and Lyttelton Port over dredging plans

Scott said the dredging would potentially double the size of container ships able to enter Lyttelton from the current 5000 twenty foot equivalent units.

Mike Knowles, chair of the New Zealand Shippers Council.

Port of Tauranga has a maximum vessel draft of 13.2 metres at low water and 14.5m at high water, Wellington's CentrePort has 11.3m at high water, while Auckland's draft at its northern berth is 13m.

Peter Davie said the larger ships were estimated to decrease freight costs by more than 10 per cent.

'The work will occur in two stages. The first will allow vessels with a 13.3m draft. Stage two will allow a 14.5m draft across all tides,' Davie said.

The industrial dispute that dogged Lyttelton in recent weeks is estimated to have cost the port about $1 million in lost revenue.

The agreement which is still under wraps provides for a 9.34 per cent wage increase over three years to 200 union members covered by the agreement plus other allowances. It was ratified by 88 per cent of members.

Meanwhile, Davie said Lyttelton Port had implemented the largest environmental monitoring programme ever undertaken for a New Zealand dredging project.

'We have awarded the initial stage of the channel deepening programme work to Netherlands-based contractor Royal Boskalis Westminster NV – a leading global operator with more than 100 years' experience. Their dredge will start operating in late July and the dredging programme will last around 11 weeks.

'At the same time we will expand our reclamation at Te Awaparahi Bay by 24 hectares, which includes the construction of a new 700m container wharf.

'Last year the existing reclamation at Te Awaparahi Bay reached 10ha.

'A key focus of our long term plans is to move our operations to the east, away from the local community. The additional reclamation will facilitate this shift.

Mike Knowles, chair of the New Zealand Shippers Council also welcomed the dredging given Lyttelton dealt with half the container exports in the South Island and two thirds of Canterbury exports.