Fonterra, Silver Fern launch cargo company

Friday, 1 July 2011

A new export-import cargo management company launched today by dairy giant Fonterra and the country's biggest meat company Silver Fern Farms will start operations on August 1, servicing around one third of all containers leaving New Zealand.

The new company is called Kotahi, and its chief executive is former Fonterra logistics specialist Chris Greenough, 41.

Fonterra Managing Director of Trade and Operations Gary Romano said Kotahi will create a 'sea change' that will help Kiwi businesses be more competitive in global markets.

'Export earnings are New Zealand's bread and butter, just last year the collective return was over $40 billion. This is a great success story… but there is a real risk we will be squeezed out.

'We are the most remote developed country in the world relative to international markets and the way we get our products to and from these markets is critical to continued success.'

Romano said the driver for Kotahi, whose meanings in Maori include 'one vision' and 'one aspiration', was establishing an efficient and secure supply chain service to enable New Zealand companies to operate on a global scale.

Silver Fern Farms Chief Executive Keith Cooper said exporters like his company faced the loss of international business if ocean freight services continue to decline.

Kotahi would aim to attract shipping lines that could offer a faster service for New Zealand's perishable goods exporters and try to give shipping companies more certainty around volumes and timetables by smoothing out the peaks and troughs of  highly seasonal shipping demands.

Ports of Auckland Chief Executive Tony Gibson said greater collaboration among supply chain players had to be good for New Zealand, a small country which needed to leverage what scale it had.

KiwiRail also welcomed the initiative.

Kotahi's Greenough said the company's initial focus would be working with exporters and ocean carriers, and cooperation with others to drive more efficient rail, road and port usage would follow.

The company will seek Commerce Commission authorisation, he said.

The company later plans to invite other sectors, such as the seafood and kiwifruit industries and importers, to participate so containers get fully used.