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- Release Date: 14/03/14 11:01
- Summary: ASSET: SPN: South Port commits to two crane infrastructure model
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SPN
14/03/2014 09:01
ASSET
REL: 0901 HRS South Port New Zealand Limited (NS)
ASSET: SPN: South Port commits to two crane infrastructure model
14 March 2014
South Port commits to two container crane infrastructure model
Following a review of the Bluff port infrastructure, undertaken in
conjunction with its major container shipping line customer MSC, South Port
New Zealand Ltd (South Port) has confirmed an order for a second Liebherr
mobile container crane plus an additional heavy-lift container forklift. The
combined outlay for the two plant items is approximately NZD6.3 million.
"This investment in additional container handling infrastructure was
essential to accommodate the projected growth in regional containerised cargo
over the next 5 years," said the Chairman Mr Chapman.
Mr Chapman added "South Port had previously worked with a single container
crane but consistent volume growth over recent years plus the prospect of
further cargo uplift has meant that this operating model was no longer
appropriate for the efficient transfer of containers on the MSC Capricorn
Service."
"It is important that South Port as a regional port operator is able to
provide an efficient and competitive containerised cargo distribution option
and this requires a 2-crane model be put in place," said the Chief Executive,
Mr Mark O'Connor. A new two-crane infrastructure levy will be passed by South
Port to its shipping line customer in the transitional period (several years)
during which it is expected that the cargo volume will grow to a level which
will sustain the 2-crane operating model.
Mr O'Connor stated "A noticeable lift in cargo to support the investment in
the additional container handling infrastructure will not occur immediately
so a mechanism was necessary to partially bridge the gap between the targeted
investment return and the income flows. It is important that cargo providers
continue to support the regional container linkage in order to protect the
distribution options available to them in the marketplace."
Areas of projected cargo growth for the Southern region revolve around
agriculture with the specific products indicating more significant volume
increases being dairy ingredients & finished product, plus stock food.
FOR FURTHER INFORMATION PLEASE CONTACT:
Mr Mark O'Connor Mr Rex Chapman
Chief Executive Chairman
Tel: 03 212 8159 Mob: 027 454 8455
Mob: 0272 560 407
End CA:00248209 For:SPN Type:ASSET Time:2014-03-14 09:01:12
