POT
19/02/2015 10:18
GENERAL
PRICE SENSITIVE
REL: 1018 HRS Port of Tauranga Limited (NS)
GENERAL: POT: Logistics leaders team up to create leaner pathways to port
LOGISTICS LEADERS TEAM UP TO CREATE LEANER PATHWAYS TO PORT
New Zealand's leading freight gateway Port of Tauranga and freight and
logistics management company Kotahi announced today the amalgamation of four
of their complementary domestic logistics businesses to create leaner, more
efficient pathways to and from freight hubs and key New Zealand ports.
Business transaction:
- A new 50:50 joint venture between Port of Tauranga and Kotahi is being
formed and is named Coda;
- Port of Tauranga is contributing the assets of wholly-owned subsidiary
Tapper Transport which includes Priority Logistics; container packing and
unpacking facility MetroPack and its 37.5% stake in empty container repair
and storage business MetroBox;
- Kotahi is contributing the assets of logistics and transport group Dairy
Transport Logistics (DTL) ;
- The transactions will be completed Friday 1 May 2015.
Coda will be led by interim Chief Executive, Scott Brownlee who has
previously been Chief Executive of DTL. The business expects to move more
than five million metric tonnes per year of containerised and bulk freight to
and from freight hubs and key shipping ports.
Kotahi Chief Executive Chris Greenough said the formation of Coda is the next
step in Kotahi and Port of Tauranga's long-term plans to prepare for the
introduction of larger ships to New Zealand. It will boost the efficiency of
the nationwide supply chain, remove wasted capacity and reduce the costs of
consolidating the cargo necessary for big ships.
"The Ministry of Transport Future Freight Scenarios report, released recently
highlighted that New Zealand faces costly inefficiencies in the domestic
supply chain. These inefficiencies need to be addressed and it will only be
through players in the industry working together that sustainable cost
savings can be achieved," Mr Greenough said.
"As such, the establishment of Coda supports the agreement announced in June
2014 between Kotahi and Port of Tauranga, to commit specified volumes of
freight until 2024 as part of the pathway to introducing large ship visits to
New Zealand," he said.
Port of Tauranga Chief Executive Mark Cairns said: "This new limited
partnership with Kotahi is the logical extension of the June container volume
agreement."
"Coda will deliver significant efficiencies across the supply chain by
driving the consolidation of traffic and improving connectivity between
freight hubs across the country. As a direct result, we expect the agreement
to be attractive to a wide range of import/export and domestic customers and
to support growth in container volumes through Port of Tauranga's freight
handling facilities," said Mr Cairns.
Coda interim Chief Executive Scott Brownlee said: "Coda brings a new offering
to the market with its unique combination of infrastructure assets, cargo
volume and service providers. This allows the business to realise value and
move freight more efficiently to benefit all regions in New Zealand."
"Our ability to bring together the right skills, infrastructure and breadth
of customers will allow us to support the arrival of larger ships to New
Zealand. We're opening up local, regional and international pathways for
everyone to share in the benefits."
"Currently, the nationwide logistics network carries a lot of 'air'. Coda
will optimise freight flows and better co-ordinate freight movements in New
Zealand's hinterland logistics network. Connecting cargo flows into one
network system will greatly reduce the number of empty vehicles, containers
and ships travelling around the country."
"We will continue a high level of service to existing and new customers,
while utilising our planning systems and span of customers to marry-up
capacity for domestic and import cargo which mainly flows south from the
upper North Island, with capacity for export cargo, which mainly flows
north."
"Coda will work with like-minded business partners to develop a new
intermodal freight hub (IFH) network to support the flow of cargo as it moves
around the supply chain."
"Carriers will have certainty in freight volumes, which will allow them to
better utilise assets and make investment decisions to develop an efficient
end-to-end import/export freight offering," said Brownlee.
ENDS
Contact for further information:
Port of Tauranga Kotahi/Coda
Richard Inder Belinda Leslie
Merlin Consulting Baldwin Boyle Group
+64(0)21 645 643 +64(0)21 0285 7579
Note to editors
Caption: Port of Tauranga Chief Executive Mark Cairns (left) and Kotahi Chief
Executive Chris Greenough today announced the amalgamation of four of their
complementary domestic logistics businesses.
A high resolution image of this picture can be downloaded from the following
link: www.dropbox.com/s/npg9t2gohvpqdy6/Cairns%20and%20Greenough.jpg?dl=0
More on the Coda name
Coda is a musical and literary term for "a connector". It brings together all
the various parts and reflects the core of the Coda business which is about
"bringing people together". The tagline Collective Cargo, reinforces the
collective approach to the supply chain. For more about Coda please visit
www.codagroup.co.nz
About Kotahi
Kotahi, New Zealand's leading freight and logistics management company,
specialises in matching freight requirements for export and import businesses
with ocean, rail and road transport providers to ensure New Zealand remains
competitive in international markets. For more information about Kotahi
please visit www.kotahi.co.nz
About DTL
Dairy Transport Logistics (DTL) offers a fully outsourced end-to-end supply
chain solution covering road, rail and coastal transport options, as well as
container management, warehousing and distribution services. For more
information please visit www.dtlnz.co.nz
About Port of Tauranga
Port of Tauranga is New Zealand's largest port by volume of cargo and New
Zealand's international freight gateway. It operates wharves at Tauranga,
Mount Maunganui and Timaru, as well as MetroPort, a rail-linked inland port
in South Auckland. It is developing an intermodal freight hub in Rolleston.
The Port of Tauranga Group includes: Tapper Transport, New Zealand's largest
wharf cartage company. It operates a container freight station adjacent to
MetroPort Auckland, and owns Priority Logistics, a Bay of Plenty-based
transport and freight handling operation; Quality Marshalling, a forestry and
container handling company, Northport (50% ownership), which operates a
deepwater commercial port in Whangarei, PrimePort Timaru (50% ownership),
which operates the commercial port in Timaru, Timaru Container Terminal,
which leases and operates the container terminal at Timaru, MetroPack (50%
ownership with Tapper Transport owning the other 50%), a container packing
and unpacking business based in Auckland and Tauranga, MetroBox (37.5%
ownership), a container cleaning, repair and storage service. For more
information about Port of Tauranga please visit www.port-tauranga.co.nz
End CA:00260845 For:POT Type:GENERAL Time:2015-02-19 10:18:26
