Port Nelson Annual Report 2007 (pdf)

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C H I E F E X E C U T I V E ’ S R E P O R T 6 C A R G O Volumes through Port Nelson for the year were the highest on record with logs, motor vehicles, wine and dairy products being particularly strong performers. Total throughput for the 12 month period was 2,644,000 tonnes, some 89,000 tonnes ahead of budget and around 122,000 tonnes up on the previous year. Log exports for the year were 22,000 tonnes ahead of budget at 636,000 tonnes and reflected the strong overseas demand for wood throughout the majority of the financial year. Imported motor vehicles (new and used) totalled 167,000 revenue tonnes as against a budget of 136,000 tonnes and dairy (21,000 tonnes) and wine (30,000 tonnes) also showed healthy increases on the figures twelve months earlier. Processed forestry exports were some 60,000 tonnes below budget, with fruit exports and fertiliser and cement imports also being slightly lower than had been anticipated. Container numbers significantly increased once again with 71,815 TEU handled during that period as against 61,455 TEU twelve months earlier. This increase was on the back of a number of factors including the following: • Greater volumes of sawn timber being shipped in containers rather than in break bulk form, particularly to the Asian region • Increased wine and dairy exports through the port • A further increase in LVL and MDF products being loaded into containers. S H I P P I N G Vessel arrivals were marginally lower with 1,001 vessels calling during the year as against 1,012 the previous year. In late December the fortnightly Tasman Orient Line (TOL) service ceased calling on the back of the traditional cargo base for this service moving principally to containers and around the same time the monthly Indotrans break bulk service to the US also ceased. In mid June the regular Maersk relay service to Asia also ceased as part of a nationwide review of their feedering service where they chose to commence utilising transhipment operations with existing coastal operators. S T O R A G E / R E C E I V A L A N D D E L I V E R Y / Q U A Y P A C K The purchase of land previously leased by a third party on the western side of Hay St in the second half of 2006 enabled us to secure extra land for the storage of containers, which was urgently needed given the significant growth in container traffic. Space was particularly at a premium during the 2007 fruit export season and the efficient operation of the Container Yard and Receiving and Delivery (R & D) systems was a credit to all the staff involved in the cargo logistics division of the business. Our Quaypack division continues to go from strength to strength with its packing and unpacking operations. The growth of wood products moving into containers has certainly seen added demand for their services. In late 2006 our Cargo Team moved into the ‘One Gate’ facility on Carkeek Street. The completion of this project on time and under budget was a credit to all involved. The benefits of having all cargo staff in one area have been everything we had hoped for and have certainly assisted us during the busy peaks we experience from March through to June. S T E V E D O R I N G In late 2006 a review was undertaken of our Stevedoring division, Tasman Bay Stevedoring (TBS) to ascertain how we could improve the performance of what has been for some time a marginal business. It is fair to say that all stevedoring companies in Nelson have a reputation for high levels of service and efficiency of operation but historically this service has not attracted the returns available for similar operations in other New Zealand ports. TBS has since worked through various issues to achieve mutual benefits, where our major customers know they have longevity of service and at the same time TBS is assured of the return that makes it worthwhile staying in this line of work. A huge amount of credit must go to Chris Shand, Digby Kynaston and the TBS team who have worked so hard in meeting the targets laid down for them, and I also express my sincere thanks for the efforts of our Chief Commercial Officer, Parke Pittar, in driving this review process. E N V I R O N M E N T A L I S S U E S The Noise variation to the Nelson City Council Resource Management Plan was notified in early June this year and we expect to commence noise mitigation work on the affected properties in the coming months. While no solution will ever meet with universal support we
“We work in a hectic environment in the peak fruit season and can’t always stick to our plans. PNL staff understand our needs and allow for flexibility in working hours and cargo volumes. I really value the personal relationships we have built up over many years.” Hans Krabo, Logistics Manager, ENZA International. believe the variation in its current form offers a solution that all parties should be able to live with, and we remain committed to ensuring we do everything possible on an ongoing basis to keep noise created from port operations to an absolute minimum. During this process we have appreciated the support of many parties who understand and acknowledge the importance of the port to the wider community. It is pleasing to note this has come both from the business community and many private householders, including a large number of port hills residents themselves. The Environment Committee has continued to meet regularly over the last 12 months. Following on from the recommendations of the committee and our own board and management, the company was recently successful in gaining ISO 14001 certification for our environmental practices - the first major port in New Zealand to attain this standard. Special note should be made of the efforts of our Environmental Officer, Frances Woodhead, in driving this project to a successful conclusion. P L A N N I N G F O R T H E F U T U R E The withdrawal of one of the Maersk services in mid June highlighted the continued change apparent within the shipping industry in New Zealand and overseas. If there is one thing that is sure, it is that change will carry on for the foreseeable future. In 2001 P & O Nedlloyd announced the introduction of the 4100 TEU container vessels to NZ and Australia and now some lines are looking at bringing 6000 TEU vessels to this part of the world, which will in all likelihood result in fewer port calls and greater use of feedering services. At this stage we believe the short to medium term future for regional ports such as ours is one where there are a mix of direct callers and lines choosing to utilise feeder operations. The challenge for us is to ensure we have the facilities to handle those vessels, without over investing in infrastructure that will struggle to generate a reasonable return. A C K N O W L E D G E M E N T S I would like to once again express on behalf of myself and our Executive Team our thanks to the Board of Port Nelson Limited for their support and advice over the last twelve months and to thank our staff who have all contributed to another solid performance. As I have stated in previous years, I would also like to express our appreciation to the importers and exporters of the region for their support, and to the many shipping lines that PNL services. Your support is vital to our continued success. Martin Byrne Chief Executive, Port Nelson Ltd. 7
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Port Nelson Annual Report 2007 (pdf)

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