Port Otago is going to put out tenders shortly in preparation for a $15 million 140m wharf extension at Port Chalmers, to better accommodate vessels over 280m in length.
The venture was one of several presented to 100% owner the Otago Regional Council, where port chairman Dave Faulkner and chief executive Geoff Plunket yesterday outlined a number of projects in its three-year plan to mid-2019.
Consent for the wharf extension was gained under Port Otago's "New Generation'' dredging project, and would result in 140m being added to the existing 300m wharf, using steel piles, capped by a reinforced concrete slab.
Mr Plunket said after the meeting the existing container terminal berth was "ideal'' for vessels under 280m, while the outer multipurpose berth extension would cater for vessels of more than 280m in length; allowing cranes ready access to bow and stern-stored containers.
He said a third container crane could be purchased in the future, but that was not being considered at present.
Part of the issue at Port Chalmers was not only increasing ship lengths, but the increasing width of both container ships and cruise liners, which generally sit opposite one another at, respectively, the container terminal berth and Beach St berth.
Mr Plunket is now seeking up to six tenders for the wharf project, to be whittled down to two, and then complete designs, the year-long work programme being scheduled to start in May next year.
Another project is a "major upgrade'' for Port Otago's slipway in the upper harbour, at the southern point of the Steamer Basin, and to examine some options for its future, given the medium to long-term plan for adjacent harbourside development, Mr Plunket said.
"New neighbours may not appreciate a slipway beside them,'' he said.
Although there was no obvious site to relocate the slipway to, it would most likely stay in the upper harbour, in what could be a 25m covered shed, and possibly in a joint venture with a commercial partner, he said.
During question time, ORC chairman Stephen Woodhead asked about the mix of selling and development at Port Otago subsidiary Chalmers Properties' commercial land site in Hamilton.
Port chairman Mr Faulkner said sections were being sold and Chalmers was considering build and lease-back developments, which included a warehouse and small office block development.
"Either they can buy or we get a tenant in, which keeps options open to us,'' Mr Faulkner said.
Cr Gerry Eckhoff queried Chalmers' policies over landbanking, "shorting the market'' or "withholding land'' - which has been an Auckland issue over residential developments.
Mr Faulkner responded: "We can't be accused of landbanking. It was developed as soon as possible to get some cash back ...we would have preferred to do that even earlier.''
At Mosgiel, Port Otago has plans under way to develop a "container hub'' on land it has at Odlins Pl, to supply containers for neighbour Fonterra, and as a place to consolidate non-refrigerated containers for other dry goods.
He said unlike "inland ports'' being developed elsewhere around the country, the Mosgiel hub would initially be a "flow through'' destination, but he was unable to say how many containers could be there on a daily basis.
"It could become an extension of the port, over time,'' he said.
Getting containers to Port Chalmers would have to be done in co-ordination with KiwiRail, he said.
The site had historical contamination from previous timber uses, which Port Otago was aware of when it purchased the land, but would undertake clean-up operations for development, he said.
Port Otago has made an application to the ORC for resource consent to replace existing consents for dredging dumping sites off Aramoana Beach, Hayward Point and Shelly Beach, for the next 35 years.
The "New Generation'' channel dredging project has a separate, consented site offshore from Taiaroa Head.
Excavation works below Flagstaff Hill at Port Chalmers are due to begin shortly, for realignment of the railway line around Back Beach.
Routine straddle carrier replacements were also signalled, costing a total $2.5 million for two.
