The Government has earmarked $36 million over the next four years to help develop coastal shipping, but do not expect more ships to arrive in Otago Harbour any time soon.
Transport Minister Annette King released the final draft of the Sea Change strategy yesterday.
The strategy is designed to revitalise coastal shipping so it handles at least 30% of regional freight by 2040 - up from 15% now.
Mrs King said the strategy involved a new development unit in the Ministry of Transport to create a "focal point" for the coastal shipping sector, reduce barriers to accessing government funds, increase the numberof skilled workers and improve supply chains.
Port Otago chief executive Geoff Plunket said the country's port companies had made a submission on the strategy, supporting the changes.
Port Otago is served solely by international shipping lines, with the last domestic line, Pacifica Shipping, pulling out of Dunedin more than four years ago.
Mr Plunket said there was already some coastal shipping around the country, through bulk cargo such as oil and cement, but increasing to 30% of all regional freight would be a a lot to ask, although 2040 was a long way away.
He said freight was due to double in the next 20 years.
Freight should be more segregated but there were many goods, such as perishables, which did not suit shipping.
The Government's alternative-to-road system, which encouraged freight on to rail and sea, was too difficult to process, and no-one had taken up the scheme, he said.
Hopefully, the new strategy would help make this easier.
Mr Plunket said any new coastal shipping service had to be financially viable.
International shipping companies picked up freight at Port Chalmers and took it to other New Zealand ports.
Any changes would take a while.
"It's not going to change the world overnight. But it is part of the way New Zealand operates that we have to have low cost and effective supply chains for our exporters," he said.
The New Zealand Shipping Federation welcomed the new strategy.
Federation president Rod Grout said the increase in freight volumes could not be absorbed by road and rail alone.
The shipping industry had faced disadvantages over the years by heavy public investment in land-based networks.
The coastal highway linked almost every major centre in the country and had the lowest emissions profile of any transport model, he said.
The Maritime Union said the move was positive and it would push for some of the money to go into training to ensure a supply of skilled staff.
Union vice-president Garry Parsloe said the plan would have major economic and environmental benefits for New Zealand.
However, Road Transport Forum director Simon Tapper said the plan was to use the national land transport fund to subsidise shipping, which was unacceptable.
"This money comes from all road users, not just truck operators, to pay for roads, not for subsidies which will move at most 4% of total freight tonnage on to ships over 30 years," he said.
The funds were needed for improving roads and it was unfair to make truckers pay to have their own business taken away.
Mr Tapper said most freight on roads travelled less than 100km so was not in competition with shipping.
He could see more truck traffic through metropolitan centres to and from ports.
Mr Tapper said rail was more likely to be affected.
He said the Government had not waited for a major study it commissioned into freight movement before making its decision.
