The ongoing dispute at Ports of Auckland highlighted the need for a strong regional port network in New Zealand, Otago Chamber of Commerce president Peter McIntyre said yesterday.
Moves had been made to consolidate two major ports in the North Island: Auckland and Tauranga; and two in the South Island: Lyttelton and Otago.
However, the need for robust, viable and profitable ports in export-strong regions, such as Otago, Southland and Canterbury, showed the need for more than two ports in each island. Timaru and South Port, in Bluff, were needed during the height of the export season, Mr McIntyre said.
"This sends a message that maintaining ports in Otago and Canterbury is vital."
Ports of Auckland is in a bitter dispute with the Maritime Union as both parties continue to hold fast to their positions.
The union is threatening to usher in 2012 with another strike as well as walking off the job over Christmas. It is the fourth strike notice lodged during the dispute involving 320 workers at the company's two container terminals and support facilities.
Port company chief executive Tony Gibson said the union should reconsider its position which would be exacerbated by KiwiRail's summer shutdown of Auckland's rail network.
That would mean extended delays for freight deliveries, which would have to rely on road transport for moving containers between Auckland and ships diverted to other ports, such as Tauranga.
Mr McIntyre said the dispute in Auckland had been of benefit to Port of Tauranga although Port of Tauranga had indicated it had reached excess capacity, at this point.
"At this stage, no more ships can be diverted. But it is a grunty port and has room for expansion."
One of the most harmful effects of the ongoing dispute in Auckland was the damage being done to New Zealand's reputation as an efficient port operator, he said.
"The dispute doesn't set New Zealand in a good light when our main port is struggling to get a solution and that we cannot operate ports which are so integral to our economic growth.
"Ships can come in and out so quickly and one day of delay is a big dollar loss for shipping companies," he said.
Ports of Auckland handles more than $26 billion of freight a year - 60% of New Zealand's imports and 40% of the country's exports.
It was also responsible, directly and indirectly, for 173,000 jobs in the Auckland region. Its turnover represented a third of the local economy.
Mr McIntyre said the dispute had already cost Ports of Auckland nearly $20 million of annual revenue after Maersk, the biggest shipper visiting New Zealand, switched one of its services to Port of Tauranga.
The loss of Maersk's Southern Star container service amounted to 52 ship calls, or 82,500 containers a year.
Maersk said the dispute was one of the reasons for the decision.
Mr McIntyre said the loss of the Southern Star service amounted to about 11% of Ports of Auckland's $177 million sales.
"This goes to show how important shipping lines are and how powerful they have become."
