Port of Tauranga expects to host the next generation of larger container ships within 12-18 months, and in all likelihood, some vessels will begin regular visits to the South Island, too.
Port of Tauranga and Port Otago are the only major ports to have begun channel deepening and widening dredging programmes, in expectation of the larger vessels and their increased TEU (twenty foot equivalent unit) capacity.
Port of Tauranga is leading the way in forays into other provincial areas to snare cargo.
It is seeing an expansion in cargo capture through its share in Timaru's PrimePort.
Port of Tauranga chairman David Pilkington said that 15 years ago the company saw the opportunity to extend its reach beyond the Bay of Plenty and Waikato hinterlands.
The Port of Tauranga group now extends from Northport in Whangarei to PrimePort at Timaru, giving it a national, integrated network for its customers.
Ship sizes are expected to increase from the present carrying capacity of 2500-4000 TEUs to ships capable of carrying 5000-8000 TEUs.
Mr Pilkington said at the annual shareholders' meeting on Thursday the size of the average average ship calling at Tauranga had been steadily increasing over many years.
''But we expect this to accelerate when the new generation of larger vessels is introduced to Australasian shipping routes.
''We expect these bigger ships; capable of carrying in the region of 6500 TEUs, to start arriving in 12 to 18 months' time,'' he said in a statement.
In its past financial year, Ports of Tauranga total trade volumes increased 2%, to just under 20.2 million tonnes.
Earnings before interest, tax, depreciation and amortisation were up 1.7% to $145million and it booked a record after-tax profit, up 1.1% to $79.1million.
Port of Tauranga chief executive Mark Cairns said the dredging project was the culmination of a five-year, $350million investment programme, ''to future-proof the port'' for the next 20 to 30 years, making Tauranga the first New Zealand port able to host 6500 TEU ships at low water tides.
''We expect container volumes will exceed 1 million TEUs in full year 2017 upon completion of the dredging project,'' he said.
The dredging contract was won by Danish company Rohde Nielsen.
This month, the 2000cu m Brage R started work.
It will be assisted by the larger 6000cu m dredge Balder R by the end of the year.
Ports of Tauranga has ordered a further two super post-panamax size gantry cranes for its container terminal, which will be delivered at the end of 2016, by which time the larger vessels would be visiting regularly, he said.
Mr Cairns noted that at Timaru, PrimePort had invested in a third mobile container crane, given container volumes had more than trebled recently.
Port of Tauranga's Timaru operations were complemented by its new 15ha MetroPort Christchurch inland port facility at Rolleston, which is linked to Timaru by road and rail.
Mr Cairns said cargo would be aggregated in Rolleston, in the same way the company had established MetroPort Auckland as a significant inland port.
''We expect volumes to grow strongly once the big ships start calling at Port of Tauranga next year.''
Mr Pilkington said the company's investment in Timaru continued to gather momentum, with container volumes through the port increasing ''by a staggering 3.5 times''.
PrimePort also had a strong year in bulk cargoes, and Holcim's new South Island cement distribution facility was nearing the end of construction.
The port is rebuilding its No2 wharf to accommodate the import ships and coastal feeder services Holcim will use.
He noted Northport had another good year, having bought its first mobile container crane.
''The port is also preparing a 2.5 hectare storage site, including refrigeration connections, to manage containerised cargo,'' Mr Pilkington said.
