New ships lift stakes in ports competition

The first vessel of a new international shipping service that will boost export capacity and cut at least a week off shipping times will dock at Tauranga today.

Mediterranean Shipping Company, the world's second-biggest container line, said the arrival of MSC Teresa marked the tip of a multimillion-dollar investment in ships and sailing schedules.

The start of the new service strengthens Tauranga's position in its battle with Ports of Auckland.

Auckland lost 8 per cent of its container business last year when shipping line P&O Nedlloyd moved its Asian shipping service to Tauranga. The shipping industry is poised for another announcement from P&O confirming the fate of the bulk of its remaining Auckland-based volume.

The new service will reduce MSC's shipping times to Asia, southern Africa and Europe by 7-12 days by routing exports directly to a new distribution hub at Brisbane.

From Brisbane, containers will go to Singapore for global distribution or, if bound for northern Asia, be transshipped for Japan, Korea, China, Taiwan and Hong Kong.

Previously, New Zealand containers travelled to Singapore via Sydney and ports in South Australia, resulting in longer shipping times.

MSC New Zealand general manager Kevin Cooper said hundreds of containers were delayed globally every week because of a lack of shipping capacity.

"Last year there were clear signs that similar bottlenecks were developing in this part of the world. The new service will go a long way to easing that problem in both New Zealand and Australia."

The new service could lead to increased exports from New Zealand.

"New Zealand already has exports that could be immediately geared up if there are ships to transport product.

"International demand for New Zealand products means there is very substantial room for growth and we are supplying the ocean transport to enable that growth to happen."

Sea battle

* Port of Tauranga is proving a tough competitor against its arch-rival, Ports of Auckland.

* Last year, P&O moved its Asian business from Auckland to Tauranga and soon it's expected to say whether the bulk of its remaining freight will move south.

* Port of Tauranga shares started 2004 trading at about $4.50 before rising to a high of about $5.90 and subsequently falling back to about $4.80 now.

* Ports of Auckland shares started 2004 trading at about $8 before falling to a low of about $6.50 and then rising to just under $8 now following a takeover bid by Auckland Regional Holdings.