Coal haul plan hits port snag

By CHRIS DANIELS energy writer

Plans by state-owned power company Genesis to import half a million tonnes of coal may have hit a snag, with port and transport facilities unable to handle such a load before winter.

Indonesian and Australian coal is to be unloaded at Tauranga from former log-carrying ships, before it is taken in trucks to Huntly, which sits on one of New Zealand's biggest coalfields.

But Port of Tauranga's ability to handle the promised 500,000 tonnes of coal, due to start arriving in July, is now in doubt after its chief executive said such a large amount of coal would require new equipment and a suitable rail service.

Instead of mainly using natural gas from the now depleting Maui gasfield to make electricity, Genesis will this winter use 60 per cent coal.

Hydro generators, faced with falling lake levels, have been concerned that Genesis would not have enough coal to increase production in the event of another cold, dry winter.

Port of Tauranga chief executive Jon Mayson said the port could not deal with half a million tonnes of coal without significant work.

"We are currently in discussion with Genesis over some trial shipments, we're not talking about 500,000 tonnes," he said.

"If 500,000 tonnes of coal or more is to be brought through Tauranga, then that is a totally different infrastructure.

"We are looking at that also. We are experienced in handling bulk products, however, we recognise that handling coal has some peculiar environmental issues.

"We have been working for the past few weeks endeavouring to eliminate any environmental concerns."

The intention was to load the coal into trucks on the Port of Tauranga, then take it to an "intermediate stockpile" in the Waikato.

A standard logging ship would have the ability to carry 30,000 tonnes of coal.

If a decision was made to import coal on an ongoing basis, then permanent facilities, including a rail service, would be needed.

Tranz Rail is talking to Genesis, but only in relation to long-term importation of coal to New Zealand. It is not participating in this winter's plan.

A spokesman for Energy Minister Pete Hodgson said the minister was being kept informed of the "significant issues yet to be sorted out" in respect of importing the coal.

All thermal generators were now giving a weekly update of progress in securing thermal fuel supplies.