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Home / Business / Companies / Freight and logistics

Northport poised to lift its container ship handling business

By Andrea Fox
Herald business writer·NZ Herald·
25 Mar, 2022 04:20 AM3 mins to read

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An artist's impression of Northport's planned container ship handling expansion. Image / Supplied

An artist's impression of Northport's planned container ship handling expansion. Image / Supplied

After more than two years of deliberations and tantalising hints of its thinking, Northland deepwater port Northport is officially putting up its hand to be recognised as a container ship port.

It has confirmed its intention to apply for resource consent to expand its eastern end while continuing to develop proposals for a shipyard and drydock on its western side.

"The board has taken the view that in light of ongoing national supply chain pressures and a growing demand from shipping companies, the company should progress that part of its Vision for Growth that is ready to proceed, namely the container storage, handling and transportation facility," the company said in a statement.

"This will give Northport the container capability to service the growing and changing freight needs of the upper North Island."

However as per tradition, the port, jointly owned by listed companies Port of Tauranga and Marsden Maritime Holdings, is holding its cards close to its chest.

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There was to be no opportunity for interviews or further discussion at this stage, the company advised.

No cost estimate for the eastern development is yet available. In July last year the company said the eastern and western developments would have a combined price tag of around $800 million but that this could fluctuate significantly given changes in construction and materials pricing.

Northport already has resource consent to expand its linear wharf 270m eastwards.

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"However, modelling makes it clear that this is not sufficient to cater for the projected growth in demand for container storage, handling and transportation at the port facility. The resource consent application for the eastern development covers the additional works that will be required," the statement said.

Northport has been saying for some time it wants to be part of a strong, resilient upper North Island supply chain, supporting supply chain participants in the so-called "golden economic triangle" of Auckland, Waikato and Tauranga.

The port expected to lodge its application for the eastern development around the middle of this year.

Northport makes formal move to expand for container ship handling. Photo / Supplied
Northport makes formal move to expand for container ship handling. Photo / Supplied

The eastern development covers 13 hectares for additional container storage, handling and transportation and is where Northport proposes to integrate the port with KiwiRail's proposed Marsden Point spur, it said.

The application lodging timeframe was to allow for the technical reports prepared late last year to be reworked to take into account the board's decision to decouple the eastern development from the western development.

Further work was needed to engage with all stakeholders, including on the employment, community development and economic opportunities presented by the expansion.

"More time is needed to explore all opportunities and possible variations to encourage investment in this nationally significant and regionally strategic project, maximise employment and other benefits, and to manage potential adverse effects," the statement said.

Northport, at Marsden Point at the mouth of Whangārei Harbour, is New Zealand's northernmost deep-water port. It caters for large, multi-purpose vessels and full cargo handling facilities are available from its 570m linear berth.

Due to congestion and delays at Ports of Auckland, shipping companies have diverted some smaller container ships to Northport in the supply chain crunch caused by global shipping pandemic disruption.

Logs, woodchip and processed timber for export are its main business.

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Recent investment in container handling equipment has seen an uptake in coastal and international container trade. Other export items include kiwifruit, dairy products, and manufactured goods.

Imports are also an important part of the business, including fertiliser, gypsum, coal and palm kernel.

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