Maersk moves in at Timaru

By Yoke Har Lee

Danish shipping giant Maersk (New Zealand) will be making its seventh port of call in New Zealand when its starts a fixed-day fortnightly service in Timaru early next year.

For the shipping line, the move signals its intention to gain a bigger share of dairy exports.

Maersk, which uses Singapore as a hub, now has weekly services to Auckland, Tauranga, Napier and fortnightly services to Nelson, Lyttelton and Port Chalmers.

The addition of Timaru to its schedule may force other lines to follow suit, depending on the volume of dairy products available.

Maersk's move will be a boost for the Port of Timaru which is positioning itself as a cargo handling centre for the South Island, to capture not only dairy but fishing products and vegetables processed out of the region.

Chief executive Roy Weaver told the Business Herald that Maersk's decision certainly had to do with the Dairy Board's allocation for dairy exports to shipping lines.

"The dairy volumes out of the Clandeboyne plant is expected to grow by 25 per cent. The board has looked at that and the need to encourage shipping lines to go to Timaru and Maersk has responded."

Clandeboyne processes some 4.4 million litres of milk per day and is the world's second largest dairy processing site. It is also the second largest milk powder dryer in the southern hemisphere.

The Port of Timaru handles less than 20,000 containers annually, but hopes to double the volume within the next two to three years, Mr Weaver said.

Besides containerised cargo, it also handles other bulk cargo such as tallow. Challenge Energy has set up its South Island terminal there.

"There is plenty of potential for growth. The key was to get someone to put a little bit of faith in us and the Dairy Board has done that," Mr Weaver said.

Currently, other shipping lines that call at the port are Tasman Orient Line (for the South-east and East Asia market), New Zealand Armada Clipper Line (servicing central America) and now Maersk, which Mr Weaver said would help connect Timaru to the rest of the world with its extensive services.

"Central South Island exporters and importers will be very excited about the positive impact this development will have for them," he said.

He said the port had invested more than $50 million in infrastructure development in the last three years. Recent acquisitions included a new mobile harbour crane and a container tracking system.