New emergency shipping route a ‘lifeline’ for Hawke’s Bay and Gisborne

Eastland Port will be a crucial part of the new shipping route between Napier and Gisborne.

The Government has announced a new emergency shipping route between Gisborne and Napier which they say will act as a lifeline for regional economies and further help aid cyclone recovery.

Regional Development Minister Kiri Allan and Prime Minister Chris Hipkins made the announcement on Thursday morning at Eastland Port in Gisborne.

“Our regions are the backbone of Aotearoa, and this Government investment will ensure our hardest-hit regions can get back on their feet [more quickly],” Allan said.

“Agriculture and horticulture [are] vital to the East Coast economy, and this investment will respond to the critical need to get products – vegetables, meat, wool, timber and wine - out of Gisborne and to the market.”

The ship Rangitata has been chartered to undertake the route, using funding approved by the Regional and Economic Development ministers.

“In 2022, Coastal Bulk, the owner of Rangitata, was one recipient of the Government’s $30 million Coastal Shipping fund, which co-invested with four coastal shipping companies to improve domestic shipping services and efficiency, transport resilience, reduce emissions and upgrade maritime infrastructure,” Allen said.

“Without Government support, this coastal shipping capability between regional ports would not have been available to New Zealand.”

Allen also said the Government would provide a $500,000 grant and $2.25m underwrite to Eastland Port for the charter of the Rangitata for the coming three months.

The $2.25m will cover the cost of three months of usage, at $750,000 per month. $750,000 would cover the vessel charter, crew, insurance and fuel costs.

The $500,000 in capital expenditure will go towards acceleration of the wharf rebuild at Gisborne Port (which will allow Rangitata to berth at the same time as export log ships are also being loaded), and infrastructure related to electrical connection points for reefer containers which are used for meat processors.

“Without this grant, we wouldn’t be able to make this happen, so we are over the moon and very grateful we can continue to service our community,” said Eastland Port chief operating officer of regional infrastructure, Andrew Gaddum.

Gaddum said he had heard from customers that the current road freight alternative to Napier is costing was costing thousands of dollars.

“It’s great we can keep the money in the pocket of our local people.”

Rangitata will arrive in Gisborne on Monday.

“Normally you would have months of preparation to get a project of this size in place, but our team has adapted to the needs of the community and made it work. I am really proud of what we have achieved in such a short space of time,” Gaddum said.