Insight: Napier Port bracing for more logs and more ships

Logs at Napier Port waiting export. Photo / Paul Taylor

Napier Port last month smashed its log export record, recording two million tonnes of logs exported for the year ended May 2018.

It is a record that is unlikely to stand long as Napier Port commercial manager Andrew Locke said the port was already expecting to accommodate a 8.5 per cent increase in log ships next year.

The new record log tonnage marked the start of a number of forests that were starting to mature, combined with huge demand from China, he said.

"In the 1990s, there was a significant investment in forestry. Those forests have now matured and are ready to be harvested. Most of the demand for our log exports is driven by China, where it's needed to feed massive infrastructure and economic growth."

To cope with demand the port had invested in new measures to increase its capacity to deal with the influx of logs.

That included purchasing taller log bookends to boost the height of log stacks and expanding the number of berths suitable for loading log ships.

"We're also working with log exporters to boost turnover – ensuring we can move logs through the port as quickly as possible.

"We're working hard to get logs across our wharves in good time, and handling all cargo safely. We're working with log marshalling and stevedoring companies to ensure we're all working together to an agreed plan. We're very proud to have won a Safeguard Award recently for our collaborative approach to safety around loading log vessels.

"Napier Port has four wharves where log ships can be loaded. The size of ships calling at Napier Port is growing, which is starting to cause congestion within the port. In order to manoeuvre a large container ship into port, we're now frequently having to move a log ship out first.

"We're also expecting a 9.9 per cent increase in ship calls in 2019, with log export volumes driving an expected 8.5 per cent increase in log ship calls and a 24 per cent increase in cruise calls. The only long term solution to this is building another wharf."

After two years of pre-consultation Napier Port earlier this year applied for permission to build a new $125 million berth.

The planned berth, if approved, would take about 18 months to build and provided added flexibility in the long-term.

"On-wharf logistics for logs are handled by marshalling and stevedoring companies. The process of loading log vessels is a 24 hour a day operation to ensure the quick turnaround of the vessel and to maximise the turnover of valuable space."

The port had a wide catchment for forestry exports and not all came from just within Hawke's Bay.

Some logs came from as far away as Whanganui, Wairoa, Taupō and south of Woodville.

"On average, a log will spend one to three days in the forest after being felled, and between 18 to 24 days on port before being loaded on to a ship. The average journey to China takes at least a fortnight, and then it's likely to have to wait for a berth and for Customs clearance."

Hawke's Bay Chamber of Commerce chief executive Wayne Walford said timber was a significant economic enabler for the region.

Waikato University research carried out by Olsens suggested that for each dollar invested in timber, the local economy receives $2.70.

"The log trade for Hawke's Bay is massive. For example Pan Pac employs 380 fulltime staff with 450 contractors supporting the harvest and transport of timber.

"Away from the direct management of logs are the large numbers of private contractors who own or lease large rigs that need servicing, fuel, tyres and a range of ancillary parts. These all feed the economic cycle right through to people working in daycares, supermarkets and roading gangs."