GordonBrander believes changes in the port industry are a major threat and challenge to Port Otago.
During a long career in a shipping agency I became very aware that the port business in New Zealand was extremely competitive.
As an example, Tauranga and Auckland were forever in conflict as each endeavoured to secure what was regarded as the other's cargo.
The successful inland container terminal Metroport was established by Port of Tauranga in South Auckland.
Tauranga make no secret of wanting all of New Zealand's cargo and to be the hub port for both North and South Islands.
Port Otago was aggressive and proactive in maintaining a position as the leading South Island port and this was evidenced by the early development of an efficient and industrially stable container operation from the 1970s.
The port company has since progressed
steadily with some highlights, including the prudent purchase of shares in Lyttelton Port Company, improved towage ability and recently gaining approval to dredge the lower harbour to attract and enable the predicted larger container vessels to use the port even when loaded to capacity.
Otago can be very proud of its port.
It was announced last month that the freight and logistics management company Kotahi was forming a strategic alliance with the Port of Tauranga, which is a major shareholder (50%) of PrimePort Timaru.
Working with the likes of Fonterra and Silver Fern Farms, Kotahi now controls a large share of New Zealand's containerised cargo.
Kotahi will take a stake in Timaru and will guarantee significant export cargo to Timaru.
It has been announced that both Timaru and Lyttelton will have freight hubs in Rolleston, with the Lyttelton-owned site being 27ha.
Lyttelton sees itself as the main freight gateway for the South Island.
Coupled with these developments, the rebuild of Lyttelton is to be fast-tracked with considerable land reclamation likely to take place, thereby adding to Lyttelton Port's capacity.
With these developments I was surprised to read (ODT, 27.6.14) the headline ''Little change for Port Otago''.
The reality is a massive market change for South Island cargo flows is gaining momentum ... not a ''little'' change.
I would suggest the management and board of Port Otago need to see these recent announcements as a rather large ''orange light'' and move proactively to ensure Port Otago continues to enhance its share of South Island cargo.
The arrival of deeper draft vessels will presumably depend on complex equations involving not just increased cargo volumes but the need in some trades for same-day weekly frequency.
Because their strategies are to a large degree dictated by customers, shipping companies are likely to be slow in indicating when the new ships will commence service.
The trend to larger vessels will undoubtedly continue.
To accommodate these larger vessels and create the necessary draft, I assume Port Otago's dredge New Era is working 24 hours a day.
Should an expensive overseas contract dredge (like the Resolution used in the 1970s) be necessary to minimise positioning and dredging costs, Port Otago might have to consider working with competitor Tauranga, which has approval for a dredging programme, or perhaps with some port in Australia.
I hope Port Otago will continue to adopt an aggressive and positive stance in the market and not be complacent as was implied in the headline.
-Mr Brander lives in Wanaka.
