Hubs set to dominate port traffic

Consolidation of global shipping lines might result in one or two major hub ports controlling most of this country's container traffic, says Port of Tauranga's retiring chief executive.

Jon Mayson told the annual meeting yesterday that the hub ports would service larger vessels and accommodate heavier loads. The 33-year stalwart of the port said it was too early to predict the impact of shipping consolidation but it was possible that, over time, port calls would be reduced, with a greater aggregation of cargo at one or two major ports.

The takeovers of P&O Nedlloyd by the world's largest shipping company, Maersk Sealand, and of CP Ships by Hapag-Lloyd would force a shakeout of alliances, conferences and shipping services.

Mayson's comments were echoed by Ports of Auckland chief executive Geoff Vazey, who said the creation of one or two main hub ports would constitute a major change for the port industry.

"There is quite a spread of volume going through the various ports, whereas the ports of Auckland and Tauranga do about half of what's going through the country."

Meanwhile, John Parker, Tauranga's chairman, indicated the long-awaited decision on whether Tauranga or Auckland would get the bulk of Fonterra's dairy exports could come soon.

He said Tauranga was in a good position to gain "some benefit" when the uncertainties surrounding Fonterra cargoes were resolved.

The slowing economy and tighter trading conditions trimmed Port of Tauranga's first quarter net profit by nearly 10 per cent to $7.34 million. Mayson, who hands over the chief executive role to former Toll Owens boss Mark Cairns today, said total port volume was 5.6 per cent lower to 3.2 million tonnes in the quarter from July to September.

Container volumes and log shipments were down 1.8 per cent and 2.6 per cent.