Maritime Union Warns Government To Take Initiative With Port Strategy

The Maritime Union of New Zealand is warning that a major shift in global shipping is underway and, without a national port strategy, international shipping giants will dictate the future of the New Zealand economy.

In a submission to the Transport and Infrastructure Committee’s inquiry today, the Maritime Union stated that the transition to a “hub-and-spoke” model is no longer a choice, but an inevitability accepted by major industry players.

Maritime Union of New Zealand National Secretary Carl Findlay says the risk of inaction is extreme, as international lines are already prioritizing more profitable global routes over the South Pacific.

He says the current model of 14 international ports operating as competing profit centres leaves the country’s infrastructure vulnerable to international shipping giants that are exempt from New Zealand’s cartel laws.

COSCO Shipping has recently noted that New Zealand comprises less than 1% of its business, meaning our supply chain remains under constant review.

Mr Findlay says if these companies decide to abandon ports with shallow drafts as they modernize their fleets, New Zealand could be left with only four viable international ports, turning regional hubs into stranded assets and forcing a costly surge in truck movements.

The Maritime Union is calling for the Government to introduce a port strategy that would make ports cooperate in the national interest, he says.

Mr Findlay says by taking the lead, New Zealand can design a hub-and-spoke system on its own terms, utilizing New Zealand-flagged coastal vessels and rail to create local jobs and secure our supply chain.

“Scaling up this capacity cannot be done overnight, and we must grow our domestic maritime strength now rather than remaining a ‘price taker’ for giant offshore corporates.”

Mr Findlay says port privatisation is not the answer to the sector’s problems.

“We want to keep control of our ports and their income that goes to New Zealanders. But without a national strategy, New Zealand will keep getting fragmented decisions, duplicated costs, and a supply chain that lacks resilience.”