Northport News

Issue 4 - June 2009

Hi Again - 6 months has flown by since our last newsletter and it has been a fairly variable 6 months. At the time of our last newsletter the "credit crisis" was starting to really hit home, and at Christmas do's the outlook was fairly bleak for the upcoming year. While this has proven to be true for some people and some of the business at the port, we have actually seen other areas really "take off". While we certainly aren't counting any chickens before they hatch lets hope the positives we have seen flow onto other areas and help the country out of the current crisis sooner rather than later.

Log Export Update - prior to Christmas last year it was all doom and gloom with all Northport Log Exporters telling us it would be "at least" the 3^rd or 4^th quarter this year before log exports picked up - we're obviously very glad they were wrong and in fact since February we have seen 5 months of the strongest log export volumes through the port since mid 2003. This has resulted in higher than forecast volumes for the current financial year by about 12 %, which in the current financial environment has helped the port considerably as other trades have slowed or stopped completely.

Log exports through the port over the next two to three years are expected to increase due to harvest volumes increasing as Northland forests mature. This along with a very soft domestic demand under the current environment means log exports should stay high as long as the demand stays where it is at the moment. While the increased volumes are great, they have been large enough to put pressure on the log storage capacity at the port.

We are currently doing a review of log storage space in the port to meet the potential volume increases over the next two to three years. This also requires looking at options to rearrange the location of the chip conveyor and as a result of that log storage boundaries, roads and also the location of the log marshalling checkpoint within the port.

The increased volumes have "reintroduced" congestion at certain times, and while we had this back in 2003, logs were the only business at Marsden Point at the time. As part of the current review we are also reviewing port access points to see if rearranging the current access can improve port entry issues - we will be consulting with port users regarding potential changes over the next couple of months.

Northport is upbeat that on the back of increasing volumes we can make some logistical improvements to the port to improve port operations into the future.

A shot off the deck of the Milky Way (a woodchip vessel) in April this year which shows a common monthly situation in the log storage area at present - note logs at the old debarker site and on berth three

The Kiwifruit export season is here again - in May we saw the start of the kiwifruit export season from Marsden Point (a little later than the BOP). We are expecting up to 6 or 7 vessels again this season which is pretty much in line with the number of ships and volume exported through Northport last year.

While this is only relatively small volumes for the local grower, to see their produce exported locally rather than travel to Auckland or Tauranga, where most kiwifruit is exported from, is a real benefit. Northport will keep working with the Exporter to try to make this a viable option for Northland growers.

Green and Gold Kiwifruit being loaded on the Reefer vessel Antwerp at Marsden Point in June -‘ 09

Oakleigh to Marsden Point Rail Link - Submissions on Notice of Applications for Resource Consents and Notice of Requirement for Designation - by way of an update on the Designation of the Oakleigh to Marsden Point Rail Link and Application for Resource consents, we would like to thank all port users and customers who took the time to submit on the above issues recently. The port, and obviously a number of users / customers as well, believe that the Rail Link is a crucial factor in the long term future of the port and Northland as a whole.

Our feedback on the Resource Consent and Designation submissions, was that there were 56 in total - 21 in full support of the project, 17 that oppose the project, 17 that support / but oppose in part and 1 neutral (doesn't support or oppose). Overall a good turn out showing there is a fair degree of interest locally in the project.

We will keep you all updated on any progress with this although it is generally notified to the public as things happen.

New Chairman of Northland Port Corporation Board - with the recent departure of the Chairman Mike Daniel, from the board of Northport's 50% shareholder Northland Port Corporation, there has been a vacancy for a new Chairman. Last week Northland Port Corporation released a notice saying that Jeff Vazey, former Ports of Auckland Chief Executive, will replace Mike Daniel as Chairman of the Northland Port Corporation Board.

Jeff has been on the Northland Port Corporation Board for the last two years as the Ports of Auckland representative due to there 19.9% shareholding in NPC. Jeff brings a wealth of practical port sector knowledge as well as financial knowledge to the position.

And on that note we will finish for now. Hopefully when we update you later in the year we will all be seeing some rays of hope out there for the future.