Ports of Auckland announces reorganisation

22 April 2009
 
MEDIA RELEASE
Embargoed until 3.30 pm
 
Ports of Auckland announces proposed reorganisation
 
Ports of Auckland today announced a major proposal to reorganise its port operations.
 
Under the proposal, which was put to staff today and is subject to consultation, the port would berth the majority of visiting container ships at its newly expanded Fergusson terminal, and base all stevedoring staff there.
 
At present container ship schedules and stevedoring staff are split between the Fergusson and Bledisloe container terminals, which are run semi-independently.
 
“We propose increasing the proportion of containers handled at Fergusson, already New Zealand’s largest container terminal, and moving to a single workforce,” Managing Director Jens Madsen said.
 
“These proposed changes are about operating as one team and being as efficient as possible in the way we use our labour, equipment, land and berths.”
 
“Falling trade volumes, as a result of the global recession, and the recent expansion of our Fergusson container terminal, have given us an opportunity to re-think the way we operate.”
 
“The proposal would remove unnecessary duplication of overheads and infrastructure and further improve our ability to resource customer demand at peak periods.”
 
Mr Madsen said the proposed changes would also provide significant cost savings and further enhance Ports of Auckland’s productivity.
 
“Running two essentially separate workforces occasionally results in staff at one terminal having no work to do, and work but not enough staff at the other.  Such a labour model is not sustainable and does not make sense, particularly in the current economic climate.”
 
Mr Madsen said that although the port would handle as many containers as it could at Fergusson, some regular services would continue to berth at Bledisloe.
 
“Under this proposal, Bledisloe would remain an essential part of our container operation, servicing some regular callers, ships which arrive early or late for slots at Fergusson, and providing vital capacity at peak periods.  It would also house a range of support services currently located at Fergusson.”
 
“In addition, Bledisloe would be utilised to relieve pressure on Freyberg and Jellicoe general wharves, where space at times is tight.”
 
A number of other options for non-containerised cargo are also under consideration for Bledisloe, including vehicles and the possible transfer of bulk liquid operations from Wynyard Wharf.
 
Under the proposal, 51 staff based at Bledisloe container terminal would be made redundant and 29 new positions created at Fergusson container terminal.  Eight redundancies in support areas are also proposed.
 
The proposal would mean an overall reduction in staff numbers of 30, out of 202 currently employed in the affected parts of the business.  Engineering staff are not affected by the proposal.
 
Mr Madsen is hoping that most of the redundancies can be achieved voluntarily.
 
Mr Madsen said the company had investigated the feasibility of a wide range of options, including contracting out all its stevedoring operations, implementing redundancies within the current two-terminal structure, reducing the use of casuals and overtime, and a nine-day working fortnight.
 
“We have done everything possible to minimise job losses, including implementing a series of cost reduction measures.”
 
“Of all the options considered, maximising the volumes we handle at Fergusson provides the greatest opportunity for the largest number of full time employees, without in any way compromising customer service levels and productivity,” Mr Madsen said.
 
“Looking forward, having a single, integrated workforce, and more efficient plant and berth utilisation, would also put us in a better position to sustain future growth.  We are determined to emerge from the recession a stronger, more agile company.”
 
Mr Madsen emphasised that no final decisions had yet been made.
 
“We will be spending the next few weeks consulting with staff and customers.  A final decision will be made in the week commencing 11 May 2009.”
 
Container volumes at Ports of Auckland were down 7.4% for the January-March quarter compared to the same period in 2008, despite the company strengthening its market position.
 
ENDS
 

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