Media Release – 12 December 2012
Port Otago first to secure consents for channel deepening
Environment Court Judge Jeff Smith has granted Port Otago’s application to deepen its Otago Harbour channel in
anticipation of the arrival of bigger container ships on the New Zealand coast.
The company had originally sought consent from the Otago Regional Council for resource consent to:
• Deepen, widen, and maintain the lower harbour channel; the swing area and Port Chalmers berths; and to allow the
passage of larger ships to Port Chalmers;
• dispose of the dredge spoil to sea, and;
• extend the multi-purpose wharf and to construct a new fishing jetty at Port Chalmers.
The court’s decision means Port Otago is the first port company in the country to achieve the milestone of a
fully-consented project to deepen its channel.
Company chairman Dave Faulkner said this was a landmark decision.
“It is as historically significant for the company as our first frozen meat export on the SS Dunedin in 1882, or the
opening of the Port Chalmers container terminal in 1977,” Mr Faulkner said.
The consents are for a 25-year period and allow the company to deepen the Port Chalmers channel to 15 metres. Port
Chalmers is already the country’s deepest container port at 13 metres. Having the ability to increase this to 15 metres
means that Port Otago’s board and management could respond rapidly to changing shipping needs whenever they arose, Mr
Faulkner said.
Once the deepening project is completed, Port Chalmers will have the capability to receive calls from container ships
carrying up to 8,000 TEU (20 foot equivalent containers).
“Our project will have real benefits for South Island shippers, as Port Otago’s ability to accommodate larger vessels
will ensure that exporters and importers are not penalised by increased costs in their international supply chain, such
as additional inland freight or transhipping costs,” he said.
Port Otago plans to complete the dredging programme in several stages, depending on commercial demand. The first stage
will be to incrementally deepen the existing channel to 14 metres.
The company has the added advantage of owning its own dredging fleet, so the first stage can be done at any time and,
with more than 50% of the existing channel already at 14 metres, the cost of completing the first stage is projected to
be between $5 million and $10 million. This is substantially cheaper than any other port in the country.
Mr Faulkner said the size of container ships has been steadily increasing as shipping lines endeavour to move freight
around the world more efficiently and economically.
Shipping was already the most environmentally friendly method of transporting goods over long distances. Newer, bigger
ships provided even greater efficiencies and would further reduce their carbon footprint.
Mr Faulkner said the global trend towards bigger ships has already started to affect New Zealand, with a number of this
country’s largest exporters and other interest groups calling for New Zealand ports to prepare themselves ready for
larger vessels.
Mr Faulkner said Port Otago was well-positioned for the next generation.
“Our landside infrastructure is modern and in excellent condition, our productivity is the highest of any port in the
South Island and, with these consents, we can instantly respond to market demand for larger ship facilities. We have the
complete package.”
Ends.