Shipping Reduces Agribusiness Emissions

New Zealand’s newest addition to the coastal shipping fleet, the MV Rangitata, made her maiden voyage in October, carrying product for Ravensdown.

The trip by ship reduced CO emissions by an estimated 39 tonne when compared to moving the same volume of product by road.

She is the newest vessel for Coastal Bulk Shipping Ltd, one of four preferred suppliers in a $30-million Government investment for coastal shipping funding through the National Land Transport Programme (NLTP) to improve domestic shipping services, reduce emissions, improve efficiency, and upgrade maritime infrastructure.

Coastal shipping is forming a key part of Ravensdown’s national emission reduction strategy, says Sustainability Manager Allanah Kidd.

“We are endeavouring to supplement road with coastal shipping, where the opportunity arises, to reduce our impact on climate change. It’s a more efficient way to move product, takes trucks off the road and reduces congestion.

“New Zealand has environmental commitments to meet. This is about New Zealand Inc., and on behalf of our farmer shareholders, we’re happy to be doing our bit to respond to climate change. It is a visible demonstration of our commitment to reducing greenhouse gases as part of our sustainability targets.”

For its first journey, MV Rangitata took phosphate rock from Napier to Dunedin, then 2000 tonne of superphosphate from Dunedin to New Plymouth.

Beyond this maiden voyage, Ravensdown will look to engage the vessel as required to move cargo into smaller ports, namely Whangarei, Whanganui, Gisborne and Nelson.

“Where it makes sense for us to do so, we will switch product transfers from road to sea,” says National Logistics Manager Ant Boyles. “We all have a part to play in trying to be as efficient as we can.”

Ravensdown has used Coastal Bulk Shipping for many years. This is the first journey on their new vessel, which has a greater payload so offers additional benefits. The new ship can carry approximately 2000 tonne of superphosphate, compared to the company’s smaller 800-tonne vessel, Anatoki.

“Coastal shipping gives us the opportunity to move our products around in a more greenhouse gas-efficient manner, and because this new vessel is bigger, we can do one ship movement instead of two.”

Waka Kotahi worked with the wider freight industry – NZ Shipping Federation, Port Company CEO Group, National Road Carriers, KiwiRail, and Te Manatū Waka - Ministry of Transport – to select four applicants for co-investment in new and enhanced coastal shipping services.

When he announced the funding investment, Transport Minister Michael Wood said it would go towards “better utilising the blue highway, improving our freight system, and future proofing our national supply chain”.

It is estimated the new services, once fully operational, will remove around 35 million kilometres of truck travel from New Zealand’s roading network every year, reducing wear and tear and improving safety for road users.

“This will also support our commitment in the recently released Emissions Reduction Plan to reduce emissions from freight transport by 35 per cent by 2035,” Wood said.

The four preferred suppliers will jointly invest more than $60million into the resilience of the overall freight supply chain, on top of the Government’s $30million, and will each bring at least one additional coastal shipping vessel into service. In addition to the MV Rangitata for Coastal Bulk Shipping, being utilised by Ravensdown, the other three suppliers are Move International Ltd, Swire Shipping NZ Ltd, and Aotearoa Shipping Alliance.

Minister Wood said the Government’s investment was a bid to make coastal shipping a more viable alternative to strengthen and diversify the country’s domestic supply chain, and in turn, help Covid-19 recovery. As a lower emissions transport mode, investing in coastal shipping would also help achieve decarbonisation goals, he said.

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