New Zealand is a step closer to a more resilient, competitive, and sustainable coastal shipping sector following the
selection of preferred suppliers for new and enhanced coastal shipping services, Transport Minister Michael Wood has
“Coastal shipping is a small but important part of the New Zealand freight system, which is why the Government is
investing in making coastal shipping a more viable alternative to strengthen and diversify our domestic supply chain,
helping to secure New Zealand’s recovery from COVID-19. As a lower emissions transport mode, investing in coastal
shipping will also help us achieve our decarbonisation goals,” Michael Wood said.
The Government has committed $30 million of funding for coastal shipping funding through the National Land Transport
Programme (NLTP) to improve domestic shipping services, reduce emissions, improve efficiency and upgrade maritime
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 through the NLTP.
The four preferred suppliers are:Coastal Bulk Shipping LtdMove International LtdSwire Shipping NZ LtdWestland Mineral Sands Co (2022) Ltd
“With the freight industry’s support, these additional services will help to resolve immediate challenges to the coastal
shipping and the wider freight sector, address some of the current issues facing the international and domestic supply
chains and provide a platform for future growth across all modes with increases in capacity and capability for both new
and existing bulk materials and containerised cargo,” Michael Wood said.
“Each of these four selected suppliers will bring at least one additional coastal shipping vessel into service, and
together this will improve the resilience of the overall freight supply chain.
“The four preferred suppliers will invest over $60 million through their proposals, resulting in combined investment in
the sector of over $90 million.
“When the new services are fully operational, it is estimated they 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, while
at the same time creating new employment opportunities for mariners and supporting regional development. 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.
“Through this funding we are taking an important step towards better utilising the blue highway, improving our freight
system, and futureproofing our national supply chain.
“In the meantime, we’re continuing work to mitigate supply chain problems caused by COVID-19, which includes increasing
capacity through KiwiRail, extending the aviation support package so businesses can tap into international markets, and
working with the sector to address issues as they arise,” Michael Wood said.