For a few short weeks, you have been at the helm of what has been termed “New Zealand’s most important port.” What have you done so far?
I’ve spent much of my time engaging with our employees so that I can better understand their contributions. We have three shifts a day and I have been present for each of them – whether climbing a ladder onto a pilot boat at 5am or talking with team members at the heart of the operation late at night. In addition, Ports of Auckland recently hosted the 11th Asia/Oceania Regional Forum and Meeting of the International Association of Ports and Harbors (IAPH), which was a great opportunity to engage with other ports on issues such as capacity and sustainability.
How has your marine background equipped you for the challenges of running Ports of Auckland?
I’ve been in the shipping and logistics industry for over 30 years, first with Seabridge in Wellington, and then with Nedlloyd and P&O Nedlloyd. I then worked in various roles in Africa, Asia and Europe, including being the European Director of Customers Operations in Rotterdam, before being appointed Managing Director, New Zealand and Pacific Islands in 2002. When Maersk took over P & O Nedlloyd I served as the Managing Director of Maersk in New Zealand for three years. The love of the port however has been imbedded into my genes, as my step-father served as a marine pilot.
What are the major challenges facing Ports of Auckland as you see them and what are its strengths?
Our challenge is to ensure good communication among all stakeholders. Our municipal owners are focussed on balancing the cold, hard operations of the port with community needs so that returns can be generated for local infrastructure such as roading and stormwater enhancements. I feel we have numerous strengths as a company, including: Proximity to New Zealand’s biggest consumer market and largest manufacturing base – supporting an efficient, cost-effective and ‘green’ supply chain
Most advanced port infrastructure, plant and technology of any New Zealand port
We are New Zealand’s largest container port with available capacity, able to handle the largest ships currently calling to New Zealand, and with plans to be able to cater for larger ships.
Does New Zealand really need 13 ports in this age of consolidation?
New Zealand is an island nation where trade has always been important. Also our geography means road and rail links face their own challenges so shipping does have a strong future. That said hubbing is likely to move forward in small steps and eventually I feel international calls will increasingly focus on one or two ports in both the North and South Islands.
Of the 10 container ports, the rivalry between the Port of Tauranga and the Ports of Auckland seems the most marked. Is this a help or a hindrance to your business?
I see it as a healthy rivalry and believe both ports have strong futures. The fact is that in order to meet New Zealand’s projected freight volumes both will be required to operate to their fullest potential. In terms of competition, I’ll be working to ensure a positive environment for both ports and not negative in any way. For the Ports of Auckland the focus will be on operational excellence.
You bill yourself as New Zealand’s “main gateway for international trade” yet the Port of Tauranga handles considerably more tonnage. How does Ports of Auckland justify this claim?
This is not a boast, nor is it an empty claim. Ports of Auckland handled over 12 million tonnes in 2009/2010, connecting with with 176 international ports in 69 countries. It can be tempting to compare the two ports, however it should be noted that while Port of Tauranga handles more volume, Ports of Auckland handles cargo of a higher value. We handled $24.5 billion worth of trade, including 37% of New Zealand’s total container trade by volume – 867,368 TEU compared to approximately 500,000 TEU handled by Tauranga. Of course there are other measures, but the point is we are the closest port to New Zealand’s largest centre of population and its largest manufacturing base.
Going green is a major focus of many major ports around the world. What is Ports of Auckland doing in this environmental area?
In the past financial year Ports of Auckland’s Waitemata seaport operations recorded a 4.3% reduction in electricity used. Diesel used by port operations was down by 2.3% and by port services (Marine) a healthy 20%. This came through smarter use of equipment, but was also impacted by a drop in the number of ship calls. We monitor our greenhouse emissions and carbon footprint closely following an audit in 2007-2008. And, we continue our reuse and recycle policy for all paper, cans, plastic and glass. Construction materials such as oil, scrap metals, dredgings and pavement are also regularly recycled.
Ports the world over are being forced to dredge shipping channels to meet the needs of ever larger container and bulk vessels. What is Ports of Auckland planning to handle the new demands?
Ports of Auckland Ltd is preparing to service the next generation of container vessels by confirming a multi-million dollar investment in a berth deepening and lengthening programme, which will be completed by the end of 2011. It will see the deepening of the northern berth at the Port’s Fergusson Container Terminal, and the construction of a mooring “dolphin” to provide 40m more overhang than we can now. The maximum vessel draught at chart datum (the lowest of low tides) on the outer berth will be increased from 11.7m to 13m and at the inner berth to 12.5m. I feel we are taking a prudent approach to such investments, but one that will sustain and enhance Ports of Auckland’s reputation as New Zealand’s leading container port.
Inland ports or inter modal container handling facilities have been a development over the past decade in New Zealand.
How successful has the Wiri Inland Port been to date?
With 90% of New Zealand’s freight moving by road, we are very pleased with the development of our Freight Hub at Wiri as it will divert more freight to the rail. In fact, our rail volumes increased by 31% in 2009/10. Container volumes at the Wiri Freight Hub have increased by 48.5%. Many of our customers are based within 10km of the hub. By using the rail link to the seaport it is estimated that this group of customers will be
able to reduce the carbon emissions of transporting their containers by up to 40%, and on average by 25%. For the community this means a drop by as many as 100,000 central city truck trips per annum when at capacity.
The cruise ship sector is a “feel good” business for the Ports of Auckland. What are the expectations for the current season and beyond?
Cruise is an important business for the Ports of Auckland and contributes greatly to the Auckland economy. The 2010/2011 cruise season has been a bumper one for Ports of Auckland with over 53 ship visits and another 25 scheduled for the rest of the season. Each cruise call generates approximately one million dollars for the regional economy. In just three years, the number of cruise ship calls to Auckland has risen 40%. We anticipate a further increase in the 2011/2012 season and can only see this growing. We look forward to working with the City to develop a new cruise terminal, most likely on Queens Wharf.
What do you hope to accomplish in your term as Ports of Auckland Chief Executive?
I plan to establish a winning culture that benefits employees, our stakeholders and the community. I firmly believe that a winning culture is many, many times more powerful than any strategy. Of course we will still have a solid strategy backing the culture up.