wayne thompson - ports of auckland - ensuring integration of intermodal services

Optimising the supply chain: Ensuring the integration of intermodal services

Wayne Thompson

General Manager Strategy, Supply Chain and CFO

Ports of Auckland |

Today’s presentation

The challenges currently facing the New Zealand port sector and the implications of these on the New Zealand supply chain

The reasons why we are investing in the development of a better, more integrated supply chain, and

Why we see intermodal freight hubs as a core part of the strategy to cope with increased freight demand

The importance of rail to our strategy


Ports of Auckland |

Ports of Auckland by numbers

Nearly 900,000 TEU

250,000 cars & light commercial vehicles

2 million tonnes of bulk (cement, iron sand, wheat etc)

1.25 million tonnes of ‘break-bulk’ (sawn timber, steel, machinery, tractors, trucks, trains & domestic freight like sand and road metal.)

Around 100 cruise ships a year, worth $1.5m per visit

Around 600 staff, 400 FTE

2.5 kms of wharves, 77 hectares (wharves & land)

3Optimising the supply chain: Ensuring the integration of intermodal services

Ports of Auckland |

Key Influence – Freight Growth

Freight Growth:

• upper North Island population growth

Freight Growth Requires:

• optimal management of freight transportation

• infrastructure that will facilitate the movement of goods both domestically and internationally very effectively

• efficient use of that infrastructure


Ports of Auckland |

Key Influence – Bigger Ships

• There is no big ship – there will be bigger ships!

• Given current over capacity and pricing are the savings real?

• Larger less frequent ships don’t suit all cargo or the NZ market

• Larger ships can introduce supply chain risk

• Larger ships require investment in supply chain infrastructure

• Shorter term maybe up to 6,500 TEU ships. Longer term maybe 8,500

• Ports of Auckland is ‘bigger ship ready’ can handle 6,500 TEU ships, plans to handle 8,500 TEU ship if required

• Prudent investment is to use our tidal windows.


Ports of Auckland |

Example of what we could see

SAMMEX Class – operating in South American trade lane

• Capacity of 6,500TEU – the newer ones that have been introduced have a capacity of 7,500 to 8,500TEU

• Proportionally high number of reefer plugs - This is important given NZ’s exports.

• Wide beam – 45m

• Max draft – 11m to 13m

POAL can handle these now.


Ports of Auckland |

Key Influence - Other Factors

• Dependence and reliance on road transport - capacity of our roads

• A fragmented supply chain - multiple parties - complexities

• The introduction of 4pl parties disrupting the market

• Access to rail and the ability to integrate different modes of transport

• More sophisticated methods of product distribution FMCG – Online purchasing

• Focus on environmentally sustainable supply chain solutions

Need to address these factors as an industry so that we can create a more sustainable and integrated supply chain network that balances the flow of imports and exports and reduces pressure on our national infrastructure network.


Ports of Auckland |

POAL’s Response

• On Port - innovate – use of technology e.g. Automation

• Strategic partnerships

• Investment in a freight hub network


Ports of Auckland |

POAL – Intermodal Freight Hub Network

9

Strategically locatedIntermodal Freight Hubs

Rail Centric Transport Corridors

Mix of Triangulated Containersand Fit For Purpose Multimodal Units

End to End Visibility and Orchestration of Activities from origin to destination

PALMERSTONNORTH

CHRISTCHURCH

TAURANGA

WIRI

NEW PLYMOUTH

HAMILTON

A sustainable supply chain network with a balanced, bi-directional flow of import, export and domestic cargo

Integration of regions into the international supply chains


Ports of Auckland | 10

Empty Depot

Inland Container Depot

Customer Export Facility

Intermodal Operation & Rail Siding

Cross-dock

Coldstore

Investing in infrastructure – Intermodal Freight Hub

• Consolidation and deconsolidation of freight

• Strategically located to reduce 1st and last mile transport

• Rail served

• Co-located operations – Empty Container Depot, Inland Port

• Value-added services – devanning and packing, cross-docking, cold storage



Integrated, intermodal transport options

CURRENT OPTIMISED



• New Zealand imports and exports have some of the largest distances to travel

• We rely heavily on exports for our economic prosperity and on imports in order to have cheaper and better access to the goods Kiwis want and need

• We need an integrated network - optimised through the integration of different transport modes

• Some customers will value frequency, others the lowest possible cost, all have different risk appetites

• In order not to introduce risk and inefficiency resulting in poor use of NZ’s limited infrastructure:

Supply chains must work end to end and be:

built for the long term

logical

based on a true commercial basis

Summary



• Port companies can no longer be passive participants –this is good for cargo owners

• Supply chains must be:built for the long termlogical based on a true commercial basis

• POAL has invested significantly in infrastructure that allows us to integrate different transport modes

• Rail is key, it provides the backbone of the network

THE END


Ports of Auckland | 14Optimising the supply chain: Ensuring the integration of intermodal services

www.poal.co.nz

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wayne thompson - ports of auckland - ensuring integration of intermodal services

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