• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Port Taranaki Wins $80 Million Coal Contract

Posted on: Wednesday, 28 December 2005, 15:00 CST

By MAETZIG, Rob; HUMPHREYS, Lyn

PORT TARANAKI has won an $80 million contract to export coal from a new mine on the South Island's West Coast

The contract, initially for 18 years, will transform the port to second only to Lyttelton in terms of coal tonnages handled.

At its height, the operation will see the port handling 1.3 million tonnes of coal a year, a figure that will represent more than 30% of Port Taranaki's entire cargo tonnages.

The contract was signed yesterday between Pike River Coal Company Ltd and the transport consortium, the West Coast Coal Company, and represents an $80 million supply chain.

Port Taranaki will be responsible for all aspects of handling, transporting and exporting the coal from the new Pike River mine north of Greymouth.

Port Taranaki chief executive Roy Weaver yesterday hailed the contract as the dawning of a new era in the port's history.

"I'm delighted. It's a wonderful Christmas present.

"We are the energy province here in Taranaki and we're the energy port and it's wonderful to have such a variety of energy options coming through now.

The coal was of the highest grade with a very low sulphur content which would mostly be used in the manufacture of steel, he said. "It's the cleanest coal around and highly regarded."

The coal will be shipped from Greymouth in two small coastal bulk ships, purpose-built to handle the river bar, to Port Taranaki.

At Port Taranaki, the coal will be stockpiled and then shipped in Panamax (bulk-size) vessels, carrying up to 65,000 tonnes at a time, to export markets in Asia, India, South America and Europe.

Pike River Coal Company Ltd (PRCC) general manager Gordon Ward described the new transport route as a major innovation for New Zealand's coal export industry which opened up significant opportunities for expansion.

The first coal production is planned for March 2007 and the first coal shipments will follow some months later.

Mr Weaver said Port Taranaki would also take advantage of the new developments.

A total of $90 million is to be invested in developing the supply chain for this trade, including new facilities and equipment at the port.

"The new infrastructure at Port Taranaki and the linkages with dedicated coastal shipping will open up exciting opportunities for other bulk trades and commercial traffic to be hubbed through the port," he said.

These facilities will be able to be used for other dry bulk trades Port Taranaki may attract in the future, such as fertiliser and further coal.

WCCC comprises Port Taranaki Ltd, Nelson-based road transport company TNL Group, New Plymouth-based shipping management company Wendell Group, and Norwegian bulk shipping specialists Jebsens International.

TNL's principal shareholders are Five Star Distribution (owned by New Plymouth's Hooker Bros Holdings Ltd and United Carriers Ltd), and Neil Reid (50%).

One of the coastal ships will berth at Port Taranaki every three days to unload 10,500 tonnes of coal a time.

The coal will then be stockpiled to await the arrival of the bulk carriers.

New facilities will be developed at the port to handle this amount of coal.

This will include a new crane capable of handling 800 tonnes of coal an hour, construction of load-out equipment to load the bulk carriers at rates of up to 2000 tonnes an hour, and some modification of Moturoa Wharf.

--------------------

Source: Daily News; New Plymouth, New Zealand

More News in this Category