Forum Archive Index - November 2000

["Trevor Gilbert" <trevor@tgif.co.nz>]

Some interesting facts for you that may help you in your discussions re.
ports.

A new breed  of superships are due to start operating in 2002. They will
carry over 3100 TEU's as compared to the 12-1700 TEU vessels currently
servicing NZ ports. They are huge and very expensive. At POA they will mean
that 20 vessels calling per week will be replaced by 3 or 4.

This means a huge increase in land for container storage and also new
handling equipment and significant dredging of channels because the new
vessels have a draught of up to 13m whereas the channels at the moment will
only take up to 11m.

More significantly is the fact that there is only room for probably two
ports in NZ to service these vessels. Common sense says one in the North and
one in the South. The rest will be serviced by coastal feeder service or
rail.

So what happens to POA shares if POA do not win the contract for servicing
these vessels??

Also, to complicate matters is the "greenie" effect of the dredging, the
shortage of usable land in the near vicinity of the port operations and also
the fact that POA is so heavily influenced by its local government
shareholders (80%).

There is also a shipping industry review going on which is looking closely
at "arbitrage" or the ability to move international cargo coast wise without
the need to engage the local Unions. If the local shipping union does
convince the Govt that they should be involved then the cost of coastal
shipping will go up and this will impact on the ability of ports not chosen
to find a market at all.

Against these "downers" is the fact that POA is very well run company with a
positive focus and in all likelihood SHOULD win the contract for the North
Island, if only because it is nearest to the major consumer centre and also
within easy north/south access to rail for major exporters.

Perhaps Port of Tauranga will remain only as a Trans Tasman Feeder and also
for bulk cargo like timber/logs etc.

Centre Port... Well I don't see it has any market unless they built a
channel tunnel and services all NZ from Wellington. It has no consumer
market and is not very close to any large export producers.

Hope this adds something to the discussion.

I do not hold any shares in any port companies and am unlikely to do so
until the central Govt changes and the local government sells its shares.


TG

----- Original Message -----
From: Warner Lamb <cloud9@i4free.co.nz>
To: <sharechat@sharechat.co.nz>
Sent: Wednesday, November 01, 2000 2:07 PM
Subject: Re: Re: [sharechat] Ports


> Snoopys last rundown on LPC was a goody. Still havent heard from our
> Auckland or Tauranga or Whangarei sharechatters for a North Island
> rundown...comeon you non Mainlanders, give us your thoughts..we challenge
> you!
>
> Warner
>
>
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