Sand Price "May Be Too High”

Press, Volume CVIII, Issue 31762, 20 August 1968, Page 1

Sand Price "May Be Too High”

Burnett Holdings, Ltd, Ashburton, had received an inquiry to supply 1.2 m tons of silica alumina sand annually from Mount Somers for the next five years, with right of renewal, from an unnamed overseas customer, the managing director (Mr R. A. Burnett) said yesterday.

“The price we have submitted. which has to compete with those from other overseas sources, may be too high," Mr Burnett said, “but it is the lowest figure possible using road transport which complies with transport regulations.

“A lower quote might be possible if we could exceed the present 60ft limit on vehicle train lengths.” When possibilities of an order were first explored, the Railways Department had told him that the sand would have to be transported by road and rail to the port of Timaru because the 16 miles of track on the old Tinwald to Mount Somers line had not been officially closed. This fear, Mr Burnett said, had since been dispelled by the Minister of Railways (Mr Gordon). Then the District Commissioner of Works (Mr D. B. Dallas) told the South Canterbury Chamber of Commerce that the district roading system was not designed to carry loadings expected to be involved in the export of the sand.

Mr Dallas also said that, as far as he knew, no approach for an overload permit had

been made to the National Roads Board, and his opinion was that the board would not grant a permit for a continuous trade. “As a contrast to this, the Timaru Harbour Board, the Timaru City Council and the South Canterbury Chamber of Commerce, as well as MidCanterbury interests, have been right behind the project,” said Mr Burnett. Cartage by road and rail would make the cost prohibitive, and the only means of transport he was interested in was road all the way to the port of Timaru. “This is where the major cost lies and the best area in which we can reduce costs so that the contract quote can be competitive.” A truck and two trailers, weighing a gross 38 tons, would be within the weight limits allowed. The contract, if won, would

involve about 48 trucks and their trailers shifting 100,000 tons of sand a month about nine months after the agreement was signed. A consortium might be formed, Mr Burnett said.

Burnett Holdings had all the equipment needed to move the sand except the trucks and trailers, which would cost about s2m. The sand deposits at Mount Somers had yet to be properly proved but were estimated to be at least 30m tons. Preliminary tests had been carried out on samples and had come within the requirements of the overseas customer.

The chairman of the Ashburton County Council (Mr K. M. Baxter) has said that roads in Mid-Canterbury and South Canterbury are among the best in New Zealand and would need little upgrading.