Lyttelton may try for second container crane

Press, 28 October 1977, Page 3

Lyttelton may try for second container crane

By

MURRAY SIMPSON

Lyttelton took another setback from the Minister of Transport (Mr McLachlan) yesterday when he gave Port Chalmers approval to proceed with building its second container crane.

Just 13 months ago, Lyttelton lost the Rangatira. Since then, the Lyttelton Harbour Board has strongly opposed Otago’s second crane proposal, which threatened the viability of Lyttelton’s own container terminal before it even got off the ground. Mr J. Brand, the chairman of the Lyttelton Harbour Board, said yesterday that the balance between the two terminals had now been upset and that Lyttelton would have to consider getting more equipment itself. But generally the reaction by Canterbury interests to Mr McLachlan’s announcement was somewhat muted, reflecting a certain fatalism which became apparent after the Ports Authority gave Otago approval to raise a 53.5 M loan to build its second crane earlier this year.

The sharpest reaction to the Minister’s decision came from Otago. The Otago Harbour Board’s general manager (Mr R. F. de Lautour) said the 12-month delay in settling the matter had pished the new crane’s cost up another §300,000 through inflation. “The board, and the shipping lines, wanted it ready for the 1978-79 meat export season. We have missed the season now, and it will be late 1979 before the crane is up.”

Mr de Lautour said the delay was an indictment of the system of seeking Ports Authority loan approval and the appeal proceedure when so much was at stake. “It is incidental who is right and who is wrong: it is the system which is of concern.

“We were not being parochial in our demands. We had the support of 15 shipping lines, and they did not do it to be bloodyminded. It was simply that the anticipated throughput demanded that we have additional facilities.”

The root of the problem was the two-port concept for the South Island, he said.

“It was a tragedy that noone had the gumption in the first place to say there should be only one container

port in the South Island. Everyone else in the world is laughing at us seeing two ports trying to share 60,000 boxes annually.

“This is where all the trouble stems from,” Mr Skeggs said. Mr McLachlan, who is the final appeal authority, was forced to adjudicate on whether Otago got its loan after the Lyttelton Harbour Board and more than six other Canterbury organisations had appealed against the Ports Authority’s decision.

Both he and the Opposition spokesman on transport (Sir Basil Arthur) said yesterday they were confident the decision would not significantly inhibit Lyttelton’s development, and felt Port Chalmers needed a second crane before Lyttelton.

“I have made this decision after studying carefully a large number of submissions both to the Ports Authority and myself,” Mr McLachlan said.

"The appellants had asked for a delay in the granting of authority for the Otago Harbour Board to raise the funds for a new crane. “I was most concerned to establish whether such a delay would affect the levels of congestion that may be expected at port chalmers.

“I have established that the risk of congestion is a real one, and this question was an important factor in my deliberations,” he said. Under the Ports Authority Act, 1968, the only grounds for a successful appeal against a decision by the Ports Authority would have been that the decision was not in the national interest. The Minister said he had to consider the national interest rather than conflicting regional interests in making his decision. “An important factor bearing on the congestion question is the number of refrigerated container vessels handling great numbers of containers which will be going through Port Chalmers.

“Costly delays would result if the facilities necessary to efficiently handle these large vessels are not provided. “Unnecessary delays could not be contemplated because they affect not only the costs of running the vessels, but also our ability to meet quotas and restrictions imposed on our trade”. Mr McLachlan said that

an order lost or quota not filled because of a delay could mean the opportunity was lost forever.

“My aim is to ensure that Port Chalmers can cope with expected trades, and I am confident that this decision will not significantly inhibit the development of Lyttelton,” he said. “There is every reason to believe that Lyttelton will continue to play an increasingly vital role in the handling of containerised freight, and there is no doubt in my mind that the Lyttelton Harbour Board itself will some time in the future seek an expansion of its facilities.” The Opposition spokesman on transport, Sir Basil Arthur, said today the decision by the Minister on the second container crane was “the right decision at this particular time.” “The Lyttelton Harbour Board will no doubt be very disappointed. But I hope that it will realise that this had to be done, in the interests of the nmooth development of transport facilities in the South Island,” he said.

“There is no doubt in my mind that Lyttelton certainly will soon need a second crane to handle its container shipping and to compete with Port Chalmers.” Sir Basil believed that it was in the interests of the whole of New Zealand to have two designated container ports in the South Island. However, at this stage, there was a clear need for Port Chalmers to be allowed to go ahead first. “With only one crane, this port was facing congestion, bunching, and the threat of handling surcharges for delays. The second crane will overcome that problem and accelerate handling and turn-around at the port. “This efficient flowthrough is essential if the costs of internal transport are to be kept down as much as possible.

Sir Basil said he would be watching with keen interest the development of the two ports.

“I am quite confident that in the near future, Lyttelton will also be in the position to justify the additional facilities. With esclating costs and time-lag between ordering a crane and installation, the sooner this case is made and approved the better,” he said.

The Lyttelton Harbour Board chairman (Mr J. Brand) said he was “natiir-

ally disappointed” that Mr McLachlan had confirmed the Ports Authority’s decision.

He said the Lyttelton container terminal had been working only since June, and therefore there had not been sufficient time for trade patterns to be established.

Lyttelton had performed excellently — partly because it was competing on a fair basis with Otago. “This balance has been upset, and the board will now be forced to consider getting extra equipment of its own,” he said.

The general manager of the Lyttelton Harbour Board (Mr J. A. McPhail), said yesterday it was “almost certain” that Lyttelton’s need for another crane would be considered at the next meeting of the board. The general manager of the Otago Board, Mr de Lautour said he would doubt if his board would oppose an application by Lyttelton for another crane.

The outgoing Otago Harbour Board chairman, and the newly elected Mayor of Dunedin, Mr C. G. Skeggs, described yesterday’s decision as “a fantastic thrill,” and said he would be getting in touch with the Australian builders of the crane, immediately to get things moving. “The usual time for delivery of the crane is 24 months, but I’m optimistic that we can get ours in 18 to 20 months,” Mr Skeggs said.

The Vickers Hoskins crane will cost about S3M. Two straddle carriers which the board will also order will cost about $300,000 each. Mr Skeggs said all the board had to do now was finalise financial arrangements and get ready to assemble the crane when it arrived. “It is all ‘Go’ from here. We will have this crane working as soon as possible,” Mr Skeggs said. In granting permission to Port Chalmers to have a second container crane, the Minister of Transport (Mr McLachlan) had bowed to the shipping companies, said the retiring president of the Canterbury Chamber of Commerce (Mr C. F. Whitty) at its annual meeting yesterday. The decision by the Minister would only add to the disadvantaged situation of Canterbury and Christchurch, he said.