Iran upheaval hits meat shipping

Press, 9 November 1978, Page 23

Iran upheaval hits meat shipping

Lyttelton has so far escaped problems resulting from a big drop tn meat j exports to Iran and the financial trouble of the Austlran shipping consortium. Austlran. a joint Austra-lian-Iranian Government enterprise, is one of four big shipping consortiums established to handle what I was thought to be a lucrative New Zealand-Aus-tralia-Middle East service. It was one of the two consortiums which elected to use only Port Chalmers in the South Island, as did the Blue Star Lines ; Middle F.ast-Gulf Service. The other two. L.P.R. Middle East Service (formerly Beaufort) and Gulf ; Shipping Lines. Ltd, use Lyttelton. Although overseas shipping lines are now facing big cargo reductions because of the drop in meat exports to the Middle East, spokesmen for L.P.R. Middle East and Gulf Shipping Lines in Christchurch did not express concern. “We are getting the cargoes and haven’t run into any setbacks as yet,” said ; a L.P.R. Middle East rep- ; resentative. Gulf Shipping Lines has been shipping dry cargoes from Lyttelton, although its Auckland office is seeking meat cargoes. Austlran’s difficulties are affecting other New Zealand shipping agencies. Seatrans. Ltd, the New Zealand agent for the consortium, has denied any immediate serious problems. Sea Containers Australia. Ltd, is taking over al! container cargoes booked by Austlran to the Middle i East in the vessels Tur-

quois Bounty and Jade Bounty. Both ships were previously on charter to Austlran, which was running four ships from New Zealand and Australia. Austlran sources in New Zealand confirmed that all operations had been placed in the hands of a receiver-manager. The consortium was formed in 1976 as a joint venture between the Iranian Government, the National Bank of Australasia, and Darling Coliett International to supply Iran with Australian sheep and sheep meat. The political situation in Iran a strike at its main port, and a failure to receive payment from the State Meat Corporation ot Iran are believed to have led to Austlran’s difficulties. Five to eight ships working at various times are estimated by shipping sources to have put the daily running costs at between sAustBo,ooo and SAust 100,000. Seatrans has confirmed that Sea Containers Australia will proceed with the sailings of at least the next two ships to the Middle East. The situation in Iran is known now to be of concern to all the shipping services, even though they are not experiencing an immediate impact. Austlran has had difficulty in obtaining letters of credit, meat contracts, and payment from the Iranian Government. This is believed to have led to a hard stand by the Australian banking shareholders in the consortium who have refused to release money. Blue .star Line, with a

SNZSOM investment In the new service from New Zealand is reported to be the first company to experience flow-on problems Its new container ship, Australia Star, recently left for the Middle Fast only half loaded. Two fully cellular ships were specially built lor the Middle East service: the Prime Minister’s wife, Mrs Muldoon, launched the second ship, New Zealand Star, on July 20, the same day the Australia Star was handed over to her new owner. Ihe company has been working only from Port Chalmers and New Pit - mouth on the New Zealand end of the service