Deep-water port vital to Coast

Press, 13 September 1982, Page 15

Deep-water port vital to Coast

Regional expansion on the West Coast hangs on the development of a main deepwater port there, a report has concluded. “A Choice for the Future." a 119-page evaluation of West Coast resources, has come out strongly in favour of a port as the ‘ key" to unlock the full potential of the region's resources. It would benefit industries such as coal and mineral mining, forestry, and agriculture, directly and indirectly, and give the area a major boost, the report has found.

The evaluation was initiated by the Greymouth Harbour Board in June, 1980, after a visit from the New Zealand Ports Authority. It is seen as the first step in having a regional harbour for the West Coast fully evaluated, and will be the main discussion topic at a forum in Greymouth on Wednesday.

Work for the document was done by Heather Sinclair and Len Holmes, of the Greymouth consultants, Cowan and Holmes. Geoscience Consulting Services, Ltd, of Christchurch, prepared a section on coal and minerals, which was written by Colin Aldridge. Detailed sections include such topics as the region generally, agriculture, coal, minerals, forestry, fishing, water, cement, secondary industries, tourism, and population. Also included are 25 maps, as well as tables, and detailed appendices. Information for the study was sought from about 100 individuals and organisations selected for Jtheir special knowledge. Circulars and questionnaires were sent out, and submissions invited.

Mr Holmes put the cost of preparing the report at about $30,000. About 400 copies have been printed for distribution to government departments, and other interested groups. They will also be available to the public at about $3O each from the board .office, and Cowan and Holmes, Greymouth. In his foreword,- the Harbour Board’s chairman. Mr J. J. O’Brien, said the establishment of a deep sea port on the West Coast had long been a cherished objective. The study had proved beyond doubt that the West Coast was a treasure chest of resources.

“The board firmly believes that the establishment of a multi-purpose deep sea port is the only key to unlock this chest for the’ benefit of the region and the nation," he said.

The report could permanently influence the future of the region. It expressed confidence and optimism, and, it was hoped, would project the region’s importance to the rest of New Zealand. Agriculture

Agricultural products, such as meat, dairy products, and furs, could be exported direct if the West Coast had a deepwater port, making agricultural production more competitive, the report concluded.

At present, the Westland Co-operative Dairy Company faced factory-to-port freight costs of about $5O a tonne for its products. The comparative cost for Canterbury products was about $8 a tonne.

The study. found that a port would make little difference to some products, such f-as wool and horticulture, or the bringing in of fertiliser

from Nelson and Christchurch for West Coast land. Coal

Low-cost deep-water shipping facilities near the West Coast's main coal reserves would increase tonnages to be mined for export, and New Zealand use. “Under such circumstances the value of coal recovered from the West Coast coalfields in the long term could be increased by thousands of millions of dollars,” the study said.

The present practice of sending West Coast coalby rail to Lyttelton restricted the potential for the profitable export of premium quality coal that could be cheaply opencast mined. Such coal represented only a small part of potentially mineable coal in the region, said the report. This must bring into serious doubt the depletion of such reserves without making long-term provision for the economic continuation of exports. Unless provision was made soon for adequate West Coast shipping facilities, a large part of New Zealand’s major energy resource would be lost.

On the other hand, the availability of a future lowcost deep water port would be a catalyst for expansion of West Coast coal mining. Minerals

Gold output on the West Coast was likely to reach 70,0000 z a year within the next three to five years, and more within five to eight years, said the report. This represented an export potential of about $3O million a year. Capital equipment and supplies could be bought more readily and cheaply to the mine site with a deep water port. Indirectly, a deep-water port would’ give the chance for development of local export industries founded on investment funds from a greater regional cash flow that would accompany a major goldmining industry. A deep-water port would have a rapidly decreasing impact on the economics of West Coast beach sand resources from ilmenite export to processed titanium metal products, said the report. The prospect of such a port must substantially affect feasibility of various ilmenite processing options. Prospects for significant export tonnages of non-me-tallic minerals, apart from coal, appeared long-term, said the report.. The future availability of a deep-water port could, however, encourage their development. Forestry

Deep-water shipping facilities would have an impact on the use of forest residues and industrial grade wood, said the report. "To date, the high cost and sheer physical difficulty of getting the product to the market has been one of the obstacles to the economic use of these resources,’’ it said.

"As far as forestry is concerned. it is important that anv export facility be centrally located. This would maximise the catchment area of potential timber exports.” Fishing

The study sees the development of the fishing in-

dustry in the region as an adjunct to, rather than a catalyst for, the establishment’of a deep-w’ater port. Access to an all-weather port would give greater flexibility to heavier domestic fishing craft, it said. Facilities could be provided for all-weather fishing vessels with tonnages far greater than those now working off the West Coast.

Deep-water fishing could be exploited by large offshore vessels, and survey and repair work on larger domestic vessels and foreign vessels could be done locally.

The demand for fuel and stores by more vessels would increase, and catches could be landed within the region. A direct export outlet would encourage the setting up and expansion of fish farming in the region, the report said. Water resources The survey also found that the continued lack of such a port would impede development of water resources for such things as an aluminium smelter, power station, the export of pure water, and other industries. Cement exports A multi-purpose export facility would be the logical solution to transport problems with cement exports, the report found. The viability df cement exports would be improved as trans-shipment through Napier would no longer be needed. Secondary industries The report concluded that not all such industries would directly benefit from a major port on the West Coast, exceptions would be those producing for the local market only and those that can more easily use air freight. It found, however, that population growth resulting from the establishment of a port and, expansion of re-source-based industries, would influence production levels for industries such as bakeries, printers, and general engineering. Some firms found it difficult to compete for national and export markets because of high internal freight charges, and a port would improve competitiveness, said the report. These included clay, stone, and woodproduct industries. A port would also allow direct shipments, and an incentive for new industries to open up. Tourism

The direct effect of a deep-water port on tourism would be minimal, the report concluded. Tourist cruise ships would be a possibility, ano the region's attractions would be different to others on South Pacific stop-overs. Although revenue from such ships would not be great in terms of the whole port development concept, it would boost the local tourist industry. Population

A port would increase job opportunities and reverse the trend of young people leaving the region, said the report. The region’s communities, services and facilities would be revitalised. The population would grow, and the demographic balance would change.