Nelson loses coastal shipping link

Press, 18 November 1985, Page 1

Nelson loses coastal shipping link

When the Union Nelson is withdrawn from service at the end of this year, Nelson will be without a coastal shipping service for the first time in more than 100. years. The Union Nelson, a new vessel which has been trading between Nelson, Onehunga, and Lyttelton, began service four years ago. She is being withdrawn, according to the assistant managing director of the Union Group, Mr D. A. Graham, because of lack of Sort from shippers, pararly at the the Nelson end of the run. “The reason for the withdrawal is financial. Results have been extremely disappointing and we have been unable to devise a service which is profitable,” said. Mr Graham. There had been ah inadequatelevel of support from shippers. There were reasonably good southbound cargoes, but northbound cargoes, but northbound cargoes out of Nelson had fallen ■ away. This was mainly because of very strong competition, particularly from the Railways.

“The department in its annual report indicated that it had had no less of cargo in the rail ferries but yet had a downturn in revenue. Obviously they have been able to maintain their market share okay, by keeping their rates down. It is public knowledge, too, that they have reported a significant loss for the year,” said Mr Graham. The Union Group was sorry to see the service ended, because it went back to the days of the Anchor company and there had been a regular service for more than 100 years. “But you have to look at the cold, hard facts. You can’t continue to provide a service out of sentiment, particularly if the customers have other alternatives which they think are adequate and at a lower price,” he said. .’ . Mr... was no possibility of the service being introduced. “This is final,” he said. The sale of the Union Nelson was one of the options the group would investigate. Another was alternative trading, but this would not be coastal.

The company hoped to find positions for the crew. However, Mr Graham said seamen and cooks and stewards were not permanent company employees. (Only officers and engineers are company employees.) The vessel has two crews — 14 seamen and six cooksstewards — so that 20 will be looking for jobs when the vessel is withdrawn. A Seamen’s Union spokesman said yesterday that he presumed crew would take whatever leave was available to them and their names would go on the register. They would then have to wait until “their names floated to the top.” Mr Graham’s bad news was tempered by the announcement that the two roll-on vessels Union Sydney

and Union Dunedin would not be taken out of service “in the foreseeable future.” To meet its big redevelopment plans for the Tasman trade, the company was also negotiating for a new multi-purpose ship which could handle up to 1000 TEU container. This vessel could work through Nelson because she was of a similar size to the Union Auckland which already worked the port. She had her own specialised crane facilities, said Mr Graham. The general manager of the Nelson Harbour Board, Mr D. H. F. Green, said the

board was most concerned about the loss of the Union Nelson service. “It is 100,000 tonnes of cargo across the wharf we will lose,” he said. The Union. Group’s association with the Nelson coastal trade goes back to 1870 when the Anchor Line of steam packets was engaged in the coastal service. The Anchor Shipping and Foundry Company, Ltd, took over from the Anchor Line and Anchor Shipping in turn became Anchor-Dorman, Ltd, which became a subsidiary of the Union Company.