Port decline predicted

Press, 2 April 1987, Page 8

Port decline predicted

The glut of shipping available on the world market, combined with poor short-term economic predictions for New Zealand, is likely to take its toll of Lyttelton over the next six months. , In a report to the Lyttelton Harbour Board’s trade and commercial development committee yesterday, the deputy general manager, Mr Peter Morgan, said economic indicators showed that levels of imports and exports through Lyttelton would decline over the next six months. In the medium to long term the future looked brighter, but short-term predictions, combined with the glut of shipping on the world market, would affect the board. “The combination of these two factors means that there will be ongoing pressure from the board’s customers to provide optimum service at the least possible cost,” Mr Morgan said. Since the board’s financial year began in October, the total cargo handled at the port had decreased 116,000 tonnes, compared with the corresponding period last

year. /, In the last month the total cargo handled was 151,182 tonnes, .24 per cent less than last Febrti- ■ ary.' In spite of the downturn, revenue was 3.5 per cent ahead of budget Mr Morgan attributed this to the downturn in trade being mostly in low revenue-earning areas. Increased tonnages handled included meat, wool, and liquefied petroleum gas, and there were decreases in tonnages of petroleum products, containers, and bulk gyp. sum. The Sea Cargo Terminal handled 50 pep cent less tonnage compared with last year. According to Mr Morgan, the terminal had been affected by the temporary rescheduling of the Union Maritime Company’s Tasman service and the removal of the Coastal Trader from the Auckland-Lyttelton run. He said coastal freight tonnages would improve when Pacifica Shipping’s new vessel Spirit of Freedom began, a service between Auckland and Lyttelton at the end of the month.