Shipping from Kaitaia Dairy Co Wharf Big Saving to Suppliers

Northern Advocate, 2 June 1939, Page 2

Shipping from Kaitaia Dairy Co Wharf Big Saving to Suppliers

[Special to “Northern Advocate"'] KAITAIA. This Day. AT £7OOO PER ANNUM ON BUTTER ALONE. SAVINGS TO SUPPLIERS THROUGH ESTABLISHMENT AND MAINTENANCE OF A REGULAR SHIPPING SERVICE ARE OUTLINED IN A REPORT ISSUED BY THE KAITAIA DAIRY C3Y. COVERING THE MOST IMPORTANT YEARS IN THE HISTORY OF SHIPPING TO AWANUI Since 1926, when arrangements for loading butter from factory direct into ship's holds were first entered into, the company has quadrupled Us baiter output and freights to its wharf have increased to as high as 600 urns weekly. Tho statement is made authoritatively that the port can he maintained cheaply in its present position by occasional removal of shingle shoal bccis in the first mile below tho A warm i Bridge.

The renort reads as follows

From the time when the Kaitaia Coop. Dairy Company’s factory was established at Avvanui. the board of directors has consistently sought to secure an efficient shipping service for tho district at a reasonable cost.

Purchase, of Tivi It was about this time that the S.S. “Daphne” was sold to the ship-break-ers. and Frankham purchased the hull, intending to recondition and place her on the Avvanui run as soon as possible, but Mr George Nicol had just completed the M.V. "TinC a vessel of 180

First Slops in 1926

Encouraged by the phenomenal growth in output and the increasing numbers of its suppliers wholly dependent on dairying for a living, the directors determined that, so far as it lay within their means, the powerful organisation of the company should be directed towards this end by co-ordin-ating its efforts with those of the constituted port authority. The first approach to the problem took the form of maintaining quality and reducing the factory to cool store costs by arranging that the ship should load the company's butter at the factory. This was eventually arranged with the Aspden Shipping Co., when it commenced an Auckland-Awaned service with the M.V. "Portland" at the commencement of 1926. This vessel of about 90 tons capacity was engined with two semi-diesels of 30 h.p. each, and had a speed of about 6i knots. In the face' of many difficulties this service was maintained by the support of the dairy company principally, and some local business houses.

tons capacity, 210 h.p. diesel engines and a speed of 10 knots, and she was considered to be a very suitable boat for the service.

Faced with the heavy outlay of purchasing this additional new ship, Frankham Ltd. felt concerned as to the continuity of the trade here. Mr Frankham therefore arranged for a special meeting of the dairy company with the business people, and it was agreed to enter into a fresh contract for a period of 10 years, on condition that Frankham Ltd. purchased the “Tiri” and put her on the Awanui run. There were, of course, certain undertakings given by Frankham Ltd. concerning freight charges, etc., included in the agreement. This was negotiated in 1932.

The "Tiri" maintained a creditable time-table for live years, when it was found that she could not carry all the cargo available, and it was frequently necessary to supplement her with the “Coronation," especially during the flush butter and manure months. At the time when the directors were contemplating the extensive alterations to the factory, including additions to the butter cool room. Mr Frankham agreed that when the butter output had increased to a point whore the existing cool room was overtaxed lie would place a second boat on the run. This avoided extensions in that respect, In addition to this it has proved an advantage to have the butter delivered to Auckland, twice weekly. Indicating to what an extent the trade of the port has grown, in March, 1938. the “Tiri" was seven times and the “Coronation" throe times to Awa-

The output of the company that season was 522 tons, and the saving ot 5d per box on butter alone, computed on that season's output, was worth £409, while at the same time the butter quality was maintained. »

Frankham Ltd. Takes Over

The Aspden Co. found difficulty in keeping a regular time table, and business people were not at all. satisfied with the service, therefore Mr Aspden advised a meeting of business people and the Kaitaia Dairy Co. that he had decided to relinquish the trade and suggested that Messrs A. G. Frank ham Ltd. should carry on.

At the request of that meeting Messrs Frankham Ltd. agreed to try out the service for a period of three months with the m.v. “Coronation,” a vessel of 120 tons capacity, having 100 h.p. semi-diesel engines, and a speed of about 71 knots. The “Coronation” proved to be suitable for the trade then offering and a regular service was maintained. It is interesting to note that the weekly cargo then carried by tins vessel ranged from 30 to 60 tons from Auckland. and', on the return trip, the butter and small quantities of gum and empties comprised the only outward cargo.

Abnul 1937 the need for further tonnage beyond the two vessels already operating became evident, and it appeared that the best course would be to complete the reconstruction of the •"Daphne” and put her into commission as soon as possible. After many months of work she was launched (being renamed "Awanui"* and made her first trip in November. 1938.

This vessel carries 180 tons and. having 240 h.p. diesel engines or the latest type, has maintained an average speed at sea of more than 10 knots, on occasions logging well over 12 knots. Frequent Service. She is the highest powered vessel of her type in Now Zealand. For many months both the "Awanui” and the “Tiri” have made regular weekly trips to the port, and on the frequent, occasions when the ‘"Awanui” made a second trip Frankham Ltd. have provided throe boats a week. Moreover, during the pressure of manure business last month, as many as five trips have been made. Tf we add to tins the N.S.S. Co.'s vessel, we have a total of six ships a week.

An agreement was then entered into between the dairy company, certain business houses and Frankham Ltd. for a period cf three years, with a guarantee that the latter should receive SO per cent, of the cargo consigned to the various signatories.

At true same time a deputation representing local business people waited on the directors with a request that the dairy company should refrain from trading. After consideration the board agreed to restrict the company’s trading business to farm lines and benzine only. This undertaking was then given, and is still observed. Unique Freedom from Rate There were no facilities for handling cargo on the company’s river frontage, and practically no protection from (he weather. Having in mind the great advantages of retaining the service, the directors then decided upon the erection of a smail wharf and shed.

To meet the present demands for wharf and shed space, the company has again doubled the existing building, and there is now room for two ships to work cargo simultaneously.

During- the period under review the dairy company has increased its hatter ouput from 532 tons

to 2000 tons or more per annum. In the same period freights to the company’s wharf have increased from the initial 30—60-ton figure to as high as 600 tons in a recent week during- the fertiliser peak. It is estimated that the total tonnage of the port is new about 25,000 tons per annum.

They were further influenced in this decision by: G) Frankham Ltd. were prepared tc pay (and are paying) an adequate rental based upon the cost, thus relieving the district of any wharfage rate. This is probably unique in the Dominion.

There are indications that under normal conditions a further ship will be required in two or three years time to handle the freight during Hush mon tlis. {'neconomic ( ompetition. It is willr gratification that Ihc directors review the arduous but successful years of effort to establish an economic freight service for the district. and they are confident that the members of the company wal generally share this feeling. l ooking to the future, they arc confident of continued success, despite the attempts being made to undermine the structure of our splendid coastal service by utilising uneconomic transport facilities. which were avoidable and only serve to increase (he burden upon taxpayers. That this affects all farmers is well illustrated by mentioning that a recent. investigation carried out by the

(2) The savings in charges already experienced by Inc dairy company alone were a considerable ofl'sel against the outlay.

Having now embarked upon this expenditure, the directors felt that to safeguard the position, the company should continue in closest contact with the shipping business by obtaining the local agency for Frankham Ltd. This was readily obtained and has worked very satisfactorily. Before the expiry of the three-years’ agreement the trade had sc>«im:reased, in conjunction with the output of butter, that it became obvious that the existing shed must be enlarged (this was duly carried out) and that a larger vessel would be required to handel the cargo offering, as on many occasions the “Coronation" had proved too small, and had left cargo behind.

company revealed that. based upon the charges being paid by another neighbouring dairy company f or its butter transport, it would cost the Kailaia Dairy Company at least £7OOO a year more for butter freight alone should the shipping service not be available. Navigability of River. Thus review would not be complete

without some reference to the navigability of the Awanui Diver to the company's wharf. Many rumours have been in circulation which unfortunately appear to receive greater credence from some than the facts justify. For several years there was serious j shoaling of the river in the first mile i below the Awanui Bridge. All vessels j of average draught (six to eight feet) j experienced continual difficulty over 1 sliis portion. 'I he deposits were ol , tine alluvial shingle residue, from which the soil and sand particles, having been precipitated during floods, were carried out to sea. \ In view of proposals to establish the j port elsewhere, your directors lock j the initiative in approaching the har- j hour board to have the whole matter ! i thoroughly investigated. Subsequent !

negotiations with the Ministers for Marine and Public Works resulted in instructions being issued to Mr Packwood. engineer to the Public Works Department at Whangarei. to carry

cut such an investigation. After a careful survey of the river and the sites proposed, he submitted a very complete report, a copy of which in due course was made available to the directors. Briefly, this report served to amplify the general suggestions which your company's representatives had already submitted, that it would be cheaper and much more convenient to maintain the port in its present position by occasionally removing the shingle shoal beds, which, in the opinion of the board, are an aftermath of the drainage operations, and will lend to reduce and perhaps disappear in time. Cheap Maintenance.

This work has been satisfactorily carried out and future costs for similar work are to be met from an quote fund provided by the levy of about 1 - per ton cargo handled at the port. Statements concerning shoaling in the lower reaches of the river, a few perhaps maliciously made but mostly in good faith, are without foundation. The M.V. “Awanui," typical of the vessels serving this port, negotiates the Awanui River with as great eleven greater case than she did 25 and more years ago. On a recent occasion two of the larger ships trading to Awanui negotiated the river ns far as the company's wharf on the same tide, but five hours apart. Actually, the inward bound vessel, with a good load of cargo, traversed much of the river at little more than half-tide. The writer preparing this report makes the foregoing statements from actual observations extending over many years while working on properties fronting the Awanui River several decades ago and again at flic present time.