OTIRA TUNNEL FREIGHTS.

New Zealand Herald, Volume LX, Issue 18494, 3 September 1923, Page 5

OTIRA TUNNEL FREIGHTS.

EFFECT ON PRODUCE TRADE.

GREYMOUTH SUFFERS.

:' ; Those persons who predicted that the opening of the Otira Tunnel would adversely affect business at Greymouth already appear to have been partially, if not wholly, justified in their prophecies. The, wholesale produce dealers at Greymouth have, less than a month after the tunnel opened, been severely affected by loss of trade, according ' to information published in the Greymouth Star. On the other band, this is denied by other merchants, who are ! more optimistic re-, garding the trade, while admitting that the tunnel has to some extent caused diversion of orders. One wholesale dealer stated- that the Greymouth dealers might as well close if the present condition of - trade continued. Buyers of chaff and other produce were now sending their orders direct to Canterbury, and securing produce through the - tunnel by the-.truck-load. Prior to the opening of the tunnel Greymouth merchants • drew their supplies of chaff from Blenheim by steamer. As the cost of - securing chaff .from Canterbury through the tunnel was,.much less, the Blenheim trade had been entirely cut out. The dealers at Hokitika were similarly affected. : : it _ , Another dealer corroborated the foregoing statements, and added that it. was all a question of competition. > Blenheim traders would have to cut their prices if they wished to compete with. Christchurch for the West Coast trade, or else find a market elsewhere. They could probably do this in the North Island. He understood that coal-fliled trucks sent from Reefton to Canterbury. were used when empty to bring produce back to the Coast. Since the tunne] had opened, his firm secured potatoes at 10s per ton cheaper, as the wharfage at Lyttelton and Greymouth was saved. He pointed out, however, : that ; it would, not be cheaper, to bring Class A. goods, such as bacon and biscuits, through the tunnel, as the freight would be £4 10s per ton. There was no doubt that shipping freights and wharfage would - have to be reduced if the ships Ware to compete successfully with the railway. .