THE PROBLEM OF SHIPPING

Waipa Post, Volume 49, Issue 3506, 16 August 1934, Page 7

THE PROBLEM OF SHIPPING

BOTH OVERSEAS AND COASTAL.

# COULD ECONOMIES BE SECURED?

An understanding of the problems of the pouts with also a realisation of the far-reaching consequences of shipping policy calls into the reckoning many complex questions not the feast of which are:— The outstanding debt of Harbour Boards is £10,500,000. There are 50 harbours under some form of local Government control, 21 being ports of entry for customs purposes. The debt charges amount to £560,000 per annum. Last year revenue did not equlal expenditure in 17 harbour districts, recourse having to be made to a rate on lands, and £170,000 being collected from ratepayers. New loans fare being raised for additional harbour works without any semblance of co-ordination of shipping policy—debt charges are thus increasing. In recent years there has been almpst a universal decline in the volume of inward tonnage at all harbours. There has been a steady decline of coastal tonnage with coastal fleets lying idle. There has been keen rivalry among all-port authorities for the overseas carriers. In consequence Export Boards have scheduled 15 ports fat which export cargoes of produce can be loaded.

The contract with the overseas shipowners stipulates a universal “flat ratfe ” for all produce regardless of the port facilities or the cost of leading the cargoes. A conservative estimate of New Zealand's ocean freight bill on produce is from £5,000,000 to £6,000,000 per annum.

It is evident that the time these costly Vessels are on the New Zealand coast to be costed into the overseas freight bill. It is evident that the port trade is required to pay the annually recurring charges of the port authorities. It is evident that the effect of the flat rate—or uniform freight charge, removes an incentive for la port authority to incur increased capital charges for the provision of lesscostly loading facilities. The point that arises is whether by rationalisation of the points and the shipping services New Zealand could

1. Economise in the cost of the overseas freight bill. 2. Bring into use a type of carrier for which the ports now provide suitable berthage and other facilities. 3. By economies thus effected more equally spread the costs of harbour development. 4. Revive port trade and secure a better condition on the waterfront. 5. Bring into use coastal vessels now idle and thus provide employment through an enterprise which has been allowed to languish. 6. Generally by rationalisation divert from a wasteful expenditure in overseas freightage a considerable sum of money for the better utilisation of our own harbours, the activity of our own ships and the employment of our own people. ’ These and other questions of an equally far-reaching future are at the present time the subject of inquiry and investigation by those concerned in port development, shipping and attendant transport arrangement. ANOTHER £509,000 SANCTIONED FOR HARBOUR WORKS. During the month new harbour works involving £509,000 have been sjajnctioned. IWlellington 66,000 Napier, new loan „ 335,000 Napier, balance of old loan 71,000 Oamaru t 37,000 Total 509,000 WELLINGTON BOARD TO SPEND . £66,000.

A decision was made by the Wellington Harbour Board at its meeting on 26th July to proceed with a programme of works involving a total expenditure of approximately £66,000. The works are not necessarily urgent ones, but the decision of the Board is in keeping with its policy of endeavouring to do its part in bringing a return of mormhl conditions by providing employment for as many men as possible. Miost of the £66,000 will be spent in labour costs, either directly or indirectly by the Board.

The Board made its decision in committee, and after the meeting, the chairman, Mr T. R. Barrer, informed the Press that the programme would comprise the following works: Extension of .the Point Howard oil berth (a work now in hand); formation of the board’s section of the Aotea breastwork; formation of the roadway between Pipitea Wharf and Aotea Quay, khoVn as Fryatt Street; construction of st new concrete store at the southern end of Aotea Quay; land continuation of thje Aotea Quay breastwork. By ijar the biggest job on the programme is the construction of the new cohcrette store, which will absorb about two-thirds of the sum allocated;, and it is expected that the job will not be completed for at least two years. All the men on the new works will be engaged at standard

rates of pay, and will! be taken from the ranks of the unemployed. A start will be made almost immediately on a port of the new programme. The undertaking of so much work at Aotea Quay synchronises with the development work now in hand there in connection with the construction of the niew railways goods yards. Aotea Qufay provides a berthage of 35 feet low water depth over a length of three-quarters of a mile. Unrivalled facilities for the handling of cargo from ship’s hold to the railway will be provided when the railway and harbour works are finally completed; and the board has taken the view that the present is am appropriate time to proceed with its share of a very important work.

NAPIER ADOPTS BIG PROGRAMME.

On a proposal to raise £335,700 for the development of the Napier Breakwater Harbour, Hawke’s Bay ratepayers, by a three-fifths majority, voted sanction at a loan authority poll. The Napier vote was solidly in favour, 2045 supporting and 168 votes opposing. In Hastings 1119 opposed as against 703 approving the loan. Over the district las a whole the majority was 521 votes.

The scheme provides for completing the breakwater harbour and providing six berths for overseas vessels, replacing the expensive and out-of-date •method of lightering. The undertaking includes extensive dredging in the vicinity of the existing breakwater wharves, extension of the breakwater itself, construction of wharves, railway tracks, roading, water supply, reclamation and the building of a protective breastwork on, the west wharves.

An investigation on which the present works are planned was conducted by Mr F. W. Fur kerb, then engineer-in-chief to the Government, and Mr D. Holderness, engineer to the Auckland Harbour Board, who recommended the development of facilities at the breakwater and the maintenance of the inner harbour until the new facilities should become available.

In the report to the Board the engineers state:—

Although some witnesses claimed that the lightering of overseas vessels lying at anchor in the roadstead was both expeditious apd economical, there can be no question but that a well equipped harbour where vessels may navigate ppd berth in safety to load or discharge their cargoes is in every way preferable. The vast sums which have been expended on harbour works in every quarter of the globe to achieve this end should be sufficient proof of this assertion and obviiafe the necessity of lengthy argument to establish it. Undoubtedly, much money has been wasted in many cases and unnecessarily costly and injudicially conceived works have been inaugurated which have redacted to the detriment of the community who have been called upon to bear the cost, but in the majority of cases the certainty of failure should have been apparent to impartial and expert investigators before the works were undertaken.

In addition to the direct benefits which may be forecasted with reasonable .accuracy, in a district where development is still proceeding, the establishment of harbour (accommodation may be expected to introduce and encourage new industries and generally promote increased activity and prosperity among the people. Hawke’s Bay is the centre of a rapidly expanding fruit industry and at present, owing largely to the lack of shipping facilities at Napier, practically the whole of this export trade is conducted through Wellington thus clausing a direct loss to the producers in extra freight charges, and to the community in the lessened work at the port. Olmitting last year in which the earthquake has rendered the returns incomparable, thje shipment of dairy produce for export—although still relatively small—shows a steady increase during recent years (270 per cent from 1926 to 1930), and with better facilities at the port, the increase would be likely to be more pronounced.

It has been suggested that the crews of vessels anchored in the roadstead being unable to come ashore, in itself represents an appreciable loss to the business community, and no doubt a certain amount of money which would otherwise be spent in Napier is carried on to other ports. As is only to be expected, the trade returns published in the Board’s annual statistics show a marked falling off in the total tonnage of exports and imports handled during the past two or three years, but this being a period of abnormal depression cannot be taken as a guide to the probable future tendencies.

The Royal Commission in 1927 stated that the heavy expenditure required by a complete scheme of harbour development was not then justifiable from the financial aspect, and their finding has been quoted by a number o J ’ witnesses las being even more applicable to-day. While fully impressed with the necessity of maintaining charges at the lowest possible level, it must be recognised that there are few industries or business concerns in Napier today, which have been able to re-estab-llish themselves tefter the earthquake so as to contribute their share toward the rehabilitation and development of the district without some increase in their loan indebtedness. • The harbour of Napier has been no less vitally

affected than most other concerns and it is difficult to see how any programme of restoration or development can be proceeded with, without recourse to further borrowing. In considering the alternative possibilities of accommodating the trade we are definitely of the opinion that if it is possible to provide a deep wia,ter harbour with berthage and other facilities including adequate road and railway access to the ship’s side, without materially increasing the overall costs of transferring cargo from ship to shore and vice versa, this course is to be preferred to the present system. The total cost of the works now approved is £407,000. The Board has £71,000 of unexpended loan money and will raise a further £335,000.

OAMARU BREAKWATER EXTENSION £37,100.

The Oamaru Harbour Board at a special meeting decided with one dissentient to proceed with an extension of the existing breakwater at ian estimated cost of £37,100. The extension is to afford protection for the dredging of the channel, allowing of a greater depth of water by two feet than at present and permitting (an increase in the draught of vessels working the port' from 19 feet 6 inches to 21 feet 6 inches. Over many years the board has built up a fund out of revenue for harbour improvements. The fund stands to-day lat £33,000, which, with other funds, brings the total to £40,000 at the disposal of the board.

Mr G. A. Lee, of Auckland, consulting engineer to the board, submitted two proposals, one for a 1000 feet extension, estimated to cost £66,000, and the second for a 500 feet extension estimated to cost £37,100. The smaller scheme was adopted by the board in the meantimle. The decision of the board will not become effective until definite arrangements with the Unemployment Board for a subsidy on the wages of the workmen have been made and the approval of the Marine Department is obtained.