New Zealand government selects preferred suppliers for new coastal shipping services

The government of New Zealand has announced the selection of preferred suppliers for new and enhanced coastal shipping services which are expected to create a more ‘resilient, competitive, and sustainable’ coastal shipping sector.

‘Coastal shipping is a small but important part of the New Zealand freight system, which is why the Government is investing in making coastal shipping a more viable alternative to strengthen and diversify our domestic supply chain, helping to secure New Zealand’s recovery from COVID-19,’ said Transport Minister, Michael Wood. ‘As a lower emissions transport mode, investing in coastal shipping will also help us achieve our decarbonisation goals.’

As previously reported, the New Zealand government has committed $30 million of funding for coastal shipping funding through the National Land Transport Programme (NLTP) to improve domestic shipping services, reduce emissions, improve efficiency and upgrade maritime infrastructure.

Waka Kotahi (NZ Transport Agency) worked with the wider freight industry, including NZ Shipping Federation, Port Company CEO Group, National Road Carriers, KiwiRail, and Te Manatū Waka – Ministry of Transport, to select four applicants for co-investment in new and enhanced coastal shipping services through the NLTP.

The four preferred suppliers are: Coastal Bulk Shipping Ltd; Move International Ltd; Swire Shipping NZ Ltd; Aotearoa Shipping Alliance.

‘With the freight industry’s support, these additional services will help to resolve immediate challenges to the coastal shipping and the wider freight sector, address some of the current issues facing the international and domestic supply chains and provide a platform for future growth across all modes with increases in capacity and capability for both new and existing bulk materials and containerised cargo,’ said Wood.

Each of the four selected suppliers, Wood revealed, will bring at least one additional coastal shipping vessel into service.

‘The four preferred suppliers will invest over $60 million through their proposals, resulting in combined investment in the sector of over $90 million,’ said Wood.

Additionally, the new services are expected to support the New Zealand government’s commitment to reduce emissions from freight transport by 35% by 2035.