South Island rail related updates

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South Island rail related updates

Postby Gibbo » Thu Feb 24, 2011 7:52 pm

Possible longer term implications for Midland Line (may make Solid Energy start thinking of using West Coast port):
http://www.odt.co.nz/news/business/1486 ... -deal-port

Not sure if the delay is a good sign or not - the all up cost is close to $500M apparently - maybe Holcim is thinking about putting the plan on hold due to recession!?! Conversly (& very unfortunately) Chch rebuild is going to lift cement usage so that may now also be an additional consideration for them:.
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Re: South Island rail related updates

Postby royce » Sun Feb 27, 2011 7:06 pm

Over a three year period from July 1997 until June 2000 coal shipments were made through the port using the largest barge in the Southern Hemisphere, 16,000 tons deadweight, “Union Bulk 1” (Sea-Tow Ltd). The majority of the shipments were to Australia and the success of the operation, from a harbour viewpoint, can be directly attributed to the innovative approach by harbour staff to the export potential from the Port of Westport.

In 2005, 184,000 tons of coal was barged from the Port of Westport to Australia and Lyttelton.

On an annual basis, in excess of 430,000 tons of cement is shipped from the Port of Westport to Onehunga, Wellington, Lyttelton, New Plymouth, Napier, Dunedin and Gisborne.


Thats from the Westport port website so I suppose there is the potential of barging out a large amount of coal to Australia where it could be mixed with substandard Aussie coal and exported it to the world or China. I wonder who owns the coal loading facility which is presently at the port is it the port or solid energy. Anyway it looks as though there will be plenty of money for this new venture to build something new if that is required. Anyway good luck to them they will need it to go up against the greenies. They will also need some luck and lots of money to tame the Westport bar. Maybe Holcim is rethinking there options hoping that someone else will pay for the upgrade to the harbour.
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Re: South Island rail related updates

Postby nztransportgeography » Sat Mar 19, 2011 2:35 pm

Bathurst are already doing a deal with Solid Energy to rail most of their coal, they need the port for the extra capacity above that.

So the actual impact on the Midland line is very good.

Barging coal to Lyttelton is not very economic for various reasons. It is not a major for Solid Energy.

Gibbo wrote:Possible longer term implications for Midland Line (may make Solid Energy start thinking of using West Coast port):
http://www.odt.co.nz/news/business/1486 ... -deal-port

Not sure if the delay is a good sign or not - the all up cost is close to $500M apparently - maybe Holcim is thinking about putting the plan on hold due to recession!?! Conversly (& very unfortunately) Chch rebuild is going to lift cement usage so that may now also be an additional consideration for them:.
http://www.odt.co.nz/regions/north-otag ... plant-plan
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Re: South Island rail related updates

Postby Gibbo » Sat Mar 19, 2011 3:48 pm

nztransportgeography wrote:Bathurst are already doing a deal with Solid Energy to rail most of their coal, they need the port for the extra capacity above that.

So the actual impact on the Midland line is very good.

Barging coal to Lyttelton is not very economic for various reasons. It is not a major for Solid Energy.


Yes read (in KR express newsletter I think it was!?!) that Bathurst will rail all output to a new handling facility near Westport wharf - it's about a 12km run. Ultimately they foresee 70% being shipped out of Westport & 30% railed to Lyttelton. This split is apparently due to the amount envisaged being too much for either port to handle on it's own. Also weather is a factor - on days that the port is closed due to storm swells coal will be railed to Lyttelton.

I'm not sure if that 70/30 split between the 2 ports will start from day 1 - I'd suspect that until extraction volumes build up that they will favour Westport for shipping, not withstanding the influence of storm weather. Apparently all capacity for railing coal to Lyttelton is contracted to solid energy - so Bathurst have to reach agreement with Solid Energy for using the Midland line -that's what Pike River had to do as well. Hopefully SE will play ball.
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Re: South Island rail related updates

Postby royce » Sat Mar 19, 2011 4:55 pm

nztransportgeography wrote:Barging coal to Lyttelton is not very economic for various reasons. It is not a major for Solid Energy.

I dont think they will barging coal to Lyttleton more likely Australia.
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Re: South Island rail related updates

Postby Gibbo » Sun Mar 20, 2011 7:42 pm

royce wrote:
nztransportgeography wrote:Barging coal to Lyttelton is not very economic for various reasons. It is not a major for Solid Energy.

I dont think they will barging coal to Lyttleton more likely Australia.


Believe the plan is to barge from Westport to New Plymouth where it will be stockpiled before loading onto bulk coal carriers - this was Pike River's original plan before KR was able to offer a cheaper rate.
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Re: South Island rail related updates

Postby greenwelly » Thu Aug 01, 2013 11:46 am

Well, they write this up as a positive, but the effect is that Holcim will cease manufacturing in NZ and import cement, so no new plant near Oamaru, :(

Now it will be interesting to see whether they decide to locate this import terminal (and storage) in the North or South Island, pre the earthquakes I would have said it would have been a no brainer to go north, but with the CHCH rebuilt likely to run for years, somewhere like in the South island probably has a good lookin

but all in all a sad decision not to invest in further manufacturing in NZ


Press Release by Holcim (New Zealand) Ltd at 11:21AM, 01 Aug 2013
-----------------------------------------------

Holcim (New Zealand) Ltd will spend more than NZD 100M over the next three years constructing an import terminal and related infrastructure that will allow it to import and distribute bulk cement for supply to the New Zealand market. The terminal, which is expected to be operational in 2 – 3 years time, will be based on similar Holcim operations throughout the world.

Announcing the decision, Holcim (New Zealand) Ltd Managing Director Jeremy Smith said “This represents a substantial commitment by Holcim to the New Zealand building materials market. It means we will be able to leverage off the vast resources available through the Holcim Ltd worldwide supply network to ensure that our New Zealand customers receive cement of a quality and specification suitable for New Zealand conditions.”

The location of Holcim New Zealand’s new import terminal is yet to be finalised and the company is investigating options at a number of New Zealand ports.

Once operational, cement imported through the new terminal will replace local production at the company’s Westport cement plant. Holcim New Zealand has signaled for some years that the Westport plant was not sustainable long term. The decision also means that the proposal for a new cement plant at Weston, near Oamaru, is on hold for the foreseeable future but Holcim will continue to maintain ownership of their land assets.

“We recognise that this decision has an impact for our staff, customers and for the Westport and Weston communities. It’s one we’ve arrived at after extensively investigating a range of cement supply options and we will be working through the implications with those who will be impacted by the move,” Jeremy Smith said. “For the current economic environment, constructing an import terminal and importing cement is simply the most appropriate decision.”

Holcim (New Zealand) Ltd is a leading New Zealand supplier of cement, aggregates and lime. Its involvement in the New Zealand building industry dates back to 1888, and today it operates more than 30 sites and employs approximately 420 people. It is part of the Holcim Group, one of the world’s leading suppliers of cement, aggregates and construction-related services represented in around 70 countries on all continents.

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Re: South Island rail related updates

Postby eurokiwi78 » Thu Aug 01, 2013 6:25 pm

There are rather a lot of closed cement rail sidings around the place. Must have been a lot of tonnage back in the day,
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Re: South Island rail related updates

Postby royce » Sat Aug 03, 2013 8:48 am

greenwelly wrote:Well, they write this up as a positive, but the effect is that Holcim will cease manufacturing in NZ and import cement, so no new plant near Oamaru,

Now it will be interesting to see whether they decide to locate this import terminal (and storage) in the North or South Island, pre the earthquakes I would have said it would have been a no brainer to go north, but with the CHCH rebuilt likely to run for years, somewhere like in the South island probably has a good lookin

but all in all a sad decision not to invest in further manufacturing in NZ

I agree a sad decision. I wonder if they will keep their options open and site the import terminal at Timaru. After all an import terminal makes a good export one. Cement is conveyed pneumatically through pipes and flexible hoses so it only requires a relocation of the blowers to reverse the operation.
I am wondering what will happen to the ships. The Westport is old and the Milburn Carrier 2 is not much younger. Most of the existing sea terminals at ports around the country could be serviced by larger ships bringing imported cement in directly. The exception would be Onehunga. Maybe they will locate to the Waitemata side. But not much room there now though.
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Re: South Island rail related updates

Postby Kahukowhai » Sat Aug 03, 2013 9:08 am

royce wrote:
greenwelly wrote:Well, they write this up as a positive, but the effect is that Holcim will cease manufacturing in NZ and import cement, so no new plant near Oamaru,

Now it will be interesting to see whether they decide to locate this import terminal (and storage) in the North or South Island, pre the earthquakes I would have said it would have been a no brainer to go north, but with the CHCH rebuilt likely to run for years, somewhere like in the South island probably has a good lookin

but all in all a sad decision not to invest in further manufacturing in NZ

I agree a sad decision. I wonder if they will keep their options open and site the import terminal at Timaru. After all an import terminal makes a good export one. Cement is conveyed pneumatically through pipes and flexible hoses so it only requires a relocation of the blowers to reverse the operation.
I am wondering what will happen to the ships. The Westport is old and the Milburn Carrier 2 is not much younger. Most of the existing sea terminals at ports around the country could be serviced by larger ships bringing imported cement in directly. The exception would be Onehunga. Maybe they will locate to the Waitemata side. But not much room there now though.


One of the big issues is the inherent limitations of Westport, a key factor in shutting down that operation. That would let them use bigger ships.
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Re: South Island rail related updates

Postby royce » Sat Aug 03, 2013 9:46 am

Kahukowhai wrote:One of the big issues is the inherent limitations of Westport, a key factor in shutting down that operation. That would let them use bigger ships.

True. Although Bathurst has just spent $5 million on a coal storage facility there and have talked on upgrading the port for coal exports. Wether that would allow for bigger ships though I don't know. Maybe they will use barges but then you could have cement barges as well. Golden Bay cement has the Marsden Bay which carries 1800 tonne loads between Portland and Auckland ports. I am begining to think Holcim latest decision was just designed to kick the can down the road a bit until they can make up their mind.
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Re: South Island rail related updates

Postby dave the rave » Sat Aug 03, 2013 11:16 am

A specialised cement import facility would I guess be best nearest the most construction? So If they are only looking at 1 - would Lyttelton be the most suitable, closest to where a vast majority of the cement will be needed? And what about for north island requirements?
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Re: South Island rail related updates

Postby dave the rave » Sat Oct 12, 2013 9:43 am

I have just read somewhere that freight volumes are on the increase, notably on the AKL - CHC main trunk. It said that an additional service is in place transporting bulk milk from the upper south island to Temuka. Anybody have any details? Hopefully some more will be warranted over the picton line as at last count I think there were only about 4 freight services a day each way..
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Re: South Island rail related updates

Postby Gibbo » Thu Feb 11, 2016 4:03 pm

Cross your fingers everyone... could be a disaster for KR's Westland operations...

http://www.stuff.co.nz/business/7678471 ... e-stockton
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Re: South Island rail related updates

Postby Aviator » Thu Feb 11, 2016 11:43 pm

Gibbo wrote:Cross your fingers everyone... could be a disaster for KR's Westland operations...

http://www.stuff.co.nz/business/7678471 ... e-stockton

What percentage of the tonnage comes from Stockton?

A
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Re: South Island rail related updates

Postby Gibbo » Fri Feb 12, 2016 7:15 am

Aviator wrote:
Gibbo wrote:Cross your fingers everyone... could be a disaster for KR's Westland operations...

http://www.stuff.co.nz/business/7678471 ... e-stockton

What percentage of the tonnage comes from Stockton?

A


An educated guess would say about 75% of freight traffic on a tonnage basis.
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