Category: coastal shipping

Auto Added by WPeMatico

Posted on

Connemara failure highlights urgent need to address ferry fiasco

Source: Maritime Union of New Zealand

The power loss of the Bluebridge ferry Connemara in the Cook Strait last night highlights the importance of a resilient publicly-owned interisland ferry service, says the Maritime Union of New Zealand (MUNZ).

MUNZ National Secretary Carl Findlay says this issue with the Bluebridge service alongside other previous issues demonstrates the need for high-quality and fit for purpose ferries on the strait. 

“Once again it’s just been a matter of the quick thinking of a highly skilled crew and good luck with the conditions that there has been a safe recovery of the vessel and people aboard.

“We can’t keep relying on luck.

“Cook Strait is the most critical route for New Zealand’s freight transport system and it needs to be resilient. That means public owned and rail enabled ferries that are reliable, safe, and fit for purpose.

“It’s worth noting that the Connemara is much newer than the ships run by Kiwirail and was built by the provider rumoured to be the Government’s frontrunner for new interislander ferries, StenaLine.

“Just last month the shareholding Minister, Nicola Willis, was in Parliament touting the benefits of private ferries. This shows once again how wrong-headed that statement and her decision to cancel the iRex project was.

“It’s getting close to a year without a decision or even the final negotiation of the iReX cancellation that is likely to cost us hundreds of millions of dollars.

“The government needs to swallow its pride and go back to Hyundai to negotiate the iReX deal.

“It’ll cost us more now because of this government’s rash decision to cancel the original deal but nowhere near as much as how much a failed ferry system will cost our freight customers, our economy, and the safety of our crews and passengers.”

Posted on

Manahau crew being denied access to representation

Source: Maritime Union of New Zealand

The Manahau barge grounding at Westport could have led to a disaster, but crew are being prevented from talking to Union representatives. 

Maritime Union of New Zealand National Secretary Carl Findlay says there are serious questions emerging about the incident.

He says the grounding of the Manahau could have resulted in the loss of life and the loss of the ship if the vessel had come ashore elsewhere on the West Coast.

It was proving very difficult to talk to the Indonesian and Myanmar crew on the Manahau, and the Union was taking legal action, says Mr Findlay.

“Our representatives were blocked from visiting the Manahau by port security acting on the instructions of operator WMS and the company continues to try and prevent crew from accessing representation and support.”

Yesterday evening a Union lawyer and officials had a pre-arranged meeting with crew and the meeting was interrupted by a company representative who drove off with crew members.

“We are extremely concerned about the attitude of WMS, the company who operates the Manahau, and its approach to the rights of crew and legitimate public interest in this debacle.”

Mr Findlay says it appears the situation is being controlled by the private company responsible for the problem in the first place, and authorities needed to step up and assert themselves.

The Maritime Union is affiliated to the International Transport Workers’ Federation (ITF) representing over 1 million seafarers in more than 200 seafarers’ unions across 106 countries.

Maritime Union officials are empowered to act as ITF inspectors aboard ships.

“Crew members should have independent support and advice, as the company that put them on this vessel can’t be trusted to do the right thing.”

Mr Findlay says information about the seaworthiness of the Manahau has been forwarded to the Union by several experienced maritime professionals who have had interactions with WMS.

“Some key concerns expressed were the Manahau was underpowered for the rugged West Coast maritime environment, and more suitable for shallow river work.”

Another concern was that a well-informed New Zealand crew with local knowledge and nautical information would not have anchored in Buller Bay during the forecast bad weather.

The 97.53-metre and 3706-GT self-powered barge Manahau had only just come into service in August 2024 carrying mineral sands out of shallow draught port Westport.

Mr Findlay says the Manahau had a foreign crew and the flag state was Niue, despite being supported by coastal shipping funding from the Government. 

He says the Maritime Union supports funding for New Zealand coastal vessels, but in this case taxpayer money had gone towards what appeared to be an inappropriate vessel employing an overseas crew that was not even flagged to New Zealand.

“There were undertakings made by the Government and the company that seafarer jobs would be created, and what we see instead is a cynical exploitation of loopholes and shortcuts.”

“New Zealand needs to build its coastal shipping capacity, and that means New Zealand owned, operated and crewed ships operating at accepted and high quality standards.”

Mr Findlay noted the tragic loss of the collier Kaitawa in May 1966, which sailed out of Westport and travelled up the west coast with coal bound for Portland cement works in Whangarei via the North Cape.

The Kaitawa encountered heavy seas off Cape Reinga and foundered on the Pandora Bank in heavy seas, and sank with loss of all 29 crew.

“The Maritime Union do not want to see a similar situation and we say the Manahau should be removed from service pending full investigation into its suitability.”

Posted on

Grounding of Manahau barge at Westport raises major questions

Source: Maritime Union of New Zealand

The Maritime Union says the grounding of the barge Manahau overnight near Westport raises major questions.

Maritime Union of New Zealand National Secretary Carl Findlay says concerns had been previously raised by New Zealand seafarers about the foreign crew and flag of the barge.

He says the cause of the grounding has yet to be confirmed, but the difficult local conditions at Westport including recent poor weather would be obvious issues to consider.

There had been no reports of injuries, which was fortunate as the West Coast was a notoriously treacherous maritime environment.

The 97.53-metre and 3706-GT self-powered barge Manahau had only just come into service in August 2024 carrying mineral sands out of shallow draught port Westport to Nelson.

Mr Findlay says the Manahau did not have a New Zealand crew and the flag state was Niue. 

“Vessels such as the Manahau operating in New Zealand’s unique and challenging maritime environment should be crewed by experienced New Zealand seafarers.”

The operators of the Manahau had benefited from Government funding for the vessel.

Mr Findlay says it had been extremely disappointing to see this substantial Government funding go towards a vessel operating in New Zealand waters that was neither New Zealand flagged nor crewed.

“In the last several years, we saw an upsurge in New Zealand crewed coastal shipping, but this is now going backwards with the loss of coastal shipping services, or in this case, failing to provide jobs for skilled local crews.” 

“New Zealand needs to build its coastal shipping capacity, and that means New Zealand owned, operated and crewed ships.”

Posted on

Finance Minister needs to explain ferry decision cost to taxpayer

Source: Maritime Union of New Zealand

The Maritime Union of New Zealand says the cancellation cost for the iRex ship build is likely to come in at more than NZ $300 million, and could run up to a maximum cost approaching a half a billion dollars (NZD) at current rates. 

This would be on top of around a half a billion NZD in sunk cost on the cancelled iRex project – figures the Maritime Union has been advised on after consulting with the maritime industry here and offshore.

Maritime Union of New Zealand National Secretary Carl Findlay says the Finance Minister needs to explain how this happened and why she should keep her job. 

“This single decision is likely to have torched a billion dollars of taxpayer’s money with nothing to show for it. It’s fiscal arson.”

Mr Findlay says on top of this cost, New Zealand still needs to buy new ferries. 

He says unlike the iRex ferries cancelled by the Minister, which were purchased at a fixed price in 2021, their replacement will have to be bought at 2024 shipbuilding prices, which are currently at their highest since before the global financial crisis of 2008.

“Between that and our dollar being much weaker than it was when we struck the 2021 deal, the Government’s replacement ships could cost twice as much to build as the cancelled ones.”

Mr Findlay says industry players believe the Government is looking to hide some of this cost through a Private Public Partnership. 

He says we’ve seen time and time again all this would do is increase the expense, and shift it onto users and future taxpayers.

“Putting a private for-profit gatekeeper on the key freight route between our main islands is a recipe for economic disaster.

“Prime Minister Luxon needs to bite the bullet, try to salvage the iRex deal in whatever way he can, and admit the cost his Finance Minister’s commercial blunder has put on the taxpayer.

“He should also ask himself whether his Finance Minister should be left in charge of running our economy after making this colossal economic and commercial mistake.”

Posted on

Loss of Takutai Chief undermines New Zealand shipping and supply chain

Source: Maritime Union of New Zealand

 
 The loss of a New Zealand operated coastal freighter and 12 jobs due to the economic downturn threatens the viability and resilience of our supply chain.
  
Swire Shipping, the owners of Pacifica Shipping, have advised its second New Zealand coastal freighter Takutai Chief will be removed from service soon after a downturn in trade.
 
Mr Findlay says the Union accepts the reasons given for the decision, including current poor economic conditions and service changes by international lines reducing feeder volumes.
 
“Nonetheless, this is a major blow to New Zealand shipping and our maritime workforce, and reduces the resilience and future security of our supply chain.”
 
Mr Findlay says Pacifica has shown an ongoing commitment to New Zealand coastal shipping.
 
He says coastal shipping offers a low emission transport mode, and reduces congestion and wear on roads.
 
The situation reflect a larger crisis within the New Zealand maritime industry where there is a lack of stability due to failure in strategic policy, he says.
 
Mr Findlay says the dependence of New Zealand on overseas shipping was a major problem during COVID with serious disruptions when overseas shipping calls were delayed or dropped.
 
He says skilled New Zealand seafarers will leave the industry for opportunities in Australia, with an ageing workforce seeing a large number of seafarers retiring in the near future.
 
Mr Findlay says the uncertainty around the future of Interislander ferries is another aspect of the ongoing crisis in New Zealand shipping.
 
“Despite being a maritime trading nation, New Zealand has no clear strategy for a sustainable shipping industry, which leaves us exposed and vulnerable in a volatile global market.”
 
“New Zealand needs to build its coastal shipping capacity, with New Zealand owned, operated and crewed ships.”
 
Pacifica Shipping is an operating division of Swire Shipping (N.Z) Limited.
 

Posted on

Ferry debacle means New Zealand is ‘steering blind’

Source: Maritime Union of New Zealand

Confusion around the future of KiwiRail’s Cook Strait ferries has left New Zealand ‘steering blind’ with its main inter island transport link, says the Maritime Union.

The latest development in the ferry saga is a suggestion in ministerial documents that KiwiRail might exit the Cook Strait ferries altogether if it is commercially unviable without subsidy.

Briefing documents from the Ministerial Advisory Group and Ministry of Transport have been released to the media under the Official Information Act.

Maritime Union of New Zealand National Secretary Craig Harrison says this scenario is deeply concerning and shows the Government has dropped the ball on transport.

Mr Harrison says he is surprised no one in the Government could foresee the consequences of cancelling iRex project funding last year.

“Within a few months we have gone from looking forward to modern ferries and fit for purpose terminals that would support our economy and producers for decades, to the future of interisland transport and everyone who relies on it being in free fall.”

He says while Strait Shipping currently offer ferry services that complement KiwiRail ferries, the scenario of putting the entire connection in the hands of a single overseas-owned monopoly would be a grave error, and would probably not be viable.

“The idea there is some magic market solution is not credible, because any operator will still have to source and pay for suitable vessels.”

He says the primary focus of interisland ferries should be their importance in the supply chain and the national economy, which included rail capability.

“The Cook Strait is part of the ‘blue highway’ – an extension of our national road and rail links.”

Mr Harrison says the current ferries are nearing end of life and are experiencing ongoing maintenance issues, with potentially catastrophic outcomes.

Interisland ferry Kaitaki lost power on its approach into Wellington Harbour on 28 January 2023, and was left drifting towards the coast in heavy weather with more than 800 passengers and 80 crew on-board. It issued a mayday before managing to restart engines and returning to port.

KiwiRail is now facing a health and safety charge relating to this incident brought by regulator Maritime New Zealand.

“Continuing to lease second hand vessels would still be costly, and mean there will still be ageing ferries on Cook Strait, increasing the risk of mechanical failure, delays, maintenance costs, and safety risks.”

Mr Harrison says the costs of cancelling the project at Korean shipbuilders Hyundai has not yet been confirmed but could run into hundreds of millions of dollars.

A suggestion by KiwiRail that the ferries be built, then on sold in order to try and recoup some of the cost of the cancelled project, was quashed by the Minister of Finance.

However, it has been reported the new Ministerial Advisory Group on the ferries has suggested this could be a potential option to avoid a massive financial loss.

Mr Harrison says further drawbacks include the failure to move to new low-emission technology and the implications for our climate change response.

Globally-recognised Climate Bonds Initiative certification issued to KiwiRail for a $350 million green loan has been revoked due to the cancellation of the ferry purchase.

The Maritime Union view is the Government should review the entire decision to cancel the new ferries and new terminals, says Mr Harrison.

“There is an opportunity to revisit the project, seek cost savings if required, then get on with the only responsible course of action which is a fit for purpose Cook Strait ferry link with modern vessels and terminals.”

He says it is now clear that planned tax cuts are not feasible as essential infrastructure investment has to take priority.

Posted on

Government transport plan fails to provide economic security

Source: Maritime Union of New Zealand

The Maritime Union says the new Draft Government Policy Statement (GPS) on Land Transport 2024–2034 fails to plan for a resilient and secure transport system, putting the New Zealand economy at risk.

The previous Government introduced coastal shipping as a new activity class in its GPS on land transport in 2021.

It invested $30 million in the coastal shipping sector which resulted in new vessels coming onto the New Zealand coast, reducing road congestion, improving resilience, and reducing carbon emissions.

This progress has now ground to a halt, with coastal shipping ignored in the new Draft GPS on Land Transport 2024.

Maritime Union of New Zealand National Secretary Craig Harrison says for the Government to simply leave out coastal shipping is a failure of insight into the long term needs of the transport sector.

Mr Harrison says the lessons of the last few years are obvious.

“We have seen major disruption to New Zealand transport links through the pandemic and natural disasters including cyclones and earthquakes, with regions left isolated and at risk.”

Mr Harrison says New Zealand needs a balanced, multi-modal system that prioritises redundancy and resilience in transport.

“This new draft document notes New Zealand has faced significant challenges from these events, but then ignores the important role of domestic coastal shipping that is now recognised in the industry.”

Mr Harrison says the Government seems to be basing its transport strategy on delivering for its donors, rather than any rational and balanced approach.

“As the rest of the world moves towards low emission, resilient transport modes, and prepares for climate change driven extreme weather events, New Zealand is left exposed and vulnerable.”

He says with the Cook Strait ferry connection in limbo, coastal shipping ignored, and a crisis in seafarer training, New Zealand is moving towards developing world status.

“The Government now has an opportunity to correct course and focus on the future resilience of New Zealand’s economy – or go in reverse gear by promoting a congested, polluted and vulnerable transport system.”

Posted on

Ferry unions demand Finance Minister resign over Cook Strait debacle

Source: Maritime Union of New Zealand

Four unions representing maritime and rail workers have condemned the Government’s decision to effectively cancel the Cook Strait iRex ferry upgrade project, and are demanding the resignation of the Minister of Finance for the decision.

The four unions are the Maritime Union of New Zealand representing seafarers, the Rail and Maritime Transport Union representing rail workers, the New Zealand Merchant Service Guild representing ship’s masters and officers, and the Aviation and Marine Engineers Association representing marine engineers.

Maritime Union of New Zealand National Secretary Craig Harrison says it is not tenable that such a major decision with massive implications for the economy should be made in such a ‘fast and loose’ manner.

“This is far more than a fiscal decision – this decision shows poor judgement and a total lack of understanding of the importance of a functioning Cook Strait connection to New Zealand’s supply chain.”

He says the ongoing technical issues with Cook Strait ferries are a result of end of life vessels being used on a notoriously challenging crossing and had resulted in serious incidents in the last few years. 

“The can has been kicked down the road for years and the upgrade has to happen now.”

“This Government campaigned on getting our transport infrastructure sorted and their first move is to basically jeopardize the future of road and rail transport between the North and South Island.”

Rail and Maritime Transport Union General Secretary Todd Valster says the ferry upgrade project was an essential part of maintaining a ‘fit for purpose’ national transport system initiated by the previous Labour Government.

He says the new Government’s decision to dump the project was reckless and indicated an agenda to run down key parts of our transport infrastructure.

“The iRex project would deliver fit for purpose, modern vessels and terminals, that would provide reliability, resilience, low emissions and a safe service.”

Mr Valster says the iRex project would deliver a long term solution for the Cook Strait over decades, which justified the cost of the project.

He says the Minister of Finance and the Government had made an irresponsible decision that would cost millions to rectify by breaking contracts with overseas suppliers, and leave the Cook Strait connection with third rate, ageing infrastructure.

Posted on

Substantial progress for transport under the Labour-led Government

Source: Maritime Union of New Zealand

The Maritime Union says substantial progress in the ports and shipping sector in the last term needs to be continued under a Labour-led Government.

Maritime Union of New Zealand National Secretary Craig Harrison says three key successes of the current Government have been in building coastal shipping capability, improving health and safety through the Ports Health and Safety Leadership Group, and laying the foundations for improved conditions in the industry through Fair Pay Agreements.

He says the interests of the transport industry are wider than shareholder profit, and the needs of workers and the environment need to be prioritized.

Mr Harrison says the $30 million coastal shipping fund has seen new New Zealand flagged vessels come onto the coast after years of decline.

He says following the pandemic disruption, the transport industry now acknowledges the need for a vibrant coastal shipping sector.

“Coastal shipping is a low emission mode and provides resilience in the face of the extreme weather events that are already disrupting land transport links.”

He says the development of the Port Health and Safety Leadership Group led by Maritime New Zealand and implemented by the Government has been a game changer.

“The maritime industry has had a terrible rate of deaths and injuries in recent years, and this is now changing as the industry works together under the new system.”

Mr Harrison says Fair Pay Agreements (FPAs) are a great step forward for undervalued workers.

“Even employers now acknowledge the low wage casualization model has been a failure and we have to provide decent wages and conditions for all workers.”

He says workers make up the majority of voters and need to focus on real issues and the facts of what was in the interests of working-class people.

“Past promises of tax cuts have always benefited the wealthy section of the population – they do not benefit the majority of workers who need better wages and conditions and public services.”

Mr Harrison says Labour and the Greens have demonstrated a clear commitment in Government to the interests of workers and a sustainable and resilient transport industry.

Posted on

National strategy required for future of New Zealand ports and shipping

Source: Maritime Union of New Zealand

The Maritime Union says there needs to be national level planning around ports and coastal shipping, otherwise New Zealand is going to find itself in a bad position.

Maritime Union of New Zealand National Secretary Craig Harrison says there needs to be a stronger response to building resilience into the supply chain.

The Productivity Commission has noted disruptions to global supply chain trends are likely to become more frequent with causes including pandemics, war and climate change.

Mr Harrison says the Union is calling for political solutions including a port strategy and investment in coastal shipping.

He says one problem is how New Zealand ports are primarily seen as income streams for owners, as opposed to national infrastructure that underpins the successful functioning of the economy.

An example of lack of co-ordination is the multiple conflicts around the future of the Port of Auckland, he says.

“In the case of Port of Auckland, we have major roading and rail projects being proposed at the same time as a privatization agenda and plans to shrink the port despite no clear alternative capacity – in other words, total confusion.”

He says claims there can be a straightforward relocation of port activities to Northport (Whangarei) or Tauranga are unrealistic.

“Northport does not even have a rail link at this stage, and Tauranga is operating close to capacity. This situation is not going to be resolved by highway mega-projects that simply move congestion around.”

He says with ongoing climate-driven weather events becoming more severe, proposals to sink more and more resources into roading projects shows a refusal to face facts. 

Mr Harrison says there needs to be a strategic shift to build the role of coastal shipping.

He says New Zealand coastal shipping provided resilience that was demonstrated during COVID and during natural disasters such as earthquakes or flooding, when regional land links were out of action.

“For a fraction of the enormous price tag of monster motorways, New Zealand could become a leader with investment into low emission coastal shipping, and create safer, less congested roads.”

“The recent Government investment and resulting growth in coastal shipping shows the potential but there needs to be an integrated shipping and ports policy to build on this.”

He says that the Maritime Union is campaigning for changes to the Maritime Transport Act to promote New Zealand shipping and maritime jobs.