Growers in the Gisborne region now have an alternative to road transport for moving produce out of the region. A government-funded top lifter has arrived at Eastland Port, increasing activity ahead of the kiwifruit harvest at the port's harbourside yards.
Chief executive Andrew Gaddum said the company plans to compete directly with trucking operators by increasing container volumes moving through the port. Traditionally focused on logging exports, the port is now looking to expand its role in produce exports.
"We haven't had the gear to move containers around the port, but access to this funding has given us both the alternative to build a bit of resilience for the region. And at the same time, getting exports out of the region on boats, rather than being trucked," Gaddum said.
"We're leaning on Zespri pretty heavily to get containers on some of the ships they put through the port, to start making use of this equipment."
Logging vessels serving markets such as China and Korea already use the port, as do charter vessels carrying bulk kiwifruit on pallets for Zespri. The port is now looking to expand containerized exports.
"We're looking to expand that more into the container space," he said.
"Initially, we're hoping we'll see an uptick in volumes out of Kiwifruit."
Road infrastructure in the region has experienced disruptions, and the port expansion provides an additional option when severe weather affects transport routes. When State Highway 2 through the Waioeka Gorge between Opotiki and Gisborne is closed, the economic impact is estimated at about US$4.9 million per day. A week-long closure can exceed US$30.5 million in wider economic effects.
Eastland Port now has container handling capability following the arrival of the heavy machinery within the past three weeks. Additional activity is expected as the port prepares to open a second berth.
The Twin Berth project has been planned for about a decade and will allow two vessels of up to 180 meters to berth at the same time.
"That'll be in the next couple of weeks. There's a bunch of stuff coming together at one time, which is exciting for the region," Gaddum said.
"We've had our fair share of knocks, to be honest, but we're trying to stand things up.
"We're right at the start of this, and we're working with a bunch of regional exporters and wood processors to see how we can build a base of volume to attract some services into the region."
Kiwifruit exporter Seeka said it is considering further investment in local fruit handling infrastructure and capacity. National MP Dana Kirkpatrick said the investment reflects confidence in regional infrastructure and export capacity.
"We've got plans for substantially more than that as we bring the volume on, we'll bring the kit on to meet the volume demand," she said.
Source: RNZ