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CentrePort Wellington Log Overview

CentrePort Wellington Log Overview . Historical growth. Log throughput 2011 Financial Year – 557,201 JAS m 3 2008 Financial Year – 215,005 JAS m 3 Seaview throughput Approximately 100,000 JAS m 3 was pre assembled in Seaview in 2011

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CentrePort Wellington Log Overview

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  1. CentrePort Wellington Log Overview

  2. Historical growth • Log throughput • 2011 Financial Year – 557,201 JAS m3 • 2008 Financial Year – 215,005 JAS m3 Seaview throughput • Approximately 100,000 JAS m3 was pre assembled in Seaview in 2011 • The current division between West and East of the Wellington region is: • Of the total logs cut 52% are from the West and 48% from the East • However, in the East 48% is harvested – due to the forest ownership and harvesting of JNL • Therefore, 62% of total exports are expected to come from the West

  3. Expected growth • Growth in logs has typically been unstable • The Wellington region has a high percentage of small plantation owners, rather than large commercial plantations • The cut profile is heavily dependent on world prices instead of being managed to smooth out production flows SNI log volumes available for export are expected to increase to 800,000m3 within 5 years. • Approximately 500,000m3 of this product would logically flow to Wellington • Remaining volume contestable between CPL, New Plymouth and Napier

  4. Log Facilities • Currently • 4 hectares on port – 35,000 JAS m3 • 4.7 hectares at Seaview – 20,000 JAS m3 • High stackers and bookends used on port

  5. Log facilities – on port

  6. Log facilities - Seaview

  7. Allocation of on port log storage • Available on port log storage is allocated to individual exporters based on their last 12 months throughput

  8. Log exporters – throughput of the last 12 months

  9. Challenges • Limited land with competing uses requires supplementary offsite storage • On port stores 35,000JAS m3 of logs, allocated across different exporters and the cut profile requires 50,000 JAS m3 storage • Typically log vessels will load between 8,000 and 20,000 JAS m3 in a call over a 2-4 day period • The daily log receipts are 1,700 JAS m3 • Log vessel calls are to load the logs of a particular exporter • Therefore, exporters need to be able to operate a just in time delivery of logs to port that can’t be stored • Due to space constraints the ability to surge large volumes of logs to port over short timeframes is critical. Seaview most identified as logical offsite location.

  10. Challenges • The additional costs associated with offsite storage diminishes CentrePort’s competitive advantage for volumes at the fringe of our hinterland • Problems to date with rail have been around the flexibility of rail transport, the commercial (take or pay) arrangement with rail and the lack of any cost benefit of rail transport • Rail has limited capability to surge volumes over short timeframes, therefore Marton and Masterton rail secondary storage/transport solution • Limited availability of rail rolling stock

  11. What we are doing • Maximising on port storage where possible, and allocating available space to individual exporters based on their last 12 months throughput (as is current practice) • Evaluating how we can develop fit for purpose log storage facilities. This may include further development of the Seaview facilities or increased on port storage. • Working with exporters to encourage increases in the frequency of vessel calls • Working with exporters/KiwiRail to establish log storage hubs at Marton and Masterton, which were identified as the optimal locations for regional offsite storage.

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