Latest / Best of Business / Todd Dawson and Alan Piper: Napier Port CEO and KiwiRail Executive Manager of Freight Markets on the new logging train from Palmerston North to Hawke’s Bay
Transcript
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- 0:16Speaker 1: So after the closure of the tonguey Wai mill in
- 0:19Speaker 1: the Rupehu district, forestry company Earnslaw has found a way
- 0:23Speaker 1: to sorry. Earnsall One has found a way to continue
- 0:26Speaker 1: production and keep its contractors in work. You see the
- 0:29Speaker 1: ERNZOI used to take the logs to the pulp and
- 0:32Speaker 1: paper millk usually made into pulp of paper and then
- 0:34Speaker 1: you know stuff actually ended out coming on in anyway,
- 0:37Speaker 1: what's happened is they have struck a deal with Kiwi
- 0:39Speaker 1: Rail and Napier Port where log trains now run five
- 0:43Speaker 1: days a week on the Napier Palmistan North line, dropping
- 0:46Speaker 1: off six hundred tons of unprocessed logs, but the still
- 0:49Speaker 1: exploitable to Napier Port. In doing this, it removes twenty
- 0:53Speaker 1: one logging trucks off the road. If you know your
- 0:55Speaker 1: Hawk's Bay, you know that locals have long said why
- 0:58Speaker 1: do we always have logging trucks slamming through Hastings and
- 1:01Speaker 1: through through Napier to get to be shipped off. So
- 1:06Speaker 1: this is a this is a good idea nape Your
- 1:08Speaker 1: por Chief executive Officer Todd Dawson and Kiwi Roale Executive
- 1:11Speaker 1: General Manager of Freight Markets, Alan Paper joins me. Now
- 1:14Speaker 1: Ted and Alan, Hello.
- 1:16Speaker 3: Killy Andrew.
- 1:18Speaker 1: Where's the other one? Andrew? Just checking out? Had two
- 1:20Speaker 1: of you Todd, Todd, we will we will start with
- 1:25Speaker 1: you from Napier Port. How did this deal come to be?
- 1:29Speaker 2: Oh, look, it's it's a great deal, and it's it's
- 1:32Speaker 2: come about through I guess, some really good collaboration amongst
- 1:35Speaker 2: the parties that are being involved into little one, Kiwi Rail,
- 1:40Speaker 2: ourselves and McCarthy's transport. You know, it's a logical solution
- 1:45Speaker 2: for for the movement of logs through the through the
- 1:47Speaker 2: port takes as you said, you know, it takes a
- 1:49Speaker 2: lot of trucks off the road that were damaging the
- 1:51Speaker 2: roads and things like that too. So just a lot
- 1:53Speaker 2: of work and and logic being applied and some good
- 1:57Speaker 2: collaboration amongst the interested parties to make it happen, which
- 1:59Speaker 2: is really awesome to see.
- 2:00Speaker 1: How big a change is it though, to go from
- 2:02Speaker 1: receiving process to process would and with timber, lumber and
- 2:06Speaker 1: pulp to receive even big old logs at the port.
- 2:11Speaker 2: It was a fair bit of change, a fear bit
- 2:12Speaker 2: of change at both ends a supply chain, both up
- 2:15Speaker 2: and Tangy Way and also at the port. In general,
- 2:18Speaker 2: there's a lot less moving parts involved than moving the
- 2:22Speaker 2: logs I've trained. There are more touch points in terms
- 2:25Speaker 2: of moving logs straight out of the bush on trains
- 2:28Speaker 2: through to the port, but versus there as you're asking
- 2:32Speaker 2: around the pulp versus similar it's a little less complex actually,
- 2:36Speaker 2: So it's a bit of change, but nothing that's not manageable.
- 2:41Speaker 1: And where are the logs being shipped to? Who takes
- 2:43Speaker 1: this stuff?
- 2:45Speaker 2: All? The majority of New Zealand's logs in general go
- 2:47Speaker 2: up to China, probably at not even sent them and
- 2:49Speaker 2: go up to China, and the rest of them to
- 2:51Speaker 2: various different parts of the world.
- 2:53Speaker 1: Let's go to keep me well, Alan, there must have
- 2:55Speaker 1: been a no brainer. I mean, you've got rid of tracks,
- 2:57Speaker 1: you put them on trains.
- 2:59Speaker 3: Y's fantastic. Look, it's going to put about the nineteen
- 3:02Speaker 3: wagons probably up to one hundred and twenty thousand tons
- 3:04Speaker 3: a year. That allows for the sort of break, the
- 3:07Speaker 3: harvesting break, the cruise. The hard working crews have sort
- 3:10Speaker 3: of December January, so we're just picking it up. We
- 3:12Speaker 3: placed nineteen wagons today, we'll go back tomorrow. They'll be
- 3:15Speaker 3: loaded overnight. We'll pick up nineteen tomorrow and we'll put
- 3:18Speaker 3: another nineteen empty wagons ready for the following day. So yeah,
- 3:21Speaker 3: we're really great to see the circuit of logs back
- 3:24Speaker 3: on the rail networks. Fantastic And did you.
- 3:27Speaker 1: Have enough rolling stock and also locomotives to be able
- 3:30Speaker 1: to do it? Was it difficult making the trains available?
- 3:34Speaker 3: No, it wasn't. We were already running trains previously up
- 3:37Speaker 3: to Winston Polk, so it was a case of just
- 3:39Speaker 3: putting those back into that work and we had some
- 3:43Speaker 3: wagons that we could repurpose and for the log traffic.
- 3:46Speaker 3: So yep, it was easy enough to do and really
- 3:49Speaker 3: pleased to kick things off today, which is great from.
- 3:51Speaker 1: Kerrie Rowl's point of view. How does this benefit the region?
- 3:55Speaker 3: Well, as Todd said, we and working with Andy Watson,
- 3:58Speaker 3: who's the mayor of the rung Atticking District Council, I
- 4:01Speaker 3: guess the shared concern was that the logging trucks going
- 4:05Speaker 3: over that Tai Happy Napier Road looking further ahead to
- 4:10Speaker 3: sort of the autumn and winter next year. Everybody knew
- 4:15Speaker 3: that that was just going to cut up the roads
- 4:16Speaker 3: even further, even the McCarthy's as the log transporter. So
- 4:21Speaker 3: it was really a great opportunity to get round the
- 4:23Speaker 3: table find out a solution between ourselves. You know, McCarthy's
- 4:28Speaker 3: tied at the port and inslall one get this moving
- 4:32Speaker 3: and look at what it's going to do is save
- 4:34Speaker 3: a whole lot of maintenance for the district council that
- 4:37Speaker 3: they were very clear that they couldn't afford. So I
- 4:41Speaker 3: think it's a great outcome around us as well as
- 4:43Speaker 3: the public lest trucks up and down that road.
- 4:45Speaker 1: Well done, gentlemen, on your creativity. God, can I can
- 4:48Speaker 1: I ask you a question? Though I understand that wins
- 4:50Speaker 1: and Peters has been stiffing around the port, I understand
- 4:53Speaker 1: that wins and Peters believes it might be a good
- 4:55Speaker 1: place to put the inter island. Can you confirm or
- 4:57Speaker 1: deny that?
- 4:59Speaker 2: Oh, look, I think there's a little bit of a
- 5:01Speaker 2: misalignment of information there. I'm certainly not the ter know
- 5:05Speaker 2: Naki Port is not considering taking into Isla and in
- 5:09Speaker 2: Veranda into the point.
- 5:10Speaker 1: It would certainly be you'd be interested in more freight
- 5:13Speaker 1: traveling between the islands coming through your port.
- 5:15Speaker 2: Oh for sure. I mean, we've been quite vocal about
- 5:18Speaker 2: our views on what we think should be a solution
- 5:21Speaker 2: for the inter islander in Wellington, and there's a lot
- 5:24Speaker 2: of cost associated with the landside infrastructure, and you've got
- 5:26Speaker 2: to contain a terminal site there that is well suited
- 5:29Speaker 2: to the earthquake conditions and a lot of work already
- 5:33Speaker 2: been done to it. So we think that actually, overall
- 5:35Speaker 2: a lot of money could be saved for New Zealand
- 5:37Speaker 2: if there was some decisions made about the location of
- 5:39Speaker 2: where the Winter Island a ferry ultimately goes in Wellington?
- 5:43Speaker 1: Is that true, Ellen, I mean, because that's the whole thing.
- 5:45Speaker 1: The kay Farler filer down in Wellington was actually quite
- 5:47Speaker 1: prone to the earthquakes. Is the container wharf a bit
- 5:51Speaker 1: more solid?
- 5:52Speaker 3: Look, I'm no engineering expert. I guess what I would
- 5:55Speaker 3: say is I think the Minister of Finance and the
- 5:58Speaker 3: new Minister of Rail made that comment before Christmas. It
- 6:01Speaker 3: looked they're going to use the next two or three
- 6:03Speaker 3: months to really work that through and come up with
- 6:06Speaker 3: a decision later this year. So look, we just wait
- 6:09Speaker 3: for that decision process to go through and be made public.
- 6:13Speaker 1: Well, both of you, gentlemen, have been fantastic company. I
- 6:15Speaker 1: thank you so much for your time today. From Napier
- 6:18Speaker 1: Port the chief executive Officer, Todd Dawson, and from Kewi
- 6:21Speaker 1: Round the executive General Manager of Freight Markets Alan Piper.
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