Our Customers
Providing leading port operations and driving supply chain innovation is integral to ensure the Port can continue to generate a successful operation and, in turn, deliver strong financial returns.
Port Nelson has two types of customers: those that contract directly with the Port and those that export or import through the Port via contracts with third parties.
The cargo across Port Nelson reflects the activities of Te Tauihu. Export crops dominate this cargo, including: logs, fruit, wine, processed timber, and seafood. Typical of a regional port in New Zealand, exports dominate imports. From a cargo perspective, the graphs below describe the make up of our cargo, including the recent history of activity and three year forecast.
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Goal
Provide leading port logistics operations and drive supply chain innovation
2030 Plan
Strategy 1
Always Better
Strive to demonstrably improve operational performance through a combination of continuous improvement and targeted investment.
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As the region’s maritime gateway, we link cargo owners and shipping services. Delivering quality port services that are safe and efficient is fundamental for our business. The delivery of quality port services is underpinned by fit-for-purpose infrastructure operated by a high-performing team.
As our customers’ needs change and grow, we need to adapt our operations and grow the port's capacity. Meeting this demand requires a combination of continuous improvement, investment in technology and investment in core port infrastructure. Benchmarking our performance and using dashboards will help drive and measure improvement with key operational excellence metrics.
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Berth productivity exceeds 400 moves per tide Embed culture and systems for continuous improvement to deliver efficiency, productivity and safety gains – process and technology change driven by operational teams that move key performance and safety metrics
Invest prudently to increase productivity and capacity in response to customer demand – solutions that add both capacity and increase efficiency
Support our exporters and shipping operators to provide resilient and quick-to-market supply chains – leverage location and relationships to help grow import and export volume
Strategy 2
The preferred Te Tauihu cargo pathway
Championing the needs of Nelson/Tasman exporters and importers and growing the Marlborough cargo through our high service model.
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Maintain and grow the market share of Marlborough cargo that QuayConnect controls, which passes over Port Nelson's wharves. This includes the inbound packaging and other raw materials used by the wine industry in Marlborough and the export of wine (bottled and bulk) that flows out of the region.
Resilience and scheduling requirements of customers may see cargo move through other ports. The objective is that QuayConnect manages this cargo flow with integrity but supports Port Nelson in responding to customer needs.
Extending QuayConnect’s scope of services to existing customers and new customers and industries within the Te Tauihu region. Utilising a niche high-service model, smart technology and access to data as a unique selling proposition.
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Establish the Marlborough Inland Port as the principle distribution centre for Marlborough cargo, in particular wine – facilitate storage and movement of containers for Marlborough based cargo. Secure long-term commitments from warehousing customers
C2.2 Become Marlborough’s and NZ’s leading wine logistics entity through the development of preferred technology solutions (Pelorus), environmental solutions (Te Tauihu green carbon loop), trusted relationships/partnerships and access to ‘on-port’ facilities
Leverage expertise, technology and access to be the preferred logistics partner for non-wine products within Marlborough and wider Te Tauihu
Establish global logistics partner(s) to the wine industry – promote QuayConnect’s wider scope of services that are proven within the industry with strong case studies. Use of smart technology and customer service focus as a unique selling propositions
Challenges
1. Cargo – refer References: Cargo Volume Forecast
Wine growth is predicted to be upwards of 30% next three years.
Expect log export volumes to be stable, growing towards the end of 2026 and flattening off.
Cargo imbalance - imports vis a vis export, including import MT container reliance
Primary industry exports; the climatic impact.
Warehouse intensification/automation
Cargo mix shifts – bottled/bulk wine
Urbanisation and pressure on primary production land
2. Shipping
Retaining access to international calls
Road freight vis a vis coastal shipping
Vessel sizes
3. Customer Expectations
QuayConnect scalability/shipping spot rates
Logistic options for Marlborough cargo
Transparency
2024 Plan
2024 Strategic Initiatives
Customers
Aligned with the 2030 plan. The Port will pursue 4 strategic initiatives under ‘Customers’ in 2024FY.
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Complete and embed dashboards across the business and develop continuous improvement initiatives to improve performance and push towards aspirational benchmarks.
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Establish the Marlborough Inland Port and build the business to maximise the benefit of the facility.
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Following customer feedback, develop the existing software to meet the needs of customers and embed the software into QuayConnnect operations.
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Establishment of the roster provides a more sustainable and wellbeing-based environment for our stevedoring team.
2024 Challenges
Container shipping capacity and volatility: We are optimistic that container shipping will be more reliable in 2024. Nonetheless, disruptions are expected through the early part of the year. The business needs to continue to work to sustain efficiencies and find solutions to the impacts of the disruptions in the Port
Export volume variability: Due mainly to shipping volatility but also a lack of transparency from exporters, our business units have been impacted by variability in forecast export volumes. This has resulted in inefficient resourcing and losses. Establishing better logistics visibility is an essential solution.
Changing log stevedoring structure: The new structure of the log stevedoring contracts sees a loss of control for the Port. This has positive elements (exiting Picton and better alignment for the proposed roster) and negative elements (lower revenue), all need to be worked through.
Maximising the benefit of moving to a stevedore roster: Closing off the new structure with the RMTU and ensuring we have the necessary work type flexibility to manage shipping volatility is key to ensuring an acceptable financial outcome.
Retaining Marlborough customers: These customers face continued enticement from Centreport. The current Cook Strait difficulties are in our favour. However, this period must be taken to further embed the benefits of the QuayConnect link to Nelson and the customer service benefits of both QuayConnect and Port Nelson.
