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Project: Research into freight hub/inland

Reference: 230642

port development in the Waikato Region

Prepared for: Waikato


Regional Council

Final Report

Revision: issued to WR
12 April 2013

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Final Report

Report Title
Document ID

230642

Project Number

File Path

W:\230642 (Waikato Region IMT Report)\4. Report\Waikato Freight


Development Final Report REVISED (8-Aug-2102b).docx

Client

Waikato Regional Council

Client Contact

Urlwyn Trebilco

Rev

Date

Revision Details/Status

Prepared by

Author

Verifier

Approver

2 July 2012

Stage 1 Draft Report

GE

GE

KK

AM

20 July 2012

Stage 2 Draft Report

KK

KK

GW

AM

3 August 2012

Final Report

KK

KK

GE

GE

8 August 2012

Revised Final Report

KK

KK

GE

GE

5 December 2012

Updated based on TGH


comments

KK

KK

GW

GW

12 April 2013

Figures Replaced

KK

KK

GW

GW

Current Revision

issued to WR

Approval
Author Signature
Name
Title

Approver Signature

Katie Kandelaars
Senior Transport Modeller

Project 230642| 12 April 2013 | Revision 5 issued to WRC

Name
Title

Guy Eitzen
Associate

Contents
1

Executive summary

Introduction

Overview of functions and scope

Inland ports

12

4.1

The need

12

4.2

Characteristics

12

4.3

Ancillary services

13

4.4

Access links

14

4.5

Commodities

14

4.6

Intelligent Communication Technologies (ICT)

14

4.7

Moving air

15

4.8

Factors that influence demand

16

4.9

Typical layout

18

4.10 Examples

20

Freight precincts

22

5.1

The need

22

5.2

Characteristics

23

5.3

Ancillary services

23

5.4

Access links and location

24

5.5

Commodities

24

5.6

Moving air

24

5.7

Factors that influence demand

25

5.8

Examples

26

Efficiency and effectiveness

28

6.1

Why are inland ports and freight precincts efficient?

28

6.2

What factors affect their effectiveness and efficiency?

29

6.3

Changing environment affecting future demand

32

6.4

The number and locations of inland ports and freight precincts

33

Waikato and Upper North Island context

35

7.1

Current freight flows within the region

35

7.2

Potential changes to freight movements in the next 30 years

38

7.3

Relationship between freight movement, land-use and infrastructure development

42

Project 230642 | 12 April 2013 | Revision issued to WR | Page 3

7.4

Locational and functional requirements for inland ports and freight hubs for the Upper North
Island
48

7.5

Lessons learned internationally

50

7.6

Are existing proposals likely to change in the next 30 years?

56

7.7

Ancillary services required for success

57

Concluding remarks

59

Glossary

61

10

References

64

Project 230642 | 12 April 2013 | Revision issued to WR | Page 4

Executive summary

The Upper North Island (UNI) is the primary producer and consumer of freight in New Zealand. For example
in 2006-07 freight movements in the region totalled approximately 126 million tonnes out of a total of 226
million tonnes for all of New Zealand (56% of all New Zealand freight). As Waikato is one of four regions that
make up the UNI, it is critical that the Waikato Regional Council gain insight into freight movements in the
region, land-use patterns (e.g. industry and primary production), and demand for road and rail infrastructure
as the UNI freight story is developed.
For the Waikato, current and future development of freight precincts and inland ports will significantly
influence the movement of freight within and through the region. The Waikato Regional Council has engaged
Aurecon to prepare a report on freight precincts and inland ports in particular, to help the Council understand
how they could influence freight movement in the Waikato region, and more generally in the UNI. The report
will inform Waikato Regional Council input into the development of an UNI freight story being developed by
the Upper North Island Strategic Alliance (UNISA), the New Zealand Transport Agency (NZTA) and KiwiRail.
The report describes the nature, functions, success factors and benefits of freight precincts and inland ports.
It discusses the factors affecting patterns of freight movement and demand for freight infrastructure. A broad
description of freight flows in the Waikato region and UNI is provided, based on desktop research and
discussions with a number of stakeholders in the region. Current and potential future issues for freight
movement are described and potential for new freight precincts and inland ports in the study area discussed.
The key findings presented in the report are:
1. The UNI is the primary producer and consumer of freight in New Zealand, and the freight task is
increasing.
2. Freight movements and import and export volumes in New Zealand are relatively small on a world
scale and there are relatively few capacity constraints at present, except for the following:
a. There are some bottlenecks, congestion issues and inefficiencies beginning to appear in the
landside logistics chains, which will become more pronounced and costly as the freight task
increases;
b. Road and rail congestion is particularly an issue in South Auckland; and,
c.

There is limited ability to expand the land area of Ports of Auckland and Port of Tauranga.

3. Current data suggests that the broad pattern of land-use and freight movement in the UNI is unlikely
to change significantly in the foreseeable future; however the overall freight task is expected to
double over the next 30 years. Currently, there is a lack of up-to-date and detailed data on freight
origins and destinations across the UNI, and a lack of up-to-date forecast data for future freight
demand.
4. A number of key trends will influence freight movement in the UNI (and New Zealand in general)
including:
a. Growing internet sales eroding traditional retail market share;
b. Large retail chains are likely to continue to invest in large distribution centres, so they can
control stock levels, and reduce at-store storage requirements.
c.

Smaller producers and businesses are likely to continue to outsource transport to 3PL
operators.

d. Continuing decline of general manufacturing in New Zealand;

Project 230642 | 12 April 2013 | Revision issued to WR | Page 5

e. Fuel prices, carbon policies and other environmental policies will increase the need for
freight movement efficiencies;
f.

Continuing increase in the rail mode share of freight, particularly over longer distances;

g. Increasing land prices and residential encroachment of some existing industrial areas may
affect their future viability, particularly when located in inner city suburbs; and,
h. The use of larger container ships is increasing internationally. There is a need to ensure at
least one UNI port has capacity to accept container ships over 5,000 TEU.
5. There is likely to be increasing congestion on train paths in the UNI and need for further investment
in track duplication, passing loops and rail heads in strategic locations.
6. There is also likely to be increasing congestion on the urban road network, particularly around the
Port of Auckland and south Auckland. This is likely to be most pronounced in the peak periods, and
may impact on the efficient movement of freight in the area.
7. The development of inland ports and freight precincts can assist in making the movement of freight
more efficient and therefore decreasing the cost of doing business.
8. Key success factors for new inland ports and freight precincts would include proximity to primary
markets, proximity to major road and rail infrastructure, capacity of the site and freight handling
infrastructure, co-location of warehousing and light industry, and buffering from nearby sensitive land
uses.
9. There appears to be a large amount of industrial zoned land in the UNI, and no clear understanding
of where industrial development is actually most likely to occur, and therefore where freight
movement infrastructure is likely to be most needed.
10. From the available information, it is likely that only one additional high volume inland port is needed
in the UNI in the medium-term, and it is critical that this works in a complementary fashion with all
other inland ports and gateway ports. To maximise the chance of success, this inland port facility
should meet many of the key requirements for success as outlined below and detailed in this report:
a. Location relative to primary markets;
b. Location relative to major road and rail infrastructure;
c.

Land available and terminal capacity;

d. Co-location of warehousing, storage and light industry; and,


e. Buffering from residential areas.
11. The proposed inland port at Ruakura, Hamilton, could undertake the function as a major inland port.
Whatever the location, central and local government should work with the appropriate developers to
ensure it is well integrated into the UNI freight movement system. It is also recommended that data
is collected to determine the volumes and origins and destinations of freight in the UNI to further
investigate the need for and optimal location of inland ports.
12. With respect to the Ruakura proposal, if this is to proceed, there is a need to further address
potential issues of staging of the development, and effects of development on neighbouring landuses, amenity and traffic movements (local roads and state highways).
13. There is potential for a small number of additional freight precincts in the UNI and it is important that
they are strategically planned to complement inland ports and are appropriate to anticipated freight
patterns.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 6

14. There is a need for an integrated strategic framework across all levels of government for the
planning and management of freight movements across the UNI.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 7

Introduction

The Upper North Island Strategic Alliance (UNISA), NZTA and KiwiRail are currently developing an Upper
North Island (UNI) freight story, to identify future needs for road and rail infrastructure based on current
trends and freight movements in the region. As inputs to this, the Waikato Regional Council (WRC) is
seeking to better understand current and future freight flows, land-use and infrastructure needs. Current and
future development of freight precincts and inland ports in the Waikato will significantly influence these
movements.
The WRC has commissioned Aurecon to produce a report outlining the functions of freight precincts and
inland ports (in particular) to assist in informing Councils position on future needs.
This report contains the results of the desktop review into functions of inland ports and freight precincts, how
different products could influence design and function, how inland ports and freight hubs are important for
efficiency, what factors influence their effectiveness, and what ways inland ports and freight precincts are
likely to change freight movements.
Information gathered at a Waikato regional workshop for the Upper North Island Freight Story held on 9 July
2012 and subsequent key stakeholder reviews, have also been included to detail the Upper North Island
context. This contains information on what changes are likely to occur over the next 30 years and their
influence on inland ports and freight precincts, potential locations of inland ports and freight precincts
(including current planned operations), and what factors may affect their effectiveness, efficiency and takeup.
The report is divided into the following sections:
Section 4 Inland ports. This section contains an overview of the functions and operations of inland
ports, how they can be different for difference products, and what supporting services are
usually contained within the boundary of the site, or close to the site. Also described is the
importance of high speed access links to other sites (such as gateway ports), and the factors
which will influence demand.
Section 5 Freight precincts. This section contains descriptions of freight precincts. Similar to the
section on inland ports, this portion of the report explains these precincts, including
differences caused by product types and what supporting services are usually contained
within the precinct.
Section 6 Efficiency. This section contains reasoning and justification as to why inland ports and
freight precincts improve business efficiency, what factors affect their effectiveness and what
factors are critical to their success. In addition, information on the optimal mix of size and
locations of competing freight precincts and inland ports is provided.
Section 7 Waikato and Upper North Island context. This section provides the Upper North Island
context and contains information collated during the workshop and stakeholder discussions.
This section contains information on current freight flows, expected changes to land-use and
infrastructure demand in the next 30 years, location and function requirements for inland
ports and freight precincts in the region, what existing proposals currently exist and how are
these likely to change in the next 30 years. In addition, information on the international
lessons learnt is provided, specifically around location, efficiencies and what services are
provided that make these successful.
Section 8 Concluding remarks. This section contains some concluding key remarks about inland
ports and freight precincts for the Waikato and Upper North Island regions.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 8

Overview of functions and scope

This report is designed to provide an overview of the functionality of freight intensive centres that are
designed and created to improve efficiency of the warehousing and distribution industries. Efficiency in these
centres comes from the transport of large quantities of freight over long distances, the grouping of
businesses with complementary needs, or a combination of both.
To ensure a consistent understanding, the following points give an overview of the important freight intensive
centres and how they will be defined for the remainder of this report.
1. Gateway ports. A gateway port is a sea port where freight (containerised or bulk) is transferred
between shipping vessels and land. Gateway ports are operated by stevedores whose task is to load
and unload ships, and to facilitate the collection and delivery of containerised or bulk freight. Some
gateway ports have on-dock rail sidings to allow the efficient transport of mainly containerised freight
off-site quickly and efficiently.
The two major gateway ports in the Upper North Island (UNI) are the Ports of Auckland (used
primarily for importing of containers) and the Port of Tauranga (used primarily for exporting of
containers).
2. Inland ports. An inland port is similar to a gateway port, with the exception that there is no loading
or unloading of shipping vessels. Instead, freight arrives (mainly containerised) by rail and is usually
distributed to the customer (or consumption location) by truck. With both gateway ports and inland
ports, there is one terminal operator, but many customers.
3. Intermodal terminals. An intermodal terminal is similar to an inland port in that it is an exchange
point between rail and road modes, has one terminal operator, and many customers. Intermodal
terminals however, are normally associated with domestic rail containers, rather than maritime
containers, which have different systems and characteristics. For this report, the emphasis will be on
inland ports; however most of the operational descriptions will apply to both.
4. Dedicated on-site rail sidings. A rail siding is a location along a rail corridor where trains can be
removed from the main rail line (so as not to block other rail traffic) to be loaded and unloaded. Large
businesses with dedicated manufacturing and or warehousing may choose to use these on-site rail
sidings for the efficient transport of large quantities of freight to the destination (consumption point)
or to gateway ports for export. These are generally not referred to as intermodal terminals as there is
only one terminal operator and only one customer. An example of this in the UNI is the Fonterra
distribution centre in Crawford St Hamilton where export containers are packed, loaded onto trains
and moved to the Ports of Auckland and Port of Tauranga for export.
5. Distribution centres. A distribution centre is a large warehouse, operated mainly by large retail
chains. They allow many producers of food, retail goods and hardware to deliver freight for their
chain of stores (rather than to deliver to individual stores), and then the distribution centre arranges
single large trucks (on a daily basis in most cases) to deliver straight to store. This saves individual
retail stores needing their own storage areas. Distribution centres are normally owned and operated
by a single business.
6. Freight hubs. A freight hub is similar to a distribution centre in that freight is received (from where it
is produced), stored and delivered (to where it is consumed). A key differentiator is synergies in load
size. Transport of freight between hubs can be done using heavy and large freight vehicles, and
often done in both directions. Transport of freight to consumption points can be done using a range
of appropriately sized vehicles (for example smaller rigid vehicles). Freight hubs can be operated by

Project 230642 | 12 April 2013 | Revision issued to WR | Page 9

individual businesses or 3PL transport operators (3rd party logistics providers), and can be serviced
by road and rail.
7. Freight villages. A freight village is a grouping of freight related activities within a specific area,
commonly built for such a purpose, master planned and managed. These activities include
distribution centres, warehouses and storage areas, transport terminals, offices and other services.
These other services can include manufacturing, public utilities, parking space and even hotels and
restaurants. Although a freight village can be serviced by a single mode; integration with inland ports
or other intermodal facilities can offer direct access to global and regional markets.
For the remainder of this report, we shall concentrate on the operation and impact of inland ports, and freight
precincts (including distribution centres, freight hubs and freight villages). Freight precincts can have
integrated inland ports or intermodal terminals, however for the purposes of this discussion; we will keep
their descriptions separate.
There are similarities and differences between the operational characteristics of inland ports and freight
precincts, and Table 1 below gives an overview of these.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 10

Table 1 - Functions and scope of inland ports and freight precincts

Characteristic

Inland Port

Freight Precinct

Primary function

Distribution of maritime
containers

Warehousing and distribution

Ancillary services

Empty container repair and


storage

Consolidation and
deconsolidation

Customs and Quarantine

Manufacturing
Industrial park

Access links

Infrastructure

Rail

Road, larger vehicles

Road

Intermodal terminal

Rail terminal

Warehousing

Gantry cranes

Pick and pack

Container forklifts

Manufacturing

Container hardstand
Example operating hours

Commodity types

24/7 (rail)

24/7 (collection)

6:00-22:00 (collection)

8:00-17:00 (pack and unpack)

7:00-17:00 (empty containers)

7:00-17:00 (other services)

Containers

Manufactured goods

General container freight

Bulk commodities
Raw materials

Ideal location

Long way from port


Close to consumption point for
import containers

Close to point of consumption or


close to raw materials

Close to production point for


export containers
Examples

Forrestfield, WA

Wimmera, Victoria

MetroPort, Auckland

Australia Trade Coast,


Queensland

Wiri Inland Port, Auckland

Each facility type would have a number of different businesses operating, each trying to extract maximum
benefit and profitability from their own operation. Therefore, the descriptions below describe the typical
businesses and their types of operations, efficiencies and constraints.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 11

Inland ports

This section contains an overview of inland ports, their features and functions and relevant supplementary
information.

4.1

The need

Gateway ports are often located in built up areas and are designed to service the import and export of
freight. This is generally containerised freight including consumer goods, processed materials and finished
goods. However, more recently there has also been a trend to containerise bulk goods, such as grain and
timber, thereby requiring less
specialised handling equipment and
allowing these products to be
transported and shipped more
efficiently through a greater number of
gateway ports.
Their location in built-up areas,
however, is problematic. Often there is
a high degree of congestion in and
around the port, which decreases
amenity. In addition, land is expensive
and sites often cannot be expanded to
cater for increased trade. The primary
role of inland ports is to alleviate some
of these issues, by moving import
containers away from the gateway port
Figure 1 - Inland port rail sidings
quickly (thereby reducing hardstand
requirements and increasing
throughput). For export containers, they can also be stored off the terminal until they are required to be
loaded on to the vessels.
The most effective mode of transport between a gateway port and an inland port is by rail as it offers an
effective method of transporting containers quickly and efficiently long distances, and reduces gate-in gateout movements at the gateway port.

4.2

Characteristics

The overall development of inland ports can vary considerably; however, there are several features that
could be regarded as common, as they are core function requirements. The common characteristics of an
inland port are:
1. Ability to operate 24/7. While inland ports may not need to operate 24/7 on account of their
throughput, it is their ability to work 24/7 which can produce many efficiency gains. This mode of
operation provides the greatest scope for flexibility in managing the variations in road and rail
delivery and receival schedules, and in turn, provides the inland ports with greatest scale for
handling capacity. This allows for the collection and delivery of freight in off-peak periods (night-time
and weekends) thereby reducing transport times and increasing reliability. In reality however, most
inland ports have core operating hours (e.g. 6:00am to 10:00pm Monday through Friday) for the
majority of services, where the demand for 24/7 is not required.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 12

2. Buffering from residential areas. For inland ports to operate 24/7, they must be buffered from
residual areas and ideally located near industrial or freight precincts which will use or supply the
freight.
3. Container hardstand. The container handstand is one of the most important features of an inland
port. This is where containers are handled and stored in mainly high density stacks. The handstand
area required will depend on the terminals processes, including the handling activities and
movements undertaken and the separations required for undertaking compatible activities.
Dwell time (the number of days a container resides at the terminal, from receival at the gate until
despatched by train, or arrival by train until despatched by road), will also significantly impact on the
hardstand area requirements. The type of equipment used and the number of shipping lines, and rail
and road operators using the inland port, will also drive the hardstand space requirements.
The hardstand area will be constrained by the amount of land available, and consequently, the area
of handstand will largely dictate the capacity of the inland port.
4. Queuing and holding areas. The collection and receival operation of an inland port is very similar
to that for a gateway port, where trucks queue and wait for loading or unloading of their containers.
Therefore there must be adequate queuing provided inside the terminal to make efficient use of
container handling equipment (e.g. straddle carriers). Delays or problems can and will occur, so it is
best to ensure holding areas are available either inside or outside the inland port to cater for overflow
vehicles.
5. Other infrastructure and equipment. An inland port requires certain other infrastructure in order to
operate effectively. This includes:
a. Rail line, spurs and sidings to allow loading and unloading of trains.
b. Weighing facilities.
c.

Perimeter fencing and security.

d. Refrigerated (reefer) container charging points.


e. Offices for administration, security services and workshops.
f.

Container handling equipment to assist in the efficient movement of containers within the
inland port, e.g. full and empty container handling forklifts, reach stackers and straddle
carriers.

g. Gantry cranes to load and unload containers from trains if the layout of the terminal is suited
to this type of equipment, and there is sufficient throughput to warrant this type of high
capital investment.

4.3

Ancillary services

There are a number of ancillary services that are important to the overall efficiency of an inland port. Without
these services, the benefits are severely reduced. The most important ancillary services for an inland port
are:
1. Customs and Quarantine. Due to space constraints at gateway ports, often Customs and
Quarantine functionality are provided off-site at accredited premises. This allows import and export
containers to be cleared at the inland port, so they can be quickly moved from the gateway port. This
improves gateway port throughput, and moves the containers to the inland port where the land
occupancy costs can be lower. Customs and Quarantine within inland ports will require bonded
warehouses and an under bond container storage area for pre-Customs clearance storage.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 13

2. Empty container repair and storage. Within the industry, the storage of empty containers is a
marginally profitable business. However, the movement of empty containers is substantial, and
unless empty containers can be stored close to or within the inland port, they must be returned to
empty container parks located close to the gateway port. From a transport perspective, this is
inefficient as generally empty container parks are only open Monday to Friday, 6:00am to 4:00pm
and are located in highly congested areas. It is therefore important for efficiency reasons that empty
container parks are located within the boundary or closely located to inland port.
As the individual shipping lines own the containers, and are responsible for all costs associated with
containers once they are de-hired after unpacking, their desire is normally to have them as close to the
gateway port as possible. It is imperative therefore, to provide the right price-based benefits to the shipping
lines to allow de-hiring containers within or near the inland ports.

4.4

Access links

Access to and from inland ports is extremely important to overall market capture. High speed, reliable links
between the inland port and the gateway port ensures that minimal delay is experienced by the customer.
For regional inland ports, it is important to ensure a minimum of a daily rail service, which is reliably run.
Often the lack of train paths on the surrounding network and can impede reliability and therefore
attractiveness of the service provided by the inland port operator.
For metropolitan inland ports, it is customary to run more of a shuttle type operation, where shorter trains (50
TEU) run frequent services. Again train paths can be a significant issue, as port shuttles would be competing
often with commuter trains, which politically usually carry higher importance. If train paths are not an issue
now, they could be a future issue as the level of public transport use increases, and so does the frequency of
commuter services.
While the transport movements between the gateway port and the inland port are often by rail, the transport
movements to and from the customer are usually by road. In essence, the collection or the receival operation
is the same as for a gateway port, where trucks queue and wait for the loading or unloading of their
container. The inland port must therefore provide sufficient queuing areas inside and outside of the terminal
(as discussed previously).
Once the trucks loaded with containers (for imports) leave the inland port, it is important that links to the
surrounding road network are adequate to not restrict their movements. Traffic lights, intersections and rail
crossings all impede the flow of vehicles to and from the site, and thus grade separation is recommended.
Close access to highways and freeways is also highly desirable.

4.5

Commodities

In theory, inland ports can cater to any normal import or export commodity. In reality however, they handle
more or less exclusively containerised freight. This is because containers can be efficiently handled and
transported for multiple customers, and these get appreciable economies of scale for a new operation.
Bulk commodities, such as liquid chemicals, logs, gain, coal and fuel often have special storage
requirements, with few or only single customers; and are therefore more suited to individual facilities with
dedicated rail sidings. Bulk commodities also require specialised handling equipment and therefore it is much
more difficult to combine different commodities onto a single inland port.

4.6

Intelligent Communication Technologies (ICT)

Inland ports offer similar services to gateway ports, in that multiple transport operators and customers will
potentially use the facility to transport their freight. In a system where there is an excess of capacity (both in

Project 230642 | 12 April 2013 | Revision issued to WR | Page 14

hardstand and in container handling equipment), the inland port will not need much in the way of operational
procedures to accommodate the customers. Customers will be able to arrive at a time that is most suited to
them.
However, as inland ports volumes increase, there tends to become peaks in collections and receivals, either
on certain days of the week, or more commonly, at certain times of the day. Transport operators often try to
collect containers between 7:00am and 8:00am for customer delivery during the day. At these times, queues
form within the site, waiting times increase, and reliability decreases.
When this occurs, the inland port operator will seek to increase reliability by spreading the demand. The
most common form of spreading is that using a booking system. A booking system will force transport
operators to book a collection or receival in advance, often done in one-hour windows (with tolerances of 30
minutes on either side). Penalties can be applied to transport operators for early arrivals or for no shows, and
penalties can be applied to the inland port operator for long wait times. In practice, penalties are rarely
applied, as everyone believes a bit of flexibility is required operationally.
In addition to a booking system, electronic signs indicating average service times within the inland port are
important. They give the transport operators the necessary information to efficiently run their fleet, control
their deliveries, and keep their customers informed. These signs should be visible on entry to the inland port,
as well as on approach (so that vehicles arriving early may choose to return to their depot or the driver may
choose to have a break, if the delay is long).
Access to average service times should also be available via the web (and Smart Phones) to allow transport
operators to better plan their fleet activities.

4.7

Moving air

In container logistics chains associated with inland ports or the transport of containerised freight in general,
there are many ways that air is transported, often reducing overall profitability. These are:
1. Transport of empty containers after unpacking. The transport of empty containers from an
importer after unpacking (or to exporters prior to packing) is necessary; however would normally be
deemed to offer lower profitability to transport operators. In addition, collection from and delivery to
empty container parks can be additionally hampered by reduced empty container park opening
hours, and locations not always close to the customer or inland port. For this reason, in some
instances, transport operators store empty containers on their own sites to maximise efficiency.
2. Repositioning of empty containers. There
Figure 2 - Empty container transport and storage is
is often an imbalance of the correct type of
critical to an efficient supply chain
container at certain locations within the
logistics chain. In Australia for example,
many import commodities are light and
therefore transported in 40 foot containers,
while most export commodities are heavy
and transported in 20 foot containers.
Shipping lines will therefore reposition empty
containers to where they are required. In a
lot of cases, this means the export of empty
containers back to China (for example),
ready to be refilled. Therefore, the shipping
lines prefer to have empty containers dehired close to the gateway port to minimise
transport costs, and to ensure fast availability of containers.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 15

3. Movement of empty skel trucks. In and around gateway ports and inland ports, empty skel trucks
are a common sight. This is because it is more common for a truck to arrive to a gateway port or
inland port location empty to collect a full container, or to leave a gateway port or inland port empty
after delivering a full container. There are several reasons, but the most common reason is to not
miss slots caused by unreliability of service times within the terminals. It is no surprise therefore, that
many transport operators are located close to gateway ports or inland ports to minimise travel of
empty skel trucks.
4. Imbalance in rail demand. For an inland port connected to a gateway port by rail, it is desirable for
efficiency to have the rail service carrying the same number of containers in both directions. Any
imbalance will mean that containers travelling in the direction with higher demand will effectively be
subsidising those in the opposite direction, impacting profitability of the service. Imbalance can occur
for a number of reasons, but the most common is full containers having higher priority access to the
rail service (and therefore little planning undertaken for empty containers), and empty containers not
always accepted on or near inland ports (for reasons explained previously).
The transport of empty containers often accounts for nearly 50% of all container moves; however, is often
regarded as less profitable and commonly have more restrictions in terms of time of day and locations. The
effectiveness of the logistics chain will therefore be defined by how well empty containers are transported.
For an inland port, the following are guidelines to minimise the movement of air, and therefore maximise
efficiency and capture rate for the terminal:

Understand the imbalance of container types for the given location (e.g. more 40 foot containers will
be used for imports, more 20 foot containers used for exports);

Ensure sufficient storage is available either in or around the inland port for empty containers. Ensure
easy access to containers for shipping lines needing to reposition empty containers back to other
gateway ports (and on to other countries);

Encourage transport operators to locate close to the inland port so that empty running distance is
minimised. This can be problematic for cities with a gateway port and one or more inland ports,
because it will generally not be cost effective to operate more than one transport depot; and,

Encourage transport operators to load containers in both directions, e.g. delivery of a full export
container, followed by a collection of a full import container. Designing the truck loading area in such
a way that the truck does not need to circulate the site to join the back of the queue after delivery of
the export container may assist in this manner.

It is noted that the literature detailing the planned inland port development at Ruakura, Hamilton indicates
that this site will initially focus on import containers. There is merit in working with the shipping lines to
consider the impact moving the empty containers will have on the efficiency of the operation. A number of
reports have indicated that, given the Fonterra Crawford St site is close to Ruakura, efficiencies may be
gained by transporting empty containers from Ruakura to Crawford St for packing and export.

4.8

Factors that influence demand

There are a number of other issues that impact on overall demand, effectiveness, competitiveness and
efficiency of inland ports. These are:
1. Catchments. A catchment is the term given to the geographical area surrounding an inland port,
which containers and freight use in preference to direct movements to or from gateway ports. Inland
port catchments are defined by those areas where it is cheaper to transport via the inland port. It
must be noted however, that other factors will influence the transport method, including the time
sensitivity of freight, the value of the freight, and existing commercial relationships.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 16

Figure 3 -Example of Sydney showing likely inland port catchments in 2031


once the Moorebank and Eastern Creek inland ports are operational

Reliability is also an important component. This does not impact on the size of the catchment area,
but in the capture rate for the catchment. Reliability has two forms: 1) reliability in collection and
delivery time (for example long waiting in queuing will shrink the capture rate); and 2) frequency of
rail service between the gateway port and the inland port.
2. Terminal capacity. A terminal is given a nominal capacity, normally in TEUs (twenty foot equivalent
units) per annum. There are a number of factors that influence the capacity, briefly these are:
a. Land space and functions. The amount and cost of available land and the functions
provided within the terminal boundary will determine the amount of container hardstand
available, which has a direct relationship to the number (and sometimes height) of container
stacks. Generally the more containers which can be stored, the larger the capacity of the
terminal.
b. Loading and unloading equipment. The amount and type of loading and unloading
equipment (particularly for rail) at both the gateway port and the inland port will determine
the number of trains that can be processed on a given day, and therefore will dictate the
number of containers that can be handled by the terminal.
3. Train paths. Train paths are the timing and frequency of the trains servicing the inland port. The
terminal must have adequate paths in which to properly use the infrastructure that has been
developed. In many cases, this issue impacts reliability, capture rate and consequently inland port
viability.
4. Seasonality. There is significant seasonality of containers: for import containers late December and
January often have lower than average movements and October to early December more than the
average movements.
If volumes for the inland port follow the total trade movements, then busy periods would receive up
to 10-15% more containers per day than an average day. This busy period may result in longer core
hours, or more weekend work to process the additional containers.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 17

Figure 4 - Container trade seasonality at New Zealand ports from Quarter 1, 2009 to Quarter 1, 2011

Source: Container Productivity at New Zealand Ports, Ministry of Transport

4.9

Typical layout

Figure 5 shows a typical / ideal layout for an inland port. Actual layouts are constrained by the shape of the
actual land plot, access to the road network, and entry locations of the rail sidings.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 18

Figure 5 - Typical inland port layout

There are several features worth noting in this figure. These are:
1. Truck waiting and queuing areas both inside and outside the gate. This configuration means
periods of high demand are adequately catered for.
2. Trucks follow a one-way route. Trucks circulate through the site following one way roads. This
configuration minimises probability of truck crashes, and minimises trucks reversing, increasing
safety and efficiency.
3. Carpark separated from truck route. The carpark for employees and visitors has a separate
entrance and does not use the same roads as trucks. This configuration minimises interactions
between cars and trucks.
4. Trucks do not enter container stack/hardstand area. There is a separation between where trucks
are allowed to travel and where container handling equipment (such as reach stackers and straddle
carriers) are allowed to travel. The only part of the site where they interact is at the truck exchange
point.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 19

4.10

Examples

MetroPort Auckland, New Zealand


This inland port services the Port of Tauranga. At this site, import cargo destined for Auckland is offloaded at
the Tauranga Container Terminal, railed to MetroPort Auckland and then distributed to its final destination.
The same process happens in reverse for Auckland sourced export containers.
MetroPort Auckland has Customs and Quarantine on site, and has storage for 1,000 TEU, which includes 60
reefer points. It has a dedicated twin rail siding and this can cater for trains of 100 TEU capacity and up to
900m in length. The operating hours for this site is from 5:00am Monday through 10:00pm Sunday, allowing
the flexible collection and delivery of containers.
It should be noted that this inland port is now in the process of becoming a larger freight precinct as the Port
of Tauranga acquires more land in the area for pack and unpack facilities and ancillary services (MetroPack).
Figure 6 - MetroPort layout,
(source http://www.port-tauranga.co.nz/MetroPort-Auckland/Metroport-Auckland-Map)

Somerton Intermodal Terminal, Melbourne Australia


This intermodal terminal provides interface facilities for road and rail, rapid access to Tullamarine and
Essendon Airports, and is located less than twenty kilometres from Melbourne CBD and the Port of
Melbourne. This site is designed to alleviate some of the pressures and congestion within the Port of
Melbourne precinct, by transporting import and export containers via rail to/from Somerton. Trucks are then
used to transport the containers to/from the customer. The Somerton intermodal terminal has the following
features:

Six 750m rail sidings;


Hardstand and container loading capability;
Secure storage facility for approximately 10,000 containers;
B-triple capable weighbridges and high tech security gatehouse facility;
Proximity to the Hume Freeway to enable efficient access to the Melbourne and regional Victoria
road network.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 20

Wiri Freight Hub, South Auckland


This site borders the North Island Main Trunk line and comprises three rail sidings with each having a
capacity of 22 wagons. This site opened in February 2010 and will eventually have the capacity to transfer
100,000 TEU annually between the site and the Ports of Auckland. According to the operators of the terminal
it is estimated that this will save up to an estimated 2.5m truck kilometres annually or 100,000 central city
truck trips.

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Freight precincts

5.1

The need

Freight precincts (encompassing distribution centres, freight hubs and villages) are large areas of dedicated
industrial zoned land, dedicated primarily to transport and warehousing industries, and complemented by
manufacturing and other industries depending on the area. In many cases, they are co-located with either an
inland port with rail access to gateway ports, or with intermodal rail facilities for the efficient transport of
(mainly) containerised freight longer distances.
The concentration of many businesses of this type gains synergies through priority of government investment
into transport corridors, short distances of travel between businesses, buffering from residential areas and
the ability to operate extended hours.
In addition, freight precincts make efficiency gains through hubbing, or consolidation and deconsolidation of
freight. Movements between different hubs are made using larger vehicles carrying more weight (or use rail
for the between hub movements), and therefore it is desirable for freight precincts to have the ability to
operate larger and heavier vehicles on roads and bridges that are designed to accommodate them. Smaller
vehicles making more frequent stops are then used to distribute the freight to the consumption point. In this
way, customers outside of the precinct
can maintain low stock levels and rely on
Figure 7 - Master plan for an 80 acre freight precinct in China
just-in-time deliveries, thereby minimising
(source: http://www.ghaffariassociates.com/projects/GA_06.htm)
their own storage requirements.
Historically, most freight precincts have
evolved because of land zoning and
individual business take-up. In recent
times, through scarcity of funding
resources, improvements in efficiency
and consolidation of logistics businesses,
and supermarkets, hardware and large
retail chains (in particular) driving
transport efficiency through distribution
centres and direct imports (to improve
profitability), some freight precincts are in
the process of being master-planned. In
this way, they are developed in the best
locations with efficient access links to
customers (both local and regional), and
provide the necessary supporting
infrastructure.
In recent times, the need to move to new areas, concentrate businesses and protect transport and freight
corridors is also important. Established areas within the inner urban areas (in particular) are being
encroached upon by residential housing, and in some cases, actually being rezoned. This is because old
and established inner areas are in close proximately to city centres, with higher associated land values.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 22

5.2

Characteristics

The overall development of a freight precinct can vary significantly, particularly if simply evolving from an
already established industrial area. The following characteristics however, relate to the desirable
characteristics for freight precincts.
1. Ability to operate 24/7. While many businesses operating within the precinct will operate normal
business hours, transport and warehousing business will gain efficiencies in being able to operate
longer. In this way, loading of vehicles, packing of containers or other services can be undertaken at
night, and then trucks are able to transport the freight to the customer when the customer has staff
available to receive it (often within the standard 8:00am to 5:00pm business hours).
2. Buffering from residential areas. Like inland ports, transport intensive areas produce noise with
trucks reversing, loading and unloading of freight/containers, and general machinery noise. These
noise factors, in particular, will cause complaints if there are not sufficient mitigation factors in place.
This is particularly an issue for freight precincts that are close to densely populated areas (with
multistorey buildings). Protection from residential encroachment to existing important freight areas
should be part of government policy.
3. Warehousing and storage facilities. The most important feature of a freight precinct is the storage
and distribution of freight. Therefore, freight precincts will contain generally more than one, purpose
built, efficiently operated distribution centre. In this way, these centres can receive freight from a
variety of sources (containers from ports, bulk freight from production points, finished goods from
manufacturers, and consolidated freight from other hubs), and then store and distribute them in
smaller consignments.
In order to handle bulk and containerised freight, these facilities must also have bulk and container
handling equipment. For containerised freight, they also require pack and unpack facilities within the
warehouse and storage facilities.

5.3

Ancillary services

Apart from the core warehousing and storage functions associated with freight precincts, many also have
complementary businesses that gain synergies and efficiencies in their own right from being closely located
to these businesses. In addition, in some cases there can be unrelated but necessary support services due
to the location or distance from other urban areas.
1. Manufacturing businesses. Manufacturing businesses are often located close to the origin of their
raw materials. For dairy production for example, factories are often located within each region to
ensure milk from the farm does not need to travel too far. For businesses which import materials, or
materials are already processed in some way, there is greater flexibility, and therefore locating within
or close to a freight precinct or freight hub provides them with access to warehousing and storage,
and efficient transport and distribution services.
2. Other services. With a sizable freight precinct, there is a requirement for other non-transport-related
services. This is mainly due to the amount of employment contained within the precinct, and their
personal and business needs on a daily basis. Other services that often co-locate within freight
precincts and hubs are petrol stations, fast food outlets (and other food providers), supermarkets,
other retail outlets and banks. In some cases, depending on distance to other urban areas, shortterm accommodation for business travellers or long term accommodation for transient workforce is
also required.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 23

Businesses that locate within or near a freight precinct or hub do so for commercial reasons, in that it will
either reduce their business costs by being close to transport and warehousing businesses (in the case of
manufacturing), or to meet the demands and needs of employees working within the precinct.

5.4

Access links and location

Warehousing and storage of goods and freight is simply a (often necessary) hold point in the logistics chain.
Stock is kept ready for quick and efficient delivery to where it is required. To facilitate the efficient transport of
this freight when required, access to and from the precinct or hub should not be impeded (ideally at any time
of day).
Therefore the best locations for freight precincts is at locations which are relatively inexpensive to buy land,
close to consumption points (unless acting as a hub supporting transport to a larger region), and have good
accessibility or access links to the surrounding road and rail infrastructure.
Therefore development of freight precincts near existing rail infrastructure gives opportunities to move freight
longer distances by rail. An inland port or a general intermodal terminal operating within or near the precinct
is desirable. Understanding the role of rail within the industries locating within the freight precinct is important
to ensure it is actually an advantage. Ensuring there are sufficient train paths to where the freight is coming
from or going to is important to ensure a reliable and usable service.
The development of these freight precincts or hubs close to major road infrastructure (like freeways and
roads of national significance) and on access points to major urban areas, provides high capacity corridors to
transport the freight to where it is required. Access on to these major roads from the precinct is important,
and therefore grade separations and multiple access and entry points are highly desirable.

5.5

Commodities

The primary warehousing and distribution functions associated with freight precincts and hubs can be
associated with any bulk or other commodity. In fact, there is no requirement to limit the number of
commodities that are associated with a freight precinct or hub.
However, the normal commodities associated with warehousing and distribution facilities are finished goods
ready for distribution to the end consumer. These include meat and dairy products, fresh fruit, long life-cycle
processed food (canned and dry), consumer goods (televisions and electrical) and motor vehicles and
machinery.
It is also normal for freight precincts to be associated with the packing of maritime shipping containers for
export, or the unpacking and distribution of freight from imported maritime shipping containers. Located close
to an inland port makes the transport of the container to and from the gateway port more efficient.
In other cases, where there is warehousing, distribution and manufacturing, there could be a range of other
commodities. These include light manufacturing including wood, paper; and in some cases, heavier
manufacturing including metal products and petrochemicals. Appropriate zoning will dictate whether freight
precincts are suitable for these light or heavy industries.

5.6

Moving air

Part of any transport and distribution enterprise is the unfortunate fact that most businesses either produce
or consume freight. For those that do both, the freight commodities often change from raw materials to
finished goods and therefore require different types of vehicles to facilitate their movement.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 24

As a consequence, the transport of freight is associated with the collection of freight from one or more
locations, followed by the delivery of freight to one or more other locations. For scheduling and reliability
reasons, many transport operators either operate:
1. Direct from production to consumption point. In this case, drivers leave the depot empty, travel
to the collection location, load, transport the freight to the destination and unload, and then return to
the depot, or undertake the next collection and delivery.
2. Overnight consolidation. In this case, drivers collect freight from businesses in the afternoon, this
freight is then transported back to the depot, where it is sorted by destination, and then is
transported the following morning to the destinations or consumption locations. Overnight
consolidation also applies to distribution centres although the freight may be stored for longer
periods, rather than just overnight.
3. Multiple collections and deliveries. In this case, drivers collect and delivery freight continuously,
attempting the make the route as efficient as possible. This method reduces the amount of time the
vehicle contains no freight, but is suited to small consignments of freight (and therefore done with
light commercial vehicles and small rigid trucks).
The first two methods are the most common for moving large quantities of freight; however both suffer from
periods of time where the vehicles are empty, called dead running. While dead running is impossible to
avoid, within freight precincts where business are located in close proximity to each other, distances travelled
empty become considerably less, and therefore transport becomes more efficient.

5.7

Factors that influence demand

It is generally harder to establish principles and guidelines dictating factors influencing freight precinct
demand compared to inland ports. Firstly, freight precincts are made up of a number of competing and
complementary businesses, each trying to operate in an efficient manner to maintain profitability. The
demand is therefore likely to be different if large national retail chains operate distribution centres within the
precinct, compared to a small amount of pack and unpack operations. The factors which influence demand
are:
1. Catchments. Unlike inland ports, freight precincts will not usually have a defined catchment. This is
because of the mix of commodities and businesses operating within the precinct. However, individual
businesses (in particular distribution centres for large retail chains) will have defined catchments,
depending on the size of their operation and locations of the same chains other distribution centres.
2. Freight precinct capacity. A freight precinct will have a capacity; however it will be more difficult to
calculate compared to single site operations. For warehousing and distribution businesses, their
capacity would normally be based on land area of their site, the amount of physical shed space, the
types of loading and unloading equipment, and layout. For master-planning of freight precincts, a mix
of different size lots to accommodate different types and sizes of businesses is recommended.
3. Access links. Efficient and effective road and rail links will influence overall demand for a freight
precinct, as it will dictate the amount of freight that can enter and leave the precinct on any given
day. Demand for freight is not continuous and smooth across the day, and therefore effective roads
links during daily peaks is important.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 25

5.8

Examples

Ruakura
A freight precinct development that is likely to change the way in which freight is handled and moved
throughout the UNI is Ruakura. This is a 500 hectare site located on the East Coast Main Trunk line 3km to
the East of Hamilton CBD.
Tainui Group Holdings (TGH) proposes to develop an inland port and freight precinct at Ruakura that will,
when completed, consist of an inland port and associated infrastructure, warehousing and distribution
centres, retail and industrial areas and a residential development.
One of the major selling points of this development is its location and accessibility. It is stated that the
development will offer freight service users road and rail access to the Ports of Auckland and the Port of
Tauranga, as well as short-term storage and handling facilities.
According to TGH, the works will be carefully staged and master planned to ensure that the site grows at a
sustainable pace over the next 20-30 years. It is planned that the initial development at the site will be an
inland port connecting the Ports of Auckland and Port of Tauranga using the East Coast Main Trunk line.
This will allow the movement of maritime containers between these ports via rail. Direct road access to and
from the site via the Waikato Expressway (when completed) will allow trucks to deliver and receive
containers.
Over time, the site will be expanded to incorporate ancillary services such as warehousing and storage and
is planned to also include space for complementary industries. It is envisaged that this will be achievable
when leases of existing industrial sites begin to run out and businesses see the financial advantages of
being located close to the inland port and logistics hub.
The key to success and further development of the site will depend on the ability of the inland port to capture
sufficient volumes and create an efficient scale of operation where importers and exporters receive a price
advantage from using the rail-road option over road only. This will be boosted when Ruakura achieves its
goal of attracting complimentary freight warehousing and logistics businesses to the site.
Further discussion regarding the Ruakura site is included in Section 7 - Waikato and Upper North Island
context.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 26

Figure 8 - Ruakura structure plan


(source: Ruakura Structure Plan Open Day Flyer, Hamilton City Council)

Project 230642 | 12 April 2013 | Revision issued to WR | Page 27

Efficiency and effectiveness

This section explains how inland ports and freight precincts facilitate efficiency, and should be encouraged
through planning systems and government policy directives. In this discussion, we also include intermodal
terminals (similar to inland ports but usually handle domestic rail containers), and the synergies that exist in
combining inland ports within freight precincts.

6.1

Why are inland ports and freight precincts efficient?

The development in inland ports and freight precincts has evolved slowly in New Zealand and Australia in
response to adverse existing operating conditions. Inland ports for example, reduce congestion in and
around gateway ports, increase throughput of the gateway port, and get the containerised freight closer to
the point of consumption (for import containers), or closer to the origin of freight (for export containers). For
freight precincts, protected areas of industrial zoned land enable operators to work at night without disturbing
the amenity of residential areas.
The effects on efficiency are felt at a business, a local area, a regional and at a national level, but are highly
dependent on the location and the operational characteristics of the inland port and freight precincts.
Business context
Inland ports and freight precincts give individual businesses efficiencies and therefore cost savings in the day
to day operation of their businesses.
1. Transport costs. For importers and exporters located a long way from gateway ports, inland ports
can offer more cost effective transport, e.g. the cost per container is reduced. Equally, freight
precincts offer reduced distances and good access links for the transport of freight, thereby reducing
overall transport costs for non-containerised freight.
2. Reliability. Under the assumption of a reliable and regular rail service between the gateway port and
the inland port, reliability in collection and delivery of containers can increase. This is because it
becomes possible to avoid congestion in and around the port.
3. Operating hours. Within the context of a buffered industrial zone capable of operation 24 hours per
day, 7 days per week, businesses can optimise when to undertake on-site activities, without
interfering with social amenity from surrounding residential areas. In this way, activities can occur at
night so that vehicles are ready to transport freight at the correct time of day, either to work around
the peaks, or to work within the requirements of their customers.
Local context
Within the local context, inland ports and freight precincts offer benefits to other businesses in the
community, as well as the residential population. Truck movements associated with the transport of freight
compete with private vehicles for available road space, so efficiencies in how this is shared are important.
1. Reduced congestion. Traditionally and over 150 years of development, ports have been located in
coastal areas that are readily accessible to urban areas. In many cases, this means that ports are
located in metropolitan areas, and the steady and high growth in containerised trade over the last 30
years has meant these areas are now highly congested, and have high land values. Inland ports and
the moving of industry into purpose built freight precincts, reduces congestion in and around the
existing sea ports.
2. Reduced local road wear and tear. Trucks and in particular heavy laden trucks cause significant
wear and tear on the road network. Removing trucks from around existing port locations, and

Project 230642 | 12 April 2013 | Revision issued to WR | Page 28

hubbing freight in suitably designed freight precincts, means that heavy freight vehicles minimise the
amount of damage done to local roads.
3. Amenity. Suitably buffered inland ports and freight precincts offer increased residential amenity,
through noise reduction (in particular), but also in terms of smoke, chemicals and other industrial
waste outputs being suitably distanced from the population.
Regional context
For regional areas, where this interest is in providing the infrastructure to ensure regional competiveness,
balanced against the interests of the population, inland ports and freight precincts are a method for delivering
the following improvements.
1. Employment benefits. During construction and operation of inland ports and freight precincts, jobs
in the construction industry and transport, warehousing and storage industries will be created. In
addition, it is likely that manufacturing industries serviced by the inland port and freight precinct will
see increases in employment as efficiencies in transportation lead to increased market share.
2. A reduction in road crash costs. If an inland port uses rail as a primary vehicle to move freight,
then this modal shift will reduce the number of heavy vehicles on the road, particularly around
congested port areas. This reduction in heavy vehicle traffic will reduce costs associated with
crashes, particular between small and large vehicles.
3. Reduced road wear and tear. As per the local road network, trucks and in particular heavy laden
trucks cause significant wear and tear on the road network. The use of rail for the consolidated
freight task, and hubbing freight in suitably designed freight precincts, means that heavy freight
vehicles minimise the amount of damage done to regional roads.
National context
At a national level, the transport of export freight (in particular), has a national significance in terms of its
contribution to the economy.
1. Increased competitiveness. Efficiency in transport will lead to reductions in costs, and therefore
lead to increased competitiveness with other countries. This could lead to better national accounts,
changes to the New Zealand dollar and higher contribution to gross domestic product.
2. A reduction in environmental costs. A reduction in overall truck travel will have environmental
benefits include a reduction in noise, greenhouse gas emissions, fuel costs and other air pollution.

6.2

What factors affect their effectiveness and efficiency?

Inland ports and freight precincts are designed for the efficient transport of freight from the point of origin
(production) to the destination (consumption), minimising the number of trips, minimising the distances
travelled, minimising emissions, increasing reliability and increasing neighbouring amenity.
There are however many factors which will affect their effectiveness and overall efficiency. These factors
have been discussed previously in Sections 4.8 and 5.7 and summarised in Table 2.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 29

Table 2 - Summary of factors that affect inland ports and freight precinct effectiveness

Issue

Applies to

Description of effectiveness

Inland port or
intermodal
terminal within a
freight precinct

Inland ports and


freight precincts

By themselves inland ports are a means of improving efficiency


of maritime logistics chains, and freight precincts and hubs allow
the efficient transport of freight. Together however, they allow rail
to be used to move freight long distances, thereby further
increasing efficiency and reducing heavy truck trips on the
national road network.

Ability to operate
24/7

Inland ports and


freight precincts

An inland port and freight precinct should be buffered from


residential areas so that they can operate 24/7. This allows
efficiency and flexibility in when to load and unload trucks and
trains, ensuring better turnaround times (when required) and
smoother and more reliable daily operations.

Reliable road and


rail access links

Inland ports and


freight precincts

This is one of the key aspects to the effectiveness of an inland


port and freight precincts to capture market share.
For rail, it is important to ensure enough train paths are available
between the inland port and the gateway port(s) to allow
sufficient numbers of containers to be moved in this way.
Road access is equally important. The terminal should be located
close to effective transport links such as freeways and roads of
national significance. Road links from the inland port and precinct
should be grade separated wherever possible to facilitate the
reliable movement of trucks (and other vehicles) on to the road
network.
Unreliable road and rail access links could hamper investment
and tenancy take-up, as well as stifle efficiency and reliability
improvements, necessary to create and maintain market share.

Efficient design to
maximise reliability

Inland ports and


freight precincts

The design of the site or precinct should consider efficiency and


reliability of vehicle movements.
For inland ports, this includes adequate truck queuing and
waiting areas, one way routing, separate entries for cars and
trucks, efficient handstand layout to minimise distances
containers need to be carried before loading onto the truck or
train.
For freight precincts, this includes road layouts within the site,
and to and from the site onto the surrounding road network.

Correct equipment
for the purpose

Inland ports

There are different types of container handling equipment which


will have an effect on the efficiency of the inland port operation.
For example:

Straddle carriers allow long skinny container stacks,


maximising use of the hardstand and enabling ready access
to nearly all containers. They are however very inefficient
for unloading trains, as they must travel the full length of the
train to unload a container.

Reach stackers are good for unloading trains, but aisles

Project 230642 | 12 April 2013 | Revision issued to WR | Page 30

Issue

Applies to

Description of effectiveness
between container stacks must be much wider to
accommodate their turning circle.

Gantry cranes are efficient for unloading trains, but are very
expensive, and cannot do any other activities on-site.

Customs and
Quarantine

Inland ports

Inland ports do not need to have Customs and Quarantine


services on-site; however by doing so, they relieve pressure from
the gateway port(s), while also increasing throughput. Having
them located at an inland port could improve container access
times if these functions are causing delays at the gateway
port(s).

Commodities and
catchments

Inland ports

Within the design or master-plan of a new inland port, it is


important to understand the commodities likely to be using the
facility, the ports that will be connected by rail (or road), and the
locations of competing hubs.
In that way, it will be possible to determine the catchment for the
inland port, the number of containers / amount of freight within
that catchment going to those gateway ports, and the market
share that will need to be captured to create a reliable, financially
viable service.
If the assumed capture is not sufficient to warrant long daily
trains or short hourly trains (depending on the distance to the
gateway port), customers will not support the service. The
capture rate will also need to be calculated based on the
expected cost of the competing modes. If cost is not improved by
going via the inland port, then it is unlikely to achieve a sufficient
capture rate for a sustainable venture.

Storage of empty
containers

Inland ports

While this issue is last on this list, it is very important for both
urban and regional inland ports. As the individual shipping lines
own the containers and are responsible for storage and transport
costs once they have been de-hired, shipping lines prefer to have
empty containers stored near the gateway port.
From an efficiency perspective of a transport operation, this
means that they would need to deliver empty containers or
collect empty containers a long way from the customer. This
increases transport costs; but also, the transport operator will
attempt to carry containers in both directions in order to minimise
dead running. This has the potential to erode the market capture
of full containers, and impact on the commercial viability of the
inland port.
It is therefore very important to understand which shipping lines
customers of the inland port are likely to use (based on shipping
trade routes and the country of origin or destination), and
negotiate storage arrangements on-site or close to the inland
port.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 31

6.3

Changing environment affecting future demand

Warehousing and distribution industries have undergone significant changes over the last 20 years in order
to respond to increased competition and efficiency. There is nothing to suggest that this change will not
continue; but what changes will occur is much harder to predict.
In the planning and development of inland ports and freight precincts, future changes to warehousing and
distribution must be considered, certainly from the perspective of what changes will positively and negatively
affect the ongoing viability of any new operation.
Factors which are likely to continue to be important
The following are factors that will remain important to the demand of inland ports and freight precincts.
1. Growth in import and export trade. Import and export trade has experienced significant growth in
New Zealand and Australia, and is likely to continue.
2. Low land costs which are accessible to road and rail. Land which is inexpensive and has good
access links to road and rail networks is going to continue to be the most attractive to new
warehousing and distribution developments.
3. Rail should continue to be competitive for long haul transport. While rail transport is not as
flexible and does not respond as quickly compared to road transport, it is likely to remain
competitive for heavy freight over longer distances.
4. Distribution centres. Large retail chains are likely to continue to invest in large distribution centres,
so they can control stock levels, and reduce at-store storage requirements.
5. Increased use of 3PL operators. Smaller producers and businesses will continue to outsource
transport to 3PL operators. In some cases, warehousing will also be outsourced.
6. Congestion will increase. Based on expected population growth, private vehicle trips and
associated demand for freight, congestion particularly during peak periods in urban areas, is likely to
get worse. Gateway ports in urban areas will likely also be affected by congestion.
These short- to medium-term trends are likely to have a positive impact on demand for inland ports and
freight precincts.
Changing factors that will affect future demand
Not all changes however, will be positive. The following are possible negative impacts to inland ports and
freight precincts caused by changes in operational practice.
1. Internet sales. Internet sales will continue to grow, which will erode traditional retail market share.
Therefore, there will likely be an increase in small parcel delivery, likely increasing the amount of
freight transported via air and possibly bringing down air freight costs.
2. Direct to store. Large retail chains will (where possible) get import consignments consolidated
overseas for individual stores, enabling transport direct to store. This will reduce double handling, but
also will mean containers bypassing distribution centres, and making rail less attractive.
3. Decrease in general manufacturing. General manufacturing in New Zealand and Australia is likely
to continue to decline due to cheap materials and labour available from our trading partners. This
means less local production and more imports, and therefore a further squeezing of gateway ports
and transport links to freight consumption points.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 32

4. Environmental initiatives. Environmental policies and initiatives will place high priority on
reductions in transport emissions (including carbon emissions). If these result in tangible impacts to
transport and distribution businesses, it will most likely drive up prices in the short-term and drive
further efficiencies in the medium- to long-term. Larger and heavier vehicles for consolidated loads
are a likely consequence.
5. Train paths. As rail mode share increases for more efficient transport of long distance freight, train
paths through regional areas are likely to become saturated. Without investment in duplication
and/or additional and longer passing loops, parts of the rail network may simply not be able to
accommodate any more trains. For urban areas where growth in public transport is likely to occur,
train paths for freight trains is likely to be reduced, and as the network approaches capacity, it is
likely to become increasingly sensitive to minor disruptions, which could impact reliability. The
availability of train paths will influence the location and efficiency of freight precincts and inland ports.
6. Residential encroachment. As established urban freight centres are located in inner suburbs of
cities, the value of the land increases and residential areas can encroach on the industrial centres.
This encroachment can impact the ability for industrial areas to operate 24/7, including truck bans on
certain roads at night. Master-planning and protection of specialised sites and corridors is important
to ensure benefits to transport efficiency can continue to be realised.
7. Port development plans and opportunities. Decisions made by governments and port operators
regarding the development and expansion of gateway ports are likely to influence the functioning
and viability of inland ports and freight precincts.
8. Cost of fuel. Fuel is one of the largest costs within the transport and logistics industry and heavily
influences the cost of moving freight on a local, national and international level. The increasing cost
of fuel will drive the need for greater efficiencies in freight movement.

6.4

The number and locations of inland ports and freight precincts

Within a given area or region, there is scope to develop and operate any number of inland ports and freight
precincts. However, as the numbers increase, the efficiency benefits become more marginal, until viability
and profitability become an issue. The following are general guidelines for the development of inland ports
and freight precincts to maximise utilisation, efficiency gains and ongoing viability.
Inland ports
For inland ports, there are no viability issues having too few. With none or just a small number, importers,
exporters and transport operators will continue to transport their freight to and from the gateway port via
road. The absence of inland ports however, will result in higher operational costs, particularly if the gateways
ports are highly congested or a long way away from the origin or destination of the freight.
The export logistics chain is probably the most affected by this, reducing the international competitiveness of
New Zealand export products. The import logistics chain will be more expensive, but these costs would in
essence simply be passed on to the consumers.
There can however, be too many inland ports for a given region. With too many inland ports, the catchment
for each inland port would overlap or shrink. This would in turn reduce the achievable throughput for each
inland port, and if the throughput decreases below a certain level, then the inland port would cease to be
able offer the reliability or the cost benefits needed to attract customers from the road option.
For example, for regional inland ports, the minimum throughput may be based on one long train service
between the inland port and the gateway port per day. At three services per week (for example), importers
will need to wait longer for their containers, or exporters may not be able to get their containers to the

Project 230642 | 12 April 2013 | Revision issued to WR | Page 33

gateway port in time to meet the shipping schedule. Reliability decreases, and some customers will then
choose the more expensive, but more reliable direct transport option to the gateway port.
For metropolitan inland ports running a smaller shuttle type operation, the minimum throughput may be
based on one train per hour. At six services per day (for example), the engines and rolling stock may be
sitting idle for long periods of time, increasing the cost per container transported, and eroding any cost
benefit that the inland port may have had.
In an inland port master-plan for a region, the number of inland ports and their locations would need to
consider what commodities are going to be transported, which gateway ports are the inland ports going to
connect to, the number of containers (or other freight tonnage) is the minimum to provide a reliable (frequent
and cost effective) service, and the size of catchment (and the capture rate) needed to ensure this minimum
quantity. Understanding the customers operational needs and the expected cost via each transport method
is very important to estimate this capture rate (for the given catchment).
The maximum throughput and future growth of imports and exports are also important considerations. Any
master-planning should also consider this in determining the number of inland ports and their locations.
Freight precincts
Like inland ports, there are no viability issues with having too few precincts. There are cost issues in having
too many. As described previously, freight precincts (including distribution centres, freight hubs and freight
villages) work most efficiently when combined with an inland port or intermodal terminal, and have good
access high capacity links to the road and rail network. It would simply not be cost effective to provide too
many inland ports (and intermodal terminals) and high capacity links to the road and rail network.
Ideally then (e.g. for master planned facilities), it is best from an investment perspective to develop large
freight precincts close to existing or proposed inland ports or intermodal terminals, where there are synergies
in the types of freight being transported by rail, and the manufacturing or primary industries being produced
in the region. The infrastructure investment can then be efficiently spent ensuring the best connectivity to the
existing road and rail network, and buffering from the surrounding residential areas.
For freight precincts without a rail component, small to medium precincts are best located in urban and
regional locations (on appropriately zoned land) close to where the freight is consumed or produced, with
good access links to the road network. The use of high performance freight vehicles (HPFVs) will be
dependent on the quality of the surrounding road network, and the likely locations of where the freight is
transported to or from.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 34

Waikato and Upper North Island context

This section of the report has been prepared after Aurecon attended a half day Waikato region workshop for
the UNI Freight Story and conducted follow up discussions with a limited number of stakeholders involved in
the movement of freight in the UNI. Below is a list of the individuals met with:

George Clark and John Birch, Hamilton International Airport;

Mike Pohio and Nathan York, Tainui Group Holdings Limited;

Bill McMaster, Katie Mayes and Tariq Ashraf, Waikato Regional Council;

Myles Andrews, NZTA;

James Bevan, Latitude Planning Services Limited (James attended the meeting with NZTA);

Baz Coldhart, Dairy Transport Logistics (DTL); and,

Marc Freewin, Carter Holt Harvey Lodestar.

These individuals and organisations were incredibly generous with their time and resources and should be
commended for their willingness to discuss the issues and opportunities they perceive to exist in the UNI and
the Waikato.
This list does not represent all of the key stakeholders or all of the major industries currently working, or
moving freight, in the Waikato and UNI. For example, the authors were not able to hold talks with key parties
such as KiwiRail, Fonterra, Northgate Business Park, the operators of Ports of Auckland and Port of
Tauranga, other key developers and other councils within the Upper North Island Strategic Alliance.
The observations and findings in this report are therefore provisional at this stage, pending further
discussions. It is recommended that the Waikato Regional Council continue and expand these discussions to
other parties as a matter of priority.

7.1

Current freight flows within the region

Data on freight movements in the UNI, and New Zealand as a whole are limited. The most recent study on
freight flows was conducted in 2008 using data from the 2006/07 Financial Year [10]. While unlikely that the
commodity types have changed significantly, there is an urgent need to update and expand on this data
using more recent information.
There is currently a project underway (UNI Freight Flow Model) to identify growth in freight volumes/values
over the next 20 plus years. This is being estimated for both road and rail. This project is being led by NZTA
with representation from Waikato Regional Council. The outcomes for this project will allow for some updated
freight volume and commodity information to be disseminated to relevant stakeholders. However, it is noted
that this study will not collect all information required. Therefore, there is an urgent need to identify gaps and
where appropriate, undertake additional data collection.
The reasons for this are twofold. First, it is desirable that the demand for import and supply of export freight
is documented and the flow of this freight across the North and South Islands is recorded. This will enable
the Central Government and the regional and district councils, including those that form the UNISA, to
accurately determine current infrastructure constraints and plan developments required to efficiently move
this freight task.
Second, it is desirable that forecasts of future freight movements are estimated from current and accurate
freight flows. It should be noted that the current forecasts, as estimated in the National Freight Demands
Study were completed prior to the Global Financial Crisis. Since that time, economic conditions in New

Project 230642 | 12 April 2013 | Revision issued to WR | Page 35

Zealand and worldwide have changed significantly, impacting on the growth of trade in the short and long
term. Total New Zealand imports and exports increased by 4% in 2009, and 11% in 2010, but decreased by
1% in 2011 as the effects of the Global Financial Crisis were felt [20].
That being said, it is clear from existing literature, and from discussions with relevant stakeholders in the
primary production and freight and logistics sectors, that the UNI is the primary producer and consumer of
freight in New Zealand. According to the Upper North Island Freight Study [5], the total movement of freight
in the region amounted to about 126 million tonnes in 2006-07 out of a national total estimated at 226 million
tonnes (page I of [5]). This equates to approximately 56% of all freight moved in New Zealand.
The New Zealand National Freight Demands Study expects that the volume of freight in and through the
Waikato region will double by 2031, which means significant increases in freight movements in the UNI. On a
national level, the top five commodities transported in New Zealand in 2006-07 (from largest to smallest
tonnes lifted) were:
1. Aggregates (40.2 million tonnes);
2. Logs and wood products (30.3 million tonnes);
3. Milk and dairy products (21.0 million tonnes);
4. Limestone, fertiliser, cement and concrete (18.8 million tonnes); and,
5. Retail and couriers (14.5 million tonnes).
The UNI is a major producer of primary produce. For example, high volumes of milk and dairy products, logs
and timber products, meat and aggregates are produced and transported throughout the UNI, particularly the
Waikato. These movements of raw materials are generally short road movements between the point of
production and manufacturing centres (for example milk is transported from the farm to major manufacturing
points in the region and logs are transported to the timber mills). Rail is used in increasing amounts to
transport produce earmarked for export to the Ports of Auckland or Port of Tauranga.
The major commodity movements for the Waikato and UNI identified in the Upper North Island Freight Study
[5], National Freight Demands Study [10] are similar to those on a national level. Data and industry
knowledge for some of these commodities are as follows:
1. Imported food, retail and manufactured goods. The UNI is
New Zealands population and employment hub, with this hub
relying heavily on imports (food, retail and manufactured goods).
South Auckland acts as a major distribution centre for these
imports (as most arrive in containers via Ports of Auckland and
Auckland has the highest population in New Zealand). This has
impacted on road congestion levels around the Ports of
Auckland, and South Auckland.
Recently, the MetroPort operation in Auckland has begun transporting import containers from Port
of Tauranga to South Auckland via rail. This is then unpacked at MetroPack, located close to
MetroPort, or transported to major distribution centres nearby. Similarly, the Wiri Freight Hub in
South Auckland is used to unpack containers moved from Ports of Auckland to Wiri via rail.
2. Dairy products. In 2006-07 a total of 15.6 billion litres of milk was
produced in New Zealand, of which 30% was produced in Waikato [5].
Dairy products are generally confined to short movements within a
region (for example the Waikato) rather than longer inter-regional trips.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 36

Fonterra dominates the industry with numerous sites in the Waikato, including large production
plants and a distribution centre in Crawford St, Hamilton. A large proportion of product sent to
Crawford St is exported through either Ports of Auckland or Port of Tauranga. Transport from
Crawford St to the port is generally via rail [3], with approximately 30,000 TEU moved between
Crawford St and these ports via rail in 2011 (from a total of 130,000 TEU Fonterra exports; personal
communication). The location of the Crawford St site allows Fonterra to select, to a certain degree,
the most efficient export point for their goods.
3. Log, timber and wood products. According to the National
Freight Demands Study, New Zealand is home to
approximately 2 million Ha of plantation forestry. Of this, 15%
is located in the Waikato region [10]. Logs are transported to
timber and paper mills for production, or direct to port for
export. For example, approximately 10.5 million tonnes of
logs and woodchips were exported in 2006 through the Port
of Tauranga.
By volume, wood, logs, timber and paper products are the largest export commodity for New
Zealand. To the extent possible, the industry uses rail as an efficient and cost effective mode of
transport for their export task. For example, Carter Holt Harvey (CHH) operates a major wood mill in
Kinleith, where logs are converted to timber and paper products for export and for domestic
consumption. There is a dedicated rail line running between this mill and the Port of Tauranga,
allowing CHH to transport large volumes of freight between the mill and the port.
It should be noted, that it is difficult, if not impossible, for this industry to use rail to transport raw
logs to these mills or manufacturing plants, as most of the logging areas are located long distances
from rail heads, meaning road is the only viable mode of transport. Road is also the preferred mode
used to transport products used in the manufacturing process (for example chemicals) to the mills.
4. Livestock and meat products. The majority of livestock movements are within individual regions in
the UNI, reflecting the movement of livestock from the farm to point of manufacture. In 2006/07,
approximately 0.5 million tonnes of meat and livestock was moved by road within the Waikato and
0.4 million tonnes within Northland [5].
This industry is highly susceptible to changes in the climate, with current production being lower
than previous years (personal communication). Once processed, meat products are either packed
into containers for export, or sent around New Zealand (primarily the UNI, and more specifically
Auckland due to its large population base) for domestic consumption.
5. Aggregates. Aggregate is moved in high quantities within individual regions in the UNI (for example
movements solely within the Waikato) and across regions (for example movements between the
Waikato and Auckland; [5]).
These movements are virtually all via road as this is a high volume, low value commodity where low
cost and efficient transport is key to profitability. In addition, rail does not service aggregate
production points or customers.
Figure 9 shows the major commodity movements and direction of these movements across the UNI.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 37

Figure 9 - Major commodity movements (import and export) through the UNI, compiled based on data from [5],
[10] and industry discussions

7.2

Potential changes to freight movements in the next 30 years

During the UNI Freight Story workshop and subsequent discussions, a number of key points were identified
relating to freight growth and movement trends likely to occur in the UNI over the next 30 years. The sections
below summarise the key points from these initial discussions. Note that due to the limited time available for
this study, these observations cannot necessarily be considered representative of industry generally. As
previously acknowledged, it is recommended that additional discussions are held with key stakeholders to
expand on the information gathered during this study.
Dairy and dairy products / Dairy Transport Limited (DTL)
Based on discussions with DTL, Fonterra has saturated the UNI and particularly the Waikato. It is not likely
that dairy production and the manufacture of associated products will expand significantly in the future.
There are suggestions in the industry that Fonterra are likely to consolidate their operations to a number of
key distribution points in New Zealand. These are likely to be Crawford St in Hamilton, South Auckland, New
Plymouth and Christchurch in the South Island. The study team were unable to confirm this directly with
Fonterra.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 38

Timber, logs, and paper products / Carter Holt Harvey Lodestar


The primary goal over the foreseeable future for the forestry industry is to consolidate their operations and
focus on value-add production where possible. For example, exporting a manufactured product such as
paper or processed timber is 4-5 times more profitable than exporting raw logs.
By concentrating on value add opportunities, it
is possible for the industry to increase profit
margins without increasing yield from wood
lots.

Figure 10 - Carter Holt Harvey Kinleith Plant


(source http://en.wikipedia.org/wiki/File:Kinleith_Mill_And_Cogen_Plant.jpg)

The land currently dedicated to forestry in the


UNI and Waikato is relatively fixed and not
likely to change in the future. However, there
may be further conversions of land from
forestry to pastoral use in the South WaikatoTaupo area.
The extent of conversions will depend on the
price of carbon (currently low which
encourages conversions), potential changes
to the Emissions Trading Scheme and prices for wood products. Otherwise, , the scheduling of wood lot
harvesting is quite predictable. Discussions with industry centred around a focus on land usage and strong
management of emissions, water, energy and available land in the future.
Industry representatives did indicate that the issues they foresee in the harvesting of available land were:
1. The accessibility of these locations for heavy vehicles. These sites are often located some
distances from state highways or railheads, making access for large trucks difficult.
2. The current trend for some councils to increase land rates. This is happening for some wood
lots immediately before harvesting. This is due to councils argument that the wear and tear on the
local road network warrants the additional rates.
3. The additional efficiencies that could be gained through the HPMV program. If the HPMV
licencing process was changed to better accommodate the dynamic nature of their logistics chain, it
would be more efficient and more widely used. For example, there are issues with gaining HPMV
licences for smaller roads into wood lots and mills and issues with allocating licences to a single
route, truck and driver combination. Industry feel that by allowing firms the flexibility of fixing the
route but licencing multiple vehicles using one application (as these vehicles are not always required
to carry overweight loads), the program will be more efficient and more widely used.
4. Better access to good quality, secondary roads on the network. Transport operators in the
industry use many poorly maintained roads due to the location of wood lots.
5. Kinleith to Tauranga rail link. The age and condition of the dedicated rail line between Kinleith and
Port of Tauranga could become problematic in the future if the track is not maintained.
There is also the possibility that efficiencies could be gained through a shift to rail as a primary mode of
transport for the domestic freight task. To do this however, investment and upgrades would be required to
the East Coast Main Trunk and North Island Main Trunk lines to increase capacity and reliability of these
services. A review of the current railhead locations in the UNI would also need to be completed, with
additional, strategically located loading points created to make this a viable solution for the forestry industry.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 39

Future import and export trade through UNI ports


In total, New Zealand container volumes account for less than 1% of global container trade [20], so on the
world scale, New Zealand is a relatively small player. Currently, Ports of Auckland has an annual container
throughput of 867,368 TEUs in 2010 (http://www.poal.co.nz/). Tauranga primarily caters for bulk freight
movements (10.2 million export and 5.1 million import tonnes in 2011; http://www.port-tauranga.co.nz), with
an increasing number of import and export containers handled by this port (590,506 TEUs in 2011).
In 2011, several shipping lines increased capacity from New Zealand [20]. This capacity was primarily for
routes between New Zealand and North Asia and, to a lesser extent, to South East Asia. This was done by
introducing smaller vessels. According to the New Zealand Shippers Council recent report on the Question
of Bigger Ships [20], as New Zealand has a significant and increasing time sensitive trade, frequency of
services and transit times will continue to be critical.
Each port has a number of constraints and issues, which may limit expansion plans and competitiveness on
the world stage. These constraints and issues are also likely to increase, rather than decrease, the cost of
doing business in the UNI. These constraints and issues are:
1. Ports of Auckland. The following issues relate specifically to Ports of Auckland.
a. and availability for expansion. Currently, the CBD, suburbs and Auckland Harbour hem in
the port, with very little land available for expansion of the port footprint. One option is to
undertake land reclamation into Auckland Harbour to accommodate more or larger vessels.
This would be a highly contentious issue given the ports proximity to the CBD and location
on Auckland Harbour.
b. Rail congestion in Auckland.
Stakeholders spoken to during the Upper
North Island Freight Story workshop, and
during subsequent discussions, have
indicated that the rail links to the Ports of
Auckland are quite congested. There is
increasing conflict between the freight
services offered by KiwiRail and
passenger rail services. This makes rail
movements difficult, if not impossible,
during daylight hours.
c.

Figure 11 - Ports of Auckland as seen during the


teams visit to the UNI

Congestion in South Auckland and


around the port. Most of the main
distribution centres for the UNI are located in South Auckland. This results in high numbers
of truck trips between South Auckland and Ports of Auckland. Increasingly, congestion is
causing variability in travel times and increasing transport costs for transport operators and
businesses in the port logistics chain.

2. Port of Tauranga. The following issues relate specifically to Port of Tauranga.


a. Capacity of the East Coast Main Trunk line. Stakeholders spoken to during the Upper
North Island Freight Story workshop and during subsequent discussions, have indicated that
the rail links to the Port of Tauranga are quite congested.
Recently, a number of passing loops have been added to this line to double its capacity;
however stakeholders have indicated that this has already been consumed by additional rail
services, particularly those relating to import container movements to the MetroPort site and
export movements by Fonterra from their Crawford St site.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 40

At the time of this study it was not possible to confirm this capacity issue directly with
KiwiRail and KiwiRails official position is that there is spare capacity on the East Coast Main
Trunk line.
b. Road and rail links to the port. During discussions, numerous stakeholders indicated that
as the Port of Tauranga expands its operations, the congestion around the port and on road
links leading to the port are becoming more congested. Some stakeholders also believe that
the rail route through Taurangas CBD also poses a constraint for port access.
3. Marsden Point. The following issues relate specifically to Marsden Point, a potential deep water port
located near Whangarei. Numerous industry representatives indicated that this could be developed
to accommodate large vessels (greater than 5,000 TEU), however a number of infrastructure and
locational limitations exist.
a. Road links to the port. During discussions, numerous stakeholders indicated that the road
links to Marsden Point are currently not suited to large scale port operations.
b. Rail links to the port. A rail link between Auckland and Marsden Point does not exist and
would need to be developed if container freight were to be moved efficiently to Marsden
Point.
c.

Distance from Auckland and the Waikato. The largest catchment for import goods is
Auckland, approximately 200km south of Marsden Point. The largest catchment for export
goods (particularly dairy products packed into containers) is the Waikato. If Marsden Point
were to be developed as a major port in the UNI, then significant infrastructure
developments would need to be undertaken to make the movement of freight to and from
Auckland and to and from the Waikato (through Auckland), efficient and cost effective.

4. Inability for ports to accommodate large vessels (e.g. 5000-7000 TEU). Currently, no New
Zealand port is able to accommodate large vessels (those greater than 5,000 TEU). This conflicts
with the worldwide trend by shippers to invest in bigger ships with larger capacities and draughts. It
is difficult to determine at this point whether shipping lines will bypass New Zealand due to the
inability for these large vessels to call at the UNI ports, however, according to the New Zealand
Shippers Council, this is a possibility [20].
If this does happen, it is likely that Australia (for instance Brisbane, Sydney or Melbourne) will be
used as a hub port and import and export containers transhipped to New Zealand. This may impact
on cost to businesses and efficiency of operations (for example increased transit times to get exports
to market overseas).
The recent Shippers Council report on The Question of Bigger Ships [20], indicates that it would be
prudent for two ports (one in the North Island and one in the South Island) to become 7,000 TEU
ship capable within the next 5 years. For the North Island, this could be either Ports of Auckland or
Port of Tauranga, however the Council indicates that Tauranga is more advanced in their proposal to
cater for these larger vessels and the cost of works is significantly lower than Auckland. Indeed, a
dredging consent was granted for Tauranga in December 2011 (but is being appealed) and
expansion of the container berth has already begun.
The obvious advantage for shipping lines to use larger ships with less frequent cycles allows for
efficiency and reduced transportation costs per container or tonne of bulk freight. Australian ports
have responded to this trend by dredging, and expansion of berths and land-side infrastructure to
accommodate.
Currently, there does not appear to be capacity issues with the ports in the UNI, particularly because
of the increased role Port of Tauranga is having in handling import and export containers. However

Project 230642 | 12 April 2013 | Revision issued to WR | Page 41

active management and planning must be undertaken now to ensure that capacity does not become
constrained in the future.

7.3

Relationship between freight movement, land-use and infrastructure


development

There is an abundance of land available in the UNI, including the Waikato, for industrial development. This
land has been zoned for industrial use, however it appears that very little planning at the UNI strategic level
has been done to determine whether all of this land is required for industry, what infrastructure investment
would be required to effectively service all of these areas and whether the release of this land for industrial
use could result in less efficiency in the freight logistics chains, rather than make things more efficient and
productive.
Not all freight precincts and inland ports are created equal
Based on discussions with stakeholders, it is unlikely that the direction of freight flows or the types of
commodities moved throughout the UNI and Waikato will change significantly in the future. The question,
therefore, is whether the development of additional industrial land will make the movement of this freight
more efficient and lower the cost of doing business in the UNI.
The size of each land parcel currently available, its location relative to current industry, current road and rail
infrastructure and available markets, will dictate whether these parcels are developed and what industry type
will locate there. For smaller parcels that are well serviced by the state highway network or close to
railheads, it is unlikely that any major infrastructure development is required. These locations would quite
easily become small freight precincts where one, or a small number of businesses, congregate to achieve
economies of scale.
Parcels of land not well serviced by the road or rail network, will be much less attractive for business and
therefore either not developed, or only developed when the necessary infrastructure development occurs (for
example additional road links or development of additional rail heads close by).
Below are summaries of two inland port and freight precinct developments in the Waikato region. Current
views of stakeholders in the industry are that these are two of the most advanced proposals to date. In the
case of Ruakura in particular, its scale may also change the flow of freight in the region. Some of the issues
and opportunities about this development are noted below.
Ruakura inland port and freight precinct development (Tainui Group Holdings Limited)
The Ruakura inland port is a large development planned by Tainui Group Holdings Limited (TGH) on land
approximately 3km East of Hamiltons CBD.
In terms of location, it is uniquely located on the East Coast Main Trunk line near the junction of this and
North Island Main Trunk lines. The site already has approximately 11,000 train services running through it
each year.It also located opposite the proposed Waikato Expressway. It is also situated equidistance from
Ports of Auckland and Port of Tauranga.
TGH plan on developing this almost 500Ha site over the next 30-50 years, and are currently in the initial
stages of rezoning the land and applying for the necessary permissions and permits to begin the initial
works.
The initial stage concentrates on the development of a relatively small inland port (initial throughput is
anticipated to be approximately 12,000 TEU per annum [19], on approximately 30Ha of available land). This
site will initially be serviced by road only. However, as demand requires, the site will have a developed rail

Project 230642 | 12 April 2013 | Revision issued to WR | Page 42

grid of four 900m sidings to accommodate trains coming in from Ports of Auckland and Port of Tauranga
[19].
Comments from Stakeholders on the development at Ruakura included:

Possible congestion issues at the site if there is development in advance of the completion of the
Waikato Expressway;

location of the Inland port relative to Auckland, and;

the available catchment/demand in Hamilton and whether this will allow the operators of the inland
port to run a cost effective operation and provide a cost saving over road transport.

With respect to the final bullet point, a number of reports are available which specifically address the
economic issues surrounding the Ruakura development [6], [7].
This site will, at least in its initial stages, concentrate on the import container task. Current estimates indicate
that there will be enough land on site to service approximately 1 million TEU per annum, however this is not
likely to occur (or need to occur) until further into the future. TGH have indicated that to make this a more
efficient operation, they will look for options to supply major exporters with empty containers once the import
containers have been unpacked on site.
It is possible, that without changing the current logistics chain in the UNI, containers may move to Ruakura
via rail from Auckland and then be loaded onto a truck for transport back to distribution centres in South
Auckland. Another scenario (if the distribution hub moved south to sit within the Ruakura site) is that
containers will be unpacked on site then transferred onto truck for transport to Auckland.
Each of these scenarios has the potential to increase heavy vehicle movements, rather than alleviate it. This
will be particularly pronounced if Ruakura generates significant truck movements to and from South
Auckland before the Waikato Expressway is operational, or if the proposed ramp located at Ruakura is not
developed. However, the staging of Ruakura is currently being considered as part of the Regional Policy
Statement.
A number of issues are being addressed between TGH and Hamilton City Council with regards to the impact
of developing the eastern fringe of the City, including:

the longer term impact on the industrial land uses on the western fringe of the City;

The proximity to existing residential land uses and the Waikato University and Ruakura research
areas (both of which are very important to the economy and amenity of Hamilton);

the amenity of the surrounding area due to the potential operational requirements of the inland port;
and,

transport impacts associated with the operation of the site.

A development of this magnitude is likely to be a step-change in the way freight is handled in the Waikato,
and the UNI and should also be considered as part of a wider freight strategy for the UNI, due to the size of
the proposal being put forward and the potential for a proposal of this magnitude to change the flow of freight
across the region.
Titanium Park (Hamilton International Airport)
This is a relatively small start-up freight precinct operation located on the Hamilton International Airport site.
Currently, the major tenant (who is about to begin the build and fit out of their distribution centre) is Torpedo7
who will consolidate their operations at this site. This online store imports their goods in containers, unpacks

Project 230642 | 12 April 2013 | Revision issued to WR | Page 43

them on site and then repacks these products into courier parcels for delivery to customers who buy their
goods over the internet.
Hamilton International Airport is marketing Titanium Park to other freight and logistics businesses as they
release the second stage of the development.
Currently very little, if any, freight moves through the airport itself, and it is unlikely to change before the
runway is extended to accommodate wide-body jets. This will not happen until either a second airline
commits to servicing the airport, or the Ministry of Transport determines that Hamilton International Airport
should be extended to provide a backup for Auckland Airport in the event of a major incident.
The plan for this site is to complete works and secure tenants over the next 15 year period, but it should be
noted that development will only occur as tenants are sourced. Rail is unlikely to feature in the short to
medium term at this site.
is also possible that, rather than attracting large distribution centres, this industrial park will continue to have
a distinct aviation flavour. For example, it is possible that industries such as flight schools and aircraft
maintenance, repair and overhaul
Figure 12 - Titanium Park site layout,
businesses are attracted to this location.
sourced from Hamilton International Airport

The highlighted area in Figure 12 is


Montgomerie Farm, owned by the
Titanium Park Joint Venture (JV). This JV
will be seeking rezoning of part of this
land to industrial (the airside portion) in
the Waipa District Council Plan.
According to Hamilton International
Airport representatives, this rezoning is
strategically important to the JV and
therefore the Airport, as its development
at some point (e.g. post runway
extension) is important to the success of
the total park. This needs to be balanced
against the fact that there is limited
airside land available for activities that directly support the airport's operational functions and regionally
significant role.
Other potential inland port and freight precinct sites
There are a number of alternate locations identified as industrial notes that could be used as inland ports
and/or freight precincts in the Waikato and UNI. The locations mooted in [19] are:

Those identified in the Waikato Regional Policy Statement


o

Rotokauri (Hamilton West);

Te Rapa North (Hamilton North-West);

Horotiu North, also known as Northgate (North of Hamilton);

Hautapu (South East of Hamilton);

Huntly and Rotowaro;

Project 230642 | 12 April 2013 | Revision issued to WR | Page 44

Those falling outside the Waikato Region


o

Drury (South Auckland);

Rangiuru (Bay of Plenty); and,

Kawerau (Bay of Plenty).

The locations mentioned in the evidence statement regarding the Ruakura inland port closely correspond to
many of the Strategic Industrial Nodes identified in the Future Proof Growth Strategy (Figure 13)..The
Waikato Regional Policy Statement has identified, allocated, and staged strategic industrial nodes where
industrial development in the Future Proof area should predominately locate. These nodes are listed above.
These areas, other than Ruakura, have not been formally suggested as inland ports or freight precincts. It
should also be noted that this list is not exhaustive and other potential sites may exist and other key parties
will need to be approached to confirm this.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 45

Figure 13 - Futureproof.org.nz settlement pattern map showing many of the


proposed industrial developments in the Waikato

Project 230642 | 12 April 2013 | Revision issued to WR | Page 46

In addition, without granulated, up to date and accurate data on production and consumption of freight in the
UNI, it is currently difficult to conclude whether any of these sites are required (even if the site at Ruakura is
not developed) and whether they are located close enough to catchments to make the development of an
inland port a viable solution. We understand that these matters will be covered to some extent through the
UNI Port Study; however it is still highly desirable that granulated data be collected urgently.
In addition, a number of new business parks, which may be developed into freight precincts over time if/when
demand warrant this, include:
1. Auckland Airport (Auckland). Various precincts surrounding the airport are being advertised by
Auckland International Airport Limited (Auckland Airport) as freight and logistics centres. For
example, The Landing is a logistics and distribution location. Current tenants include Mercedes
Benz and DSV Air and Sea.
2. Highbrook Business Park (East Tamaki). This site does not have rail access but is close to
Highway 1. Current tenants at this site include CourierPost, LG, DHL and Big Chill Distribution.
These two developments are located close to major transport links and the tenant mix indicates that the
number of heavy vehicle movements is relatively low. It is not envisaged that major infrastructure upgrades
will be required to service these sites in the near future.
Recommended approach to plan for investment in infrastructure
It is highly desirable that relevant data is collected to aid understanding of the likelihood of development of
these current greenfield sites based on commodity flows. This will require a concerted effort by all levels of
government, relevant industry bodies and the ports to discuss, and to identify, key locations for freight and
logistics hubs (and inland ports). Once these strategic locations have been identified, it would then be
possible for entities such as NZTA and KiwiRail to plan road and rail links to these areas.
One of the key concerns from stakeholders was a lack of firm commitment of planning and infrastructure
development for the long term. If this strategic approach is undertaken and firm decisions made for long-term
infrastructure developments, industry will gain the confidence it needs to plan for expansion.
Below are a number of key tasks and issues relating to land use changes and infrastructure development
that need to be addressed to provide industry with the confidence and certainty it requires to make long-term
plans:
1. Collection and dissemination of freight data (production and demand information). This
should be collected and collated centrally and disseminated to relevant stakeholders to enable them
to determine the actual freight task in each region of the UNI. This should include as a minimum:
freight volumes, origins and interim and final destinations of freight, and mode(s) of transport. It is
important to also note that this should be done for both the international and domestic freight task.
2. Identification of key locations for freight production and demand for freight in the UNI. Once
data has been collected on freight movements (production and consumption in the UNI),
stakeholders (for example the regional and district councils and the UNISA) will then be able to
identify key production and consumption points.
3. Forecasting the freight task in the future. Once detailed baseline data has been collected,
forecasting of the freight task can then be completed. This will then enable decisions to be made
about whether additional land is required for freight precincts, distribution centres and inland ports
and where these should be located. This will, in turn, enable decisions regarding infrastructure
development to be made (for example additional rail sidings, road upgrades).

Project 230642 | 12 April 2013 | Revision issued to WR | Page 47

The information can also be used to determine whether the following infrastructure improvements are
required now, or in the future, to support growth in the UNI freight task.
1. Improved road and rail access to Ports of Auckland and Port of Tauranga.
2. Upgrade of the North Island Main Trunk and East Coast Main Trunk lines to provide additional
capacity and improved service and reliability.
3. Potential development of Marsden Point into a major container port in the North Island.
4. Improvement of secondary road network in the UNI for movement of freight from the point of
production to manufacturing plants.

7.4

Locational and functional requirements for inland ports and freight hubs for
the Upper North Island

There are a number of other issues that will impact on overall demand, effectiveness, competitiveness and
efficiency of inland ports and freight precincts in the Waikato and UNI. The UNI, and in particular, the area
between Auckland, Hamilton and Tauranga (the Golden Triangle), is the population (53%) and employment
(50%) hub of New Zealand [21]. As a direct result, a large proportion of imported product moving through the
Ports of Auckland and Port of Tauranga is destined for the UNI. In addition, the region is also a major
producer of primary produce.
Currently, vessel berth and container hardstand space at Ports of Auckland is limited, meaning that the quick
movement of containers off of the port is critical to the overall container logistics chain in the UNI. Present
logistics chain movements include the transportation of these containers via road or rail to South Auckland
(where a collection of distribution centres are located). Containers are then unpacked and loads are
consolidated prior to delivery to customers across the UNI.
Based on current freight movement data, the locations of the two primary ports in the UNI, and population
and employment densities, it would be logical for any new major inland port or freight precinct to be located
in this region to maximise efficiencies and minimise transportation costs.
Key requirements for success
For a new inland port or freight precinct in the UNI, the following points are key locational and functional
requirements:
1. Location relative to primary markets. The location of proposed developments relative to their
primary market in the UNI is critical to overall success. To make these operations efficient, it must be
cheaper to transport freight via the inland port rather than direct to the customer via road (or another
inland port). As noted previously however, other factors will influence the transport method, including
the time sensitivity of freight, the value of the freight, and existing commercial relationships.
In the UNI context, it is therefore important to locate any proposed large inland port or freight
precinct in the Golden Triangle, as the biggest market for goods is Auckland. Commercial
relationships will need to be developed between inland ports/freight precincts close to Hamilton, to
make these locations commercially attractive for major development.
Currently MetroPort has a commercial relationship with Port of Tauranga, and Wiri has similar
relationship with Ports of Auckland, potentially limiting development opportunities for these inland
ports at a system-wide level. Ideally, any future inland port developments will need to develop
commercial relationships with both gateway ports (and shipping lines), allowing the additional port to
complement the existing logistics chain operating in the region.

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2. Location relative to major road and rail infrastructure. Development of inland ports and freight
precincts in the UNI need to be near existing rail infrastructure that provides opportunities to move
freight from the gateway ports via rail and the option of transporting domestic freight longer
distances. Ensuring there are sufficient train paths to where the freight is coming from, or going to, is
important to ensure a reliable and usable service.
In the UNI context, a large inland port (in particular) would need to be located close to a state
highway (for example the proposed Waikato Expressway) and located on land abutting the North
Island Main Trunk or the East Coast Main Trunk lines. This will enable the efficient movement of
freight via rail and minimise and/or eliminate the need to use the local road network.
3. Land available and terminal capacity. Reports from industry indicate that land around Ports of
Auckland and South Auckland is constrained. In addition, there is a large amount of available land
that has been rezoned as industrial across the UNI that could be used for inland port and/or freight
precinct development, if required.
From a transport efficiency perspective, it is best to have multiple inland ports, located in strategic
positions where import and export freight is consumed or created. However, the issue of enough
freight to provide reliable and frequent rail services to gateway ports is critical to economic viability
and therefore an overriding factor. It is likely to be more efficient if one larger inland port and
supporting, smaller freight precincts are developed in the UNI to handle the growth in the freight
task.
4. Co-location of warehousing, storage and light industry. The co-location of warehousing, storage
and relevant industry at major inland ports and/or freight precincts in the UNI would also serve to
decrease the number of truck trips required on public roads, and make the operation of these sites
more efficient and cost effective.
5. Buffering from residential areas. Major inland port and freight precinct developments are likely to
be contentious for residents located close by. It is recommended that the developers of these sites
liaise with local residents and councils from the outset to clearly define and document buffering to be
used. This buffering should be a combination of vacant land, the location of other ancillary services
and sound arresting devices. In addition, advanced lighting technology that will direct light
downwards and away from nearby homes should also be incorporated into these developments.
Optimal number of inland ports and freight precincts in the UNI
As stated previously, within a given area or region, there is scope to develop and operate any number of
inland ports and freight precincts. However, as the numbers increase, the efficiency benefits become more
marginal, until viability and profitability become an issue.
In the UNI context, current imports amount to less than 1.5 million TEU per annum, and two inland port
operations currently exist (MetroPort and Wiri). Although the UNI container task, particularly for imports, is
expected to grow over the next 20-30 years, it is still critical that any new major inland port developments are
able to provide efficiency benefits to its customers. The key factor in this is to ensure that the number of
inland ports developed in the UNI have adequate catchment areas and can provide a reliable service.
From a review of available desktop studies, and discussions with relevant stakeholders, it is likely that the
development of a large inland port in the UNI, would be sufficient to cope with the increase in import
container trade (in particular). Ideally, this inland port should service both Ports of Auckland and Port of
Tauranga. This would provide the UNI with three inland port operations, MetroPort servicing the Port of
Tauranga, Wiri servicing the Ports of Auckland and a new high capacity inland port servicing both.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 49

Freight precinct numbers are less critical, as these areas do not historically rely in high container throughput
to obtain economies of scale. It is likely that freight precincts will naturally evolve over time as new inland
port(s) are developed and businesses in the transport and logistics sectors congregate to these locations.

7.5

Lessons learned internationally

The international examples outlined below provide evidence on inland port operations that undertake regular,
short-distance rail shuttle services between a major container port(s) and inland port locations. These
examples have been selected as the study team believe that the systems proposed correspond most closely
to the UNI setting. For example, the intermodal terminals in the Melbourne case are relatively short distances
from each other and from the Port of Melbourne (approximately 40-50km).
These examples highlight the need for a system-wide approach to resolve congestion around major
international gateway ports. Stakeholders such as the port operators, shipping lines, rail operators, councils
and government must work together to ensure the success of the inland port system implemented. For
instance, in example two, it is noted that the Belgium Government has subsidised the National Rail Container
Network to increase its competitiveness in the short term, as each inland port develops its catchment and
reliability.
Metropolitan Intermodal System, Melbourne Victoria
The Port of Melbourne is Australias largest container terminal. In the 2010-2011 Financial Year, total
container throughput was approximately 2.39 million TEU [17], which, based on monthly media releases from
the Port of Melbourne Corporation (PoMC) has been surpassed this last financial year. It is expected that
with current port expansion works underway, that by 2035 total port container throughput will be
approximately 8 million TEUs.
The recent Container Logistics Chain Study completed by this study team for the PoMC indicated that
approximately 87% of full import containers were unpacked and 54% of full export containers were packed in
the Metropolitan Melbourne [16]. If this practice were to continue, then in 2035 around 6 million TEU will
have origins or destinations in Melbourne with the majority of these containers moved via road. This would
put enormous strain on the metropolitan road network and add to already heavily congested roads in an
around the port precinct.
Currently, the majority of transport operators involved in the port logistics chain have transport depots and
staging locations close to the Port of Melbourne. This allows the operators to efficiently transport containers
between their depots and the port at any time of the day, thereby taking advantage of lower levels of
congestion in off-peak periods. This however increases the number of movements required to transport a
container between the customer and the port.
Recently, the Victorian government has begun considering options to reduce the reliance on trucks to
transport containers in and around Melbourne. One option being considered is the development of a
metropolitan intermodal terminal network to complement the current road-direct delivery and pickup model.
According to government documents [18], the proposed solution:
aims to reduce the number of truck trips in and around the central port/Dynon area and on key arterial
roads to and from the Port and to improve overall efficiency and environmental performance by:

Splitting freight journeys into a longer linehaul leg and a local pick-up and delivery (PUD) leg;

Utilising more productive, efficient and environmentally friendly road and rail vehicles on the
longer line-haul leg; and,

Managing a network of terminals, line-haul and PUD transport services, moving full and empty
containers, as an integrated system.

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The proposed intermodal system is likely to include three road/rail intermodal terminals around Melbourne,
located within large existing freight areas to the West, North and South East of the Port of Melbourne. In the
long term, these road / rail intermodal terminals could be supplemented with road / road terminals. In this
instance, containers will be transported from the port to these terminals by High Performance Freight
Vehicles (HPFVs), and then transferred to smaller trucks for delivery direct to the customer [18].
In the Australian setting, gateway ports were traditionally public assets. These ports are now owned by either
government incorporated bodies (e.g. the Port of Melbourne Corporation, the Sydney Ports Corporation, and
Fremantle Ports) or leased by private organisations. For example, a 99-year land lease and port operating
license for the Port of Adelaide was signed between the South Australian Government and Flinders Ports
Corporation in 2001. A similar agreement was signed between the Queensland Government and the Port of
Brisbane Corporation in 2010.
Inland ports have to date been developed by private corporations with their locations selected and designed
to leverage off of existing public infrastructure (particularly rail sidings). There is often a joint funding
arrangement in place for these developments, where business cases and feasibility studies are put to major
government funding bodies (for example Infrastructure Australia). It is likely that the intermodal terminals for
the Metropolitan Intermodal System will be developed and operated by private enterprise.
In addition to substantial investment by the private sector, for the Metropolitan Intermodal System to be
successful in Melbourne, the Victorian government will likely play an important role in providing policy,
strategic direction and providing certainty for the overall development of the system. The governments
primary goal is to develop a system to alleviate congestion on Melbournes road network, but as required, will
also work with local councils to rezone land where required to aid in this development.

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Figure 14 - Proposed structure of the Melbourne Metropolitan Intermodal System (sourced from [18])

Project 230642 | 12 April 2013 | Revision issued to WR | Page 52

Bowmans Intermodal Terminal, South Australia


Patrick PortLink South Australia (PPSA) is a joint venture between Patrick PortLink and Balco, two privately
owned corporations, that operate a port shuttle service between Bowmans, approximately 110km north of
Adelaide and the Outer Harbor precinct (Figure 15). It provides a variation on the normal import/export
processes, by incorporating a regional intermodal service into the container logistics chain. This PPSA
service is targeted primarily as an alternative to road for exporters from Port Pirie and Bowmans, and from
their surrounding hinterlands.
The PPSA service is also unique in the context of the port system, in that one of the members of the joint
venture, Balco, is actually an exporter of hay and grains in its own right. The transport operation it provides
has largely arisen out of its own need to access export markets.
This service primarily has an export focus. The primary products carried by the service are: lead and zinc
from the Nystar refinery at Port Pirie (approximately 10,000 TEU per annum); hay to Japan, Taiwan and
Korea (12,000 TEU per annum); and pulses (~3,000 TEU per annum); the latter two are both packed by
Balco at the Bowmans site.
The service commences at the Adelaide Container Terminal at Outer Harbour, where it collects empty
containers for export. The train then proceeds to Bowmans to unload. Bowmans has a single 685m deadend siding to load and unload the train. The site is limited to a 200m unloading pad, which requires the train
to continuously shunt during the loading and unloading process.
The train will run from Bowmans to Port Pirie with empty containers three times a week, and return with full
lead and zinc containers. Later on the same day this freight is consolidated with the hay and grain
containers.
Once the loading of export containers is completed at Bowmans, the train returns to Outer Harbor, where it is
split into consignments for the Adelaide Container Terminal and Mackenzie intermodal terminal. At
Mackenzie, a number of containers are land-bridged to Melbourne, to connect with vessels sailing through to
Japan (approximately 20% of the export hay is shipped through Melbourne). At the Adelaide Container
Terminal rail terminal, the full containers for export are offloaded and then transferred to maritime terminal
storage.
On days when it does not operate the trip to Port Pirie, the train service will repeat the Outer HarborBowmans trip. It is possible in these circumstances that the train will complete two cycles within one 24 hour
period.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 53

Figure 15 - Location of Bowmans relative to Outer Harbour (sourced from [22])

National Rail Container Network, Belgium


Belgium is a key freight hub for Europe and the port of Antwerp is the third largest container port in Europe
after Rotterdam and Hamburg. To alleviate congestion around the port and increase the efficiency of
container transport, the National Rail Container Network (NaRCoN) has been developed to transport
containers to and from key locations around Belgium using regular train shuttle services. This system was
launched in 2004 by B-Cargo and IFB (a subsidiary of the Belgian railway company SNCB).
Five container trains arrive at the Main Hub in Antwerp from four intermodal terminals in Belgium; Athus,
Charleroi, Mouscron and Kortrijk. It is also linked to the sea port at Zeebrugge. These terminals are located
at key sites to service Belgium and the wider areas of northern France, Luxenbourg and some parts of
western Germany. Road transport is used to transfer containers between these intermodal terminals and the
customer.

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Figure 16 - Belgium NaRCoN system (sourced from [18])

Forrestfield Intermodal Terminal, Perth Western Australia


The Forrestfield Intermodal site operates as an inland port servicing the Fremantle Inner Harbour Container
Terminal. Forrestfield is located approximately 40km via rail (32km via road) from Fremantles Inner Harbour
Container Terminal. This facility is operated by a private transport and logistics provider firm, who operated
two rail shuttle services per day (train capacity of 50 TEU).
In Perth, it is understood that road is still the preferred transport method between the port and the customer,
with only limited take-up of the intermodal solution. The likely reasons include:
1. Cost. The overall cost from port to customer can be more expensive via rail due to the number of
(container) lifts required. It is understood that the Western Australian government were subsidising
the service to ensure its cost competitiveness.
2. Delivery reliability. Delivery via Forrestfield would take longer than port to customer direct.
3. De-Hire of empty containers. In the past, it is understood that only one shipping line accepted
empty containers at the Forrestfield Intermodal Terminal. This means that it was difficult for transport
operators to return empties to Forrestfield when collecting imports for delivery. This reduces the
efficiency of their movements and increases their overall costs.
4. Competition. As the rail service and terminal was operated by a private transport operator, other
transport businesses could be reluctant to use a rail leg, as it would effectively be given away part of
their market share and profit.
Key features and learnings
These examples highlight a number of key aspects that facilitate the success of inland port operations and
efficiencies in the port supply chain. These include:
1. System-wide approach. This is required in order to resolve congestion around major gateway
ports. Stakeholders such as the port operators, shipping lines, rail operators, councils and
government must work together to ensure the success of the inland port system implemented. For
instance, the Belgium Government has subsidised the National Rail Container Network to increase

Project 230642 | 12 April 2013 | Revision issued to WR | Page 55

its competitiveness in the short term as each inland port develops its catchment, throughput,
efficiency and reliability. This has also been done by the West Australian Government for the
Forrestfield operation.
2. Location of inland ports relative to the catchment available. The location of inland ports has
been chosen to correspond with catchments capable of achieving a high throughput of containers
and provide cost-efficient and efficient operations. For example, inland ports in Melbourne are likely
to be located close to or within pre-existing industrial areas to Melbournes north, west and southeast.
3. Ability to operate 24/7. The location of these ports in industrial areas mean that buffering from
residential zones is already in place, allowing 24/7 operations if required and the ability to easily
transport containers to distribution centres or businesses for unpacking with short truck trips.
4. Economies of scale and service reliability. Reliability is also an important component for the
success of the inland port system implemented. This does not impact on the size of the catchment
area, but in the capture rate for the catchment.
In the Melbourne example, the area surrounding the Port of Melbourne is heavily congested,
resulting in long and unreliable truck queuing times, particularly at peak times. This is resulting in
many transport operators collecting containers during the night and taking these containers to
staging locations (transport depots) for short term storage prior to delivery to the customer during the
day.
The aim of the Metropolitan Intermodal System is to undertake high frequency rail shuttle services to
the inland ports (one train per hour), to enable transport operators to collect containers from these
inland ports for a short truck leg to the customer, without significant delay in delivery times.
5. Land space and location. In the Melbourne example in particular, relatively inexpensive land in the
outer metropolitan area is available for the development of the inland ports. This reduces the need
for expansion of industrial areas in the inner metropolitan region (where land is expensive). Many
inland port locations in Melbourne already have rail access and have, or are currently being used as,
rail sidings. This adequate land space allows for infrastructure such as container hardstand areas
and additional rail sidings to be developed quickly and cheaply.
The UNI freight task is similar to Perth but significantly smaller than both Melbourne and Belgium, making the
issues of location, available catchment and service reliability critical to achieve viable and cost-effective rail
operations.
These international examples highlight the need for various levels of government to work together to achieve
a workable and efficient logistics chain solution. These levels of government will have different, but
complementary, goals. For instance, the role of the Victorian, West Australian and Belgium governments in
the examples above is to implement policies and strategies at a state and/or national level to alleviate
congestion on the road network and facilitate the efficient movement of freight. This may, in some instances,
involve funding assistance or subsidies. The role of the local governments is to work closely with the
developers of inland port operations to consider local issues such as local congestion, amenity, zoning etc.

7.6

Are existing proposals likely to change in the next 30 years?

Based on discussions with stakeholders in the Waikato region, the following timeframes are proposed for
development of inland ports, freight precincts and major production and distribution points in the region:
1. Titanium Park. Developers of this site indicated that they are working to a 15 year timeframe on an
as needs basis.

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2. Ruakura. According to documents in the public realm and from discussions with TGH, Ruakura will
be developed over a 30 to 50 year period. There are no explicit details outlining the plan for this
staged development, other than to say that the inland port will be the first stage with an initial 12,000
TEU throughput (all on road) and the site will take 30-50 years to reach capacity of 1 million TEUs.
3. Additional distribution centre for Fonterra. From discussions with stakeholders in the industry, it
is unlikely at this point that Fonterra will develop an additional distribution centre in the Waikato. At
this stage, there are suggestions in the industry that this additional site will be located in South
Auckland (to be developed as the Crawford St site nears capacity, likely to be in around 1-2 years
from now).
4. Additional or significantly upgraded paper processing mill. Carter Holt Harvey Lodestar
indicated that a new paper mill will need to be developed on the next 30-50 years as plants such as
Kinleith reach their end of life. The location of such a plant has not been determined, however, logic
would suggest that this plant would benefit from being located close to a port, major road and rail
infrastructure and close to available wood lots for supply of harvested logs.

7.7

Ancillary services required for success

Inland ports and freight precincts overseas influence the pattern and distribution of the freight task over time.
This occurs because decisions on the location of future warehousing and distribution centres include the
location of the inland port in their judgements. In many cases, warehousing and distribution centres choose
to relocate their facilities to maximise the use of lower-cost inland ports. This means that inland ports are
able to attract freight users to a natural catchment zone over time.
This is most evident where the inland port is co-located with warehousing facilities or an industrial park. The
presence of these facilities can reduce handling and logistics costs, by eliminating the cost associated with
the transport leg between the inland port and the unpack site.
For example, an importer who makes use of the on-site warehouse and distribution facilities at Ruakura
would only need to freight goods from either the Ports of Auckland or Port of Tauranga to the inland port then
from the inland port to the final customer (as unpacked goods). This allows the importer to minimise the cost
of distributing goods and services throughout the supply chain. In addition, if a customer were located at the
industrial park also on site, transport time and costs would be further reduced.
In summary, the ancillary services required for the success of inland ports located in the Waikato (and more
broadly the UNI) are:
1. Customs and Quarantine. This allows import and export containers to be cleared at the inland port,
so they can be quickly moved from the gateway port. Customs and Quarantine within inland ports
will require bonded warehouses and an under bond container storage area for pre-Customs
clearance storage.
2. Empty container repair and storage. Within the industry, the storage of empty containers is a
marginally profitable business. However, the movement of empty containers is large, and unless
empty containers can be stored close to or within the inland port, they must be returned to empty
container parks located close to the gateway port, making an inland port less cost effective and
efficient.
Additional efficiencies can be gained by locating distribution centres and a freight precinct on site. If this is to
be considered, the following services are also critical to overall success:
3. Distribution Centres and pack/unpack facilities. Transport of import and export freight can be
made more efficient if pack and unpack operations can be located close to, or on the same site as
an inland port. This means that either short truck trips are required to deliver packed containers to

Project 230642 | 12 April 2013 | Revision issued to WR | Page 57

the inland port for export or to deliver full import containers to the distribution centre for unpacking
prior to delivery to the customer. If these operations are located on site, then these transportation
legs are removed from the road network completely.
4. Manufacturing businesses. Manufacturing businesses are often located close to the origin of their
raw materials. For businesses which import materials, or materials are already processed in some
way, locating within or close to a freight precinct or freight hub provides them with access to
warehousing and storage, and efficient transport and distribution services.
5. Other services. With a sizable freight precinct, there is a requirement for other non-transport-related
services. This is mainly due to amount of employment contained within the precinct, and their
personal and business needs on the daily basis.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 58

Concluding remarks

The UNI is the primary producer and consumer of freight in New Zealand, and the freight task is increasing
at a rapid rate. New Zealand, and specifically the UNI, is heavily reliant on the efficient movement of imports
from the ports to distribution centres and consumers; and exports moving from the point of production,
through the manufacturing process to the ports. Inefficiencies in these supply chains, in particular congestion
issues relating to road, rail and port access, add costs to businesses and impact more broadly on overall
productivity and the nations economic health.
The development of inland ports and freight precincts can assist in making the movement of this freight more
efficient, particularly by alleviating congestion around gateway ports and built up industrial areas.
International examples provided in this report indicate that the strategic placement of inland ports and freight
precincts can increase efficiencies and decrease the cost of doing business. It is therefore prudent for the
UNI to consider the implementation of an inland port system in the region.
A number of other key trends are influencing, or have the potential to influence, the movement of freight in
New Zealand. These issues and trends include:
1. Internet sales will continue to grow, which will erode traditional retail market share.
2. Large retail chains will (where possible) get import consignments consolidated overseas for
individual stores, enabling transport direct to store.
3. General manufacturing in New Zealand and Australia is likely to continue to decline due to cheap
materials and labour available from our trading partners.
4. Environmental policies and initiatives will place high priority on reductions in transport emissions
(including carbon emissions).
5. As rail mode share increases for more efficient transport of long distance freight, train paths through
regional areas are likely to become saturated. Without investment in duplication and/or additional
and longer passing loops, parts of the rail network may simply not be able to accommodate any
further train paths.
6. As established urban freight centres are located in inner suburbs of cities, the value of the land
increases and residential areas can encroach on the industrial centres.
7. Decisions made by governments and port operators regarding the development and expansion of
gateway ports are likely to influence the functioning and viability of inland ports and freight precincts.
8. The increasing cost of fuel will drive the need for greater efficiencies in freight movement.
9. Trend for shipping lines to invest in, and use, larger vessels (those greater than 5,000 TEU).
On the world scale, freight movements and import and export volumes in New Zealand are relatively small,
with relatively few capacity constraints present at the moment. However, with these freight movements
expected to double over the next 30 years, it is critical that detailed planning and development begins now to
prevent congestion issues from forming.
Currently, there are a number of key challenges that will impact on the efficient movement of freight in the
UNI. These factors include:
1. A lack of detailed data on freight origins and destinations across the region and up to date forecast
data for future freight demand;
2. No integrated strategic framework across all levels of government for the planning and management
of freight movements across the UNI;

Project 230642 | 12 April 2013 | Revision issued to WR | Page 59

3. The current inability of New Zealands ports to cater for vessels greater than 5,000 TEU;
4. No firm decisions have been made regarding the future role and function of UNI sea ports;
5. No solid information summarising the amount of industrial land available across the UNI, where
development is more likely to occur and the infrastructure required.
Discussions with stakeholders during this commission have indicated that there is a large amount of
industrial land available for development across the UNI. Currently, there are a number of private
developments being earmarked for freight precinct or inland port development; however, there does not
appear to be a strategic approach from councils and the central government to manage this development or
plan for infrastructure relating to this. The primary focus of these sites should be to develop operations where
commodities such as imported food, manufactured goods and retail products and exports such as food and
dairy are efficiently and reliably transferred from one mode to another (inland ports), or pack or unpacked for
further distribution (freight precincts).
The location of potential inland ports and freight precincts should be close to existing or planned
infrastructure such as rail heads and major road links to provide fast and reliable access to site and to the
catchments and customer base. Currently, South Auckland is facing issues such as increased road and rail
congestion, limited land available for development and increased land prices. As a result, it is likely that large
inland port and freight precinct developments will be situated away from this area. The benefit of this is
decreased congestion. One of the drawbacks in the short term however is that most of the major distribution
centres are located in South Auckland, meaning an inland port is still likely to have to transport freight into
and out of this region unless these centres relocate.
From a transport efficiency perspective, it is best to have multiple inland ports, located in strategic positions
where import and export freight is consumed or created. However, the issue of enough freight to provide
reliable and frequent rail services to gateway ports is critical to economic viability and therefore an overriding
factor. Data, modelling and analysis are required to master-plan the ideal number and location of these
developments.
One such proposed high volume inland port is the Ruakura site to the east of Hamilton. This is located close
to existing rail infrastructure and the planned Waikato Expressway. The site is currently in the planning
stages.
It is critical that stakeholders approach the development of such sites at a system-wide level to ensure the
inland ports and freight precincts complement each other rather than work in competition. As the freight task
in the UNI is relatively small, distances are relatively short and existing commercial relationships are firmly
entrenched, it is important that stakeholders work together to devise a system that works for the benefit of
the entire UNI. This will involve collaboration between UNI councils, relevant central government
departments, port operators, shipping lines, transport operators, freight forwarders and businesses involved
in the production and consumption of freight.
In summary, one of the keys to ensure the economic health of New Zealand is the efficient and reliable
movement of freight into and out of the country. To ensure this is possible, road and rail links across the
country and additional inland ports and freight precincts, particularly in the UNI, need to be strategically
planned. There are some small bottlenecks, congestion issues and inefficiencies beginning to appear in the
landside logistics chains, which will become more pronounced and costly as the freight task increases. The
sooner these issues are rectified and strategic plans are put in place, the easier these bottlenecks will be to
address.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 60

Glossary
Term

Definition

3PL

Third party logistics providers - provides transport services for customers,


including storage of freight.

Backloading

The practice where a container or non-container truck makes a delivery and a


collection during the same trip, i.e. truck is laden in both directions.

CHE

Container Handling Equipment. This may include gantry cranes, full and empty
container handling forklifts, reach stackers and straddle carriers.

Consignee

A business receiving and unpacking a container for domestic rail movements


(for the purposes of this study), equivalent to an importer for international
shipping movements.

Consignor

A business packing and dispatching a container for domestic rail movements


(for the purpose of this study), equivalent to an exporter for international
shipping movements.

Container or shipping
container

Steel boxes designed to carry freight. Maritime containers are often


standardised 20 feet or 40 feet long and 8 feet wide and high. Domestic
containers are much more varied, with lengths including 30, 45, 48 and 53 foot.

Container movement

A container movement is the collection of a container from one location (e.g.


an intermodal terminal) that is then transported to another location (e.g. an
importer).

De-hire

The process of returning an empty container to an empty container park.

Empty container park

A handling, repair and storage facility for empty containers, usually located
close to the port to minimise repositioning costs for shipping lines.

Export

For the purposes of this study, export refers to the dispatch of containers from
a gateway port (e.g. Auckland or Tauranga) by a vessel to an international or
mainland coastal destination.

Exporter

A business operated primarily for the purpose of exporting freight, or for


providing export-related services to other businesses.

Gantry crane

A large crane mounted on a platform that usually runs back and forth on
parallel tracks (can be rubber tyred or rail mounted) astride the container
stacks. These cranes are generally used at a marine or intermodal terminal to
load/unload containers from trains or trucks.

Hardstand

An open ground area with a prepared hard wearing surface. For the purposes
of this report, this includes all surfaced intermodal terminal land including the
container stacking area. Hardstand is normally built and rated to take a certain
weight which can dictate stack height.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 61

Term

Definition

Full container handling


forklift

Forklift capable of carrying a fully loaded 20 foot or 40 foot container. These


forklifts are generally used to transfer fully loaded containers between the
hardstand area and trucks or rail wagons.

Import

For the purposes of this study, import refers to the discharge of containers into
a gateway port (e.g. Auckland or Tauranga) from an international, or mainland
coastal vessel.

Importer

A business operated primarily for the purpose of importing freight, or for


providing import-related services to other companies.

Intermodal

Movement of containers interchangeably between transport modes (e.g. road


and rail), where the equipment is compatible within the multiple systems.

Empty container
handling forklift

Forklift capable of carrying an empty 20 foot or 40 foot container. These


forklifts are generally used to transfer empty containers between trucks and
empty container storage facilities. Some empty container handling forklifts are
able to carry two 20 or 40 foot containers at the same time.

Logistics chain

A logistics management system that integrates the sequence of activities from


delivery of raw materials to the manufacturer through to the delivery of the
finished product to the customer.

Rail terminal operators

A business that engages in the loading and unloading of freight and containers
on and off trains.

Reach Stacker

Reach stackers are able to transport containers (both 20 foot and 40 foot full or
empty) short distances very quickly and stack them in various rows and heights
depending on its access and the weight of the container. Reach stackers
usually have a higher stacking capacity when compared to forklifts. Using
reach stackers, container blocks can be kept 2 deep due to the second row
access. Reach stackers are generally used to transfer containers between the
hardstand area and trucks or rail wagons.

Reefer

Refrigerated container designed to transport refrigerated or frozen freight. They


have their own refrigeration equipment incorporated into the container design.

Repositioning

Movement of a normally empty container from one location where it is not


needed to another where it is. The export of an empty container is often
referred to as repositioning.

Stevedore

A business that engages in the loading and unloading of vessels cargo at a


port. For the purpose of this study, this relates to containerised freight.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 62

Term

Definition

Straddle carrier

A straddle carrier is a non-road going vehicle for use in gateway ports,


intermodal terminals and transport yards and is used for stacking and moving
standard (both full and empty). Straddle carriers pick and carry containers
while straddling their load and connect to the top lifting points of the container.
Straddle carriers have the ability to stack containers up to 4 high; however
container stacks can only be one container wide with small gaps in between
rows.

TEU

Twenty Foot Equivalent Unit, container counting unit based on the International
Standards Organisation, 20-foot by 8-foot container

Transhipments

To transfer freight or container for one ship, truck, or freight vehicle to another.
For the purposes of this study a transhipment refers to the transfer of
containerised freight from one train to another, e.g. maritime import container
to domestic rail train for delivery intrastate or interstate.

Transport operator

A business that transports containerised or non-containerised freight between


two locations, e.g. port and import customer.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 63

10

References

[1]

Freight Information Gathering System (FIGS) Presentation, New Zealand Ministry of Transport,
Presented to the Inter-regional transport planning integration meeting, 15 June 2012.

[2]

Port of Tauranga Annual Report 2011.

[3]

Fuel Efficiency Impacts of Fonterras Crawford St Dairy Freight Hub, Murray King and Francis Small
Consultancy Limited, Report Prepared for the Waikato Regional Council, September 2011.

[4]

Updating the Waikato Regional Industry Transport Study (UWRITS), Draft Final Report, Richard
Paling Consulting and IPC & Associates, Report Prepared for the Waikato Regional Council, April
2009.

[5]

Upper North Island Freight Study, Final Report, Richard Paling Consulting, Report Prepared for the
Inter-regional Transport Planning Integration Group, September 2010.

[6]

Commercial and Economic Rationale for the Ruakura Inland Port and Logistic Hub, Consolidated
Report to Tainui Group Holdings Limited, Castalia Strategic Advisors, March 2012.

[7]

Review of Castalia Reports on Ruakura and Implications, Business and Economic Research Limited,
Report Prepared for the Waikato Regional Council, April 2012.

[8]

Waikato Regional Land Transport Strategy 2011-2041, Waikato Regional Council, October 2011.

[9]

Tainui Group Holdings Limited & Waikato-Tainui Fisheries Limited, 2011 Annual Report, Tainui
Group Holdings, June 2011.

[10]

National Freight Demands Study, Richard Paling Consulting, Report Prepared for Ministry of
Transport, New Zealand Transport Agency and the Ministry of Economic Development, September
2008.

[11]

Freight, transport and land use in and beyond the Waikato a summary profile (2012). Waikato
Regional Council, May 2012.

[12]

Waikato regional economic profile, Working Draft, Waikato Regional Council, December 2011.

[13]

Ports of Auckland Port Development Plan, Ports of Auckland Ltd, 2008.

[14]

2010-2011 Ports of Auckland Annual Review, Ports of Auckland Ltd, 2011.

[15]

Container Productivity at New Zealand Ports, Ministry of Transport, October 2011.

[16]

Port of Melbourne and Dynon Rail Terminals 2009 Container Logistics Chain Study, Full Report,
IMIS Integrated Management Information Systems Pty Ltd, Report Prepared for the Port of
Melbourne Corporation, Victorian Department of Transport and the Essential Services Commission,
September 2010.

[17]

Port of Melbourne Corporation 2010-2011 Annual Report, Port of Melbourne Corporation, August
2011.

[18]

A discussion paper: Shaping Melbournes Freight Future. Proposals for an intermodal solution to
service Melbournes growing containerised freight task. Victorian Department of Transport, April
2010.

[19]

Statement of evidence of Anthony (Tony) Boyle on behalf of Tainui Group Holdings Limited in the
matter of the Resource Management Act 1991 and in the matter of the Proposed Waikato Regional
Policy Statement, April 2012.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 64

[20]

The Question of Bigger Ships. Securing New Zealands International Supply Chain. New Zealand
Shippers Council, August 2010.

[21]

UNISA Report: Port Networks. Meeting 8 October 2011, Upper North Island Strategic Alliance.

[22]

Capacity Constraints and Supply Chain Performance Intermodal, Working Paper #1


Understanding the Intermodal supply chain, Booz&Co, Report Prepared for the National Transport
Commission, January 2008.

[23]

Proposed Waikato Regional Policy Statement, Waikato Regional Council, December 2011.

Project 230642 | 12 April 2013 | Revision issued to WR | Page 65

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