Holcim New Zealand has warned that local seafaring jobs and coastal shipping capacity will be reduced following a government decision to block the use of a foreign-flagged cement carrier, forcing the company to switch to road transport.
Holcim, which imports cement through its Auckland and Tivaru terminals, having closed its Westport plant in 2016, said it had entered into a time-charter agreement with Swiss-based NovaAlgoma Cement Carriers (NACC) to provide a temporary vessel for up to three years while a replacement was built for its ageing 27-year-old MV Buffalo.
However, Associate Transport Minister James Meager declined NACC’s application for authorisation to operate a coastal shipping service in New Zealand waters.
Holcim said the decision effectively prioritised road freight over coastal shipping, preventing what it described as a credible interim solution. Without access to a suitable locally flagged vessel, the company said it had no alternative but to invest heavily in road transport to maintain cement supply across the North and South Islands.
As a result, Holcim estimates that around 15,000t/month of bulk cement will now be transported by road, requiring more than 500 additional truck movements. The company warned this would cost millions of dollars and could undermine the long-term viability of coastal shipping.
The decision follows earlier controversy over Holcim’s cement shipping arrangements, previously reported by CemNet.
Minister Meager said the application did not meet the intent of maritime law, which aims to protect New Zealand’s coastal shipping industry, but added that Holcim could continue working with the transport ministry to find alternative solutions.
