Dairy giant Fonterra said today (14 August) that it is looking at consolidating the number of ports it uses to boost efficiency in its supply chain for exports out of New Zealand.
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Fonterra’s general manager of supply chain strategy, Nigel Jones, said the changes were about improving service to its global customers and reducing costs by moving containerised product away from indirect, or feeder, services to direct export services.
Jones added that the co-operative had been discussing its plans with logistics service providers, and would be channelling greater export volumes of product out of the ports of Auckland, Tauranga, Lyttleton and Napier. As a result, Fonterra will reduce the volume of product moved through the ports of Taranaki and Timaru by 65% and 80% respectively.
While there would be an impact on ports which had less volume, Jones said it was vital Fonterra had the most efficient, reliable and flexible links with its markets around the world.
“These changes are about making the best use of shipping services out of New Zealand and the country’s ports – to serve our customers and ultimately, through efficiencies, put more money in our farmers’ pockets,” he said.
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By GlobalData“Historically there has been significant cross subsidisation of indirect services through regional ports by ocean carriers. And our customers are demanding ever increasing levels of service delivery.”
Jones said other exporters would also potentially benefit from the investment and development of New Zealand’s ports and container transport systems, and that the development would provide Fonterra with access to a greater variety of ocean carriers.
“New Zealand can’t afford to find itself in a position where we don’t have a sustainable, cost effective ocean freight network, supported by highly efficient domestic transport infrastructure.”
