New Zealand's Timaru port faces job losses new boxes found

THE loss of major client Fonterra at New Zealand's PrimePort Timaru is expected to result in job losses, unless the port company can find ways to raise container throughput 38 per cent.

PrimePort Timaru Board Chairman Sid McAuley said the decision by Fonterra to redirect its exports out of Lyttelton would lower container throughput from 61,000 in the past year to 37,000, far below the container terminal's breakeven point of 60,000, reports the Timaru Herald.

"In the next few months we will be aggressively working to rebuild container volume. The level of success we have will determine what will happen to staff numbers, but we can't rule cuts out," he said.

"There will not be a knee-jerk reaction and we did have a major rationalisation of staff last year.

"Container levels under 40,000 does put the container terminal at risk, the container throughput really does need to be 60,000."

Mr McAuley said Fonterra's decision to switch to moving exports by rail from Temuka to Lyttelton was prompted by Kiwirail offering "very competitive prices."

However, he was confident that PrimePort would survive this latest setback and he didn't expect any management job losses.

"You never arrive in this business. There is significant volume of cargo outside of dairy and we will be working with other exporters and importers," said Mr McAuley.

"Historically there isn't any shipping arrangement that lasts a long time."

(Source: www.schednet.com)