Inland port competition fears
Port Otago competing with Calder Stewart to establish an inland port could have a "serious impact" on the Otago Regional Council's financial position, a regional councillor says.
Calder Stewart last week proposed what it called a "$3 billion" inland port at its 200ha Milburn site, near Milton.
The Clutha-based construction giant's announcement came days before a proposed Port Otago-Dynes Transport inland port at Mosgiel got a major boost from Regional Development Minister Shane Jones in the form of an up to $8.2 million loan from the government's Regional Infrastructure Fund.
The back-to-back announcements prompted debate and uncertainty, which was picked up on at a full council meeting yesterday.
Port Otago is 100% owned by the regional council and Cr Gary Kelliher raised concerns about what would be a "a very sizable, very substantial investment" if the two projects went head to head.
"It could have a very serious impact on our balance sheet if both of these projects go together.
"And there are obvious issues appearing with the Mosgiel one already."
After the meeting, he said the main issue he was concerned about was transport related "and the heavy traffic" that would be added to the local roading network if or when the Mosgiel port was established.
"Also, that the Milton port has kind of appeared out of the blue — but these are possibly both billion-dollar projects and the Port Otago balance sheet will be carrying the development proposed by Port Otago," Cr Kelliher said.
"As ORC owns Port Otago I am immediately concerned that there are now two proposals advancing, both saying they are proceeding with knowledge of each other, and really there's only need for one.
"I think an inland port is a really good idea, but surely both proposals need to be aligned into one that meets the total needs and allays the concerns of Mosgiel residents about increased heavy traffic."
At the meeting,
Cr Michael Laws said Otago was but "one region with limited resources" and asked whether the two proposed facilities would be in competition.
"Is Shane Jones right when he says it's frustrating that there wasn't some coalescing of minds in the region before what seems to be two competitive proposals are placed against each other?"
Cr Kate Wilson, who is chairwoman of the Otago regional transport committee, said she wanted to assure people "that regional planning is going well in Otago and Southland".
"And the idea that inland ports aren't planned for is incorrect.
"The place to find that stuff is in the regional transport plan.
"And while companies can compete, well and truly outlined in there is an option that businesses will in the end, or the market, will fix the solutions."
Council chairwoman Cr Gretchen Robertson said the council was regularly briefed by Port Otago on its programme of works and another briefing was due "reasonably soon".
There was also a process through the port company's issuing of a statement of corporate intent where councillors could tell the company how they expected it to operate, she said.
"There's always competition in any business — that's healthy — and it's not our place to dictate that, I don't think," Cr Robertson said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
NZ Herald
an hour ago
- NZ Herald
On The Up: Tauranga businesses The Conqueror, Clarity Distilling Company, Pure Mama make waves overseas
The Conqueror is a fitness app that motivates people to stay active through virtual challenges tied to real-world locations, offering unique medals mailed to participants upon completion of a challenge. A fitness motivation app company in Mount Maunganui has beaten giant global brands to nab an international award in Las Vegas. It's among small Tauranga-based companies making waves on the world stage recently, including a skincare brand's deal with Gwyneth Paltrow's Goop, and a gin distillery eyeing a
Otago Daily Times
an hour ago
- Otago Daily Times
Southern tourism pioneer celebrates 100th birthday
The first lady of Queenstown tourism celebrated her 100th birthday, surrounded by family and friends, in the resort on Saturday. Olive, Lady Hutchins (nee Simpson) celebrated the milestone at Queenstown Country Club retirement village, where she lives, with her large family — including some of her 18 grandchildren and 31 great-grandchildren — and some old friends. Cards from King Charles and Queen Camilla and Prime Minister Christopher Luxon were proudly on display. To acknowledge her birthday, RealNZ, begun by the Hutchins family, ran a "kids go free" weekend for all its experiences, and took a group of local children to Walter Peak on Saturday afternoon to plant a grove of native plants in Lady Hutchins' honour. Born in Invercargill in 1925, the youngest of three children of farming parents from Myross Bush, Lady Hutchins went to the local primary school and then Southland Girls' High School before taking a job in the office at Invercargill's H&J Smiths. In 1945, when she was 20, she met her future husband, Les, at a dance in Invercargill, shortly after he returned from the war. The couple married at Invercargill's First Church in 1948 and had four children. Les ran a furniture business in Invercargill but left that under management in 1954 after buying Les Murrell's estate, which included a Manapouri-based "walking tour", traversing the Wilmot Pass, into Doubtful Sound, and back, and two boats, The Constance and The Pilgrim . Turning that into the Manapouri-Doubtful Sound Tourist Company, the family initially spent summers in Manapouri but made it their permanent home in 1956. Mrs Hodges said her mother was "a typical 1950s woman — she just followed Dad", and while she was kept busy raising the family, she would also cater for the boats and man the radio when Les was away. The couple became central voices in the Save Manapouri campaign, launched in response to the government's announcement it intended to raise lakes Manapouri and Te Anau for hydro-electric development. The couple's business, renamed Fiordland Travel (now RealNZ), grew when they bought the TSS Earnslaw in 1969 — it was to have been scrapped the year prior — and spent years restoring the 1912 Edwardian twin-screw steamer, ensuring the "Lady of the Lake" was preserved for future generations. In 1970 Fiordland Travel launched Milford Sound cruises and in 1991 it secured a lease at Queenstown's Walter Peak High Country Farm, opening up a slice of rural New Zealand to visitors. It was around that time Les handed the reins of the company to son Bryan. In the early 1990s the couple moved to Kelvin Heights. Les was named a Distinguished Companion of the New Zealand Order of Merit in 2002, the year before his death. Bryan said that was bestowed during a period when "Sir" and "Dame" weren't used. However, after the titles were reintroduced, in 2009, the late Sir Eion Edgar "pestered" their mother to take the title of Lady. Mrs Maslin said her mother "loved it — she was very proud of Dad [and] we thought it would be very cool for all the grandkids." Lady Hutchins, a keen Presbyterian church-goer, set up a charitable trust at least 20 years ago to help underprivileged people. The trust continues and is now run by some of her family. Her family said she also adored gardening and was even known to pop over to Walter Peak with friends on occasion to help out the gardener there. She loved bridge, croquet, card games and played a bit of golf, and had been somewhat notorious for her lead foot while driving. Well-read and a member of the National Party, she was also not afraid to share her views, particularly with politicians and her family. Mrs Maslin said her mother was "never backwards in coming forward with her children ... if she was disappointed, you knew". "She had spunk." Lady Hutchins remained in Kelvin Heights until about six years ago, when she moved into the retirement village.
1News
14 hours ago
- 1News
Sector leader urges overhaul as builders face mental health crisis
Warning: This article discusses suicide. A business leader says urgent reform is needed to address what he describes as a deepening mental health crisis in New Zealand's construction sector. Research shows that suicide rates in the industry are 25 percent higher than other sectors, with Māori, Pasifika, women, migrant workers, apprentices and labourers among those most at risk. According to Marti Amos (Ngāpuhi, Ngāti Manu), the New Zealand-based head of a global mentoring service The Professional Builder, these statistics are worsened by a number of factors including financial instability, rising living costs, low pay, lack of mental health support and a training system focused on trade skills rather than business knowledge. "Nearly one construction worker dies by suicide every week," Amos said. ADVERTISEMENT "That should be sounding alarm bells across the country." Reports show that construction workers account for around 7 percent of working-age male suicides in Aotearoa. The estimated burden of suicide in the industry is around $1.1 billion annually. Marti Amos (Ngāpuhi) says urgent reform is needed to tackle New Zealand's construction sector mental health crisis. (Source: Amos, author of The Profitable Builders Playbook said a major contributor is that many builders are thrown into business ownership without the financial literacy, training or systems to succeed. "The construction industry has some of the highest suicide rates around the world. The key drivers - especially for company owners - is they don't understand their numbers well. "They've come from a background of being great craftsmen, doing great projects, but it's a really different skillset to becoming a great business owner." ADVERTISEMENT He said many tradies work under fixed-price contracts, where small mistakes can lead to serious financial fallout. "The average build could be anywhere from $400,000 to $500,000 to $1.5 to $2 million. If you get that wrong, you can get into financial difficulty very quickly. "You can be just one missed milestone payment away from being in serious problems." Amos said the pressure of trying to keep a team employed - without stable work ahead - is also taking a mental toll. "It goes through this: Do the work, do the work, do the work, and then they're like, 'Holy sh*t, we've only got six to eight weeks of work for my 12 guys'. "That can lead to lying awake in bed at 3am thinking, 'How do I figure this out?'" Amos said many workers are stuck on what he calls the "builders hamster wheel". ADVERTISEMENT "It's like they build themselves a prison, a business they grow to hate and that they can't get out of, 'cos you can't scale chaos and you can't scale lack of profits. 'Cos when you try and do more, everything is on your shoulders - like pricing. Where to get help. (Source: 1News) Amos believes part of the solution lies in revamping apprenticeship and trade programmes to include business and financial training. "Our people are incredible on the tools - but many aren't equipped to run a business, manage cashflow or navigate the stress that comes with it." He's calling for business training to be integrated into trade qualifications, saying current systems fall short. "Everyone gets taught how to be a great carpenter, how to do great work, but no one teaches you the fundamentals of how to build a great business. "And so just like at school, you get taught Chemistry, Maths, English, Physics, PE, but no one teaches you about budgeting, saving, communication skills, marketing, all stuff that's gonna help you massively on the outside." ADVERTISEMENT Amos believes New Zealand needs to have a look at the curriculum that apprentices are taught. "The government should be putting in some basic training through organisations or partnering with companies who can give this to every building company owner in New Zealand," he said. Amos said visibility and financial confidence are the key to relieving stress and saving lives. "Visibility leads to clarity. And when you've got clarity, you can take the right actions - that's when you start stacking wins. "When you're constantly worrying about how to pay your subcontractors or secure payroll for the next week, it isn't just your business that suffers - it's your whole life." He believes the most vulnerable workers - Māori, Pasifika, women, migrants and apprentices - need additional support at a systemic level "It is wider than just industry - it's cultural, educational. ADVERTISEMENT "It's about giving people the tools, the confidence, the learning to know: hey, it's okay to suck when you're trying new things, but you can win. You're not a tree - you don't have to stay stuck in your current circumstances." Amos said the industry needs to stop accepting crisis as normal - and act. "It's only once you go through those hard lessons - underpricing jobs, not knowing your numbers - that you learn: I need to do things differently. And if it's a skill, it can be learned. And if someone else can do it, then I can do it." Building and Construction Minister Chris Penk (Source: Ministers respond In a statement to RNZ, Minister for Building and Construction Chris Penk said the past few years had been tough for the construction sector and its people. ADVERTISEMENT "Building productivity has lagged for decades, but the rising cost of doing business, along with cancelled contracts from the pandemic and a tighter economy, has put real financial pressure on tradies and businesses." Penk said the government was working to create the right conditions for the sector to thrive. "Changes like reforming the building consent system might sound technical, but they will have a real human impact by lowering costs and giving the industry a more reliable pipeline of work. "We also know how much of a difference targeted mental health support can make in someone's life. "That's why, in December, the government invested in MATES in Construction through the Mental Health and Addiction Community Sector Innovation Fund." He acknowledged that while there was "still a way to go," things would get better. "We know that when financial stress eases, it becomes easier for people to focus on their work, their families and their own health and wellbeing." ADVERTISEMENT Minister for Vocational Education Penny Simmonds (Source: In a statement to RNZ, Minister for Vocational Education Penny Simmonds said the government was "committed to ensuring that mental health and wellbeing are part of a successful apprenticeship journey for all learners". "Under the Code of Good Practice for New Zealand Apprenticeships, Tertiary Education Organisations must ensure apprentices receive appropriate pastoral care, in line with the Education (Pastoral Care of Tertiary and International Learners) Code of Practice 2021. "This includes supporting apprentices with both their physical and mental health needs, their safety and wellbeing by offering information, advice, and identifying those who may need additional support." From 2026, a new independent, industry-led model for work-based learning would be rolled out. Simmonds said this model was the preferred option by both the public and industry during consultation. "It's designed to be more flexible, and responsive to the needs of both learners and the industries so critical to the growth agenda for our economy. ADVERTISEMENT "Put simply, we are transforming work-based learning by putting apprentices and trainees front and centre at the heart of the system and placing industry and employers back in the driver's seat, encouraging them to play a hands-on role in shaping training, making sure it's flexible and aligned with regional needs." The new model would involve the creation of Industry Skills Boards, which would set training standards, develop qualifications, and moderate assessments. Apprentices currently with Te Pūkenga will move to these new boards for up to two years, while new students would enroll directly with private providers, polytechnics or wānanga as they become available. Simmonds said the government was focused on "a smooth transition" with minimal disruption. "This is about building a stronger, more resilient vocational system to bring certainty, improve access, and support economic growth," she said. "We're committed to a smooth transition, with as little disruption for learners and employers as possible. This is about building a stronger, more resilient vocational system to bring certainty, improve access, and support economic growth."
