Napier Port Holdings Limited logo

Master Plan & Sustainability Framework Published

Operational Update13 November 2019NPHIndustrials

NAPIER PORT 30 YEAR MASTER PLAN
Preliminary Draft

BUILDING

FUTURE


CONNECTIONS

Nurture the seed and it will grow.
DOCUMENT

ENVIRONMENTAL

CREDENTIALS

The paper stock used is Forest Stewardship Council

®

(FSC

®

) certified stock from responsible sources, using

elemental chlorine-free (ECF) production processes.

It is produced under the strict ISO14001 and EU

EMAS environmental management systems, and carries

the internationally recognised EU Flower eco label.

POIPOIA TE KA

̄

KANO KIA PUA

̄

WAI.

CONTENTS
Message from the Chairman ..................................................................................2

Chief Executive welcome ........................................................................................4

SECTION ONE: PORT OVERVIEW

Napier Port at a glance .........................................................................................10

Our purpose and strategy ....................................................................................12

Cargo through the port .........................................................................................14

Our services ............................................................................................................16

Strategy in action: more than connecting cargoes to the world .................18

Our locations...........................................................................................................20

6 Wharf: building future connections ................................................................24

SECTION TWO: DEVELOPING THE MASTER PLAN

Master plan process ..............................................................................................28

Stakeholder input ...................................................................................................29

Trade outlook...........................................................................................................36

Future vessels .........................................................................................................38

SECTION THREE: THE 30 YEAR PLAN

A snapshot of options ...........................................................................................42

Optimise, grow capacity, partner and preserve ..............................................44

Feedback .................................................................................................................49

BUILDING FUTURE CONNECTIONS

°

1

POIPOIA TE KA
̄

KANO KIA PUA

̄

WAI

NURTURE THE SEED AND IT WILL GROW.

Te ̄ na ̄ koutou,

This Master Plan provides a vision

for how we plan to shape the

development of Napier Port over

the next 30 years.

In developing our plan, we spoke

to our customers, our community

and other stakeholders about what

they need from us.

These insights validated a number

of projects we already have underway:

building 6 Wharf by the end of 2022,

developing our inland freight hubs

and the arrival of a third tug. These

are the right decisions to ensure

we can handle growth in cargo and

the larger ship sizes expected over

the next 30 years. It also shows we

can explore a number of other

options if needed to efficiently

service increasing trade volumes

and keep pace with growth for

our customers and our region.

We recognise that awareness and

support for our operations is vital

for sustainable growth and we

are committed to engaging with

our community and stakeholders

as we pursue new developments

and opportunities.

Just as we need to understand

the issues facing our stakeholders,

we want to ensure our stakeholders

understand the challenges and

opportunities facing us. That’s why

we’ve made our preliminary draft

public and why we will publicly

consult on our Master Plan every

five years.

We welcome your feedback and

look forward to ongoing discussions

as the future unfolds.

Nga ̄ mihi,

MESSAGE

FROM THE

CHAIRMAN

ALASDAIR MACLEOD

CHAIRMAN

2

°

BUILDING FUTURE CONNECTIONS

BUILDING FUTURE CONNECTIONS
°

3

NAPIER PORT HAS BEEN
CONNECTING HAWKE’S BAY

AND THE CENTRAL NORTH

ISLAND WITH THE PEOPLE AND

MARKETS OF THE WORLD FOR

NEARLY 150 YEARS.

HAWKE'S

B AY

CENTRAL

NORTH ISLAND

4

°

BUILDING FUTURE CONNECTIONS

Te ̄ na ̄ koutou,
Napier Port has been connecting

Hawke’s Bay and central North Island

with the people and markets of the

world for nearly 150 years.

We’re New Zealand’s fourth-largest

container port by total TEUs (twenty-

foot equivalent units) and have

experienced growth in cargo volumes

over the last 10 years.

As the most efficient link to international

markets for the region’s exporters and

importers, we are critical

to the Hawke’s Bay economy

and our community.

Ensuring we have the right

infrastructure in place as we grow –

enough land, equipment, machinery,

technology, and efficient road and rail

connections – is paramount.

This Master Plan looks at the options

to develop infrastructure over the next

30 years so we can continue to get our

customers’ cargo to market efficiently

and in top condition.

BUILDING FUTURE CONNECTIONS

We have already made a number of

investments that are critical to support

growth. The most significant being

building 6 Wharf by the end of 2022.

Other investments include:

• Purchasing and developing

11.6 hectares of empty container

storage at Thames Street;

• Establishing an inland port in Manawatu

with Ports Of Auckland and Halls

Transport to connect the region’s

exporter base with Napier Port;

• Securing 12.3 hectares of port-owned land

in Whakatu for future development; and

• Buying a third tug boat that is due to be

operational by the end of 2019.

BUILDING FUTURE CONNECTIONS

°

5

BUILDING 6 WHARF BY THE END OF 2022 IS CRUCIAL
The Master Plan has confirmed that our plans to build a new wharf

(6 Wharf) by the end of 2022 are absolutely critical to support future growth.

The new 350 metre wharf will help to increase capacity and improve

operational performance. It will:

• Allow us to welcome more and larger ships;

• Release congestion constraints and inefficient operations across

existing wharves;

• Cut ship movements by 100 per year (the port will no longer

need to move ships in and out to make room for other vessels);

• Increase capacity for both bulk and container operations; and

• Cut vessel turnaround times.

6

°

BUILDING FUTURE CONNECTIONS

There are other options that we’ll need to explore to manage growth long term.
Whatever options we do pursue will be pursued with four objectives in mind:

OPTIMISE

Maximising productivity with our existing assets and footprint is the Napier Port way.

To grow sustainably and in line with community expectations, we must continue to

improve use of existing land and infrastructure before investing in more. Harnessing data

and using technology to optimise operations will help ensure we do this successfully.

PARTNER

To drive growth we’ll need to work closely with others. Ongoing consultation

and communication remains at the heart of ensuring we deliver successfully

and sustainably in the years ahead.

PRESERVE

As we grow, we need to preserve access to the transport corridors and industrial

precincts around our operations to move freight efficiently. This means making sure

land use near our operations is compatible. Equally we must preserve community

access to valued natural and cultural environments and resources, such as our

shorelines and the marine environment, including protecting kai moana and taonga

of significance to mana whenua hapu ̄.

GROW PORT CAPACITY

While we will maximise capability and efficiency, we will also need additional

infrastructure over the next 30 years. This plan reinforces and responds to the

need for 6 Wharf, and our ongoing investment in our freight hubs. It also looks at the

other options we may need to pursue to service growing volumes.

RATIONALISE, PARTNER,

PRESERVE AND GROW

TODD DAWSON

CHIEF EXECUTIVE

The export and import of goods into and

out of Napier Port is essential for our

customers' and communities’ prosperity.

The circumstances of our stakeholders

are likely to change and, of course, trade is

subject to fluctuations and changes in timing.

This is therefore a living document that we’ll

update each year as a business and consult

on every five years.

We’re committed to communicating our plans,

reporting on our progress - socially, financially

and environmentally - and taking others with us

as we go. And we welcome your feedback

at any time. To have your say, email

masterplan@napierport.co.nz or call

our infrastructure team on 06 833 4387.

Na ̄ ku iti noa, Na ̄

BUILDING FUTURE CONNECTIONS

°

7

8
°

BUILDING FUTURE CONNECTIONS

°

SECTION ONE

SECTION ONE
PORT OVERVIEW

SECTION ONE

°

BUILDING FUTURE CONNECTIONS

°

9

IN THE 2018 FINANCIAL YEAR:
5

2

2

2

1

1

1

1

3

3

2

NAPIER PORT

AT A GLANCE

COMMERCIAL SHIPPING

LINES CALL AT NAPIER PORT

10

METRES IS THE LARGEST

CRUISE SHIP RECEIVED

348

Number of commercial

berths: 5 wharves

providing 6 commercial

berths and a new wharf

planned for 2022

(6 Wharf)

The Port is positioned on

New Zealand's main shipping

route with core national rail

and road network connectivity

SHIP VISITS

680

+

WE MANAGED...

5

+

MILLION TONNES OF CARGO

WE WELCOMED...

260,000

+


TEUS OF DRY AND REFRIGERATED

CONTAINERISED CARGO

70

+

CRUISE SHIPS

IN THE 2018/19

CRUISE SEASON

115,000

+


PASSENGERS IN THE 2018/19

CRUISE SEASON

$

23

MILLION BROUGHT INTO

HAWKE'S BAY BY CRUISE

TOURISM*

*Estimated amount according to Statistics NZ.


1

2

3

4

5

6

10

°

BUILDING FUTURE CONNECTIONS

°

SECTION ONE

WE EMPLOY OVER
280 PEOPLE

HECTARES OF

PORT-OWNED LAND

70

+

OUR AWARD-

WINNING 'CULTURE

OF CARE' PROMOTES

SAFETY, RESILIENCE

AND INNOVATION

AMONGST OUR

PEOPLE

13

MINUTE AVERAGE

TRUCK TURNAROUND

TIME IN PEAK SEASON

COMMUNITY INITIATIVES

THAT CONTRIBUTE TO THE

WELLBEING AND GROWTH

OF HAWKE’S BAY

OPERATING

150

YEARS

NEARLY

HAWKE’S BAY’S

$8.1 BILLION ECONOMY

$

8.1B

FULL AND PART-TIME JOBS

IN OUR REGION

27,000

WE SUPPORT:

SECTION ONE

°

BUILDING FUTURE CONNECTIONS

°

11

TOGETHER WE BUILD
A THRIVING REGION

BY CONNECTING YOU

TO THE WORLD

Napier Port connects Hawke's Bay and the surrounding region with

the people and markets of the world.

We’re a major contributor to Hawke’s Bay’s $8.1 billion economy and associated

with around 27,000 full and part-time jobs in the region.

Located on the east coast of New Zealand’s North Island, we are on the main

transit route for international shipping services and connected to core national

road and rail networks.

Our strategic location and cargo handling capacity make us a key connection

in the supply chain, but it’s the service we provide and our innovative systems

that are the foundation to our success.

Napier

Hastings

Wairoa

Gisborne

Taupo

Wellington

Palmerston

North

Whanganui

New Plymouth

Ohakune

5

2

2

2

1

1

1

1

3

3

2

THAMES STREET

CONTAINER DEPOT

11.6 hectares' empty container

storage, located en route to the port

.

WHAKATU


12.3 hectares in centre of

Hawke's Bay future industrial heart.

RAIL CONNECTIONS

40+ trains per week into port.

MANAWATU

INLAND PORT

Partnership with

Ports of Auckland

and Halls Group

12

°

BUILDING FUTURE CONNECTIONS

°

SECTION ONE

OUR STRATEGY
FOR SUCCESS

Our strategy guides our actions and how we manage our business.

This includes the infrastructure that supports our operations and allow

us to connect our customers to their international markets.

We take pride in delivering more than expected; working with our

customers to understand how we can help them achieve their goals,

harnessing data and technology to optimise our operations; and using

our connected infrastructure for a seamless supply chain across our

region and beyond.

We also deliver in a safe and sustainable way, building collaborative

partnerships with our customers and stakeholders and a ‘culture of care’,

which encourages care for our people, the local community and the

environment. See page 18 for our strategy in action.

OUR

GOALS

OUR TEAM

PLANS

OUR


FOCUS

OUR


PURPOSE

OUR


FOUNDATION

BUSINESS OBJECTIVES


TOGETHER WE BUILD A THRIVING REGION

BY CONNECTING OUR CUSTOMERS, PEOPLE

AND COMMUNITY TO THE WORLD

CULTURE OF CARE

SECTION ONE

°

BUILDING FUTURE CONNECTIONS

°

13

21
%

IMPORTS

79

%

EXPORTS

With its high sunshine hours and fertile

soils, Hawke's Bay is a major New Zealand

producer, processor and exporter of primary

products with nearly 80 percent of cargo

through the port exported.

Hawke’s Bay is New Zealand's largest

apple and pear (pipfruit) exporter, with

approximately 61%

2

of New Zealand's

total planted area of pipfruit; and is a key

player in New Zealand’s forestry industry

– the region’s forestry exports represent

approximately 11%

3

of New Zealand's total.

CARGO THROUGH THE PORT

Napier Port handles over 30 different export and import commodity products

and has seen solid demand for its services over the last 10 years.

2

Hawke's Bay Regional Council - Regional Pest Management Plan 2018 - 2038.

³Ministry of Transport (Freight Information Gathering System); 2018.

VOLUME THROUGH NAPIER PORT BY TRANSPORT MODE

2,500,000

2,000,000

1,500,000

1,000,000

500,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

TONNES

Bulk

Exports

Bulk

Imports

Containerised

Exports

Containerised

Imports

VOLUME THROUGH NAPIER PORT BY CARGO TYPE

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

TONNES

Other

industries

Forestry

& logging

Agriculture,

food &

beverages

14

°

BUILDING FUTURE CONNECTIONS

°

SECTION ONE

NAPIER PORT IMPORT PRODUCT MIX
(FY2018, BY WEIGHT)


Logs (

54.8

%

)


Meat (

4.9

%

)


Woodpulp (

11.9

%

)


Apple & Pears (

6.6

%

)


Timber (

7. 4

%

)


Other (

14.4

%

)


Fertiliser (

34.4

%

)


Oil Products (

26.4

%

)


General Cargo (

15.1

%

)


Foodstuffs (

10.8

%

)


Cement (

5.2

%

)


Other (

8.1

%

)

NAPIER PORT EXPORT PRODUCT MIX

(FY2018, BY WEIGHT)

Trade is diversified across containerised and bulk

cargo products as well as cruise tourism.

Our container trade is diversified across a range of largely

export-driven primary produce, including forestry products,

pipfruit, vegetables, meat and wine. Approximately

75 percent of all containers imported are empty containers

to service regional exporters.

The majority of bulk cargo exports through the port are log

and forestry products, while the key bulk cargo imports are

fertiliser, petrochemicals and cement.

Napier Port is also the gateway to the Hawke’s Bay region

for a growing number of cruise visits. In the 2018/2019

cruise season, we hosted over 115,000 passengers on

70 cruise ship visits compared with 57 ship calls the

previous financial year.

This year we had six visits from Ovation of the Seas –

the largest ship to berth at Napier Port and the largest cruise

ship to visit New Zealand waters, capable of handling around

4,900 passengers.

SECTION ONE

°

BUILDING FUTURE CONNECTIONS

°

15

TO EUROPE
& WEST AFRICA

TO EAST

COAST OF

SOUTH

AMERICA

TO CENTRAL

AMERICA

TO WEST

COAST

OF NORTH

AMERICA

TO WEST

COAST

OF SOUTH

AMERICA

TO SOUTH EAST ASIA,

INDIA & EAST AFRICA/

MIDDLE EAST

NEW ZEALAND

HONG KONG

SINGAPORE

PHILADELPHIA

MANZANILLO

NAPIER

OUR

SERVICES

Napier Port receives and processes cargo and

manages the arrival and departure of general

cargo, container and cruise vessels 24 hours

a day, 364 days a year.

We’ve developed a range of value-add services

for our customers, supported by our team.

1. Shipping connections:

Connecting Hawke’s Bay to the world

Napier Port provides the complete infrastructure and

range of international port services to support global

connections. We are connected with six international

weekly container services operated by 10 major

international shipping lines, giving customers access

to all of New Zealand’s global markets. Bulk cargo

vessels are generally contracted or chartered directly

by the cargo owner. We also provide a regular service

to the Chatham Islands and other domestic service

connections.

2. Marine services

We welcome vessels of all sizes and our marine

services include:

• Pilotage,

• Towage, and

• Berthage and mooring services.

3. Cargo handling services

Container handling: Our container terminal is one

of New Zealand’s largest and a one-stop shop for

receiving and delivering containerised cargo.

Facilities include:

• 16 hectares of dedicated container terminal space

• Six mobile harbour cranes

• 1,000+ connection points for refrigerated cargo

• Flexible fleet of heavy machines including full and

empty container handlers

• A contract team from SSA New Zealand

that provides dedicated stevedoring services

including lashing and unlashing containers

on-board the vessel

• Empty container terminal off-port for the management

of empty containers, including wash, repair and

pre-trip facilities

• Longer operating hours in the peak

season from February to June.

Bulk cargoes:

• We welcome bulk cargo including steel, timber, dry and

liquid bulk.

• Our fixed and rolling infrastructure has been designed to

support the efficient storage and handling of bulk cargoes,

including log storage facilities and a range of eight to

18 tonne forklifts for timber and steel product handling.

• We also have dedicated and flexible log storage areas on

port and bookends that allow logs to be stacked higher.

4. Cruise services

From October to April every year, Napier Port welcomes

cruise ships from around the world. We work closely with

cruise ship agents, hospitality and tourism organisations,

and the New Zealand Customs Service to ensure a smooth

experience for passengers visiting our region.

5. Port Pack

Our on-site packing and devanning facility, Port Pack is one

of the largest packing facilities in New Zealand, accessible

by road and rail. It offers a central delivery point where bulk

cargo is packed into containers before moving to Napier

Port’s container terminal.

6. Depot services include surveying, cleaning,

repairing, pre-trip inspections and container

storage.

7. Leasing of space and warehousing.


16

°

BUILDING FUTURE CONNECTIONS

°

SECTION ONE

TO EUROPE
& WEST AFRICA

TO EAST

COAST OF

SOUTH

AMERICA

TO CENTRAL

AMERICA

TO WEST

COAST

OF NORTH

AMERICA

TO WEST

COAST

OF SOUTH

AMERICA

TO SOUTH EAST ASIA,

INDIA & EAST AFRICA/

MIDDLE EAST

NEW ZEALAND

HONG KONG

SINGAPORE

PHILADELPHIA

MANZANILLO

NAPIER

CONTAINERSBULK CARGOCRUISE

MARINE

HANDLING

SERVICES

PILOTAGE, TOWAGE, BERTHAGE AND LINES (MOORING)

WHARFAGE, MARSHALLING

(1)

, RECEIVING AND DELIVERY

(2)

, AND STORAGE

CRANES

STEVEDORING

VALUE-ADDED SERVICES

LOG HANDLING AND FUMIGATION

NAPIER PORT

EXTERNAL SERVICE PROVIDERS

SECTION ONE

°

BUILDING FUTURE CONNECTIONS

°

17

C
O

N

N

E

C

T

I

O

N

C

U

S

T

O

M

E

R

P

A

R

T

N

E

R

S

H

I

P

S

C

O

L

L

A

B

O

R

A

T

I

V

E

CUSTOMER CONNECTION

Napier Port works closely with our

importers and exporters to provide

the systems, infrastructure and

innovative solutions they need

to get their products to market

efficiently and in top condition.

Efficient: For our customers time

is money. We’ve developed tailored

on-port warehousing and container

packing services for multiple

customers; and introduced port-wide

initiatives to cut waiting times, such

as a vehicle booking service to

improve truck turnaround times.

In top condition: We’re focused on

getting our customers’ products to

market in top condition and invest in

solutions that preserve their quality.

For example, our large-scale cargo

towers keep high-value refrigerated

products – such as pipfruit and

meat – in premium condition and

maximise the efficient use of our

footprint. We also work on bespoke

solutions with customers, such as the

product damage reporting app we’ve

developed for pulp exporter WPI so

they can trace where product damage

has occurred in transit.

COLLABORATIVE PARTNERSHIPS

We foster collaborative partnerships with those that have shared

aspirations and interests to build a thriving region and sustainable

business. This includes national and local government, the port and

transport industries and our local community.

STRATEGY IN ACTION:

MORE THAN CONNECTING

CARGOES TO THE WORLD

Engaging early: Our team are part of

industry, stakeholder and community

groups. We’ve established working

groups, regular meetings and specific

events with key stakeholders to

address operational issues and consult

on proposed developments early, such

as our planned new wharf.

Sponsorship and community

partnerships: Napier Port is committed

to nurturing the community we’re part

of. Our partnerships include sponsoring

the Napier Port Harbour to Hills

triathlon, which helps build a stronger,

healthier community and showcases

our stunning region. Support for

the arts and education includes our

sponsorship of MTG Hawke’s Bay.

We also support water safety and

recreation, and celebrate our maritime

connection and the achievements

of our primary sector, such as the

Napier Port Hawke’s Bay Primary

Sector Awards.

Engaging iwi and mana whenua

hapu ̄ : Napier Port shares common

goals with iwi and mana whenua–

a long-term commitment to the people

of our region, our environment and

our economy. We’re developing the

first long-term cultural monitoring

programme to help protect, monitor

and assess the health of the marine

environment – using cultural indicators

– during the planned development of

6 Wharf. We’ve also employed Napier

Port’s first Pou Tikanga – Infrastructure

Environmental and Cultural Advisor

and started a formal programme to

strengthen our cultural capability.

Protecting wildlife: We work closely

with the Department of Conservation

and local experts to understand the

behaviour and needs of the flora

and fauna on-port. This helps us to

protect the species that live here and

their habitats. We are developing

New Zealand’s first on-port sanctuary

to protect the korora ̄ , or little blue

penguin. The sanctuary is also

providing research and education

opportunities with our community,

including local schools.

18

°

BUILDING FUTURE CONNECTIONS

°

SECTION ONE

A
N

D


T

E

C

H

N

O

L

O

G

Y

H

A

R

N

E

S

S

I

N

G


D

A

T

A

I

N

F

R

A

S

T

R

U

C

T

U

R

E

N

E

T

W

O

R

K

E

D

OUR FOUNDATION:

CULTURE OF CARE

Our culture of care is pivotal to

achieving our strategy, goals and

objectives. We support a strong

and resilient culture, encouraging

care for our people, the local

community and the environment.

We are committed to ensuring the

safety of our people and others who

visit and work at Napier Port sites;

and we value wellbeing, personal

and professional development, and

diversity at work.

We’re also focused on protecting

our environment and ensuring we

have the systems in place to protect

biodiversity, minimise waste and

conserve energy.

We’ve developed a sustainability

framework, based on the United

Nations Sustainable Development

Goals, and are now creating a

sustainability strategy that will detail

key strategies, actions and targets

over the short and long term to guide

us into the future in a balanced and

sustainable way.

HARNESSING DATA

AND TECHNOLOGY

A key focus of Napier Port’s

strategy is to capture and harness

data and technology to deliver

productivity gains for customers.

We’re small and agile enough to test

new technologies but big enough to

invest. We encourage our people to

innovate and have developed a number

of world-leading technologies that

benefit our customers.

NZ’s only mobile harbour crane

simulator: In 2015, we invested in

a mobile harbour crane simulator to

reduce the time it takes to train our

own staff and allow them to be trained

in a safe and controlled environment.

The introduction of the simulator has

also led to strong collaboration with

our teams and other ports.

Building intelligent software

solutions: Napier Port looks for

innovative ways to manage cargo

and improve productivity. A recent

example includes developing software

to streamline container planning, which

has allowed us to reduce the time it

takes us to plan how we stow export

containers on a vessel.

NETWORKED

INFRASTRUCTURE

We connect our businesses to

their markets with an established

and growing infrastructure

network, which we operate as an

integrated and intelligent system.

Extending services beyond the port

gate: Napier Port’s on-port footprint

is finite. We’re looking outside the

gate to find customer solutions and

integrate them with a supply chain that

brings the port closer to its customer.

We’ve invested in the Manawatu Inland

Port, developed a Thames Street

container depot facility and purchased

industrial land in Whakatu, which is

earmarked for a future freight hub.

See page 22 and 23 for more

information on our freight hubs.

SECTION ONE

°

BUILDING FUTURE CONNECTIONS

°

19

NAPIER PORT’S KEY FEATURES AND STRENGTHS
• Around 50 hectares of land on-port

• Easiest and fastest access to international markets for high-value


international exports

• Strategic location on the eastern shipping lane and easy port of


call for shipping lines

• Good accessibility for shipping lines with easy to navigate shipping channels

• Full access to international markets for exporters

• Reliable and high-quality service to container shipping lines

• Good road and rail connections, connected to principal road and rail networks

• 1,000 connection points for refrigerated cargo

• Capacity to grow

• Full container services: handling, marshalling, storage, crane operation,

stevedoring and packing

• Operates 364 days a year, 24 hours a day.

NAPIER PORT

Napier Port is an established long-term infrastructure asset

made up of approximately 50-hectares of land on-port and a

1.5-kilometre breakwater.

The port is a key gateway to and from global markets for Hawke’s

Bay and central New Zealand. The majority of Hawke’s Bay primary

produce exporters are located within 100 kilometres of the port,

providing a nearby, cost-effective route to market with excellent road

and rail connectivity.

OUR

LOCATIONS

20

°

BUILDING FUTURE CONNECTIONS

°

SECTION ONE

SECTION ONE
°

BUILDING FUTURE CONNECTIONS

°

21

KEY FEATURES
AND STRENGTHS

• 11.6 hectares of empty container storage

• Open six days a week and supported

by eight dedicated and experienced staff

• Located en route to port and easily

accessible from key arterial road

infrastructure

• Industrial zoning.

THAMES STREET

EMPTY CONTAINER DEPOT

The empty container depot at Thames Street is a key logistics hub in central

Napier's industrial area that we have developed over the past four years to

free up space on-port.

Around 5 hectares is already in use while a secondary, adjacent site provides the

port with capacity to grow. The area is situated around 3.5 kilometres from the port

with good road networks and rail connectivity options for the future.

22

°

BUILDING FUTURE CONNECTIONS

°

SECTION ONE

KEY FEATURES
AND STRENGTHS

• 12.3 hectares

• Ready for future development

• Road and rail connections

• In the centre of Hawke’s Bay’s future

industrial heart

• Provides the port with capacity to grow.

KEY FEATURES

AND STRENGTHS

• 1.9 hectares

• 2,170 m

2

warehousing

• Container yard

• Container wash facilities

• 1,200 m

2

cross dock facility

• Road and rail connections.

MANAWATU

INLAND PORT

In partnership with Ports of Auckland and

Halls Transport, Napier Port has developed

a 1.9 hectare container yard and

2,170 square metre warehousing

facility at the Manawatu Inland

Port. Palmerston North is the

logistics epicentre for the

lower North Island.

WHAKATU

12.3 hectares of land has been purchased in Hawke’s Bay’s

industrial area of Whakatu – with good road and rail

connections – for the potential development of an inland port.

This provides an opportunity to expand our container storage

capacity and improve container handling performance as well

as reduce truck volumes as the port grows.

SECTION ONE

°

BUILDING FUTURE CONNECTIONS

°

23

6 WHARF:
BUILDING FUTURE

CONNECTIONS

Napier Port has a major project underway to build a new wharf

that will support ongoing growth for our customers and region.

In November 2018, following significant consultation, we secured six resource

consents to build the wharf at the northern end of the container terminal,

and deepen parts of the harbour so we can welcome more and bigger ships

amidst regional growth.

The wharf will be long enough and the berth pocket deep enough to handle

the largest vessels we expect will visit Napier Port in the next 30 years.

Napier Port plans to start 6 Wharf at the end of 2019 and expects to

complete it in 2022.

BENEFITS OF 6 WHARF

• Reduced congestion

6 Wharf will significantly improve

operating efficiency by reducing

secondary vessel movements

(temporarily moving vessels off

wharves to accommodate other

vessels) by an estimated 100

movements per year and providing

capacity to handle an increased

number of ship visits. It also frees

up capacity on other berths.

• Ability to handle larger vessels

6 Wharf will be able to handle

container ships up to 320 metres in

length and with a 48-metre beam, and

cruise ships up to 360 metres long.

We’ve received resource consents

to dredge up to 14.5 metres in the

swing basin and harbour entrance

to accommodate larger vessels.

• Extend our container vessel

capacity

Use of the port’s current container

wharf, 5 Wharf, was 66 percent

during the summer peak period

in 2018/19, which is above best

practice guidelines.

• Berthing of all vessels 24 hours

a day

Currently the berthing of some larger

container vessels are limited to

daylight hours.

• Operational agility

6 Wharf will be multi-purpose, used

for both container and cruise ships,

and adaptable. This includes offering

the potential to support twin lift ship-

to-shore gantry cranes in the future

if needed (Napier Port currently uses

mobile harbour cranes).

• Operational resilience

In addition to increased berthing

options, 6 Wharf’s design improves

the port’s resilience to a significant

earthquake.

24

°

BUILDING FUTURE CONNECTIONS

°

SECTION ONE

SECTION ONE
°

BUILDING FUTURE CONNECTIONS

°

25

26
°

BUILDING FUTURE CONNECTIONS

°

SECTION TWO

SECTION TWO
DEVELOPING THE MASTER PLAN

SECTION TWO

°

BUILDING FUTURE CONNECTIONS

°

27

MASTER PLAN
PROCESS

Napier Port’s 2019 Master Plan builds on our

2012 plan but for the first time includes widespread

customer, industry and public input.

It provides the blueprint for how we plan to invest and

develop our infrastructure – such as buildings, equipment,

roads and rail – to support our operations, our customers

and the regional economy over the next 30 years. We

consulted with stakeholders, looked at future trade scenarios

and trends, as well as changes in the shipping industry,

to determine the investments we may need to explore in

the coming years. We will use the Master Plan to guide

conversations with our stakeholders and ensure sustainable

development of the port.

APPLYING A RECOGNISED

MASTER PLANNING PROCESS

We started working on the Master Plan in July 2018,

adopting a contemporary three-step process that is

aligned to international best practice.

Public consultation took place in November 2018 and

ongoing dialogue with our stakeholders about our future

plans is an integral part of the Master Plan. We welcome

feedback at any time.

• Gathering information and

collecting data, such as trade and

shipping forecasts

• Identifying and mapping existing

infrastructure, supply chains,

social and environment assets,

and resources

• Customer interviews and

public consultation on issues for

Napier Port to consider

and prioritise

• Identify key issues/strategic

objectives.

JUL - DEC 2018

STAGE ONE

Baseline research

• Establish options evaluation

framework

• Define trade scenarios

• Infrastructure needs analysis

of land, berths, equipment,

services and transport

• Define and identify plausible

development options

• Evaluate options.

JAN - APR 2019

STAGE TWO

Master Plan

development options

• Refined analysis

• Produce draft Master Plan

• Release preliminary draft of

Master Plan to public/industry

for feedback

• Review and incorporate feedback

• Finalise Master Plan.

MAY - DEC 2019

STAGE THREE

Finalise Master Plan

ONGOING STAKEHOLDER ENGAGEMENT AND FEEDBACK

28

°

BUILDING FUTURE CONNECTIONS

°

SECTION TWO

CARGO
OWNER

CARGO

INFLUENCERS

EXPORTER

TRANSPORT

OPERATOR

FREIGHT

COLLECTIVE

IMPORTER

FREIGHT

FORWARDER

THIRD

PARTY

LOGISTICS

PROVIDER

SHIPPING

LINES &

AGENTS

1. WHAT OUR CUSTOMERS TOLD US

The Port’s primary focus is to facilitate trade, ensuring we

have the right infrastructure at the right place and time to

service shipping lines and shippers in our catchment.

We have three main customers with varying infrastructure

and service requirements.

1. Bulk cargo owners: the exporters and importers of cargo

that is shipped unpackaged in large quantities.

2. Containerised cargo owners: exporters and importers

of cargo shipped in 20-foot or 40-foot containers, either

refrigerated or dry (ambient) containers.

3. Shipping lines: the companies that run and operate the

vessels that visit Napier Port.

Additionally there are a number of other commercial

relationships we have with freight forwarders, transport

operators, freight collectives and third-party logistics

providers.

CONTAINER SHIPPING LINES

The state of international and domestic freight markets

are volatile, which is expected to continue. This is driving

a number of key trends in the global container shipping

industry, including:

• Growing vessel sizes; and

• Shipping line consolidation as lines strive for economies

of scale and increased efficiency.

The companies we spoke with told us Napier Port needs to

focus on the following issues and opportunities to maintain

our relevance as a port of call for them in the future:

• Accommodate ships that are longer, wider and able

to carry more goods as shipping lines aim to maximise

each port visit.

• We need infrastructure to improve capacity, productivity and

service levels. For example, infrastructure that will allow us

to ease port congestion, handle larger vessels and ensure

no late or missed calls.

• Our infrastructure and operations must be resilient to

changes in call frequencies and patterns by shipping lines

as they look to reduce their costs and improve profitability.

• Napier Port needs to provide consistent operational

performance and add value from arrival to departure.

STAKEHOLDER INPUT HAS HELPED TO SHAPE THE PLAN

We undertook a materiality assessment to produce this plan, which involved in-depth interviews with customers, a public

online survey, and insights from discussions and documents produced by local and central government, business and

industry groups and transport agencies. This helped us to identify the issues and opportunities that matter most to our

stakeholders.

SECTION TWO

°

BUILDING FUTURE CONNECTIONS

°

29

PIPFRUIT EXPORTERS (CONTAINERISED)
Hawke’s Bay accounts for approximately 61 percent of

New Zealand’s total planted area of pipfruit (apples and

pears) and seven percent of Napier Port’s export volumes.

Growth is expected to continue, with the industry targeting

around 50 percent volume growth in the next 12 years.

For our pipfruit clients, getting their products to market quickly

is key to preserving the quality and presentation of their fruit.

Whatever the port can do to help the product retain its quality

and high-consumer appeal – firmness, crispness, juiciness,

good physical appearance and flavour – is vital including

the following:

• We need to ensure we provide and maintain operational

excellence to keep international shipping lines calling at

Napier Port to maximise international connectivity and

reduce export timelines.

• Dedicated berths that are not affected by congestion

in the cruise season or from other trades.

• Provide a high-level of protection with strong controls

in place to manage biosecurity risks, pests and disease

as cargo volumes and tourism grows. Any significant

biosecurity event could threaten supply and demand for

pipfruit exports and increase production costs for growers

and producers.

• Opportunities to streamline the export process.

Developments such as our inland hubs are helping to

reduce congestion and waiting time on-port, assisting with

getting products to market more quickly.

• Good road connectivity to the port is vital, and potentially

rail in the future, as well as options to increase the amount

of product in each trip.

• The sector is open to strengthening collaboration with

Napier Port to address the anticipated future growth

in pipfruit and industry challenges, such as

the need for more labour and cool

store capacity.

30

°

BUILDING FUTURE CONNECTIONS

°

SECTION TWO

5
https://www.stats.govt.nz/information-releases/cruise-ship-traveller-and-expenditure-statistics-year-ended-june-2018

EXPORTERS OF FORESTRY PRODUCTS

Forestry harvests in Hawke’s Bay have increased in volume

and are expected to grow over the next five to ten years as

more trees come to maturity.

For our pulp, lumber and log exporters, getting their products

to market quickly, cost-effectively and in top condition is key.

They are looking for the port to increase its capacity and to

reduce supply chain costs over time.

a) Pulp and lumber exporters are generally looking for:

• The infrastructure and efficient on-port operations to keep

export costs down, ease congestion and ensure no late or

missed calls for shipping line services.

• Transporting pulp in containers is attractive as it simplifies

the handling and has been found to extend the customer

reach across Asia.

• Infrastructure and services to support larger ship sizes so

they can export larger parcels and keep costs down.

• As volumes grow, ensuring the port continues to have the

necessary site storage/warehousing facilities.

• Continued collaboration with KiwiRail to improve rail

connections to the port and protect against service

reliability risks so exports can switch to rail transport

modes if required.

b) Log exporters are generally looking for:

• Faster ship turnaround times, achieved by alleviating berth

and weighbridge congestion.

• Improved rail infrastructure and services, such as ease

of rail access and handling, as well as better truck

accessibility through town and into the port.

• As volumes grow, ensuring the port continues to have the

necessary site storage and labour in place.

• Ways to help manage sustainability challenges, such as

bark entering the marine environment and challenges with

fumigation as legislation to recapture or ensure no methyl

bromide emissions at the end of fumigation comes into

place in 2020.

CRUISE SECTOR

With Hawke’s Bay’s wide range of tourist attractions, Napier

Port is a growing gateway for cruise visits and one of the key

ports of call in New Zealand. In 2018 cruise tourism brought

an estimated $23 million into the Hawke’s Bay economy

5

.

The number of visits to Hawke’s Bay has increased over

the past seven seasons. The port expects 87 visits in the

2019/2020 season and for the number of calls to continue

to increase each year through to 2048.

Our cruise ship customers are looking for ports that provide

the best experience for their customers and infrastructure that

supports trends in their industry, including:

• Ensuring there are no delays or changes to the schedule.

• No limit on the number of cruise calls each season.

• A safe and secure port with safe shipping channels that

allow for easy navigation.

• Infrastructure that supports growing cruise ship sizes.

• Working towards dedicated berth and on-port facilities

that improve the transfer experiences for passengers

and support guests to walk off a ship into the city.

FERTILISER, LIQUID BULK

AND BITUMEN IMPORTS

For import clients, an efficient, secure, reliable and productive

port is key to delivering products to consumers quickly and

when they need it. The following are just some

of their key requirements:

• Ensuring Napier Port has the infrastructure and services

to respond to potential growth, prevent port and

berth congestion, and support an increase in the share

of products that can be distributed by rail.

• Initiatives to work with customers to improve their supply

chains in the future.

SECTION TWO

°

BUILDING FUTURE CONNECTIONS

°

31

PEOPLE/COMMUNITYENVIRONMENTPROSPERITY
1. Napier Port's 'vision

for the future'

2. Reducing impacts

on neighbours

3. Creating a positive link

between Napier Port

and Napier City

4. Port security and

the safety of people

working there

5. Clarity on staged

development

6. Protecting our environment

and minimising Napier Port's

impacts

7. Clarity of the need for future

dredging programmes

8. Management of separation

distances (port buffers)

9. Climate change resilience

10. Growing Hawke's Bay's economy

11. Growing cargo volumes

12. Commercial shipping fleet growth

13. Attracting different types of cargo

14. The relationship between Napier Port and Inland

Port Facilities (Thames Street & Whakatu)

15. Seismic resilience (lifeline utility)

16. Protecting port access/supply chains (sea channels)

1 7. Protecting port access/supply chains (road corridor)

18. Protecting port access/supply chains (rail corridor)

19. Cruise opportunities

20. Commercial fishing vessels access



10

17

11

16

1

6

4

18

14

12

7

5

15

19

9

8

3

13

2

20

IMPORTANCE TO NAPIER PORTHIGHLOW

IMPORTANCE TO EXTERNAL STAKEHOLDERS

HIGH

LOW

345678910

3

4

5

6

7

8

9

10

2. WHAT THE COMMUNITY AND OUR TEAMS TOLD US

We ran an online survey that the general public, port staff and our customers were invited to participate in to tell us

what they think are the most ‘important issues’ for Napier Port to focus on.

32

°

BUILDING FUTURE CONNECTIONS

°

SECTION TWO

1. Port security and the safety of people
working there.

2. Growing Hawke’s Bay’s economy.

3. Napier Port’s vision for the future.

4. Protecting port access/supply chains

(sea channels).

5. Protecting our environment and

minimising Napier Port’s impacts.

6. Growing cargo volumes.

7. Protecting port access/supply chains

(rail corridors).

8. Protecting port access/supply chains

(road corridors).

PeoplePlanetProsperity

WHAT SOME HAD TO SAY

IN OUR SURVEY RESPONSES:

“We need direct calls by lines to get our sensitive

cargo to market quickly.”

“We need to keep growing, as sustainably and

cleanly as possible.”

“Attracting different types of cargo will assist in diversity

and protect the port against a downturn.”

“Larger and wider vessels are more common.

We need these direct calls to ensure our cargo

gets to market quickly.”

“Whakatu is a good development option.”

“We need better road infrastructure and design.”

“Inland ports are key in the next 10 years.”

“Less trucks on the road the better.”

“Keep the waterfront road open to trucks.”

“(We need) better wharf conditions for (cruise) visitors.”

“Cruise ships are most welcome as they

make a negligible impact on port noise.”

“(Cruise ships are) Good for the local economy.”

“Thank you so much for this survey – great initiative

and demonstrates that you are getting on with the job.”

The top eight issues respondents asked us

to prioritise (in order), which can be broadly

classified into three themes, are as follows:

SECTION TWO

°

BUILDING FUTURE CONNECTIONS

°

33

3. OTHER STAKEHOLDER VIEWS THAT HAVE HELPED TO INFORM OUR PLAN
As well as the formal materiality assessment, we have spoken

with the following, either specifically about the Master Plan

or through regular meetings, relationships and forums we

have. We also used stakeholder feedback from key groups

and individuals we consulted with before applying for

resource consents to build a new wharf and undertake further

dredging; and the experience of previous international ports'

master plans.

KIWIRAIL

We recognise the environmental and community benefits of

rail-based distribution, particularly for those living near the

port and our transport corridors, as we grow.

We work with KiwiRail and our customers to explore mutually

beneficial ways to use more rail where it is commercially

viable and can deliver strong connections for our customers.

Rail-based distribution also has a potential role to play as we

develop our off-site depots.

The recent $1 billion boost from Government to KiwiRail,

which will see further investment in rolling stock and a range

of rail projects, provides opportunities to improve rail’s

economic viability and reliability for our customers to make

the supply chain more efficient and sustainable.

LOCAL GOVERNMENT

We work in consultation with Hawke’s Bay Regional

Council, Napier City Council and Hastings District Council,

who provide the infrastructure and services to benefit the

Hawke’s Bay community. This includes land use planning

and development assessment processes.

They help to support and improve efficiencies for the

port and supply chain, including through the following:

• Zone land to preserve industrial land supply

and prevent unsuited zoning.

• Approving developments that are compatible

with port operations.

• Setting the noise levels for port operations.

• Ensuring development approvals do not restrict

the 24-hour nature of our services.

• Maintaining truck access routes.

• Providing new and upgraded road infrastructure

and maintenance.

In the development of this Master Plan we specifically used

the Napier District Plan and the Ahuriri Estuary and Coastal

Edge Masterplan, both produced by Napier City Council.

NOISE LIAISON COMMITTEE

• Regular meetings are held between residents living close

to Napier Port and port management to discuss how we

can help to minimise the impacts of our operations on

our neighbours.

REGIONAL TRANSPORT COMMITTEE

• We’re also involved with the Regional Transport

Committee, which includes the NZ Transport Agency.

It was set up to prepare and implement a regional land

transport plan. The plan sets out policies and objectives

for the region’s transport system and contains a

programme of roading, public transport, walking,

cycling and road safety activities.

34

°

BUILDING FUTURE CONNECTIONS

°

SECTION TWO

DEVELOPING SUSTAINABLY
There is a growing awareness amongst our

stakeholders of the importance of ensuring we

grow sustainably.

While we’re delivering for our customers and

the economy, we’re focused on ensuring that

we consider the impact on the planet, our people

and our community.

Over the years, we’ve worked hard to improve our

environmental, social and economic performance.

But we also know that we can do more to

integrate and embed sustainability into our

decision-making and daily operations.

At the end of 2018, we started work on

our Sustainability Framework. It focuses

on four interconnected themes: people/

manaakitanga, planet/kaitiakitanga, prosperity/

o ̄ hanga ora and partnerships/rangapu ̄ .

The next step is to develop a detailed

Sustainability Strategy. Using this framework,

we will consult with our stakeholders to develop

specific goals, targets and actions to report on.

Our work is being guided by the United Nations

Sustainable Development Goals, which are globally

recognised and provide a blueprint to build a better

and more sustainable future for all.

INVOLVING OUR STAKEHOLDERS,

AN ONGOING OPPORTUNITY

Involving our stakeholders in the Master Plan process

was the first step for Napier Port.

We were happy with the response and have learned

that there are more opportunities to reach out and build

a stronger understanding of our stakeholders’ views.

Awareness and support for our operations is vital for

sustainable growth and we are committed to proactively

and openly engaging as we pursue new developments

and opportunities.

PEOPLE

Manaakitanga

We are focused on the


safety, well-being/hauora and

development of our people


and our community.

PLANET

Kaitiakitanga

We are focused on


protecting/tiaki and enhancing

the environment/taiao

in which we operate.

PROSPERITY

O

-

hanga ora

We are focused on sustainable


business growth and supporting

the prosperity of our region.

PARTNERSHIPS

Rangapu

-

We are focused on authentic

partnerships with our community,


stakeholders and mana

whenua hapu ̄.

SECTION TWO

°

BUILDING FUTURE CONNECTIONS

°

35

PLANNING FOR GROWTH
Over the last 10 years we have seen a general positive gain in tonnage and a stable trade

pattern in the primary sector supported by strong trade growth with China in particular.

The future trade scenarios that have informed this plan show growth is expected to continue.

TRADE OUTLOOK

As well as consultation, a number of different future trade scenarios based on

different growth estimates and projections were used to determine the infrastructure

we may need over the next 30 years.

The development options outlined in this Master Plan provide us with flexibility to adapt to the

different growth scenarios. We will only pursue the different development options as required

in response to actual trade volumes.

Full Empty


Logs Other

CONTAINER VOLUMES

FY2009 TO FY2020F, 000 TEUS

BULK CARGO VOLUMES

FY2009 TO FY2020F, 000 TONNES

Note: Full container includes DLRs; Increase in FY2017 container volumes partially due to the impact of the Kaikoura earthquake on CentrePort Wellington.

FY2009FY2010FY2011FY2012FY2013FY2014FY2015FY2016FY2017FY2020F*FY2019FY2018

272

271

266

167

181

188

204

206

220

256

257

288

300

200

100

250

150

50

0

FY2009FY2010FY2011FY2012FY2013FY2014FY2015FY2016FY2017FY2020F*FY2019FY2018

3,317

3,404

3,071

1,6 96

2,072

2,240

2,156

2,370

2,445

2,185

2,025

2,506

3,500

2,500

1,500

500

3,000

2,000

1,000

0

* Source: Napier Port Holdings Limited Product Disclosure Statement dated 15 July 2019.

36

°

BUILDING FUTURE CONNECTIONS

°

SECTION TWO

SECTION TWO
°

BUILDING FUTURE CONNECTIONS

°

37

CONTAINER SHIPS
The trend for larger container

vessel sizes to visit Napier Port

looks set to continue as trade

volumes increase.

The largest container vessel

currently calling at Napier Port

has a maximum capacity of

5,762 TEUs. Based on growth

indicators and shipping industry

trends, ships of between 8,000

TEUs to 12,000 TEUs could be

expected here on some service

routes within the next 30 years,

with a beam (width) of up to

48 metres and a length of up to

335 metres. The exact timing is

difficult to predict but we could

be looking as early as within the

next 10 years for at least 8,000

TEU vessels to start visiting.

0

1,0002,0003,0004,0005,0006,0007,0008,0009,000

2019

2024

2029

2034

2039

2044

2048

YEAR

AVERAGE TEU SIZE

FUTURE VESSELS:

SHIPS KEEP GETTING BIGGER

Vessel sizes, in particular container ships, are getting bigger to service the worldwide increase in container trade and the

consolidation of freight networks by shipping lines to achieve economies of scale. As vessels on the major East–West

container shipping routes are replaced by new and larger vessels, existing larger tonnage vessels are cascaded down into

smaller trade lanes like New Zealand.

AVERAGE SIZE OF CONTAINER SHIPS

VISITING NAPIER PORT

38

°

BUILDING FUTURE CONNECTIONS

°

SECTION TWO

FUTURE SHIP CALLS: MORE SHIPS TOO
Based on future trade scenarios, the number of vessel calls

to Napier Port per year is also expected to increase, largely

off the back of the growing log volumes and tourism.

To some extent the growth in container volumes is

expected to be served in the first instance by increased

ship sizes, which can accommodate more cargo.

OVATION

OF THE SEAS

348m

long cruise ship

More than


passengers

4,000

crew

1,300

CRUISE SHIPS

Cruise ships are also growing in size

6

. Napier Port is able to service the largest size ships that are currently visiting

New Zealand’s shores. In January 2017, we welcomed the Ovation of the Seas.

6

Source: Company information. (1) Sourced from Stats NZ. (2) Includes

passengers and crew

In the next 30 years we expect to welcome the Oasis Class,

which are cruise ships that are around 360 metres long,

51 metres wide and 9.8 metres deep.

Other vessels carrying logs, fertiliser, tallow and oil are also

increasing in size though not as significantly.

SECTION TWO

°

BUILDING FUTURE CONNECTIONS

°

39

SECTION THREE
THE 30 YEAR PLAN

40

°

BUILDING FUTURE CONNECTIONS

°

SECTION THREE

SECTION THREE
THE 30 YEAR PLAN

SECTION THREE

°

BUILDING FUTURE CONNECTIONS

°

41

A SNAPSHOT OF OPTIONS
DEVELOPMENT OF PORT INFRASTRUCTURE TO FACILITATE FUTURE GROWTH

We have already made a number of critical investments to support growth. However, over the next 30 years there are options

we will need to explore to support sustainable growth. The timing and actions are dependent on actual trade volumes and

developed in consultation with relevant stakeholders.

LOG, PULP AND FERTILISER FACILITIES

• As log volumes grow we need to increase the amount of on-port storage and

reduce the time logs stay on-port.

• The port will continue to work with industry and our tenants on the

legislative controls around the use of methyl bromide.

• Continue to work with customers to improve controls around handling of logs

and fertiliser to reduce impacts on the environment.

• Increase on-port pulp storage facilities to suit the largest truck sizes visiting the port.

• Create more paved and covered areas for equipment maintenance

and repair to enhance working conditions and environmental management.

• Under a high-growth trade scenario for log volumes, explore options

to remove on-port storage sheds and expand the log storage footprint.

CONTAINER TERMINAL

• We will need more space to store full

containers as volumes grow.

• Continue the staged relocation of empty depot container

services to the Thames Street Empty Container Depot to free

up space on port for stacking full containers as we grow.

• Progressively look to develop our land parcel in Whakatu

to support exporters and importers in the surrounding area.

• Start the phased expansion of the container yard

behind 6 Wharf as required in response to

trade volumes.

• Add extra entrance gates to the container terminal.

• Napier Port uses mobile harbour cranes, which

provide flexibility and seismic resilience (as they

can be moved). However, at some point in the

future the port may need to explore gantry cranes

as volumes grow.

• Increase the power supply network in

line with the future growth of the container

terminal.

SHIPPING CHANNELS

• We have resource consent

to undertake dredging in

stages as required to a

depth of up to 14.5 metres.

We will only deepen as

required in response to

visiting ship sizes.

1 WHARF

42

°

BUILDING FUTURE CONNECTIONS

°

SECTION THREE

6 WHARF
• Build 6 Wharf and

undertake associated

stage one dredging by

2022 to reduce congestion,

reduce secondary ship movements,

welcome more and bigger ships and

provide us with better access to 4 Wharf.

• Invest in new mobile harbour cranes to service

wider-beam container vessels, and ensure we

can accommodate gantry cranes if required in

the longer-term.

• Investigate options for a dedicated cruise terminal

facility long term (beyond 10 years).

• 6 Wharf provides more flexibility to establish dedicated

berths aligned to specific cargo types to reduce double-

handling and cargo transfers around the port.

EASTERN ENTRANCE

• As volumes grow add an additional

lane to the eastern entrance to prevent

congestion and reduce truck waiting

times during busy periods.

• Explore options to reconfigure rail

sidings to enhance efficiency and safety.

COASTAL

STABILISATION

• Longer-term, undertake

coastal stabilisation to

enhance the coastal

interface along the eastern

boundary beach area

and increase the port’s

resilience against high

storms and climate change.

DEDICATED SERVICE

CRAFT BERTHING AREA

• Consider options for the

establishment of a dedicated

service craft berthing area

for vessels, such as tugs and

pilot boats.

3 WHARF

• Longer-term (10 years or beyond)

improve the functionality of

3 Wharf by realigning it so it

can handle heavy machinery,

accommodate larger vessels

and enhance vessel navigation.

This realignment will only take

place as required in response

to trade volumes.

RAIL TERMINAL

• Develop an on-port

rail terminal to further

accommodate a shift

towards more cargo

being transported

on rail.

2 WHARF

3 WHARF

4 WHARF

5 WHARF

WESTERN ENTRANCE

• The port needs to maintain its focus

on initiatives that will help reduce noise,

road traffic, visual impacts and emissions

as volumes grow.

• Upgrade the western junction to further

accommodate a shift towards more rail,

including considering reconfiguring the

entrance and exit gates.

SECTION THREE

°

BUILDING FUTURE CONNECTIONS

°

43

OPTIMISE,
GROW CAPACITY,

PARTNER AND

PRESERVE

Over the next 30 years we will need to

explore a number of options to address

growth sustainably.

The timing of the actions are dependent on

actual trade volumes and will be developed

in consultation with our customers and

relevant stakeholders.

These options set out a pathway to guide

our decision-making and inform discussion.

We’re committed to communicating our

plans and taking others with us as we go.

We know we need 6 Wharf, our inland freight

hubs and a new tug to support growth; but

whether, and when, we pursue the remaining

options will depend on actual trade volumes.

Whatever options we do pursue will be pursued

in line with our sustainability strategy and four

objectives in mind:


6 WHARF

The Master Plan process has confirmed that our

plans to build a new wharf (6 Wharf) by the end

of 2022 are absolutely critical to support future

growth. 6 Wharf puts Napier Port in a good position

to address operational constraints and handle

growing trade volumes.

We have all the necessary resource consents to

build the wharf and undertake associated dredging

and plan to start work at the end of 2019, with

completion planned in 2022.

See page 21 for more information on 6 Wharf.






INLAND SITES SUPPORTING

PORT CAPACITY

Our freight hub in Thames Street, inland port at

Manawatu and the 12.3 hectares of port-owned

land in Whakatu provide the necessary flexibility

to facilitate future growth.

All are well connected to road and rail, and can be

further developed as inland terminals with off-site

cargo storage facilities and other logistics services.

They offer a sustainable solution to meet the needs

of growing freight volumes by freeing up space

on-port for customer solutions that require direct

access to berths and other on-port infrastructure.

For more information on our freight hubs

and intermodal terminal see page 22.

GROW CAPACITY

Even with more efficient operations and land use,

additional port capacity is needed over the next

30 years to service growing trade volumes.

PARTNER

Work with key stakeholders to achieve our objectives.

PRESERVE

Ensure we protect and improve our environment

as we grow.

OPTIMISE

Maximise productivity with the existing land

and infrastructure we have.

PLANS ALREADY UNDERWAY

44

°

BUILDING FUTURE CONNECTIONS

°

SECTION THREE

Napier Port’s on-port land and infrastructure
is in demand and finite. To ensure we

operate sustainably, both financially and

environmentally, we need to continue making

the most of what we have, optimising the use

of our existing infrastructure and resources.

Our options over the next 30 years

• The completion of 6 Wharf will help

us to proactively manage commercial

berth allocations to minimise the

movement of cargo around the port and

allow us to proactively manage the cruise

berth allocations to minimise impacts on

other trade.

• Reconfigure the container yard to allow

it to function more effectively with 6 Wharf.

This includes optimising the stacking of

refrigerated containers and enhancing the

power supply.

• Prioritise the allocation of on-port land for

uses that require a direct connection to

berths for importing and exporting trade by

exploring potential options within the port

boundary.

• Staged relocation of empty depot

container services to Thames Street empty

container depot to free up space on-port

for container stacking.

• Facilitate local expansion of on-port

product storage for cement, bitumen

and specialist liquid bulk products.

• Support the growth of the Port Pack

service offering on-port and longer term

(beyond 10 years).

• Expand the log stacking area behind berth

number 4 to better match the average

parcel size characteristics of export logs.

• Optimise port equipment and operational

zones to improve operational efficiency

and land use productivity. This includes

weighbridge locations and wash

bay facilities.

• Investigate options to shift non-seasonal

trade to quieter seasons to free-up space

on-port during the busy season.

• Continue to work with the NZ Transport

Agency and customers to trial future

transport options and/or larger vehicles,

such as B Double trucks, to mitigate

against future increases in road vehicle

movements.

• Look to improve the effectiveness of rail

infrastructure on the port and work with

customers to grow the share of cargo that

is transferred to the port by rail.

• Improve the intensity of log stacking

across the port footprint.

• Consolidate container maintenance and

repair to free up port land for cargo users.

• Enhance biosecurity controls at the port

as cargo and tourism increases.

• Longer term, undertake coastal

stabilisation to beach areas to improve

available land footprint.

• Add extra entrance gates to the container

terminal and consider reconfiguration

of the entrance and exit gates.

OPTIMISE

Maximise productivity with the existing land and infrastructure.

SECTION THREE

°

BUILDING FUTURE CONNECTIONS

°

45

Our options over the next 30 years
• Build 6 Wharf by 2022 to reduce

congestion and welcome more and bigger

ships as well as provide us with better

access to 4 Wharf.

• Invest in new mobile harbour cranes to

service the wider-beam container vessels

and maintain the option to install new

gantry cranes on 6 Wharf. Explore options

to invest in new container yard handling

and stacking equipment.

• Improve the functionality of 3 Wharf

to provide more storage room for logs,

enhance navigation and accomodate

larger vessels and volumes in response

to trade volumes.

• Progressively look to develop our land

parcel in Whakatu to support exporters

and importers in the surrounding area.

• Investigate options for a dedicated cruise

terminal facility in longer term (beyond 10

years) allowing passengers to walk to the

city and improving passenger experience.

• Consider options for the establishment

of a dedicated service craft berthing area.

• Start the phased expansion of the

container yard behind 6 Wharf in future

in response to actual trade volumes.

• Develop an on-port rail terminal and

upgrade the western junction further to

accommodate a shift towards more cargo

being transported on rail.

• Add an additional lane to the eastern

entrance to remove congestion and reduce

truck waiting times during busy periods.

• Under a high log growth scenario, explore

options to remove on-port storage sheds

and expand the log storage footprint.

GROW CAPACITY

Even with improved productivity and use of existing land, new infrastructure will be

required over the next 30 years to efficiently service growing trade volumes and

facilitate growth for our customers and region.

46

°

BUILDING FUTURE CONNECTIONS

°

SECTION THREE

PARTNER AND PRESERVE
We recognise that we cannot achieve the objectives in this plan without working

in partnership with our many stakeholders in a coordinated way. We also recognise

the need to ensure we protect our environment.

Napier Port will not achieve optimum

capacity if road and rail connections to and

from our facilities are limited. Communicating

with NZTA, KiwiRail and other government

agencies is vital.

We will also continue to communicate openly

with port customers and users, government

agencies, the industry and the community,

and recognise that strong governance and

communication is crucial in the management

and delivery of sustainable solutions that

protect shared interests.

Our options over the next 30 years

• As truck volumes increase, we will

advocate and work closely with NZTA and

our customers to promote the increased

number of TEU transported per truck,

such as B-Double trucks.

• Explore options for further visual and noise

impact mitigation features at the interfaces

of the port and the community.

• Work with NZTA and other partners

to secure timely delivery of road and

intersection upgrades near our port and

depots to meet growing freight demands.

• Continue to work with the pipfruit industry

to unlock capacity constraints in their

supply chain using port land assets and

operational systems.

• Work with KiwiRail to improve the

freight rail system to facilitate a reliable

and cost-effective mode of transport.

We will also support opportunities to

increase the amount of freight in one visit,

such as double-stacking trains. Provide

the infrastructure to support the use

of rail which is more energy efficient

than road and helps to reduce noise

and air emissions.

• Explore opportunities to develop

(common) multi-user facilities or services

on or off-port as a means of addressing

future trade growth and supply chain

efficiency challenges.

• The Port will continue to work with the

Napier City Council and the New Zealand

Transport Authority to advocate for

ensuring land use surrounding the main

highway corridors remains compatible.

• Continue to consult and communicate

transparently with our customers to

understand changing needs. We will

do this through regular meetings and

engaging on issues of importance as well

as the public consultation process around

our Master Plan, which will take place

every five years.

• We will also engage with our community

and other stakeholders around operation

and construction activities, initiatives

and interventions we are taking to

manage against adverse effects, such

as noise, trucking movements,

and new development options that

may impact them.

• We will ensure we use our channels

to receive and respond to feedback on

operational impacts and opportunities are

provided to have input into development

and planning processes, including the

Master Plan process.

• 6 Wharf will ensure we have the

infrastructure in place to receive larger

vessels, which are more environmentally

friendly than multiple smaller ships.

• Implement improved surface water

run-off system controls as part of new

port development to reduce impacts on

the marine environment.

• Continue to enhance and follow best

practice environmental practices as

identified in our Sustainability Framework

and strategy.

See our Sustainability Framework: ‘Building a Sustainable Future’ for more information on our

strategy to improve environmental and social outcomes and embed care for people, planet,

partnerships and place into our everyday operations and long-term planning.

SECTION THREE

°

BUILDING FUTURE CONNECTIONS

°

47

48
°

BUILDING FUTURE CONNECTIONS

°

SECTION THREE

FEEDBACK
Napier Port’s Master Plan provides a blueprint to guide our infrastructure investment over

the next 30 years and support sustainable growth of our port, customers and the regional

economy. We will finalise the plan early next year and update it as a business every year,

consulting with our community every five years. To provide feedback on this preliminary draft

or discuss our plans at any time, email masterplan@napierport.co.nz or call our infrastructure

team on 06 833 4387.

SECTION THREE

°

BUILDING FUTURE CONNECTIONS

°

49

napierport.co.nz Napier Port Napier Port @napierport

---

SUSTAINABILITY FRAMEWORK
He

-

Ritenga Whakauka

BUILDING A

SUSTAINABLE

FUTURE

POIPOIA TE KA
̄

KANO KIA PUA

̄

WAI.

Nurture the seed and it will grow.

DOCUMENT

ENVIRONMENTAL

CREDENTIALS

The paper stock used is Forest Stewardship Council

®


(FSC

®

) certified stock from responsible sources, using

elemental chlorine-free (ECF) production processes.

It is produced under the strict ISO14001 and EU

EMAS environmental management systems, and carries

the internationally recognised EU Flower eco label.

CONTENTS
02

MESSAGE

FROM THE

CHAIRMAN

04

MESSAGE

FROM THE

CHIEF

EXECUTIVE

06

ABOUT

NAPIER PORT

10

DEVELOPING OUR

SUSTAINABILITY

FRAMEWORK AND

STRATEGY

14

STRATEGY

DEVELOPMENT

19

SUSTAINABILITY

AT NAPIER PORT

TO DAY

25

FEEDBACK

NAPIER PORT SUSTAINABILITY FRAMEWORK

°

1

POIPOIA TE KA
̄

KANO KIA PUA

̄

WAI

NURTURE THE SEED AND IT WILL GROW.

Te

-

na

-

ākoutou,

Napier Port’s core purpose is to build

a thriving region by connecting our

customers, people and community

to the world – not just economically,

but environmentally and socially too.

Developing this Sustainability

Framework has involved reviewing

our existing programmes, strategies

and policies, as well as speaking

with stakeholders, to identify the

sustainability issues that we are

in the best position to influence

and improve.

It is heartening to see that we are

already doing a lot to build a more

resilient business, a healthier region

and to make progress against global

sustainability challenges.

However, we also know we can

and must do more.

This framework provides a blueprint

for how Napier Port plans to build

sustainable growth and where we are

likely to focus our efforts in the future

(see page 12). We are in a good

position to make progress at a local

level on important international issues

such as equality, climate change,

biodiversity, biosecurity, water

management and economic growth.

Now we need to work with our

stakeholders, and port teams,

to develop a comprehensive

Sustainability Strategy with targets,

actions and reporting mechanisms

to ensure success.

As a Board, we wholeheartedly

support this framework and

Napier Port’s sustainability journey.

We look forward to forging a strong

and sustainable future together.

Nga ̄ mihi,

MESSAGE

FROM THE

CHAIRMAN

ALASDAIR MACLEOD

CHAIRMAN

2

°

BUILDING A SUSTAINABLE FUTURE

NAPIER PORT SUSTAINABILITY FRAMEWORK
°

3

WE ARE FOCUSED ON
WHAT WE CAN ACHIEVE

LOCALLY TO RESPOND

TO GLOBAL CHALLENGES.

4

°

BUILDING A SUSTAINABLE FUTURE

Te
-

na

-

ākoutou,

Napier Port is proud to connect

our region with the people and

markets of the world.

We support Hawke's Bay's

$8.1 billion

1

economy by providing

a key gateway to global markets for

the region's exporters and importers.

Napier Port has strong social,

cultural and environmental values and

recognises the importance of leaving a

positive legacy for future generations.

MESSAGE

FROM THE

CHIEF

EXECUTIVE

WE’RE BUILDING

A SUSTAINABLE FUTURE

At the end of 2018, we started work on this sustainability

framework. It focuses on four interconnected themes: people/

manaakitanga, planet/kaitiakitanga, prosperity/o

-

hanga ora and

partnerships/rangapu

-

.

The next step is to develop a detailed Sustainability Strategy.

Using this framework, we will consult with our stakeholders

to develop specific goals, targets and actions to pursue and

report on.

Our work is being guided by the United Nations Sustainable

Development Goals, which are globally recognised and

provide a blueprint to build a better and more sustainable

future for all.

We are focused on what we can achieve locally to respond

to global challenges like climate change, environmental

impacts and prosperity.

The final strategy will be made public in the second half of

2020. In coming years, we will publicly report on progress,

our successes and our shortfalls.

It is our long-term goal to work towards Global Reporting

Initiative (GRI) reporting, which is the global best practice

for reporting on economic, environmental and social impacts.

In the interim we will use the GRI framework, demonstrating

our commitment to full transparency.

We welcome your involvement in our sustainability

journey. To share your thoughts, email sustainability@

napierport.co.nz or call our team on 06 833 4387.

Nga

-

mihi nui.

TODD DAWSON

CHIEF EXECUTIVE

1

New Zealand's regional economies 2018 | Stats NZ. (2019).

Retrieved 6 August 2019, from https://www.stats.govt.nz/

infographics/new-zealands-regional-economies-2018

NAPIER PORT SUSTAINABILITY FRAMEWORK

°

5

TO EUROPE
& WEST AFRICA

TO EAST

COAST OF

SOUTH

AMERICA

TO CENTRAL

AMERICA

TO WEST

COAST

OF NORTH

AMERICA

TO WEST

COAST

OF SOUTH

AMERICA

TO SOUTH EAST ASIA,

INDIA & EAST AFRICA/

MIDDLE EAST

NEW ZEALAND

HONG KONG

SINGAPORE

PHILADELPHIA

MANZANILLO

NAPIER

OUR PURPOSE:

TOGETHER, WE BUILD A THRIVING REGION

BY CONNECTING YOU TO THE WORLD.

Napier Port has been connecting Hawke’s Bay and its

surrounding regions with the people and markets of

the world for nearly 150 years.

We support Hawke’s Bay’s $8.1 billion economy

2

, directly

employ over 280 people and are indirectly associated with

thousands more full and part-time jobs in the region.

We plan, operate and maintain port land and shipping

channels, and ensure we have the cargo handling capacity,

facilities and infrastructure required to get our customers’

cargo to market quickly and in top condition.

Located in Napier City, amongst a growing community,

Napier Port is on the main transit route for international

shipping services, is connected to core national road and rail

networks, and operates 24 hours a day, 364 days a year.



While our strategic location and cargo handling capacity

make us a key connection in central New Zealand’s supply

chain, it’s our service that is the foundation to our success.

We take pride in delivering more than expected for

our customers and their cargo, building collaborative

relationships, supporting the local community and providing

safe and secure access to our services.

Our future is one forged side-be-side with our customers

and our community. Collectively, we can drive growth

and success that benefits our region, our people

and our environment.

ABOUT

NAPIER PORT

2

New Zealand's regional economies 2018 | Stats NZ. (2019). Retrieved 6 August 2019,

from https://www.stats.govt.nz/infographics/new-zealands-regional-economies-2018.

VOLUME THROUGH NAPIER PORT BY TRANSPORT MODE

2,500,000

2,000,000

1,500,000

1,000,000

500,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

TONNES

Bulk

exports

Bulk

imports

Containerised

exports

Containerised

imports

OUR TRADE

Increasing trade destined for, or originating from,

Hawke's Bay and its surrounding regions in the last

ten years has lifted cargo volumes through the port.

21

%

IMPORTS

79

%

EXPORTS

EXPORT /

IMPORT SPLIT

FY2018,


BY WEIGHT

VOLUME THROUGH NAPIER PORT BY CARGO TYPE

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

TONNES

Agriculture,

food &

beverages

Forestry

& logging

Other

industries

6

°

BUILDING A SUSTAINABLE FUTURE

TO EUROPE
& WEST AFRICA

TO EAST

COAST OF

SOUTH

AMERICA

TO CENTRAL

AMERICA

TO WEST

COAST

OF NORTH

AMERICA

TO WEST

COAST

OF SOUTH

AMERICA

TO SOUTH EAST ASIA,

INDIA & EAST AFRICA/

MIDDLE EAST

NEW ZEALAND

HONG KONG

SINGAPORE

PHILADELPHIA

MANZANILLO

NAPIER

NAPIER PORT HANDLED

5M

+

OUR CONNECTIONS

260,000

+


TEUS OF DRY AND REFRIGERATED

CONTAINERISED CARGO

115,000

+


PASSENGERS IN THE

2018/19 CRUISE SEASON

40

+

TRAINS TO

THE PORT


EACH WEEK

13

MINUTE TRUCK

TURNAROUND TIME

IN 2018 FINANCIAL

YEAR

680

+

SHIP VISITS IN 2018

FINANCIAL YEAR

DIFFERENT IMPORTS

AND EXPORTS

30

+

COMMERCIAL

SHIPPING LINES

10

TONNES OF

CARGO IN 2018

FINANCIAL YEAR

70

CRUISE SHIPS

IN THE 2018/19 CRUISE

SEASON

NAPIER PORT SUSTAINABILITY FRAMEWORK

°

7

OUR PORT, HUBS AND INFRASTRUCTURE
• Around 50 hectares of on-site port land

• Five existing wharves providing six commercial berths

and a new wharf planned for 2022

• Six mobile harbour cranes

• Two tugs and a third to be operational by the end of 2019

• Fleet of 35 heavy container handling machines

• Over 280 staff

• 1000+ connection points for refrigerated cargo

as at 31 March 2019

• 36,607 square metres of warehousing

• Around 16 hectares of container terminal space

• Receiving and delivery 6 days a week

• 10 hectares of dedicated log storage,

working 24/7

• Container terminal at Thames Street with

11.6 hectares of empty container storage

• Inland port in Manawatu with a 1.9

hectare container yard and a warehousing

facility with road and rail connections

to Napier Port

• 12.3 hectares of land in Whakatu ready

for future development.

Napier

Hastings

Wairoa

Gisborne

Taupo

Wellington

Palmerston

North

Whanganui

New Plymouth

Ohakune

5

2

2

2

1

1

1

1

3

3

2

THAMES ST

CONTAINER DEPOT

RAIL CONNECTIONS

MANAWATU

INLAND PORT

8

°

BUILDING A SUSTAINABLE FUTURE

2 WHARF
3 WHARF

4 WHARF

5 WHARF

1 WHARF

COLLABORATE TO LOOK AFTER PEOPLE,

PLANET AND PLACE TO ENSURE OUR

BUSINESS AND COMMUNITY THRIVES

Napier

Hastings

Wairoa

Gisborne

Taupo

Wellington

Palmerston

North

Whanganui

New Plymouth

Ohakune

5

2

2

2

1

1

1

1

3

3

2

OUR GOALS

CREATE VALUE BY GAINING RICH

INSIGHTS THROUGH DEEPER CUSTOMER

RELATIONSHIPS

SUPPORT AN EVOLVING SUPPLY

CHAIN WITH A RESILIENT AND AGILE

INFRASTRUCTURE NETWORK

EVERY MEMBER OF OUR TEAM STRIVES

TO IMPROVE CUSTOMER OUTCOMES

LEVERAGE INTELLIGENT

DATA TO CREATE NEW VALUE

OUR SUCCESS IS FOUNDED ON

A CULTURE OF CARE FOR OUR

CUSTOMERS, OUR COMMUNITY

AND EACH OTHER

OUR FOUNDATION

OUR FOCUS

Five high-level strategic goals support our focus areas

and guide strategic decisions and investment.

At the heart of Napier Port's strategy are four key

focus areas that guide our business.

NAPIER PORT SUSTAINABILITY FRAMEWORK

°

9

NOVEMBER 2018 – MAY 2019
DEVELOPING OUR

SUSTAINABILITY

FRAMEWORK

AND STRATEGY

Managing a port like Napier brings enormous responsibility to our customers, community,

partners in regional growth and the environment.

Over the years, we’ve worked hard to improve our environmental, social and economic

performance. But we know that we can do more to embed sustainability into our

decision-making and daily operations.

At the end of 2018, we started developing our sustainability framework and strategy,

adopting a robust five-stage process.

While we’re delivering for our customers and the economy, we’re focused

on considering our impact on the planet, our people and our community.

JUNE 2019 – SECOND HALF OF 2020

SUSTAINABILITY STRATEGY DEVELOPMENT PROCESS

PHASE ONEPHASE TWO

GAP ANALYSIS

Understanding our

current policies,

strategies, and

identifying gaps and

opportunities for

the future.

MATERIALITY

ASSESSMENT

Engaging with

internal and external

stakeholders

to identify key

sustainability

issues.

SUSTAINABILITY

FRAMEWORK

Using stakeholder

feedback to

determine a

framework with

which we can build

a sustainability

strategy.

STRATEGY

DEVELOPMENT

Building a robust

and comprehensive

sustainability

strategy, including

targets and actions.

REPORTING

Establishing

a robust and

transparent process

for reporting on our

sustainability goals.

COMPLETE

10

°

BUILDING A SUSTAINABLE FUTURE

PHASE ONE:
GAP ANALYSIS

A gap analysis highlighted a number of existing programmes,

strategies and policies across our business that will help

ensure a sustainable future. It also highlighted areas where

we have an opportunity to improve.

See page 19 for examples of our recent sustainability

achievements.

MATERIALITY ASSESSMENT

Our materiality assessment used the following information to

determine our framework and the most important issues for

us to focus on:

• Analysis of a survey on our master plan, which drew

around 100 responses from our community in late 2018

• Feedback from the key stakeholders we consulted with

before applying for resource consents to build a new wharf

(6 Wharf) and undertake further dredging

• An internal survey on sustainability involving our teams

from across the business, which drew 114 responses

• The experience of previous sustainability surveys

conducted throughout the port industry.

Feedback from our stakeholders helped to identify

the following issues as material topics for our

sustainability strategy:

• Employee wellbeing

• Positive organisational culture and leadership

• Managing the impacts of our port on the community

• The safety and security of the port and the people who

work here

• Biosecurity

• Biodiversity, habitat protection and enhancement –

fisheries, flora and fauna

• Water management (water quality and

stormwater management)

• Supporting Hawke’s Bay’s economy

• Protecting port access and supply chains

• Technology and innovation

• Port efficiency (shipping channels and land use allocations)

• Industry, community and partnerships with mana whenua

• Port communication

• Port education (helping the community understand more

about the port and operations)

• Government relationships.

NAPIER PORT SUSTAINABILITY FRAMEWORK

°

11

PEOPLE
MANAAKITANGA

Our role in facilitating trade and generating employment

is at the heart of delivering for our people and community;

and doing it safely will always be a priority.

It’s also about ensuring we encourage good health and

well-being amongst our teams, support access to quality

education, and promote gender equality and diversity

across our business. Napier Port’s ‘culture of care’ is our

foundation; a resilient and agile culture that encourages

care for our people, our community and our environment.

Exact actions will be detailed in our sustainability

strategy, but our future focus may include:

• Continuing to ensure the safety and wellbeing/hauora

of our teams, and expand our culture of care to our

tenants, contractors, and community.

• Progressing anti-bullying initiatives and

searching for further opportunities

to reduce social issues.

• Reviewing our sponsorship

programme and its

alignment to the Sustainable

Development Goals (SDGs).

• Partnering with educational

institutions on opportunities

aligned to SDG targets and

sustainability education.

• Growing our knowledge

and understanding of te reo

and te ao Ma ̄ ori.

• Expanding our summer intern

programme, targeting areas directly

related to our SDG targets.

SUSTAINABILITY

FRAMEWORK

The key issues identified through our gap analysis and materiality

assessment helped to shape a framework that we are using to

build our sustainability strategy. Our framework focuses on four

interconnected themes:

PARTNERSHIPS

Rangapu

-

We are focused on authentic

partnerships with our community,

stakeholders and mana

whenua hapu ̄.

PEOPLE

Manaakitanga

We are focused on the

safety, well-being/hauora and

development of our people

and our community.

PLANET

Kaitiakitanga

We are focused on

protecting/tiaki and enhancing

the environment/taiao

in which we operate.

PROSPERITY

O

-

hanga ora

We are focused on sustainable

business growth and supporting

the prosperity of our region.

12

°

BUILDING A SUSTAINABLE FUTURE

PLANET
KAITIAKITANGA

We rely on our world’s oceans. So it makes sense that

we contribute to clean and accessible water, manage

stormwater responsibly, and protect life above and below

the water.

With a large infrastructure network that operates 24/7,

we also have a role to play in conserving energy, prioritising

clean energy, and minimising waste.

Our future focus could include:

• Minimising our carbon footprint in line with

government targets and setting our own targets

and direction, such as:

- Exploring the use of alternative fuels like

hydrogen, biofuels and electricity.

- Considering investment in heavy equipment

(trucks, forklifts, cranes and marine plant)

powered by clean energy.

- Setting clear policies for offsetting unavoidable

carbon emissions.

- Working with key stakeholders to develop

strategies for expanding rail transport.

- Reviewing existing energy reduction targets

and how we'll achieve these.

• Expanding and sharing our knowledge and data on the

marine environment and taking a collaborative approach

to nurturing the health of our moana.

• Continuing to protect our local wildlife and sharing

learnings with our community about wildlife habitats

on our port.

• Considering the sustainability credentials of our suppliers,

tenants, contractors and customers.

• Developing policies that see relevant SDGs integrated

into future port developments.

• Ensuring end of life disposal is considered in the design

phase of projects and develop programmes that minimise

our waste.

PARTNERSHIPS

RANGAPU

-


We recognise our customers, community, stakeholders,

port users, government, investors and mana whenua

are central to our success.

Our future focus could include:

• Opportunities to partner with local authorities, customers,

mana whenua hapu ̄ , iwi, community groups and other

stakeholders related to the SDGs.

• Engaging local utility suppliers to ensure adequate

infrastructure for future developments.

• Working with customers, contractors and suppliers

to improve the sustainability of their supply chains

and to find solutions to their challenges.

PROSPERITY

O

-

HANGA ORA

We must continue to invest in infrastructure and technology

that supports economic growth, while recognising the need

to make the most of the assets we already have.

We play an active role in improving our community and

facilitating industry participation through partnerships,

grants and sponsorships; and robust governance to build

an effective and accountable port is vital.

Our future focus could include:

• Driving efficient operations by rationalising land use and

investing in strategic and sustainable infrastructure.

• Work/mahi with local, regional and national authorities

to protect access to the port and supply chains critical

for the efficient movement of cargo.

• Opportunities to partner with local authorities, commercial

partners and other stakeholders to realise the economic

potential of our community, and to provide fulfilling

employment.

• Developing plans to encourage tenants and port users

to adopt and make progress on sustainability practices.

• Working to ensure pay equity in our organisation and

prevent unconscious bias in recruitment.

NAPIER PORT SUSTAINABILITY FRAMEWORK

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13

PHASE TWO:
STRATEGY

DEVELOPMENT

14

°

BUILDING A SUSTAINABLE FUTURE

DEVELOPING OUR SUSTAINABILITY STRATEGY
We're currently developing a comprehensive sustainability strategy, which builds on

this framework and is aligned to the United Nations Sustainable Development Goals.

We are focused on what we can achieve locally to respond to global challenges like climate

change, environmental issues and prosperity to achieve a better and more sustainable

future for all.

THE SDGS INVOLVE

US ALL TO BUILD A MORE

SUSTAINABLE, SAFER,

MORE PROSPEROUS

PLANET FOR ALL

HUMANITY

- UNITED NATIONS

ABOUT THE UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS

At the United Nations summit meeting in September 2015, world leaders adopted

17 global goals (and 169 targets) as a set of universal goals that aim to address the

urgent environmental, political and economic challenges facing our world.

These are known as the United Nations Sustainable Development Goals (SDGs).

More information on the SDGs can be found here: www.globalgoals.org

NAPIER PORT SUSTAINABILITY FRAMEWORK

°

15

NEXT STEPS
Using our sustainability framework and consulting with our teams and other stakeholders, our next step is to confirm the

SDGs and underlying targets that we will contribute to and measure ourselves against. There are 169 targets associated

with the 17 SDGs. We will consider each SDG and the interrelationship of each, as well as look at our current practices,

policies and programmes and future opportunities. Importantly, our final strategy will focus on the SDGs deemed to be

most relevant to our people, our environment, our future prosperity and our stakeholders.

Based on our work to date, we believe we are most closely aligned and best placed to take direct action on the following

14 SDGs. These 14 goals are also consistent with other ports that face similar sustainability challenges and opportunities.

United Nations Sustainable Development Goal

Ensure healthy lives and promote well-being for all at all ages

Ensure inclusive and equitable quality education and promote lifelong learning

opportunities for all

Achieve gender equality and empower all women and girls

Ensure availability and sustainable management of water and sanitation for all

Ensure access to affordable, reliable, sustainable and modern energy for all

Promote sustained, inclusive and sustainable economic growth, full and productive

employment and decent work for all

Build resilient infrastructure, promote inclusive and sustainable industrialisation

and foster innovation

Make cities and human settlements inclusive, safe, resilient and sustainable

Ensure sustainable consumption and production patterns

Take urgent action to combat climate change and its impacts

Conserve and sustainably use the oceans, seas and marine resources for

sustainable development

Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage

forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss

Promote peaceful and inclusive societies for sustainable development, provide access

to justice for all and build effective, accountable and inclusive institutions at all levels

Strengthen the means of implementation and revitalize the global partnership

for sustainable development

Sustainability

Framework area

PEOPLE

MANAAKITANGA

PLANET

KAITIAKITANGA

PROSPERITY

O

-

HANGA ORA

PARTNERSHIPS


RANGAPU

-


16

°

BUILDING A SUSTAINABLE FUTURE

REPORTING
We commit ourselves to transparently reporting on our

successes and areas for improvement.

It is our long-term goal to work towards Global Reporting

Initiative (GRI) reporting. GRI promotes credible non-

financial reporting by companies and is globally recognised

as a best practice example of sustainability reporting.

In the interim, we will use the GRI framework as a guide –

demonstrating our commitment to full transparency.

We are confident that this approach is consistent with that

outlined in the NZX Environmental, Social & Governance

Guidance Note.

For more information on GRI go to:

www.globalreporting.org

NAPIER PORT SUSTAINABILITY FRAMEWORK

°

17

18
°

BUILDING A SUSTAINABLE FUTURE

SUSTAINABILITY
AT NAPIER PORT

TODAY

Our gap analysis and materiality assessment has already highlighted a number

of existing programmes, strategies and policies across our business that are

helping to ensure a more sustainable future.

NAPIER PORT SUSTAINABILITY FRAMEWORK

°

19

SUSTAINABILITY IN ACTION
Here's a snapshot of some of our current sustainability practices, policies and

programmes and their relevance to nine of the United Nations Sustainable

Development Goals. As stated, as part of our detailed strategy work we are working

through all of the 17 SDGs and their targets to determine which are most relevant

in the short and long term, prioritising where we can make the most effective gains.

Our detailed strategy will be complete in the second half of 2020.

Napier Port is proud of our culture of care, which encourages

care for our people, community, and environment, and puts

safety above all else.

Health and safety is a shared responsibility and we expect

everyone who comes here to understand and uphold Napier

Port's strict health and safety standards, which are detailed

in our Individual and Company Safety Protocols.

Reporting is a critical part of our culture, where incidents are

shared without blame and questions are encouraged so we

can continually learn and improve.

While we stringently manage work-related health risks –

industrial noise, air quality and fatigue management, amongst

others – workplaces also affect physical, mental, economic

and social wellbeing. We support our team through wellness

initiatives including onsite health checks, molemaps, flu

vaccinations, a gym, counselling and advice services.

Our leaders are also trained in mental health first aid.

We understand the power of partnerships. Last year we

achieved a ‘Safeguard Award’ for our collaborative approach

to managing shipside safety for bulk cargo vessel visits, and

we are working with port tenants and users to establish a

Licence to Operate contract, which sets out safety standards

that businesses operating on port must adhere to.

GOOD HEALTH AND WELLBEING

KIA TU

-

HAUORA

QUALITY EDUCATION

TE KOANGA O

-

TO WHARE KURA

Napier Port builds educational opportunities to enhance

understanding of the critical role the port and export sector

plays in building prosperity.

Our port education programmes include:

• A ‘Learning Outside the Classroom’ course on

Napier Port’s role in the economy for primary school pupils;

• An NCEA Level 1 Economics paper based on Napier Port

activities;

• Supporting the MTG Hawke’s Bay to provide further

education and learning opportunities;

• A summer student programme, with interns in our

Infrastructure and Culture and Community teams; and

• Co-developing the Certificate in Port Operations,

a Level 3-4 NZQA qualification.

Education is ongoing so we support initiatives that help build

capacity and celebrate achievements such as the Napier

Port Hawke’s Bay Primary Sector Awards, the Hawke’s Bay

Export Awards, and the New Zealand Young Farmer Contest.

In 2015, we launched the country’s first mobile harbour

crane simulator, which has helped to improve education,

safety and efficiency at Napier Port and abroad.

20

°

BUILDING A SUSTAINABLE FUTURE

AFFORDABLE AND CLEAN ENERGY
PU

-

NGAO KE

-

We’re working to bring our energy consumption down.

Through a programme of sustainable procurement, we’re

moving across to more efficient forklifts as we upgrade our

heavy vehicle fleet.

To cater for the increasing volumes of refrigerated

containers, we’ve gone up – investing in more container

towers. Storing refrigerated containers in a tower, rather

than on the ground, means we can power them from the

grid, reducing our reliance on diesel-powered generators

with a much higher carbon footprint.

We’ve also installed an electric vehicle (EV) recharging

station, and have begun the transition to EVs as we

replace our light vehicle fleet. LED lights reduce electricity

consumption, so as part of a 20-year roll-out, Napier Port

has recently installed our first LED light tower. It will help

save energy and increase safety for our electricians.

We’re also exploring other technologies, such as wave

energy, that could help to bring our footprint down, and

searching for opportunities to use them as the country

transitions towards zero carbon emissions by 2050.

INDUSTRY, INNOVATION

AND INFRASTRUCTURE

AUAHATIA

To meet future challenges, we need to build, identify

and protect resilient infrastructure, promote inclusive

and sustainable industrialisation and foster innovation.

As well as our plans to build 6 Wharf, we’re increasingly

looking outside the gate to find solutions and integrate

ourselves into customer supply chains.

We’ve invested in the Manawatu Inland Port with Ports

of Auckland and Halls Group to connect the importers and

exporters of Manawatu with Napier Port. We’ve developed

a 11.6 hectare container depot facility at nearby Thames

Street to cater for growth in the supply of empty containers

to export customers. We’ve also purchased 12.3 hectares

of industrial land in Whakatu, earmarked as a future freight

hub to provide us with an opportunity to expand our storage

capacity. With its direct rail connection, it also has the

potential to reduce the number of trucks on the road

as the port grows.

We’re continually looking to find innovative ways to manage

cargo and improve productivity. Recently we’ve developed

software that has streamlined container planning, reducing

the time it takes to plan how export containers are stowed

on a vessel.

NAPIER PORT SUSTAINABILITY FRAMEWORK

°

21

DECENT WORK AND
ECONOMIC GROWTH

O

-

HANGA ORA

We support the Hawke's Bay economy, directly employ

over 280 people and are indirectly associated with

thousands more full and part-time jobs.

Napier Port recognises the value of diversity and focuses

on building an inclusive workplace culture and diverse

workforce through policies, plans and actions, such as our

Diversity and Inclusion Policy and our recruitment strategy.

The skill and motivation of our people is what sets us apart.

That’s why we benchmark our remuneration and have

a policy in place to ensure we get the teams we need

to find better solutions for our customers, our business

and the region.

We’re focused on developing our people. We’ve recently

strengthened training and progression pathways for a

number of teams, supported 35 of our people to complete

the Certificate in Port Operations and provide one-on-one

coaching for our leaders to develop their skills.

We’re future-proofing our business by building a new wharf

to support regional growth and employment. 6 Wharf, once

complete (expected in 2022), will help reduce congestion

at the port while our Master Plan focuses on rationalising

port lands, well-planned capital infrastructure, efficient use

of port facilities and protection of key supply chain areas

for future growth.

SUSTAINABLE CITIES

AND COMMUNITIES

KIA WHAKAUKAUKA NGA

-

PA

-


We’re focused on keeping those outside our port gates safe.

This year, in partnership with the New Zealand Transport

Agency and KiwiRail, we upgraded our western entrance on

Breakwater Road, installing traffic lights and rail barrier arms

to manage traffic going in and out of the port.

Strong, meaningful relationships with iwi and hapu ̄ are

integral to the future growth and success of our region.

We’re developing the first long-term marine cultural

monitoring programme with mana whenua hapu ̄ to protect,

monitor and assess the health of the marine environment –

using cultural indicators – during the planned development

of our new wharf.

We’ve also employed Napier Port’s first Pou Tikanga –

Infrastructure Environmental and Cultural Advisor and started

a formal programme to strengthen our cultural capability.

We appreciate that our growth can present challenges for

our neighbours. We’ve introduced measures to monitor

and control the level of dust and noise for those who live

close to our port.

22

°

BUILDING A SUSTAINABLE FUTURE

RESPONSIBLE CONSUMPTION
AND PRODUCTION

TU

̄

TIKA TE WHAKAPAUNGIA

Napier Port is in a good position to reduce waste generation

and has an on-port recycling programme. We also work in

partnership with local firm BioRich to give waste bark from

our log operation another life.

Every year, thousands of tonnes of waste bark is collected

by BioRich from Napier Port and combined with waste

products from many of our export customers to create rich

compost and mulch. From here, it is used by apple and

kiwifruit orchards, vineyards and crop farms across

Hawke's Bay.

LIFE BELOW WATER

TIAKI TANGAROA

Our waters are a vital resource, essential for humanity and

to manage the effects of climate change. Napier Port has

developed an environmental dashboard that will enable us

to monitor and report on water quality in real-time during

planned dredging to build 6 Wharf. It will also help us to

protect the cultural health of the marine environment, in

particular Pania Reef - a site of cultural significance to mana

whenua hapu

-

as the embodiment of their ancestor and a site

of mahinga kai species.

Prior to applying for resource consents for 6 Wharf we also

invested in a significant scientific study on Hawke’s Bay’s

marine environment, which included a multi-beam survey

of Pania Reef and allowed us to see the shape of the reef

in detail for the first time, helping us to manage our marine

environment more effectively.

LIFE ON LAND

TIAKI PAPA

We work closely with local experts to understand the

behaviour and needs of the flora and fauna of our port,

helping us to protect the species that live here and

their habitats.

This includes developing an on-port sanctuary to protect

the korora ̄ , or little blue penguin, and other birds.

The penguin sanctuary has provided education opportunities

to share the knowledge we have around the korora ̄ /little blue

penguin with students while creating nesting boxes that are

being used at the sanctuary.

We’ve also established settlement ponds at our Thames

Street depot providing a natural habitat for local wildlife;

and have supported the development of a new wetland at

Waitangi Regional Park that includes a haven for native fish

and birdlife. Napier Port provides a protected, predator-free

area for local seals to rest and suckle their pups when they

come ashore after their days at sea.

NAPIER PORT SUSTAINABILITY FRAMEWORK

°

23

24
°

BUILDING A SUSTAINABLE FUTURE

FEEDBACK
This framework provides direction on what we need to do to facilitate sustainable

growth of our port for our customers and our region in the years ahead.

From here we will develop a detailed strategy and outline the actions required.

To provide feedback on the framework, please email sustainability@napierport.co.nz

or call our team on 06 833 4387.

We are proud of our history and look forward to working together to build a better future.

NAPIER PORT SUSTAINABILITY FRAMEWORK

°

25

napierport.co.nz Napier Port Napier Port @napierport

---

NZX AND MEDIA RELEASE
14 November 2019


NAPIER PORT PUBLISHES MASTER PLAN AND

SUSTAINABILITY FRAMEWORK

Napier Port (NZX.NPH) today published two key documents, a preliminary draft of its 30-year Master

Plan and a Sustainability Framework.

“Building Future Connections” Napier Port’s 30-year Master Plan and its Sustainability Framework

together provide a vision for how Napier Port plans to support sustainable growth and achieve an

efficient supply chain for its customers and the Hawke’s Bay region long-term.

Napier Port chief executive Todd Dawson says the Master Plan shows the port is in a good position to

handle cargo growth and larger ship sizes.

“We consulted with customers, the community and other stakeholders about what they need from us

and what the future looks like for them. We also looked at different trade scenarios and the future of

the shipping industry.

“This work validated a number of projects already underway: building 6 Wharf by the end of 2022,

developing our inland freight hubs and the recent arrival of our third tug. Beyond the next 10 years,

there are options we can explore to seize future opportunities and keep pace with growth.”

The second of the documents, the Sustainability Framework is aligned to the United Nations

Sustainable Development Goals and outlines where Napier Port plans to focus its environmental,

and social efforts while delivering for its customers and Hawke’s Bay’s regional economy.

“We’re proud of the work we are already doing to address sustainability challenges and

opportunities. The framework documents some of that existing work while looking at where we can

focus our future efforts locally to advance international issues such as equality, climate change,

biodiversity, biosecurity, water management and economic growth.”

Mr Dawson says the port welcomes feedback on both plans by the end of the year.

Feedback will be used to inform the final Master Plan and a comprehensive Sustainability Strategy

that will be released next year. Email sustainability@napierport.co.nz or

masterplan@napierport.co.nz

ENDS





For more information:


Erin Harford-Wright

Senior Communications Advisor

DD: 06 833 4643 M: 027 870 4884

erinh@napierport.co.nz

About Napier Port

Napier Port is New Zealand’s fourth largest port by container volume. We are the main gateway for

Hawke’s Bay exports and operate a long-term regional infrastructure asset that supports the regional

economy. Our strategic purpose is to collaborate with the people and organisations that have a stake

in helping our region grow. View Napier Port’s investor centre: www.napierport.co.nz/investor-

centre/

Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.