Benefits of shipping:
Resilience for natural disasters or emergencies.
Ships carry hazardous / dangerous cargo more safely than road, rail and air.
15% of New Zealand's inter-regional freight is carried by sea
Ships can handle oversized, heavy and bulky cargo that road, rail and air can't.
Freight volumes are forecast to increase 50% by 2040.
It won't all fit onto our roads!
New Zealand’s total freight task: 278.7 million tonnes.
Coastal shipping carries approx 10 million tonnes (3.5%).
1.15m people are transported across the Cook Strait every year
The volume of domestic freight moved by shipping has increased 50% over the last 10 years.
Approx $28 billion road and rail freight is shipped between the North and South Islands each year
1 standard container Auckland to Christchurch:
road: $2200-$3000
rail: $1300 - $1900
ship: $850 - $1300
418,470 containers are moved around the NZ coast per annum
Shipping: one-eighth the emissions of road per tonne of freight moved
Benefits of shipping:
Lower emissions per tonne of freight moved.
Increasing total freight carried by ship by just 2% would reduce total transport emissions by 16%.
Benefits of shipping:
Greater control over our domestic supply chains.
Shipping: 60% the emissions of rail per tonne of freight moved
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Submission on Border Levy to NZ Customs Service (2015)

Thursday, 25 June 2015

New Zealand Customs Service

Implementing the Border Clearance Levy

Thank you for the opportunity to submit our views in respect of the border levy. Thank you also for taking the time to come in to hear our views.

Coastal shipping is a vital part of New Zealand’s transport infrastructure. It also plays a role in civil defence. It is important for New Zealand economic, environmental and social welfare that the coastal network operates efficiently and effectively. Central and local government decisions can optimise the way that the coastal network performs. These decisions can also drive unnecessary costs into shipping operations.

The Federation is committed to working with decision-makers to ensure that the best policy settings are in place for the benefit of all New Zealanders. We are happy to work proactively to bring sector knowledge to support the policy-making process.

The New Zealand Shipping Federation is the key representative body for New Zealand’s coastal shippers. Members of the Federation are:

Coastal Bulk Shipping

Golden Bay Cement




Pacifica Shipping

Silver Fern Shipping

Strait Shipping

In the ordinary running of vessels operating around the coast, members may go outside the twenty nautical mile limits. In our view, this should not trigger a border levy as no costs are imposed on the border agency as a result. We therefore submit that a specific exemption should cover this situation.

Where a vessel goes to a far flung part of New Zealand, such as the Kermadec Islands, Raoul Island or the Auckland Islands, it should be treated as not clearing the border and no levy should apply. No costs are imposed on the border agencies in this situation. We therefore submit that a specific exemption should cover this situation.

Yours sincerely

Annabel Young

Executive Director