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PrimePort Timaru Big Loser In Service Revamp

April 2nd, 2008

PrimePort Timaru is likely to lose up to half its trade following a decision by Maersk and Hamburg Sud to combine their container services currently operating through Timaru on to the USA and Europe. They will be replaced with a smaller capacity service once a week feeding into Port Chalmers.

PrimePort CEO, Jeremy Boys, says the new service will cause the loss of more than half of the export capacity out of Timaru and the proposal will be fought by the port and Timaru District Council.

The two direct weekly services from Timaru using ships with capacity around 2500 containers will be replaced by a single service with a capacity of 1000 containers. Boys says the effects of the decision will be wide-reaching, including possibly affecting the jobs of 100 full-time and casual staff at the port and the port’s new tug presently being built in China.

Boys says exporters in the region will be hit by higher internal transport costs. “It is hard to see positives for exporters in the main part of the South Island where the trade is strongest and growing.” Timaru District Mayor, Janie Annear, is urging the region’s exporters to voice their disapproval at the “downgraded service” in a bid to have it changed.

“Hopefully exporters will get together and show their non-support for this move.” The new service will operate between Sydney and Melbourne to Auckland, Tauranga and Port Chalmers with a feeder service from the Lyttelton, Wellington, New Plymouth, Nelson and Timaru ports.

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