Annual Tariff Schedule Review
Napier Port is changing some of the fees for the services we offer, effective from 1 October 2021.
Please note this communication was planned for last week, however, due to the news of the snap Alert Level 4 change we decided to delay one week as everyone adjusted to the new lockdown environment. We acknowledge the timing is not ideal, but we want to ensure all customers have sufficient advanced notice before our fees update on 1 October.
Navigating disruption and planning ahead
Global and domestic supply chains have experienced unprecedented disruption, congestion and delays since the onset of the COVID-19 pandemic in early 2020. Unfortunately, there is no end in sight and there seems to be general acceptance that the disruptions will continue for the next 12 to 18 months at a minimum.
At Napier Port our teams have worked tirelessly to remain flexible and transparent in managing the frequent changes to shipping and cargo throughput, while also prioritising the health and safety of our people and community. Our focus throughout this most challenging period has been to keep cargo flowing and our customers connected. We’re proud of how the Port and our people have responded over the last 18 months and continue to do so currently, and we thank you for your continued support and cooperation across the many changes we have implemented.
Like many businesses, the significant and ongoing impacts of the pandemic have resulted in increased and additional costs for Napier Port. We also continue to invest in our people to maintain and grow our service capability and resilience. This comes at a time when we are investing in a once-in-a-generation upgrade to our core infrastructure – namely 6 Wharf. Closely tied to this project and our ability to meet the future needs of a growing region and deliver for you – our customers, are additional investments in our plant and our people. A number of these significant investments include:
- 6 Wharf, on track to be completed in late 2022
- New automated mooring system and purpose-built substation
- Creation of a supply chain logistics service to assist you with optimised end-to-end solutions
- Improvements to rail siding for increased rail capacity
- Three-year Safety Road Map and implementation of associated systems
- Launch of on port mobile log debarker, an alternative to methyl bromide fumigation, scheduled for completion in late 2021
- Introduction of new crane grabs for loading bulk vessels to improve loading efficiency and safety, scheduled to be operational in Q1 2022
We have conducted our annual tariff review and can confirm that the majority of items on the tariff schedule will increase between 3 and 5% effective from 1 October 2021. The insurance adjustment factor (IAF) and infrastructure levy will be increased at a higher rate as outlined below.
From 1 October 2021, the updated Napier Port tariff schedule, along with Napier Port’s Standard Conditions of Service*, can be found on our website here. You can view and download the new tariff schedule here.*
The new rates apply to tariff only. If your company has a current contract or service level agreement with Napier Port your contracted rates will prevail, except in instances whereby your contract directs to public tariff for pricing.
We are mindful that price increases are difficult for any business and have kept the majority of our annual price increases below 5%. Additionally, we hope that giving advance notice of price changes will allow you to plan ahead and incorporate these changes into your business planning.
Insurance Adjustment Factor (IAF)
Due to increasing costs of Napier Port’s insurance, the IAF will increase from $7.23 to $7.81 per full TEU for containerised cargos and from $0.65 to $0.70 per revenue tonne for bulk cargos (quoted rates exclude GST). This equates to an 8% increase across budgeted volumes to achieve targeted recovery.
Napier Port is forging ahead to build capability, drive resilience, and deliver efficiencies both on port and right across the supply chain in order better serve our customers and our region’s cargo owners.
In order to deliver on the port’s current and future capability and continue to serve our region we need to keep investing in critical infrastructure and ensure there is adequate return on investments and sufficient funds to secure continuous improvements.
In addition to 6 Wharf, the ongoing pandemic response and inflationary pressures have resulted in increased costs to maintain, upgrade and improve our port’s infrastructure. Costs to maintain environmental standards, marine and harbour management, mooring systems maintenance and upgrades and maintenance for loading on our terminal areas and current berths have recently increased. Unfortunately, we cannot continue to absorb these increases.
Therefore, from 1 October 2021, the current infrastructure levy will increase from $22.75 to $52.50 per full TEU. This infrastructure levy is invoiced directly to the shipping line. Also, from 1 October 2021 a bulk infrastructure levy of $0.40 cents per revenue tonne/JAS/kilolitre/M3 will be introduced and invoiced directly to the cargo owner (quoted rates exclude GST). Ultimately, increasing our fees enables us to invest in our business, resulting in better services for you.
Our strategic purpose to work for our region remains unchanged. Despite the challenges, now more than ever, we are focused on maintaining and strengthening our global connections that are fundamental to linking Hawke’s Bay and New Zealand’s central and lower North Island supply chain to the world.
If you have any questions or need further information, please contact our Commercial team via email: Commercialdepartment@napierport.co.nz or directly:
David Kriel – General Manager Commercial 027 241 8295
Andrew Palairet – Business Development Manager 021 859 663
Dominic Sutherland – Business Development Manager 021 026 82324
We appreciate your support, and look forward to continuing to deliver for your business and our region.
*Website links updated on October 1, 2021.
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