Following discussions with cargo owners, shipping lines and other stakeholders, Napier Port will change the way it recovers some of the significant insurance and infrastructure costs we face.

Insurance levy charge to shipping lines 
We received feedback from cargo owners that the insurance levy we introduced last year, after a sudden hike in our premiums, should be met by shipping lines not cargo owners.

From 1 April 2019 shipping lines will pay $5.25 + GST per full TEU towards the insurance levy and we will significantly reduce the insurance levy collected directly from cargo owners in the following ways:

• The VBS booking fee will reduce from $18.25 to $12.50 + GST per VBS booking (the insurance levy component of the booking fee will be $2.50).
• The insurance levy billed to cargo owners for full containers travelling on rail, or containers packed or devanned by Port Pack will reduce from $6.05 to $1.00 + GST per TEU.

Our insurance costs are coming under increasing pressure but we will continue looking for opportunities to reduce this levy should market conditions allow.

Building resilience: infrastructure levy charge to shipping lines 
Until Napier Port can build an additional wharf we are making a number of infrastructure investments to extend our capability and help us provide a more efficient service amidst ongoing growth.

These include:

• New reefer towers ($2 million) which will improve productivity to shipside.
• A third tug boat ($14 million to $16 million) to extend our capability to manoeuvre larger vessels and extend our operating hours and wharf availability.
• New crane technology to increase productivity and extend the lifting capacity and reach of our cranes.
• A new fleet of container handling equipment and implementation of our secondary off-site container storage depot (circa $18 million).

To recover some of these costs we are introducing an infrastructure levy of $22.75 + GST per TEU to all container shipping lines, across all containerised cargo types. Pricing for bulk cargo and cruise vessels are also being adjusted accordingly. Given the volume growth we are experiencing is across all trades, the pipfruit-specific levy applied in 2018 will be removed.

We are providing the market with a long notice period for these changes so all parties can plan ahead.

If you have any questions, concerns or require further information, please contact Andrew Palairet, Business Development Manager:  andrewp@napierport.co.nz