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Port Marlborough possibly with POT assistance are looking to take some of the coal trade from LPC. (current state of rail can't handle the projected tonnages from West Coast/Buller anyway)
LPC & rail need to get their act together or they will both lose some of their current tonnages & miss out on heaps of potential extra coal trade business.
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POT leapfrogged POA Into northland deepwater port. It looks like they are doing the same to LPC. By the time they wake up POT will have effective control of New Zealands only other natural deep water port. LPC Is to shallow a port to accomodate large coal ships.
Port of marlborough will end up controled by POT. LPC If they dont wake up will be an also ran. Dont know about you guys but macdunk likes winners know where my money is.
cheers macdunk
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I used to hold LPC as it its cheapest of the larger ports on conventional measures. I sold partly because of the industrial relations side of it, but mainly to buy elsewhere. Even so, it holds a near monopoply on the upper south Island port traffic and its a great yeild so I tend to agree with those who think its still a good buy for a long term income hold.
However, if POT does clear the hurdles to run coal out of Malborough perhaps this could be serious for LPC? A fair chunk of their recent capex has been in anticipation of increased coal handling business - only some of which (if I recall correctly) is secured by long term contracts? A really naive question to end - does anyone know whether it would be economic to dredge Lyttelton so deeper draught boats could get in?
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From memory, they have done periodic dredging of both Auckland & Otago in the past.
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Member
Skinny
It will be interesting to see how the POT proposal is played out.
LPC April 04 anouncement regard coal is somewhat reassuring in the mean time.
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Junior Member
I dont think the problem of getting more coal out is related to how deep the harbour is, it is limited by the number of trains that can bring it from the West Coast. How would they get the coal from the coast to Marlborouh?
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By putting more LARGE trucks on the road, of course!
Good for MFT & OWN?!
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Remember guys POT has already done a deal on rail south Auckland to Tauranga I expect the homework to be well underway on this. Keep In mind what costs more transport or digging the ditch. Regardless of the outcome with ships Increasing In size the end result Is who runs the deep water ports. POT Is bleeding the profits from POA LPC Is next In line. LPC Is shackled by a stupid union and a city council easy beats for a switched on company. Take a look at the fundamentals LPC are easy beats the TA will prove me right shortly.
cheers macdunk
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LPC coal business is under threat due to the state of the West Coast -Lyttelton railway line which cannot cope with any more coal traffic and urgently needs a $70million upgrade.Indeed Solid Energy had to barge about 80000 tonne of coal round to Lyttelton to meet targets.With Solid Energy about to expand production and with Pike River Coal about to mine 1 million tons there has to be another solution and that solution is Shakespeare Bay Picton.When that gets developed I would bet that a lot of Solid Energy coal gets barged there instead of going to Lyttelton.
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Who knows off the top of their heads how much of the total volume through the port is coal?
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