Coastal shipping

 The Government Policy Statement on land transport (GPS) 2021 introduced coastal shipping as a new activity class. New Zealand’s coastal shipping sector fulfils a critical role in New Zealand’s freight system. It provides a safe and sustainable mode for transporting large, heavy cargo such as petroleum products, cement and aggregate. There is potential to increase the use of coastal shipping as an alternative to other freight transport. Through the National Land Transport Programme (NLTP), the Waka Kotahi Board have allocated $30 million for the coastal shipping activity class. 

Coastal shipping funding

Our investment of $30 million during this NLTP period is focused on investments in activities that give effect to the GPS objectives such as enhancing domestic shipping services, reducing shipping emissions, improving efficiency and upgrading maritime infrastructure.

Waka Kotahi worked with the wider freight industry (NZ Shipping Federation, Port Company CEO Group, National Road Carriers, KiwiRail, and Te Manatū Waka - Ministry of Transport), to select the four successful applicants for co-investment in new and enhanced coastal shipping services through the NLTP.

We have worked collaboratively with each of the suppliers to develop their final proposal.

When operational e ach of the four selected suppliers will bring at least one additional coastal shipping vessel into service, and together this will improve the resilience of the overall freight supply chain.

Collectively the suppliers will be investing over $60 million to deliver these projects, resulting in combined investment in the coastal shipping sector of over $90 million.

The suppliers are all now in the implementation phase of their proposals.

Successful suppliers and projects

The successful suppliers and projects are:

• Aotearoa Shipping Alliance [PDF, 260 KB] 
• Coastal Bulk Shipping Ltd [PDF, 260 KB]
• Move International Ltd [PDF, 260 KB]
• Swire Shipping NZ Ltd [PDF, 260 KB]

About the funding process

The funding process consisted of two stages, followed by implementation.

Request for proposals

• Identified all prospective projects for the 2021-24 programme through an open market application process.
• Initial selection of preferred applications by a Waka Kotahi evaluation team based on written submissions and the funding required for each proposal (including consideration of co-funding).
• Preferred applicants were required to present their application to the evaluation team and an Advisory Panel (made up of industry representatives) to confirm successful applicants.

Proposal development

• Successful applicants were supported by the Waka Kotahi team to confirm the details of their application proposal including, but not limited to, risk and benefit management.  
• The proposal development stage saw Waka Kotahi working collaboratively with the applicants.

Key programme milestones

Other resources

Coastal shipping and modal freight choice

Coastal shipping research