Business School


Programme

The theme of the 2012 NZ Freight Summit is “Current supply: Future demand: Bringing efficiency and collaboration to the New Zealand freight sector”. The following programme outlines the day's proceedings, including speaker topics.

Day 1: Wednesday 15 February 2012
Time    Session     Speaker and topic
8.30am   Registration and coffee    
9am   Opening remarks from the Chair   Professor Tava Olsen, Ports of Auckland Chair in Logistics and Supply Chain Management; Academic Director, Centre for Supply Chain Management
9.10am   Ministerial address: Freight of the nation   Please note: Due to the timing of this year’s Conference the Minister will be confirmed post-election.

Efficient movement of freight into, out of and across New Zealand is of critical importance to economic performance. Our transport infrastructure supports the movement of exports from production, to port then to market.

  • What does future freight demand look like – and how does the current rate of investment in infrastructure align?
  • Sustainability of the New Zealand freight sector.
  • The Government’s stance on port challenges.
9.50am   The Productivity Commission inquiry into international freight transport services: Draft findings and insights   Murray Sherwin, Chair, Productivity Commission
New Zealand is the most remote developed country in the world and the way we get our products to and from international markets is critical to our success. New Zealand exporters and importers currently spend about $5 billion on freight each year. The Commission has been looking at whether these costs can be lowered and services improved. Better performance in freight transport could result in lower prices for imported goods, higher profits and wages in exporting industries, and quicker freight turnaround. The Commission’s draft report and recommendations for freight services will be released in late 2011.

The issues it covers include:

  • Factors influencing the accessibility and efficiency of international freight services available to New Zealanders.
  • Opportunities to increase the accessibility and efficiency of international freight transport services, including ownership models.
  • The effectiveness of current regulatory regimes and the potential costs and benefits of alternatives.
  • Changes to drive improvements in infrastructure investment, innovation and supply-chain coordination.
10.30am   National Infrastructure Plan perspective on freight challenges   Brian Hallinan, Team Leader, National Infrastructure Unit, The Treasury
The second National Infrastructure Plan highlighted some of the key issues New Zealand has with freight movement. Most freight in New Zealand is moved by road, while coastal shipping and rail provide alternative networks and most external freight is shipped. The Plan identifies more efficient freight supply chains as a key measure of success and considers the impact of land use decisions on the transport network.
  • The investment in transport infrastructure to support our export market.
  • Plans around the golden triangle, dealing with the infrastructure implications of significant population growth.
  • Transport and rail links and the resilience of our infrastructure.
  • Supporting growth in Auckland.
11.10am   Morning tea    
11.30am   The question of bigger ships   Greg Steed, Chairman, New Zealand Shippers Council
The efficiency, reliability and cost effectiveness of our international supply chains are particularly important for an island nation such as New Zealand. We are geographically distant from trading partners and our economic prosperity is highly dependent on the performance of our exporting sectors. New Zealand export trade is already being impacted by the consolidation of global shipping lines. If ports are not bigger ships capable within the next five years there will be serious consequences to the efficiency of our supply chains.
  • The significant net supply chain benefits.
  • Lyttelton and Tauranga focus on handling 5,000-7,000 TEU services.
  • Key benefits of accommodating larger ships in New Zealand.
  • Government’s legislative responsibility.
12.15pm   Coastal shipping: New Zealand challenges   Steve Chapman, CEO, Pacifica Shipping
Coastal shipping in New Zealand has been somewhat dominated by international shipping companies carrying domestic cargo. These international vessels often run on their own time schedule, where the local needs are not taken into consideration. In many parts of New Zealand coastal shipping also play a role in security and civil defence when it comes to dealing with natural disasters.
  • New Zealand ports providing main emergency logistic links for relief supplies when coping with natural disaster.
  • The important role coastal shipping plays in the New Zealand freight sector
  • How can organisations further maximise coastal shipping.
1pm   Lunch    
1.50pm   Collaboration in the New Zealand supply chain. User perspective panel: New Zealand exporter and importer challenges
 
  Mike Knowles, Shipping Manager, Zespri International
Brian Broom, Managing Director, DHL Global Forwarding
Paul Bradburn, Supply Chain Manager, Mitre 10

Supply chain management from a New Zealand perspective comes with some challenges. Not only is New Zealand currently facing a weak US dollar, which is painful for our exporters, but also the year-on-year issue of a lack of enough ships in our ports during peak season. There is no policy to change this scenario for New Zealand exporters nor has there been any adjustment from the large international shipping companies during our peak season.
  • What role can New Zealand ports play to encourage more ships to our ports?
  • What strategies can the shipping companies employ to alleviate this problem?
2.50pm   Case study: Re-thinking the supply chain: Kotahi   Chris Greenough, CEO, Kotahi
With Fonterra and Silver Fern Farms partnering to form a new freight management company, there is potential for it to ultimately become a transparent market-driven exchange for freight. On the other side of the idea behind Kotahi, the ability to consolidate and broker in an efficient manner could potentially be a market-making mechanism for domestic freight.
  • Freight management innovation to create efficiencies in freight supply chains.
  • Coordinating freight needs to match seasonal fluctuations.
  • Integration of the entire supply chain.
  • What Kotahi could mean for the New Zealand freight industry.
3.35pm   Afternoon tea    
3.50pm   Urban planning for greater freight efficiency: The impact the Auckland Transport Plan could have on freight efficiency   Dr David Warburton, CEO, Auckland Transport
Auckland Airport, Ports of Auckland, the region’s motorway and arterial road, rail and public transport networks constitute a multi-modal transport system for effective movement of goods, services and people. Better integration of land use, transport planning and urban design all leads towards greater efficiency in the freight sector. Currently more than $33 billion of goods are carried annually on roads within the Auckland region. With freight movement expected to double in number over the next 25 years, what is Auckland doing to offset the overcrowding of road and rail systems that restrict freight movements?
  • Managing the use of the road networks as primary movers of freight.
  • Reducing journey times for movements of freight – exports to key port hubs both airport and sea hubs.
  • Linkage of national routes to local routes ensuring high level connectivity and access to markets.
4.35pm   Improving productivity, sustainability and safety with telematics and real time traffic   Luigi Cappel, Sales and Marketing Manager, GeoSmart
Ten years ago the time cost of traffic congestion in Auckland alone was estimated at around $1 billion a year. It hasn’t improved, but technology and data collection has. Fleet management solutions have become more sophisticated and most of New Zealand roads have been remapped to sub one metre accuracy. Real time traffic congestion and incident data is now available for all major and most arterial roads throughout New Zealand (and Australia) and historic data is now available for those same roads going back to April 2010. Mapping, fleet management and car navigation companies are now developing new solutions using this data including:
  • Eco-routing based on road inclinometer and implicit turn restrictions.
  • Driver safety alerts where the camber of a corner has degraded and is not consistent with the current signage and the truck may therefore be going too fast for the conditions.
  • Route optimisation solutions that take real time traffic into consideration.
  • Long haul trip planning based on historic traffic conditions.
  • Spatial business analytics without the need for a GIS system.
5.10pm   End of day one closing remarks from the Chair   Professor Tava Olsen, Ports of Auckland Chair in Logistics and Supply Chain Management; Academic Director, Centre for Supply Chain Management
5.15pm   New Zealand Freight Summit networking drinks    

 

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Day 2: Thursday 16 February 2012
Time     Session    Speaker and topic
9am   Welcome back from the Chair   Professor Tava Olsen, Ports of Auckland Chair in Logistics and Supply Chain Management; Academic Director, Centre for Supply Chain Management
9.05am   The New Zealand maritime and ports sector in the twenty first century   Joe Fleetwood, General Secretary, Maritime Union
The maritime and ports sector occupies a central role in the New Zealand freight and transport industry. The role of organised labour continues to play a major role in this industry on the domestic and international scene. Some of the issues facing the industry with wider economic, social and political implications include:
  • Ownership and rationalisation of ports – for whose benefit?
  • Rebuilding coastal shipping.
  • The role of Government in successful national transport planning.
  • Productivity issues from the worker’s perspective.
9.50am   Applying best practice US freight planning to New Zealand   Matthew Ensor, General Manager Transportation, Beca
In June 2011 the United States Department of Transportation Federal Highway Administration released a template for states to prepare a multi-modal freight plan. In this presentation we look at the components of best practice freight planning and examine the implications for freight planning in New Zealand:
  • Freight characteristics.
  • Mode and infrastructure profiles.
  • Safety, security, congestion, land use and environmental considerations.
  • Performance measures.
10.30am   Morning tea    
10.45am   Road vs rail   Peter Morris, Manager Logistics, Strategy Supply Chain
New Zealand freight is dominated by road transport with around 80% of our freight being transported in this way. What is the reality today in the comparison between road and rail? Trucking is able to respond to a change in demand very quickly, but what are the options for rail?
  • Reducing transport times to boost trade.
  • Road vs rail efficiency.
  • Rail in the remoter regions, accessibility and speed into remoter regions.
  • Costs and investments in road vs rail.
  • Interchange between
11.25am   Case study: Technological advances that impact on dependency on heavy transport   Vijay Todkar, Business Development Manager, GS1
Companies can use technology to be smarter about freight and reduce volumes. These savings come from better use of technology, IT, information and from product innovations that reduce product size and weight.
  • Technology can be used to reduce dependence on transport while maintaining productivity and growing the country’s economy.
  • Technological advances are impacting supply chain management and costs.
12.10pm   Lunch    
1.10pm   CEO perspective: Road transportation   Ken Shirley, CEO, Road Transport Forum
The capacity of New Zealand’s roading network is unlikely to keep pace with the current rate of overall traffic growth, especially in large urban areas. This would mean that the growth of road freight transport might be constrained by congestion in some urban areas in the future. The current trend for transport to and from increasingly large distribution centres may mean further increased transport growth in the future.
  • Usage of large trucks to increase productivity of vehicles.
  • Key areas/regions and growth industries the road sector supports.
  • Meeting future demand.
1.35pm   CEO perspective: Rail freight   Iain Hill, General Manager – Freight, Kiwirail
Rail freight increased from about 150,000 tonnes to 320,000 tonnes in Southland in the past 12 months because of the boost in rail use from dairy, timber and coal sectors. This increase in usage brings with it a strain on the current infrastructure that is in place.
  • An update on the KiwiRail Turn Around Plan
  • Current and future infrastructural upgrades and investment.
  • Future demand on rail freight.
2pm   CEO perspective: Airfreight   Irene King, CEO, Aviation Industry Association
Airfreight’s role in the domestic and international supply chain has been shifting in the past few years. There are questions surrounding sustainability as well as environmental concerns.
  • What does the future hold for airfreight in New Zealand on both a domestic and international scale?
  • The impact of the regulatory environment.
2.25pm   CEO perspective: Shipping   John Robinson, President, Shipping New Zealand; Chairman, Wallenius Wilhelmsen Logistics New Zealand and Wilhelmsens Ships Service
As shipping companies are trying to become more profitable, particularly after the financial crisis, we have seen far less shipping services out of New Zealand. Vessels also tend to run at slower speeds as shippers try to save on fuel.
  • Coping with less shipping services: can we change the expensive cost structure we currently have?
  • Gaining even freight volumes and presenting large enough quantities in some ports to encourage bigger ships into New Zealand.
  • Port ownership – what’s the right mix of ownership?
  • New Zealand’s vulnerability to changes in shipping patterns.
  • The mix of coastal shipping versus deep water; what impacts will this have in the future on our total number of ports?
2.50pm   Afternoon tea    
3.10pm   CEO multi-modal panel with Q&A: Freight New Zealand   Ken Shirley, CEO, Road Transport Forum
Irene King, CEO, Aviation Industry Association
Iain Hill, General Manager – Freight, Kiwirail
John Robinson, President, Shipping New Zealand; Chairman, Wallenius Wilhelmsen Logistics New Zealand and Wilhelmsens Ships Service

Greater integration and communication between the different freight modes can only bring about greater efficiency in the marketplace. How do these speakers see the future of freight developing in New Zealand? We encourage questions from the floor as we bring all our CEOs together to close the conference.
4pm   Closing remarks from the Chair and end of conference   Professor Tava Olsen, Ports of Auckland Chair in Logistics and Supply Chain Management; Academic Director, Centre for Supply Chain Management

 

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