NZ Government fund coastal ship upgrade

CHRISTCHURCH-based Coastal Bulk Shipping is set to receive NZ$3 million from New Zealand Government

Associate Transport Minister James Meager announced on Friday [20 February] that CBS – 99% owned by the ASP Ships Group – will be allocated the money from the Coastal Shipping Resilience Fund to improve Rangitata’s ability to carry different types of cargo across a wider range of ports.

NZ’s ability to support communities following natural disasters and other major emergencies will be improved by the investment, Mr Meager said. The 2,387 DWT, 2007-built Rangitata was vital in delivering disaster relief after Cyclone Gabrielle, he noted.

“The ship was a major asset for Gisborne and Napier, carrying containers between the two when major road links were washed out. This summer’s tragic storms have again underscored how important this infrastructure is,” Mr Meager said.

“When land routes fail, coastal shipping becomes critical for making sure fuel, building materials, and other vital supplies can still get to those in need.”

The investment will fund a ‘material handler’ for the ship, a piece of deck-mounted machinery that can load and unload bulk cargo, to be operational by the end of 2026, the minister said.

“This will mean the Rangitata can transport a wider range of bulk items and operate without relying on port-side cranes and infrastructure, facilities which may not be usable after a significant event.

“The ship can access smaller ports which are particularly vulnerable during natural disasters, including those where road and rail connections can be cut off for long periods. It can deliver bulk supplies directly to communities which may have been isolated for days.

“Another key advantage is the material handler is powered directly from the ship, rather than from land, so it remains available wherever the vessel is deployed,” Mr Meager said.

“We are a Government dedicated to fixing the basics, delivering results, and building the future. That’s exactly what this investment does. It will strengthen our country’s resilience and improve our ability to bounce back from devastating natural events.”

Coastal Bulk Shipping was established in 2008 and acquired its first ship, the 447 DWT Anotaki, which still serves with the company, and was somewhat controversially ‘shortened’ in order to avoid certain NZ regulations.

In 2020, ASP took a 50% shareholding in CBS and increased to 99% in 2024.

“A growing population, higher fuel prices, and the failure of road and rail infrastructure due to growing demand and natural disasters in recent years has sparked interest in coastal shipping once again,” the company’s website says.

“CBS has fostered this interest with its small and versatile vessels. These vessels are ideal for moving fertilizer, grain, break bulk, and containerised cargoes around the New Zealand coast efficiently and cost-effectively.”