Container depots overflowing from shipping disruptions

ContainerCo managing director Ken Harris is warning that COVID-19 lockdowns across New Zealand are expected to create further pressure on the heavily disrupted shipping logistics sector. 

He says exporters and importers continue to take the brunt of global shipping disruptions and the latest level 4 lockdown in New Zealand will have an impact on the availability of shipping containers, some used to carry e-bikes and other e-mobility related items.

ContainerCo is also supporting the development of the One-Stop Modal depot management and will commission four new EV trucks in the next five months.

A year-long trial of these systems at a ContainerCo depot in Auckland has demonstrated that the software is a “significant step forward”, eliminating manual processes and enabling increased depot automation.

“We have trialled an EV truck for over a year and the new units will offer better range and driver comfort,” Harris says. 

A further four EV trucks are to be delivered in 2022, and it is expected the programme will continue.

While shuttle operations are the primary design use, in the future units are expected to be able to cover freight legs between Hamilton, Auckland, and Tauranga.

As a result of world-wide shipping disruptions, key container handling facilities in Auckland have already been operating well over capacity, he says. 

ContainerCo operates several key container servicing facilities in Auckland as well as other parts of New Zealand, most of which are operating well above efficient volume levels, with several key yards holding over 130% of nominal capacity.

The company has been delaying investment into engineering and technology projects to minimise supply chain disruption. However, with a return to normal shipping patterns looking “unlikely for some years” it has decided to progress this work.

“We will re-build specialised facilities covering around eight hectares in Auckland, improving supply chain resilience and capacity as well as reducing carbon footprint.

“Our investment will double capacity within six years plus to greatly improve depot efficiency,” Harris says. 

ContainerCo is looking to acquire additional land in Auckland, Bay of Plenty and Hamilton and long-term lease arrangements are also being looked at and where possible sites will be developed to accommodate specialised logistics facilities such as cross docks.

The company’s container parks in Penrose and the Oak Road park are being rebuilt this year and an additional yard is expected to be added in South Auckland mid-2022.