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Containerised log exports to Vietnam, India and China are set to grow, through a unique partnership between CentrePort, forestry exporter Zindia and log marshaller company QUBE.

Zindia Forestry has a history of exporting containerised logs out of South Africa, and the United States into international markets, and is now developing this trade from New Zealand.

Premium New Zealand radiata logs in containers are now reaching overseas buyers who may not have access to the local infrastructure that supports traditional breakbulk shipments. Simply put, a smaller customer needs a smaller order, and containerisation is the best pathway to reach those customers.  

It’s a more selective, ‘hand sold’ service, where the quality of the product can be tightly controlled, says Tina Thomas from Zindia Forestry. 

“The supply chain can be monitored from the forest, to packing, and arrival at the buyer’s yard. These are niche markets, so it’s all about good relationships."

Thomas says while it’s been challenging to set up an entirely new way of doing things in New Zealand, CentrePort has been instrumental in getting it off the ground.

“They really understand the technical side of the port’s operations. They have given us the trust and the space to not only get things done now, but also to be able to grow containerisation in the coming years.”

CentrePort’s General Manager for Commercial and CentreConnect, Andrew Locke, says that CentrePort’s partnership with Zinda Forestry is critical, as New Zealand exporters look to open new markets and diversity their trade lanes. “Traditional markets are softening due to the well documented slowdown in growth worldwide. Forest owners want to maximise returns, which means it’s important to look for and develop new markets for long term sustainability.”    

Locke says The New Zealand export log market remains heavily weighted towards China, however, as economic growth has slowed, so too has the demand for NZ radiata, affecting prices.

“The development of new markets gives forest owners more options. There is no question China will remain New Zealand’s number one log export market for the foreseeable future.”

“There is an on-going demand for New Zealand radiata, which international markets generally consider an industrial grade product. Demand for logs to China has been fluctuating in recent years, and these new containerised exports to China, India and Vietnam will bring much needed stability to log exporters.”

Today, Zindia Forestry have packing operations at both CentrePort, Lyttleton and in Masterton, where specific log cuts are made, packed into containers, and sent to port through KiwiRail. “You can only cut a tree once” says Thomas.  “This process makes you respect that sawn log for what it is, how long it’s taken to grow, and the value of it.”

Thomas says that a mindset shift is also happening within the industry.

“New Zealand suppliers have been working in a particular way for a really long time, and the diversification of containerisation hasn’t come without its challenges. I think the belief is there that this can work for everyone, and Forest Managers are starting to recognise this, jumping on board.”

Thomas says that having expert partners on board has been key.  “We chose to start this work through CentrePort, and they have really made the operation what it is today. QUBE have been fantastic as well, and it makes a difference having a professional, well communicated process through the whole supply chain.”   

Qube Solutions Area Manager Gene Kingi said

“We’re always looking for new and innovative ways to work and help our customers solve challenges, open new markets, and achieve their goals. We are proud to be supporting Zindia and Centreport in this exciting new venture.” 

Since September last year, more than 200 TEU (Twenty Foot Equivalent Units) of logs have been exported through CentrePort in containers, with plenty of growth predicted in the coming years.

ENDS

For enquiries please contact communications@centreport.co.nz