Bringing Bay of Plenty businesses together
Industrial Symbiosis Kawerau is bringing together manufacturers and exporters in the eastern Bay of Plenty (EBoP) region to save the region millions in transport costs, and Scion is helping to make it happen.
...the terminal is regarded as being a significant asset that will benefit the entire region and the Scion research team has been pivotal in helping us progress this towards becoming a reality. - David Turner, Chair of Industrial Symbiosis KawerauScion’s recent survey estimates that approximately 50,000 20-foot equivalent containers are filled with goods from exporters and manufacturers in the EBoP each year. Most of the cargo will make its way on trucks to Sulphur Point in Tauranga. Each truck carrying cargo passes the underutilised, but capable East Coast Trunk railway line. This will not be the case for much longer thanks to the initiative led by Industrial Symbiosis Kawerau and supported by a feasibility study by value chain optimisation researcher, Ginny Christians.
The feasibility study revealed that although no single exporter is large enough to commission a freight train service, collectively, exporters operating across the EBoP dispatch enough cargo to the port to justify a daily freight train.
Ginny says, “Although the solution was obvious from a global perspective, individual businesses in the region simply didn’t have the mandate to assess regional-scale solutions. We were able to get the right people in the room to have the right discussion.”
Ginny’s report concluded that a container terminal facility at Kawerau would be the ideal solution. Local companies have seen the merit in the concept and have expressed interest in investing in the container terminal.
David Turner, Chair of Industrial Symbiosis Kawerau, who initiated the project said that “A vital point regarding the container terminal is that principally, it is about eliminating supply chain waste for value-add businesses in the EBOP - so those businesses can access global markets more efficiently. This way our communities have more opportunities to add value – because the only way individuals can become more valuable, is by adding more value. Consequently, the terminal is regarded as being a significant asset that will benefit the entire region and the Scion research team has been pivotal in helping us progress this towards becoming a reality.”
A total annual saving of approximately $4 million in avoided transport costs is expected once the container terminal is fully operational, in addition to a net reduction in vehicle emissions and decreased congestion on the roads.
This initiative is part of the Toi Moana Bay of Plenty Regional Growth Strategy.