Napier Port and Port Otago partner to build $36m dredge
Joint media release (Napier Port and Port Otago) - 19 December 2024
Napier Port and Port Otago have formed a joint venture to build and purchase a $36 million state-of-the-art trailing suction hopper dredge from Dutch shipbuilders Damen Shipyards.
The partnership builds on a long-standing collaborative relationship between the two ports and will see formation of a new dredging company, via a Limited Partnership Agreement.
Given New Zealand’s relatively small size, this investment is a financially astute approach to ensuring the country’s port infrastructure is well placed to meet the future demands of global shipping. From a safety and resilience perspective, it protects the two ports’ shipping channels and harbour access for future generations.
Napier Port CEO Todd Dawson highlighted the strategic importance of the partnership. “Securing joint ownership of this advanced dredge represents a pivotal step in future-proofing Napier Port as the leading port in central New Zealand. It complements our investments in supply chain solutions, as we extend our reach domestically and globally by providing solutions to shipping lines and cargo owners.
“We can meet our ongoing maintenance and capital dredging needs more efficiently, while delivering improved access and a sustainable solution for our region. “The dredge will enable Napier Port to optimise its current resource consents, valid until 2053, to incrementally deepen our shipping channels over time, from their current depth of 12.5 metres at low water to the consented depth of 14.5 metres. This will accommodate larger, deeper-draft vessels and strengthen the port’s ability to handle future growth. These consents, granted as part of the 6 Wharf (Te Whiti) development, reflect our port’s commitment to balancing economic growth with environmental stewardship,” Mr Dawson said.
Port Otago will manage and operate the dredge, leveraging its 150 years of expertise in dredging operations. Port Otago Chief Executive Kevin Winders emphasised the broader benefits. “This collaboration between two like-minded ports strengthens New Zealand’s maritime infrastructure. Shared ownership of the TSHD-1000 enhances operations at both ports and reduces duplication of investment within the sector.”
He said the acquisition aligns with both ports' commitments to sustainability and environmental stewardship. “The new Damen TSHD-1000 is fitted with industry-leading dredging and monitoring systems. Replacing our 40-year-old New Era suction hopper dredge with such advanced technology will improve operation efficiency, reduce our carbon footprint and operate with a lighter touch on nature.”
The dredge will also provide the capability to respond to unforeseen events. For instance, following Cyclone Gabrielle, emergency dredging was critical to maintaining safe shipping channels and lifeline access for emergency supplies into the region.
The dredge is expected to be operational by late 2026.