Big plans for 'green port'

Three-stage proposal to boost work on ships

BY TRACY NEAL

Plans are in place to create a modern marine eco-village at Port Nelson with the potential to create hundreds of jobs, upskill the local trade and technical workforces, and pump hundreds of millions of dollars into the region's economy.

A Green Port for Black Boats is the name of the project, being driven by Nelson firm Challenge New Zealand to establish an environmentally certified centre of excellence for marine and general engineering, with future capability to tackle projects on ships the size of the Cook Strait ferries and the new-generation Royal New Zealand Navy patrol fleet vessels.

Stage one of the three-stage plan will begin with the establishment of a marine precinct, the installation of a 350-tonne Travelift, and the development of supporting industries capable of servicing ships up to 40 metres long over the next two to three years.

A consortium of Nelson companies, including Port Nelson, Challenge Marine, Fluid Power Solutions, Nelson Reliance Engineering, McBride Design, Unimar Offshore Support Services and Kernohan Engineering, was behind Challenge NZ's bid to turn Nelson into a leading service centre in the South Pacific and Australasia, Challenge business development manager Lane Finley said.

The green port development would focus on new-generation commercial boat design and build, and the servicing and maintenance of a variety of working boats, referred to as "black boats", such as fishing boats, ferries and tourism vessels, Challenge NZ owner Nevil Basalaj said.

He heads the parent company of three in the consortium in which he has an ownership interest, including Challenge Marine, Fluid Power Solutions and Nelson Reliance Engineering.

The aim also is for Nelson to become a regional centre for the oil and gas industry's marine onshore maintenance, repairs and training. The addition of large-scale buildings and heavy lifting equipment would also create opportunities for "mega-structure" design and build projects which need seaside construction space and barge delivery.

Mr Basalaj said formation of the precinct was due to get under way in December, when Reliance Engineering would shift from its current Haven Rd premises to workshops near the Calwell Slipway, and Port Nelson maintenance operations would move to the Haven Rd site.

Port Nelson chairman Nick Patterson said the company was very supportive of the green port concept.

"We will do whatever we can to facilitate the establishment of this. We have given an undertaking we will do whatever is practical to help. It's a very significant concept, and would be a great boost for our marine engineering operations."

Mr Basalaj said the consortium planned to invest in stage one, and would seek outside interest for growth beyond that.

Nelson MP and Minister for the Environment Nick Smith said the project had the potential to attract economic development grants, but the key support required to make it fly would be private sector investment.

"I'm keen to work as local MP to get as much support as possible from government agencies. We're not just talking about jobs here, but high-skilled jobs.

"If Nelson is to compete long-term, it's important we pitch ourselves towards high-end job creation, and this project does that."

New Zealand Trade and Enterprise was poised to announce $100,000 in funding for a feasibility study on the full scope of the concept, which the Nelson Regional Economic Development Agency had driven, and would appoint a consultant to.

NZTE regional economic development manager Jo Rainey, said it was a "very exciting proposal", and satisfied a long-held belief that the marine sector at Port Nelson had a lot more potential than what was being realised.

He said port engineering companies and associated companies currently generated about $100 million a year in regional revenue. The proposed concept, which stands to create high-value jobs and new career paths for Nelson engineers and scientists, has targeted a trebling of revenue to at least $300 million a year.

Mr Finley said Challenge was spearheading the concept but the primary goal was to bring associated industries together to attract large contracts, rather than having them compete against each other, which fragmented the industry and resulted in low profits.

It also aimed to link with associated specialists such as the Cawthron Institute which offered world-class science resources in related fields such as aquaculture and algae technology, and the Nelson Marlborough Institute of Technology to provide training opportunities.

"We have some amazing expertise and depth of skills here. If we do this right it will attract lots of customers for the type of work we are not doing now, but can do," Mr Finley said.

EDA chief executive Bill Findlater said a green port would place Nelson ahead of others by putting in place environmental practices for heavy industry which are likely to become mandatory.

"What this project is offering is something that will provide opportunities for Nelson to be leading edge in this industry. It could be the first of its type in the Southern Hemisphere.

"We're talking leading-edge stuff in boat design and design technology. This will also have flow-on effects to small engineering companies in the region."

Mr Basalaj said Nelson had always been a commercial vessel town and it aimed to stay with that core business model, but expand to new markets.

"We have the room to re-adjust and create the environment," he said.

Port company shareholders, the Nelson and Tasman councils, are also behind the project.

Tasman district deputy mayor and port company director Tim King said it represented a solid move towards creating career opportunities for the region's young people. He said the TDC supported anything which enhanced business capacity in the region.

"The idea of creating high-value jobs is a philosophy I personally agree with. As New Zealanders we are subject to people coming here with strong currency and higher earning potential and unless we can lift people's earning ability then we are doomed to be at risk of becoming peasants in our own country," Mr King said.

City council deputy mayor Rachel Reese said she was hugely supportive of the proposal as a councillor, and from a personal perspective.

"This isn't a speculative idea it's based on solid groundwork, it is strategic and involves the right mix of people and industries who have the right heart and real commitment to Nelson," Ms Reese said.

"This is about moving an industry sector to the top of the international market and it comes with long-term regional benefits of skilled job creation, based on environmental and technical excellence.

"This is very right for Nelson taking what we do well and doing it bigger, better, cleaner and smarter."

WHAT'S PLANNED:

Stage 1 over the next 2-3 years: Establish marine precinct at Port Nelson Install 350-tonne travel lift Build 60m lay-up berth Build painting and sand-blasting buildings Refurbish existing buildings Stage 2 in years 3-5: Create new build site for commercial and work boats Speciality trades training centre Mega-structure engineering site Helicopter landing base for oil industry Stage 3 in years 5-9: 10,000-tonne synchro-lift to replace slipway Flume tank for hull and structure design Manufacturing for aquaculture equipment Water remediation research centre Navy refit and maintenance facility

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