1 00:00:00,040 --> 00:00:01,800 Speaker 1: What you might have thought was a blast from the past. 2 00:00:01,800 --> 00:00:04,400 Speaker 1: We have supply chain issues at our ports for goodness 3 00:00:04,480 --> 00:00:07,560 Speaker 1: like crane rates are stuck at twenty twelve levels, which 4 00:00:07,640 --> 00:00:10,440 Speaker 1: undermindes our target to double exports by twenty thirty four. Obviously, 5 00:00:10,440 --> 00:00:12,319 Speaker 1: Brent Phillervey is the chair of the New Zealand Cargo 6 00:00:12,320 --> 00:00:14,520 Speaker 1: Owners Council and is with us. Brent, good morning to you. 7 00:00:15,560 --> 00:00:16,279 Speaker 2: Good morning, Mike. 8 00:00:16,360 --> 00:00:18,200 Speaker 1: What's going on here? I thought we'd sorted all this 9 00:00:18,280 --> 00:00:20,279 Speaker 1: out well, Mike. 10 00:00:20,640 --> 00:00:22,439 Speaker 2: Here, as you probably know, there's more than four hundred 11 00:00:22,480 --> 00:00:25,040 Speaker 2: ports around the world, and New Zealand from a productivity 12 00:00:25,040 --> 00:00:26,680 Speaker 2: point of view, is in the bottle of twenty percent. 13 00:00:27,400 --> 00:00:30,800 Speaker 2: The majority of our ports are congested and poor productivity. 14 00:00:30,840 --> 00:00:34,800 Speaker 2: Since twenty nineteen, productivities declined by up to thirty percent 15 00:00:35,159 --> 00:00:37,120 Speaker 2: and costs have gone up and things are a mess. 16 00:00:37,280 --> 00:00:39,680 Speaker 1: Wow, they know all of this, And if I went 17 00:00:39,720 --> 00:00:41,360 Speaker 1: and talked to the heads of all these ports, they'd 18 00:00:41,440 --> 00:00:43,440 Speaker 1: understand that, and they'd say they're doing something about it 19 00:00:43,520 --> 00:00:43,720 Speaker 1: or not. 20 00:00:44,840 --> 00:00:47,680 Speaker 2: Yes, yes, they do know about it. Obviously, Tarum has 21 00:00:47,720 --> 00:00:49,440 Speaker 2: been trying to do something about it for six years now. 22 00:00:49,440 --> 00:00:50,280 Speaker 2: It's still in court. 23 00:00:51,159 --> 00:00:53,680 Speaker 1: Isn't that a standard that's. 24 00:00:53,640 --> 00:00:55,880 Speaker 2: Pretty bad, Mike. I mean, I think I've spent something 25 00:00:55,960 --> 00:00:59,160 Speaker 2: night what twelve million dollars so far and haven't done anything. 26 00:00:58,800 --> 00:01:02,160 Speaker 1: Exactly the Auckland port the other day, they're going to 27 00:01:02,160 --> 00:01:04,160 Speaker 1: be building left, right and center. Is all that stuff helping? 28 00:01:05,360 --> 00:01:07,520 Speaker 2: Well, well, well it kind of is. It's but that's 29 00:01:07,560 --> 00:01:10,680 Speaker 2: more as you know, to do with the cruise ships, 30 00:01:10,720 --> 00:01:12,160 Speaker 2: not so much the cargo ship. 31 00:01:12,200 --> 00:01:13,920 Speaker 1: Well, I thought the crane and one of the wolves 32 00:01:13,920 --> 00:01:15,360 Speaker 1: were going to be able to go up and down. 33 00:01:15,400 --> 00:01:16,640 Speaker 1: It was going to be a new tomorrow. 34 00:01:17,800 --> 00:01:20,199 Speaker 2: Well, like I've got an Auckland, I've got eight cranes. 35 00:01:20,280 --> 00:01:22,280 Speaker 2: You really see more than four working in Often you 36 00:01:22,360 --> 00:01:24,279 Speaker 2: go down the port, you can see one crane working, 37 00:01:24,400 --> 00:01:26,520 Speaker 2: one ship on the berth. If they had four cranes, 38 00:01:26,520 --> 00:01:28,360 Speaker 2: we're going to be out seventy five percent faster. 39 00:01:28,600 --> 00:01:30,839 Speaker 1: So why aren't we fi? Why aren't we running the country? Brent? 40 00:01:30,880 --> 00:01:32,520 Speaker 1: Doesn't sound that hard to me. You just get all 41 00:01:32,520 --> 00:01:33,880 Speaker 1: the cranes working all the time. 42 00:01:34,880 --> 00:01:37,080 Speaker 2: Oh, that's that'd be a good point. But what we 43 00:01:37,160 --> 00:01:39,280 Speaker 2: think we need to do is actually have a reset. 44 00:01:39,520 --> 00:01:41,440 Speaker 2: We're talking to the government. We're saying we need to 45 00:01:41,480 --> 00:01:44,160 Speaker 2: have a hub and spoke model around the ports. The 46 00:01:44,280 --> 00:01:48,280 Speaker 2: hub is actually big deep sea ports that are really 47 00:01:48,320 --> 00:01:51,920 Speaker 2: efficient and the spoke with small ports moving cargo to 48 00:01:52,040 --> 00:01:54,200 Speaker 2: those those large ports, and it would be done by 49 00:01:54,640 --> 00:01:57,000 Speaker 2: coastal shipping would have to be hand in hand of 50 00:01:57,080 --> 00:02:00,200 Speaker 2: rail and road. I mean, you'll probably notice that some 51 00:02:00,240 --> 00:02:01,800 Speaker 2: good work done at rail. They've had a bit of 52 00:02:01,800 --> 00:02:04,440 Speaker 2: a reset. But to go to the next level for rail, 53 00:02:04,520 --> 00:02:06,880 Speaker 2: they need volume that will drive efficiencies and costs. 54 00:02:06,960 --> 00:02:09,680 Speaker 1: Do you reckon that's going to happen? Is it possible? 55 00:02:11,000 --> 00:02:12,839 Speaker 2: Well, it has to. Might We think we've got five 56 00:02:12,919 --> 00:02:15,919 Speaker 2: years to go before we're really in trouble, and it's 57 00:02:15,960 --> 00:02:18,440 Speaker 2: five years to get them for structure. Right. We met 58 00:02:18,520 --> 00:02:21,480 Speaker 2: the government last week in a fact and we said 59 00:02:21,480 --> 00:02:23,240 Speaker 2: them the first thing that we need is dart We 60 00:02:23,280 --> 00:02:25,639 Speaker 2: need good data. We don't think you don't understand what 61 00:02:25,680 --> 00:02:28,120 Speaker 2: cargo is moving where and how, and so we need 62 00:02:28,160 --> 00:02:30,560 Speaker 2: to have really good data about that stuff. And then 63 00:02:30,600 --> 00:02:33,119 Speaker 2: we need to put a strategic lens across the whole 64 00:02:33,120 --> 00:02:35,720 Speaker 2: supply chain. That's that's from farm gate or forest gate 65 00:02:36,480 --> 00:02:37,400 Speaker 2: through to the ports. 66 00:02:37,919 --> 00:02:41,120 Speaker 1: We sound like we're stuck in another in a time warp. 67 00:02:43,280 --> 00:02:46,080 Speaker 2: Well we kind of are. I mean, you automation is 68 00:02:46,080 --> 00:02:48,480 Speaker 2: the key. I know, I know that that's foiled in Auckland. 69 00:02:48,520 --> 00:02:50,080 Speaker 2: I don't know what they are modeled on. But then 70 00:02:50,120 --> 00:02:52,519 Speaker 2: if you look at someone who likes to Singapore, that's 71 00:02:52,560 --> 00:02:55,680 Speaker 2: so good and they're almost in a different planet. 72 00:02:56,880 --> 00:02:58,560 Speaker 1: How many play feel Good on You're britt Nice to 73 00:02:58,560 --> 00:03:01,200 Speaker 1: talk to your brick for Felby's the chair of the 74 00:03:01,200 --> 00:03:04,000 Speaker 1: New Zealand Cargo Owners Council. How many people have come 75 00:03:04,040 --> 00:03:05,840 Speaker 1: on this program? Forget all the times I've set it, 76 00:03:05,880 --> 00:03:07,679 Speaker 1: but how many people have come on this program? Said, 77 00:03:08,200 --> 00:03:10,240 Speaker 1: I'll tell you what. If you look at Singapore, it's 78 00:03:10,280 --> 00:03:15,519 Speaker 1: almost like another planet. So small island nation, five million people, God, 79 00:03:15,600 --> 00:03:18,840 Speaker 1: how can it be? For more from the Mic Asking Breakfast, 80 00:03:19,040 --> 00:03:22,400 Speaker 1: listen live to news talks. It'd be from six am weekdays, 81 00:03:22,600 --> 00:03:24,600 Speaker 1: or follow the podcast on iHeartRadio