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Overview of Logistics Sector In Christchurch
The Logistics sector supports the local economy and provides an essential service to export industries by enabling the efficent movement of goods to external markets. In line with the logistics sectors support player role in the economy, activity has historically been closely linked to wider economic performance.

Quick facts
» Contributes an estimated $690 million to Christchurch GDP (Infometrics’ Estimate annual average 2010/2011, current prices, “Transport and Storage”)

» Accounts for around 5% of GDP in Christchurch

» Around 1,300 related business units are based in Christchurch (2011, StatsNZ)

» Has around 8,900 employees (2011, StatsNZ)

Demand in the logistics sector is largely driven by the performance of the following sectors;

» Agriculture and food processing;

» General manufacturing;

» High Value Added manufacturing;

» Mining;

» Retail;

» Construction.

Over the period to 2031 the logistics task in New Zealand is expected to increase by about 70-75% compared to 2006 volumes. Growth in Canterbury is expected to be above the national average.40 The Logistics sector in Christchurch has and will continue to experience changes in demand as a result of the Canterbury Earthquakes. Unlike most sectors, the net impact of the earthquakes on employment levels in the logistics sector has been positive.41 Significant resources will be required on an on-going basis to support demolition, repair and rebuild activities.

Larger vehicles
Internationally, shipping companies are continually moving to larger vessels. The rail network has been upgraded on some key routes to enable the operation of longer trains. The government has also recently amended land transport rules to enable the use of high productivity vehicles, up to 20 metres in length, to operate above 44 tonnes on specified road routes.

Port expansion and consolidation
Internationally, the size of goods ships is increasing in order to improve effi ciency in supply chains. In light of this trend, the New Zealand Shipper’s Council has recommended that two ports (one in the North Island and one in the South Island) should invest to become 7000 TEU42 ship capable within the next fi ve years. The analysis and research they have undertaken points to the ports of Tauranga and Lyttelton being the logical candidates to deliver such capability. If larger ships start to serve Lyttelton it is likely that some consolidation of international goods trade would occur in the South Island.

Rebuild
The Christchurch rebuild will require the movement of a signifi cant volume of deconstruction and construction materials. This provides an opportunity for the logistics sector to grow, which in turn will enable innovation and reinvestment to ensure ongoing effi ciency gains throughout the supply chain. The sector should benefi t throughout the rebuild period. The repair of infrastructure and relocation of businesses also provides some opportunities to improve transport networks to support greater effi ciency in the logistics sector over the long term.

Rural Hinterland
Agriculture is a key driver in the growth of activity in the city’s logistics sector. The logistics sector is a key service sector enabling the delivery of primary produce to national and international markets. Increases in agricultural productivity, through irrigation for example, has a direct impact on demand for logistics sector services.

Demographics
Changes in population have a correlating impact on consumption and the demand for goods at the household level. This has an impact on the volume of imported goods and local distribution requirements. The long term trend in Christchurch has been a growing population. This is expected to continue despite a slight reduction in population following the Canterbury earthquakes of 2010 and 2011.

Sector Projects
Roads of National Signifi cance The Christchurch Roads of National Signifi cance projects will improve key sections of three state highway corridors that provide critical routes to the Christchurch International Airport (SH1), into central Christchurch and to the Port of Lyttelton (SH74 and SH73).

Rail
KiwiRail’s 10-year turnaround programme of investment in the rail networks fi nancially productive assets to create a sustainable rail business capable of operating without subsidy.

Port of Lyttelton
Reclamation of new land at Lyttelton Port utilising earthquake deconstruction waste. The Port’s long-term strategy is to shift its port facilities to the east. The Port Company is also planning for the ability to accommodate larger ships.

Christchurch International Airport Redevelopment
Christchurch International Airport has been undertaken major developments. Stage one of the terminal development have been completed. Stage two will be completed by early 2013.

See the CDC Background Paper for All References