New Zealand coastal tankers

The end of New Zealand coastal tankers

Despite a hard fought campaign over the last few months, the shortsighted self interest of petrol corporates has left New Zealand exposed to fuel insecurity in a volatile global situation

Unions representing ship crews says the removal of two New Zealand coastal tankers by petrol companies is disappointing and has damaged New Zealand’s maritime industry.

Two New Zealand coastal tankers MT Matuku and MT Kokako have been taken off the New Zealand coast and have gone overseas, after being reflagged to the Marshall Islands registry.

The decision was made by petrol companies who are now using a radically new and untested model of direct imports on overseas vessels from Asian refineries.

The changes followed on from the closure of the Marsden Point refinery, which has also attracted much criticism.

Three unions led a combined campaign over several months to keep the tankers on the coast – the Maritime Union of New Zealand, the New Zealand Merchant Service Guild and the Aviation and Marine Engineers Association.

The fuel security campaign Save Our Tankers requested the Government to step in to keep two New Zealand coastal tankers in service as floating storage units.

Despite meetings with the Deputy Prime Minister and the Minister of Transport, and widespread concerns from the industry, the Government did not intervene.

The removal of the tankers has resulted in the loss of around 80 seafaring jobs and training opportunities for young seafarers.

The two New Zealand tankers had been chartered by Coastal Oil Logistics Limited (COLL) to transport petroleum products from the now closed Marsden Point Refinery to New Zealand ports on behalf of its shareholders BP, Mobil and Z.

The vessels were managed by New Zealand operator Silver Fern Shipping Limited and owned by international operator ASP Ship Management Group, which chartered them to COLL.

The decision to remove the tankers flowed on from the closure of the refinery. This was a decision by refining and petrol companies to ensure maximum return for shareholders, not what is in the best interest of New Zealand as a whole. The removal of tankers and closure of the Marsden Point Refinery has left New Zealand exposed as the international tanker market is in turmoil.

The Ukraine war has destabilized the global energy market and shipping, and there are further political tensions in the Asia-Pacific region.

Even Australia, with a conservative anti-union and probig business Government, has subsidized the continued operation of two refineries to ensure fuel security.

New Zealand now has no domestic tankers in service. In the event of a local emergency – such as a natural disaster – or international disruption from war or tanker shortages, New Zealand is completely dependent on overseas tankers. The 2017 Marsden to Auckland pipeline failure was noted as an example of how one event could create supply issues.

Other risks include “off spec” fuel, and the potential for delays and congestion as a large number of international tankers will now be entering into New Zealand ports to deliver fuel. The size and draught of these tankers means that they will have to follow very specific schedules.

The Maritime Union regards the closure of Marsden Point and the removal of New Zealand coastal tankers as a serious error.

The assurances of petrol companies ring hollow and the claim that our “reserves” can include fuel in transit (perhaps thousands of kilometres away) or “tickets” that comprise of fuel held in other countries is not credible.

In the event of tanker shortage, war, or fuel crisis in other countries, the idea that New Zealand will be at the top of the list is highly unlikely.

MUNZ will continue to work for a “Just Transition” to modernize our transport networks.

In the medium term New Zealand will move away from fossil fuels and there will be new opportunities as coastal shipping is the most environmentally friendly bulk transport mode.

New fuel technologies such as hydrogen are being developed and there is also substantial interest in offshore renewable energy such as wind farms which will require marine crews to construct and maintain.