Floating transfer stations : a logistics option for exporting coal from the West Coast

Abstract

This dissertation looks at the issues of exporting coal from the West Coast. On the basis that the Midland rail line has capacity constraints, other transport options are explored including likely costs. A literature review shows serious issues around the existing rail connection that make it imperative that other economically viable transport options are established.

Possible alternatives to rail include road, jetty, deep sea port, mono buoy and barging to a transhipment port. The objective of this dissertation is to show that of the various options, transhipment by barging to a floating transfer station (FTS) appears to offer a viable economic alternative.

Operational issues and the advantages and disadvantages of each option however, are discussed. The costs of the differing options are also summarised. Issues around the supply, demand and price of coal are also explored with the assumption that, ceteris paribus, the price for coking coal will remain at, or above, a price that will sustain investment in an alternative transport chain.

The announcement by Pike River Coal Company (PRCC) of its intention to barge coal to Port Taranaki at New Plymouth after an exhaustive two year investigation into transport options lends weight to the advantages of using the Port of Greymouth and the barging/transhipment option as opposed to the existing rail route. However, initial work carried out by the author lends weight to the floating transfer option, though there is some sensitivity to exchange rate and volume variations.