The Zespri Board last night approved plans for a new office building on its current site in Mount Maunganui.
Zespri Chief Financial Officer Dave Hazlehurst explains that Zespri’s new building will provide a home for its brand and a future-proof building to support possible future growth in the industry.
“Zespri has well and truly outgrown our existing building as the organisation has grown to support our industry’s rapid progress. With global sales expected to more than double to $4.5 billion by 2025, the new building will provide the facilities we need to deliver this growth for the kiwifruit industry. We’re excited to show our community and growers something we can all be proud of.
“This development will connect us with both our local community and the global markets, and includes redeveloping the public park so the community can continue to enjoy this green space in the heart of the Mount. Zespri’s investment in the new building shows our long-term commitment to the Bay of Plenty which produces around 80 percent of our premium Zespri Kiwifruit,” says Mr Hazlehurst.
The new building will be a hub for the kiwifruit industry with facilities to host growers and office space for other kiwifruit organisations. It will also provide a venue to host international trade, government and media delegations on behalf of the industry.
Zespri is investing over $40 million for the design, build, fit out, furnishing and landscaping of the new 4,800m2 landmark office complex. The three-story complex will stand in a park-like setting and includes onsite parking.
“We’ve incorporated some features to make the building more efficient and sustainable, like a smart façade, efficient heating and air conditioning services, and water recycling. We’ve also developed flexible working arrangements to allow staff to work in different workspaces when doing different work – this increases productivity and reduces the physical footprint of the building,” says Mr Hazlehurst.
The architects for the project are Warren & Mahoney and Beca has been appointed as the project manager. The construction contract will open for tender shortly.
Zespri bought the land on its site at 400 Maunganui Road from Tauranga City Council in December last year and has been operating from the site since 1996. Work will start on the site in the first quarter of next year, with the building set for completion by the end of 2018. The old brick Zespri building, constructed in the 1970s, will eventually be demolished and replaced with parkland.
A Zespri press release - Dec 7, 2016
The factory to the world has a new export: inflation. And it’s shipping faster than many thought possible just a few months ago.
China’s weakening yuan, stimulus designed to ensure robust growth ahead of a crucial Communist Party Congress next year, and rebounding commodity prices are pushing up factory prices. Having turned positive in September for the first time in more than four years, producer prices rose 1.2 percent in October from a year earlier. That will almost double to 2.3 percent in November, according to analysts surveyed ahead of data due Friday.
The pace is seen quickening even more next year: JPMorgan Chase & Co. estimates factory inflation will rise to as high as 4 percent in the first quarter while Commonwealth Bank of Australia sees it peaking at 6 percent in the third quarter of 2017.
Such increases would ripple through China’s vast supply chain across Asia, and to consumer markets from New York to New Zealand. The price turnaround coincides with a recent spike in oil prices and rising expectations for global reflation as U.S. President-elect Donald Trump prepares to boost fiscal and infrastructure spending.
Continue to full Bloomberg released article
Brexit trade minister and North Somerset MP Liam Fox has admitted Britain will have to effectively have the same trade agreements with other countries around the world – even after leaving the European Union.
Dr Fox announced he has opened discussions with 164 other countries in the World Trade Organisation, but because Britain has just two years before it leaves the EU, he will have to 'replicate as far as possible' the current agreements and 'obligations' to the World Trade Organisation.
And that - given the Brexit campaign was won largely on the basis of the promise of bespoke trade deals between Britain and other major countries outside the EU, like Brazil, China and the US – has caused criticism from Brexit campaigners.
Whitehall officials said Dr Fox's announcement is the first and necessary part of the process of leaving the EU, but the International Trade Secretary is in a Catch-22 situation because although Britain needs trade agreements in place with other countries outside the EU, most of the 164 members of the World Trade Organisation are waiting to see the deal Britain strikes with the EU on the terms of Brexit.
The prospects look promising for New Zealand’s economic expansion to continue in the face of considerable international uncertainties, Reserve Bank Governor Graeme Wheeler said today.
Speaking to the Development West Coast Conference in Greymouth, Mr Wheeler said that in many respects the economy is performing well.
“Relative to the trends over the past two decades, New Zealand is experiencing stronger economic growth, lower inflation, and a lower unemployment rate – even with record levels of labour force participation. The Achilles heel of many New Zealand expansions – a large current account deficit – has not eventuated.
“However, not everything is as positive. The overall expansion, now entering its eighth year, is weaker than other post-WWII expansions. GDP growth on a per capita basis has been slow and labour productivity growth has been disappointing. House price inflation is much higher than desirable and poses concerns for financial stability, and the exchange rate is higher than the economic fundamentals would suggest is appropriate.”
Mr Wheeler said that, in the absence of major unanticipated shocks, prospects look good for continued strong growth over the next 18 months, driven by construction spending, continued migration, tourist flows, and accommodative monetary policy. Supply disruptions associated with the Kaikoura earthquake are unlikely to have a major impact on overall economic growth, while some increase in freight costs and construction cost inflation is likely.
“Our November 2016 Monetary Policy Statement forecasts show annual real GDP growth of around 3¾ percent over the next 18 months, with inflation approaching the mid-point of the target band, the unemployment rate continuing to decline, and the current account deficit remaining within manageable levels.
“The low point for CPI inflation has probably passed and, supported by the improvement in global commodity prices in recent months, we expect the December quarter 2016 CPI data to confirm that annual CPI inflation is moving back within the 1 to 3 percent target band.
Mr Wheeler said that New Zealand will enter 2017 with considerable political and economic uncertainties.
“The greatest threat to the expansion lies in possible international political and economic developments and their implications for the global trading environment. The main domestic risk – and one that could be triggered by developments offshore – is a significant correction in the housing market. Numerous measures indicate that New Zealand house prices are significantly inflated relative to usual valuation indicators.”
“As has been the case in several other countries, monetary policy has been made more challenging in New Zealand by low global inflation and zero or negative policy rates in several major economies. This has put downward pressure on our interest rate structure and contributed to asset price inflation and upward pressure on the New Zealand dollar. This trend may finally be turning.
“At this stage, global and domestic developments do not cause us to change our view on the direction of monetary policy as outlined in the November MPS. We expect monetary policy to continue to be accommodative, and that the projected policy settings will help generate sufficient growth to have inflation settle near the middle of the target range.”
Read the speech: http://www.rbnz.govt.nz/research-and-publications/speeches/2016/speech-2016-12-08
A new Land Transport Rule will help increase efficiency and ease congestion on our roads by enabling trucks to carry more freight, Associate Transport Minister Craig Foss says.
The new Vehicle Dimensions and Mass (VDAM) rule makes small adjustments to the rules covering height, width and weight limits for trucks and some buses.
“Maximising the potential of our heavy vehicle fleet will increase capacity and improve productivity across the transport sector,” Mr Foss says.
“Enclosed vehicles such as refrigerated trailers will be able to load three more pallets side-by-side, increasing capacity by 10 per cent and reducing the number of these vehicles on the road by a similar amount.”
The VDAM changes include:
“Safety is always the Government’s primary consideration. The rule will encourage operators to purchase newer vehicles aligned to international dimensions with more technology and safety features,” Mr Foss says.
The VDAM Rule 2016 comes into force on 1 February 2017.
For more information, visit: www.nzta.govt.nz/vdamrule2016
Foreign Minister Murray McCully has welcomed the visit to New Zealand later this week by Brunei’s Second Minister of Foreign Affairs and Trade Pehin Lim Jock Seng and Energy and Industry Minister Pehin Yasmin Umar.
“Brunei is an important partner for New Zealand in South East Asia, and we enjoy friendly cooperation in defence, trade and education,” Mr McCully says.
“During the visit, we will discuss Brunei’s plans to diversify its economy and how New Zealand can best support these efforts. Our talks will also focus on regional economic and political issues.”
Restores National Party traditional era of Farmer- Prime Minister
Bill English will be the first farmer prime minister since Jim Bolger.
In selecting him for the top slot the National Party reinstates and restores a line which gave the appearance of becoming extinct.
Mr English will remain as prime minister at least until after the next general election.
With the Brexit/Trump syndrome in such recent memory the National Party will not make the mistake of assessing Mr English’s electoral popularity or otherwise prior to the 2017 general election on the basis of media opinion or poll samplings.
Mr English’s party branding as a farmer removes him from the now suddenly despised class of professional politician.
It is a breed that has now become especially vulnerable.
Populist, media-friendly, and extremely wealthy gadfly Gareth Morgan hovers in the wings promising to swat the category with the most effective instrument at hand, such as a new political party.
In the event, though Mr English, who is actually of Irish lineage, looks like a farmer and usually sounds like one. But his non-career politician credentials do not stand up to all that much scrutiny.
His time devoted to the family farm in Dipton was fairly brief.
It was sandwiched between Otago University where he earned a degree in commerce and Victoria University (English literature) before he began ascending the politico-administrative ladder back in Wellington as a policy analyst with the Treasury department.
The clue to Mr English’s seamless transition from trusted lieutenant to prime minister is the unqualified and public support from his long time boss, John Key himself.
Mr Key will have run the numbers on Mr English before his surprise announcement of his own resignation as premier.
It is the appointment though of Mr English’s deputy prime minister that will present the clearest view of the National Party line of succession.
The importance of this pick was underlined in the unusual-purpose press conference suddenly called by government transport minister Simon Bridges.
The National Party has a horror of things like primary campaigns and other such public personal preferment promotional devices.
So Mr Bridges had to weigh this up before calling his self-nominating press conference for deputy premier .
It was convened in order to notify the public that his hat was very much in the ring .
He knows that in the deputy premiership resides the post-Bill English leadership of the National Party.
The opening could be next year.
Or it could be much, much later.
Nobody doubts that should Mr English lose the 2017 general election, which seems unlikely, but given Brexit/ Trump, is nonetheless possible, the leadership will fall upon Judith Collins.
Mrs Collins MP shares with the late Margaret Thatcher, another non-career politician, a pre-political profession as a tax lawyer.
From the MSCNewsWire reporters' desk
David Shearer to quit for UN job
Te Rapa Gateway gains momentum with two new industrial developments
Global business calls west Auckland home
A new Zespri head office planned
New rules for trucks to increase productivity and safety
Prime Minister John Key named as ideal candidate to head International Monetary Fund
English versus Coleman: 'Two horse race'
Holden reveals first pictures of the next-generation Commodore
High Commissioner to India announced
Global beverage brand approval to supply SCS Connect
Shanghai Maling completes purchase of controlling stake in Silver Fern Farms
John Key Fades Away-– a Market Trader Quits his Position at The Top
The distance between China and New Zealand has just became a lot closer today with the announcement of five new business landing pads now available for Kiwi businesses in China.
Five leading business innovation hubs in Shanghai, Chengdu and Chongqing have fostered a relationship with New Zealand based business FunderTech to open their doors to foreign businesses. The Chinese Local Government are supporting the initiative by providing shared workspaces while FunderTech will be providing a wrap-around support service for kiwi businesses to accelerate grow and investment opportunities. The deal provides flexible terms for up to 40 foreign businesses to establish at an innovation hub.
Incubation Hub Manager for Chengdu Ms Li announced the plans “Chengdu is the fastest growing economy in China and we need to continue to attract the best and the brightest people from the world to our city. With direct flights now operating from Auckland to Chengdu, we are opening a new gateway for New Zealand businesses.”
Kiwi businesses are being given an eye watering offer that is almost half the annual rental price of taking an office in the equivalent innovation hub in Auckland with a great deal more benefits.
Each innovation hub has something different to offer but will include a shared local Business Development Manager; a modern office space for three employees with room to grow; a range of modern office furniture; assistance with company registration; assistance with a multi entry visa application; assistance with establishing a business bank account; assistance with finding accommodation and some incubation hubs also offer a months free accommodation; unlimited wifi access; and regular social networking opportunities.
FunderTech Managing Director Rob Thomas said “Kiwis are amazing innovators but our businesses need to be closer to capital and consumer markets. Each city has a population of more than ten million people and it’s important to bring New Zealand companies close to the action.”
FunderTech Director David Liu also added, “The incubation hubs in rapidly growing China cities present a great opportunity for Kiwi start-ups. The enormous China market in bloom is full of both competition and opportunities, the incubation hubs are the active agents that can help Kiwis learn the rules of Chinese business games and prepare them to fly high.”
Mr Thomas continues “The decision to set up an office in China should be well thought through. There are a number of pitfalls that business can make when entering the market. However, the wrap-around service and the deal struck by FunderTech with the Innovation Hubs will provide an affordable and viable way to bridge the gap for kiwi business entering into China.”
FunderTech is also offering business support modules available to accelerate the landing process which include consumer research, product & marketing, manufacture and importation. They are also assisting businesses apply for Local Government Grants and introductions to Chinese Angel Investors.
Since FunderTech established its business in August they have taken five kiwi businesses into China. New Zealand founder of the NZ SME Network Tenby Powell joined them as the keynote speaker at the Chengdu Innovation Hub in October.
The next FunderTech angel investor roadshow is planned for February 2017, after the Chinese New Year, which will involve visiting Incubation Hubs and pitching to Angel Investors. For more information please visit the www.FunderTech.com website.
APL is seeking to capitalize on the fact China is New Zealand’s second-largest trading partner for exports and third-largest for imports.
CMA CGM’s newly acquired APL will begin a direct weekly service between North Asia ports and New Zealand from the end of December, increasing coverage in response to fast-growing trade with China.
The New Zealand Express II, or NZ2, service will increase its port calls in New Zealand to five to strengthen APL’s presence in the Oceania trade lane. With the launch of the NZ2 service, APL will have a network of six Oceania services that connect Asia with Brisbane in Australia and New Zealand.
“APL introduced the new NZ2 service to serve the China-New Zealand market in a direct and more efficient way. Compared to transshipment options, the NZ2 service provides our customers with dedicated and faster connectivity between the North Asia and Oceania markets,” said Tonnie Lim, APL head of intra-Asia trade.
The new NZ2 service will be made available through slot swaps on ANL’s ANZEX service, and will deploy seven vessels with capacities between 4,132 and 4,578 twenty-foot-equivalent units. It will complement the existing New Zealand Express, or NZE, service, with a port rotation of Shanghai, Ningbo, Chiwan, Kaohsiung, Brisbane, Auckland, Port Chalmers, Lyttelton, Napier, Tauranga, Hong Kong, and Keelung.
“The direct service will enable businesses to accelerate their products’ speed and access to these markets, as they seize new growth opportunities in the region,” Lim said.
New Zealand’s trade relationship with China has nearly tripled during the past decade, with two-way trade rising from $8.2 billion in the year ended June 2007 to $23 billion up to June this year. Annual exports to China have quadrupled and annual imports from China have doubled since 2007, according to the country’s Ministry for Foreign Affairs and Trade.
“We have traded more with China since the free trade agreement entered into force in 2008 than in all our previous history, and growth is faster with China than any of our other major trading partners,” the ministry said in a statement.
China is New Zealand’s second-largest trading partner for exports and third-largest for imports. In the year ended June 2016, 17 percent of the country’s goods and services exports went to China and 16 percent of goods and services imports came from China.
New Zealand’s top goods export to China in the past year was milk powder, and has been since 2008. The trade ministry said at its peak in the year ended June 2014, milk powder accounted for more than 40 percent of New Zealand’s total annual export value of goods and services to China. Other leading exports are untreated logs and beef and lamb.
Clothing was the largest import during the past decade, but has dropped from around 16 percent to 11 percent of the total import value from China this year.
Also capitalizing on the rising trade between China and New Zealand is Maersk Line that in October inserted Tauranga on the westbound northward leg of its AC-3 Asia-west coast South America service, a weekly service connecting Mexico, Panama, Colombia, Peru, and Chile directly to New Zealand.
Leading the AC-3 service was Aotea Maersk, and its capacity of 9,640 TEUs made it the largest container vessel ever to call at a New Zealand port. The port of Tauranga has a long-term strategy to extend its freight catchment and consolidate its position as the country's leading freight gateway. Handling larger vessels is a key part of this focus and its shipping channels have been widened and deepened, to 47.6 feet inside the harbor entrance and 51.8 feet outside the harbor.
That long-term plan also included signing a 10-year deal with logistics company Kotahi that guaranteed Tauranga 1.8 million TEUs during that period.
Maersk Line and APL are members of the Asia Australia Discussion Agreement along with ANL, China Cosco Shipping, Evergreen Line, Hamburg Sud, Hyundai Merchant Marine, Mediterranean Shipping Co., Orient Overseas Container Line, Pacific International Line, Sinotrans Container Lines, T.S. Lines, and Yang Ming Line.
Article written by Greg Knowler Dec 07, 2016