Items filtered by date: Tuesday, 02 December 2014

Ports of Auckland Limited and Napier Port today announced a strategic alliance.

These ports are the gateways to two of the largest North Island provincial economies with significant growth and demands on infrastructure,” says Ports of Auckland Chief Executive, Tony Gibson.  The strategic alliance builds on Napier Port and Ports of Auckland’s existing joint venture in Palmerston North’s Longburn regional freight hub and will support Ports of Auckland’s regional freight hub network strategy to manage the growing freight market.

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Ports of Auckland Limited and Napier Port today announced a strategic alliance which will provide operational, economic, sustainability and community benefits.

“Ports of Auckland and Napier Port are the gateways to two of the largest North Island provincial economies with significant growth and demands on infrastructure,” says Ports of Auckland Chief Executive, Tony Gibson.

The partnership will allow Napier and Auckland to work together to find ways to optimise services for freight customers and achieve further scale and efficiencies in the supply chain. It will prompt even greater competitive contestability and resilience in New Zealand’s supply chain to help lower costs to exporters and importers.

“There is a natural fit between Ports of Auckland and Napier Port. We share a similar way of working, common customers and supply chain opportunities and have similar ownership structures so that’s a great base to work from,” he added.

Napier Port Chief Executive, Garth Cowie, says the alliance also creates an opportunity to collaborate, share best practice and innovate in technology, health and safety and sustainability practices, areas where both ports are seeking to advance further.

“Napier Port’s vision is to be Central New Zealand’s leading provider of port and logistics solutions. This alliance fits with the natural flow of freight in the North Island, based on ports close to demand centres and Auckland’s weighting towards imports and our strong export base.”

“Both operators are committed to growing our talent so we will be developing a joint talent pool, driving skills development and opportunities like staff exchanges where it makes sense,” he added.

“The alliance is a significant and exciting development for local exporters and the local community,” says Mr Cowie. “Better international freight links will benefit the Hawke’s Bay region, encouraging additional investment and supporting the growth of local employment opportunities.”

“This alliance truly demonstrates what we believe in at ExportNZ, that businesses should consider partnerships and collaboration in order to achieve better results,” said Amanda Liddle, Executive Officer at ExportNZ Hawke’s Bay. “It is a win-win situation for all exporters, as it will lead to an even more streamlined approach.”

The strategic alliance builds on Napier Port and Ports of Auckland’s existing joint venture in Palmerston North’s Longburn regional freight hub and will support Ports of Auckland’s regional freight hub network strategy to manage the growing freight market. This strategy helps to balance freight flows, provides exporters with choice, improves access to overseas markets and reduces exporters’ costs due to supply chain efficiencies.

Today’s development complements the Matariki – Hawke’s Bay Economic Development Strategy $25 million Government package announced last week to support road access improvements to Napier Port.

Richard Holden, Professor of Economics, UNSW Australia says that  a large chunk of data was released last week, with more to come this week. And while nothing was either shocking or terrible, there is mounting evidence the world’s economic growth problem is even more entrenched.

Australian inflation was keenly anticipated because of the surprising and concerning low figure last quarter. All groups CPI came with an increase of 0.4% for the quarter, compared to a fall of 0.2% in the prior quarter.

But that puts annual growth over the last 12 months at just 1.0%, well below the Reserve Bank’s target band of 2-3% year. The number was encouraging in part because of the bounce back, but distressing because it puts annual inflation even further away from the RBA target. That increases the already significant likelihood of an interest rate cut, or two, in coming months.

Continue Reading the full report

A large chunk of data was released last week, with more to come this week. And while nothing was either shocking or terrible, there is mounting evidence the world’s economic growth problem is even more entrenched.

Australian inflation was keenly anticipated because of the surprising and concerning low figure last quarter. All groups CPI came with an increase of 0.4% for the quarter, compared to a fall of 0.2% in the prior quarter.

But that puts annual growth over the last 12 months at just 1.0%, well below the Reserve Bank’s target band of 2-3% year. The number was encouraging in part because of the bounce back, but distressing because it puts annual inflation even further away from the RBA target. That increases the already significant likelihood of an interest rate cut, or two, in coming months.

As expected, the US Federal Reserve remained cautious, not raising rates, but commenting that “near-term risks to the economic outlook have diminished”. They will probably look to start a tightening cycle of interest rate rises in 25bp increments, perhaps at the next meeting. When the economy was looking stronger late last year, there was discussion of 300bp of increases over a 18-24 month period.

With Australia cutting and the US raising rates the Australian dollar looks likely to fall. The real question is just how much.

Also in the US, less good news was that durable goods orders fell by 4.0% for the month, compared to market expectations of a 1.4% decline. Possibly softening the blow was that a large chunk of the decline was caused by a decrease in aircraft orders, which are notoriously lumpy. For instance, Boeing received 12 aircraft orders in June, down from 125 in May.

Finally, the Bureau of Labor Statistics reported a rise in the Producer Price Index of 0.5% for the June quarter on a seasonally-adjusted basis.

Meanwhile, you might remember Joe Hockey’s admirable goal from the G20 meeting a couple of years ago of a US$2 trillion boost. The IMF instead released figures suggesting that will be missed by US$6 trillion.

To put that in perspective, Australia’s entire GDP was $1.56 trillion. So the G20 basically missed the target by four Australias. Ouch.

Japanese prime minister Shinzo Abe announced plans for a 28 trillion yen (about US$265 billion) stimulus package. This was met with approval by markets, but shows the size of the economic challenges most advanced nations are facing as more and more evidence of secular stagnation mounts.

Over the weekend, US economic growth for the June quarter will be a key measure to watch out for, and will weigh heavily on future Fed rate decisions.

But it seems more likely than not that the Fed will raise rates cautiously, starting with a 25 basis points hike at their next meeting. Meanwhile, expect pressure for an RBA rate cut in Australia and a decline in the Australian dollar if that happens. [NOTE: Since this was written, the RBA yesterday, Tuesday 2 August 2016, cut the cash rate to 1.5% from 1.75%, a new record low.]

Written by Richard Holden, Professor of Economics, UNSW Australia

Disclosure statement: Richard Holden is an ARC Future Fellow.

Vital Signs is a weekly economic wrap from UNSW economics professor and Harvard PhD Richard Holden (@profholden). Vital Signs aims to contextualise weekly economic events and cut through the noise of the data impacting global economies.

A full-page advert in Saturday’s Singapore Straits Times for a two-day ‘Prime New Zealand Properties Expo’, shows how the government is denying reality over foreign buyers.

“If foreign ownership is as small as the government claims it to be, then why would an outfit like Brooke International book a room at the Singapore Hilton and spend $20,000 on an advert for a New Zealand Properties expo?” asked the Rt Hon Winston Peters.

“So what are the benefits of buying in New Zealand according to the advert? They are: ‘No stamp duty’, ‘No restrictions on resale to foreigners’ and ‘A lucrative investment with income up to 30 years’ in ‘fantastic Auckland’ or ‘Queenstown, New Zealand’s adventure wonderland’.

“This advert shows how New Zealand is seen by the rest of the world – an easy place to buy that offers great returns – returns earnt from an already overheated property market in Auckland.

“On the foreign buyer issue this government is spinning faster than an F&P washing machine, but they cannot launder out the cost these foreign buyers are causing to Kiwis.

“We already know the government’s data is bogus because Inland Revenue only records self-declared New Zealand tax residency and that has nothing to do with nationality or visa status. It is shonky window dressing at its worst when we must put New Zealanders first.

“The government must crack down hard on foreign buyers and establish a real register of foreign buyers and not this Clayton’s thing they’ve cobbled together,” Mr Peters said.

A NZFirst press release tuesday 2 August 2016

FunderTech says it has forged a relationship with a Chinese investor club with offices in Shanghai, Beijing, Shenzhen and Chengdu

Auckland-based FunderTech — a company that helps startup tech companies find funding, business development, manufacturing and product distribution opportunities in China — is offering Kiwi startups the chance to pitch to Chinese angel investors writes Stuart Coner on ComputerWorld New Zealand.

FunderTech says it has forged a relationship with a Chinese investor club with offices in Shanghai, Beijing, Shenzhen and Chengdu that will enable five to eight businesses from around the world to pitch in front of 500-800 Chinese angel investors at monthly ‘summit’ conferences.

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Trade Minister Todd McClay is travelling to Laos today to participate in a series of Ministerial meetings in the capital city of Vientiane, including the fourth Regional Comprehensive Economic Partnership (RCEP) FTA Ministerial Meeting.

“Following New Zealand’s hosting of the 13th RCEP round in Auckland in June, the Ministerial Meeting will review the overall state of negotiation and look to address key issues, including in services, investment and goods,” says Mr McClay.

“I will continue to press my counterparts to ensure the negotiations deliver a modern, comprehensive and high quality agreement, consistent with the original vision of Leaders.

“The countries involved in RCEP have a combined population of over 3 billion and account for about 27 per cent of global trade. They include six of our top 10 trading partners who took nearly $30 billion of our exports in 2015.

“If RCEP is successfully concluded it will offer New Zealand businesses a single set of rules that deliver access to key markets across Asia, as well as improved trade and investment rules,” says Mr McClay.

While in Vientiane the Minister will also take the opportunity to meet bilaterally with his counterparts from a number of other countries, discussing both the RCEP negotiation and a range of other trade-related issues.

A release from the Beehive, Tuesday 2 August 2016

Travellers may soon be able to travel a one-stop hop to Europe for a low price as Scoot plans to launch Gold Coast to Europe flights.

Just four years after Air Asia culled it’s Gold Coast to Europe via Kuala Lumpur flights, Scoot is the next low cost carrier to give the route a crack.

The Centre for Aviation CAPA website said at the start of July that Scoot was preparing to fly to Europe in 2017, becoming the world’s longest LCC route.

“Europe will be Scoot’s focus for the next phase of its expansion as it takes delivery of four 787-8s equipped with crew bunks. Scoot now operates 11 787s and plans to take one additional aircraft in 2016 in the standard configuration, completing its current phase of rapid expansion that features eight new medium haul destinations in just under one year.”

The budget airline is planning five return flights a week on their Dreamliner with the airline’s general manager, Dennis Basham, promising seats at $200 to $300 cheaper than what is generally available.

According to the Gold Coast Bulletin, Basham confirmed Scoot would start the return flights out of the Gold Coast to three or four different European destinations next year.

“Scheduling would start with five flights a week but aim to climb to seven, with one available every day,” it reported.

The airline remains tight lipped on the European destinations on offer.

Gold Coast Tourism chief executive Martin Winter welcomed the plan by Scoot which could prove attractive to inbound Commonwealth Games spectators in 2018, the Gold Coast Bulletin reported.

“Anything that is going to provide more affordable fares from Europe is very welcome, particularly given we have had extremely strong growth from European markets Great Britain and Germany in the past 12 months. With the Commonwealth Games coming up this will appeal to many spectators who want to attend,” Winter said.

A TRavel weekly release Monday 1 August 2016

European vehicle sharing trend has taken ahold in New ZealandIn 2014, there were over 25,000 car sharing vehicles all over Europe, and as those numbers have grown, the trend has spread to New Zealand. Kiwis are taking the vehicle sharing trend by storm, and one vehicle sharing company has experienced massive growth in less than 6 months due to the demand for vehicle sharing opportunities.

My Car Your Rental is a New Zealand-based, peer-to-peer (P2P) car rental company that lets vehicle owners list their cars for rent. My Car Your Rental offers insurance and a sleek platform where renters can easily find rentals, and vehicle owners can seamlessly list their cars. Henrik Stovring, founder of My Car Your Rental, has seen the fruit of the vehicle sharing economy in New Zealand.

In New Zealand, car owners have shown to be the most open in the world to loaning their vehicles. In a country where the population is relatively small compared to other countries where ride sharing is prominent, the statistics for this market are rising quickly.

Continue reading the full article

European vehicle sharing trend has taken ahold in New ZealandAugust 2, 2016 - In 2014, there were over 25,000 car sharing vehicles all over Europe, and as those numbers have grown, the trend has spread to New Zealand. Kiwis are taking the vehicle sharing trend by storm, and one vehicle sharing company has experienced massive growth in less than 6 months due to the demand for vehicle sharing opportunities.

My Car Your Rental is a New Zealand-based, peer-to-peer (P2P) car rental company that lets vehicle owners list their cars for rent. My Car Your Rental offers insurance and a sleek platform where renters can easily find rentals, and vehicle owners can seamlessly list their cars. Henrik Stovring, founder of My Car Your Rental, has seen the fruit of the vehicle sharing economy in New Zealand.

In New Zealand, car owners have shown to be the most open in the world to loaning their vehicles. In a country where the population is relatively small compared to other countries where ride sharing is prominent, the statistics for this market are rising quickly.

According to Stovring, more than 400 vehicle owners have listed their car for rent in less than six months, and these numbers have the potential to take a lot of vehicles off the roads. In fact, Stovring estimates that if all 400 of the vehicles were rented out at one time, then approximately 4,000 cars would be taken off the road. Stovring cites international studies that have said for every car that is shared, up to 15 individually owned vehicles can be replaced.

My Car Your Rental was recently featured in an article by the New Zealand Herald. In the article, the car-loan trend was given a closer look, and My Car Your Rental’s services were highlighted. According to Stovring, “It’s now proven that car owners here in New Zealand are some of the most open people when it comes to sharing their car.”

At My Car Your Rental’s website, Kiwis can easily upload their vehicle’s details and rental information, including rates. The platform offers a simple way for people to make money on their vehicles while being backed by the features of the site. Kiwis who want to rent a vehicle, save money, and enjoy an eco-friendly to drive when they need to can leverage the website to find vehicles ranging from economical family vehicles to sports models.

More information can be found at http://www.mycaryourrental.com/.