Fuel Costs, Fees Could Hurt New Zealand Cruise Industry

by Ship & Bunker News Team
Wednesday August 20, 2014

High fuel costs are hurting New Zealand's competitiveness in attracting cruises, Cruise New Zealand manager Raewyn Tan told the APNZ New Service.

Tan said the industry is worth more than $365 million to the nation, but its port and fuel fees are some of the world's highest.

Cruise ships calling in New Zealand face charges from Maritime New Zealand, ports, and some regional councils.

"That has the potential of dis-incentivising cruise lines adding New Zealand ports to an itinerary because the more ports you add the more costs you incur," Tan said.

She added the that cost of fuel could also create problems, particularly since it takes two days for cruise ships to travel from Australia, creating significant fuel costs.

Tan also said the country needs to increase the size of its wharfs to accommodate bigger cruise ships.

Ports of Auckland spokesman Matt Ball said cruises arriving at the port only face a port fee and a Maritime New Zealand levy.

He said the port is preparing for larger ships and is considering a wharf extension.

"We are making significant investments and it is reasonable for us to charge for that investment," he said.

Carnival UK Chief Executive David Dingle said last year that rising bunker costs and more emissions rules will lead to larger cruise ships and fewer port visits in coming years.