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CHATHAM ISLANDS SHIPPING DEVELOPMENTS ��� PART TWO BY R LEA CLOUGH C FOR SALE Scott Robson 12m, built Ramco 2009. Current MNZ survey for skipper plus 27 pax. Twin Iveco 420hp diesel engines, Hamilton jets + Blue Arrow docking. Excellent condition, 600 hours. Cruise 20 knots, max 30. Designed as passenger ferry, diving and kayak support. Enclosed forepeak with heads, galley, 2 berths. Haulout trailer. $320,000. 09 429 0762, simon@opc.org.nz 20 Professional Skipper January/February 2013 VIP.S91 hatham Is Shipping Ltd and South East Shipping Ltd continue to operate MVs Baldur and Rangatira, respectively, to the Chatham Islands. Many islanders believe that SES owner/operator Kelvyn Leslie owes debts incurred by Rangatira under the now-defunct Black Robin Freighters Ltd. These debts and any monies owed to BRF are solely the responsibility of the receivers, BDO Ltd. Since early June 2012, SES Ltd has been operating Rangatira to the Chathams on an ad hoc basis, while trying to formalise the use of the port facilities at Waitangi with the Chatham Islands Enterprise Trust, through its subsidiary Chatham Islands Ports Ltd. On June 1, CIET notified SES by email that, as Licensee, it had to enter a contract with CI Ports, the Licensor, to berth and work cargo at Waitangi. The ship sailed from Timaru on June 8, under threat, subsequently rescinded, of not being allowed to berth at Waitangi unless CI Ports��� demands were met. A bond of $10,000 was to be paid up front. This was to cover wear and tear on the wharf, the extent and cost of which were to be solely determined by CI Ports Ltd. There was no provision for arbitration. This amount could be varied at the sole discretion of CI Ports, with a two day deadline by which time payment had to be made. The SES crane was to be subject to further rules: If CI Ports orders its removal and SES fails to comply, the ownership of the crane transfers to CI Ports and, rather mystifyingly, ���The Crane Licensee must pay, after receipt of an invoice from the Licensee an amount for the use of the craneage to be calculated as being $300 plus GST per hour that it uses the crane.��� The contract also required SES to pay for all power used at the wharf, including that consumed by other users, such as its rival. Another clause required SES Ltd to grant blanket approval to ���any terminal user associated with or affiliated to the Licensor to use the crane���. This was before Kelvyn had become aware that CIET had set up CI Shipping Ltd to operate Baldur. This made the oddly-worded clause about craneage clear: it was meant to force SES to lease the crane to its rival at a rate set by a company affiliated to that rival. On June 22, 2012 Rangatira completed loading and sailed from Timaru. On the same day CIET sent an email, again demanding payment of the bond and the signing of the agreement before she could berth at Waitangi. On June 24, SES obtained a court injunction against CIPL to compel it to allow Rangatira to berth at Waitangi. A modified agreement has now been signed, involving a non-variable bond of $10,000 and Standard Terms of Business, as well as some undisclosed clauses. CIPL have served notice, since suspended, on SES that it will have to remove its crane from the wharf yard and that all of SES���s operation is to be evicted, despite the fact that SES���s occupation and use of the shed is sanctioned by the recently signed Deed of Licence to Occupy. In early October The Enterprise Trust held a public meeting in Waitangi[to inform the public on shipping developments and to hear opinions]. Concurrently, a poll [of voters resident on the Chathams] was held to indicate support for the Trust to plan for the acquisition of a new, purpose-built ship for the Chathams trade. A 43 percent turn-out gave a ���Yes��� mandate by 108 votes for, to 91 against. A plan of a Chinese-built 45m, 500 gross tonne stock-carrier had been circulated. However, this is on hold, as the Trust considers other developments which will drastically affect the size, shape and function of any vessel ordered. There are proposals for seabed phosphate mining on the near end of the Chatham Rise. If this goes ahead, there would be a need for support arrangements on Chatham, with a treatment/concentrating plant ashore and wharfage/loading facilities. There is also another proposal for a boutique meatworks on Chatham. The original, subsidised meatworks closed down over two decades ago, and there have been feasibility studies on a replacement in the interim. THE WRITER���S OPINION By R Lea Clough This writer has seen correspondence, some of it rather strange, between CIET and SES, the tone and content of which reveal an intention to drive that company out of the Chatham Islands trade, by fair or foul means. The various clauses imposing demands by CIET on SES in favour of its own subsidiary, Chatham Islands Shipping, may well contravene the law and may attract the attention of the Commerce Commission. The Enterprise Trust has established the principle of cross subsidisation between its subsidiary companies, a necessary practice to keep the airport operating, as it simply could not survive on landing charges alone. However, an extension of this principle to prop up a loss-making shipping service would be a burden on Chatham Islanders. SES stopped operating to Napier, leaving the trade to Baldur���s owners, but this move was not reciprocated. Baldur has called at Timaru, for possibly uneconomic amounts of cargo. The company has recently announced that it will be reviewing this policy ���due to low freight volumes���, an admission that they are wasting Chatham Islander���s money.