The New Zealand government this week declined an application filed by NovaAlgoma Cement Carriers (NACC) to operate a coastal shipping service in New Zealand waters. NACC is a 50/50 joint venture between Canada’s Algoma Central Corporation and Nova Marine Holdings SA of Luxembourg.
NACC had sought an exemption from cabotage laws under Section 198 of the Maritime Transport Act. The application would have allowed the Panamanian-flagged, internationally crewed NACC Vega to replace the New Zealand-flagged and crewed MV Buffalo.
“After careful consideration, I have declined NovaAlgoma Cement Carriers’ application for authorisation to operate a coastal shipping service in New Zealand waters,” declared Associate Minister of Transport James Meager.
“Under New Zealand maritime law, coastal cargo can generally only be carried by a New Zealand ship,” Mr. Meagher said. “Foreign ships may carry coastal cargo under certain situations, including using a demise charter to a New Zealand-based operator under New Zealand laws, or if the carriage is incidental in relation to the carriage of international cargo. For other uses, an authorisation to carry coastal cargo under section 198(2) of the Maritime Transport Act is required.”
NACC sought the exemption after signing a contract with Holcim New Zealand to move its cement for up to three years.
“The intent of section 198 of the act is to protect New Zealand coastal shipping for local commercial interests,” Mr. Meager said. “While authorisations can be granted under section 198(2) … these are typically for single journeys on New Zealand’s coast to meet a short-term need. In this case, I was not satisfied Nova’s application met the requirements of the act.”
The International Transport Workers’ Federation (ITF) welcomed the Aotearoa New Zealand Government’s decision to uphold domestic cabotage protections and reject an attempt by a foreign-flagged vessel to take over a key coastal shipping route – a move that safeguards local maritime jobs and strengthens the country’s supply chain resilience.
(Photo of NACC Vega from Nova Marine Carriers)