The Success And Risks Of Logistics In New Zealand

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Many factors have to be taken into considerations when taking a look at the logistics of an entire nation. From the demographics and cultural history of the country to the geographic landscape, multiple factors dictate the success and risks involved in a profitable logistics system. A country’s trade among industries and organizations within the country as well as importing and exporting goods are two separate factors that can also determine how successful that country will be in earning revenue. New Zealand is an island located in the Pacific Ocean off of the eastern coast of Australia. Being an island, they have to rely on a well-functioning logistics system in order to help them move products to and from the island profitably. New Zealand …show more content…
Road/ground transportation, like the United States, is the main mode used in transporting freight as well as passengers. The country is traversed by a National Highway System that will be allocated $36 billion in order to repair roadways and extend them into more rural parts of the country. Ground transportation carried around 70 percent of New Zealand’s freight movements. They also take 84 percent of the population on their daily journeys(“Connecting New Zealand”. The next most profitable mode would be the extensive use of airport in their import and export shipping. The country has 123 airports split on both of the islands and recognizes registered carrier(CIA Fact Book, 2015). Aircrafts move 14 percent of the country’s exports by value. Logistics involving water carriers are largely owned by the private sector. They annually ship around 49 million tons in exports which comes out to about 99 percent of all exports by weight. The industry makes around $75 billion per year on average. A crucial part of the New Zealand’s logistics infrastructure is the successful operation of well monitored ports in order to accommodate the high volume of shipping in which the country partakes. There are 6 major ports into which most ocean charters and liners will deliver products to. Two, Lyttelton and Otago are located on the South Island while the other four, Auckland, Tauranga, Napier and Wellington are located on the North Island. Auckland, Tauranga and Lyttelton are the largest three respectively and receive over 3 million tons of freight annually. Auckland alone took in 610,000 tons in 2014 according to Champion Freight’s article on New Zealand’s ports. While ports help solve the importing and exporting shipments query, railways find a solution to the best way to ship large and heavy volume freight. The country’s rail system carries approximately 15 percent of the

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