New Zealand’s Move investing in methanol-ready RORO

New Zealand’s logistics specialist Move Logistics Group is pressing ahead with the plans to procure a new methanol-ready roll-on, roll-off (RORO) vessel.

The company has already secured NZ$10 million ($ 6 million) in co-investment funds from transport agency Waka Kotahi. The government has committed NZ$30 million of funding for coastal shipping through the National Land Transport Programme (NLTP) to support initiatives that improve the competitiveness of domestic coastal shipping, reduce freight sector greenhouse gas emissions and enhance resilience.

Waka Kotahi has co-invested this funding with four suppliers, which will be investing over $60 million in total to deliver these projects.

The agency has endorsed Move’s vessel design proposal which includes a methanol tank and pipework installation during construction. This ensures the new vessel is ready for the swap-in of carbon-friendly methanol-powered engines as they become available, the company said. 

As informed, the immediate focus is on designing, building, and mobilising a quarter-ramp RORO vessel, enabling a new sea bridge between Nelson and New Plymouth.

“Move is committed to decarbonisation of freight and logistics activities. Our decision to invest alongside Waka Kotahi demonstrates the very real nature of how a former trucking company can become truly multi-modal and offer resilience to our clients via coastal shipping,” Executive Director of Move, Chris Dunphy said.

The fit-for-purpose RORO vessel will be able to berth wheeled cargo into at least 13 New Zealand ports, without the need for any new port infrastructure to be built. The methanol-ready vessel will initially operate three sailings a week between Nelson and New Plymouth and provide an additional sea bridge between the North and South Islands, Move said. 

Currently, the only options available for moving rolling stock between the North and South Island are on the Cook Strait ferries, which operate between Wellington and Picton.

“This new vessel will not only provide a reliable mode of transport, but operational efficiencies will also amplify the carbon reduction efforts of MOVE and Waka Kotahi.  The expansion of coastal shipping will be transformative for the economies of regional New Zealand,” General Manager of MOVE Oceans, Dale Slade added.

This new-build vessel is expected to be available for use by November 2023.

Methanol brings practical benefits related to ease of storage and handling, and tank-to-wake carbon intensity reduction. The technology readiness levels of methanol fuel technologies are higher than for ammonia and hydrogen, and methanol has also gained an advantage over its competitors from a regulatory point of view. Namely, the IMO approved the interim guidelines for the Safety of Ships Using Methyl/Ethyl Alcohol as Fuel in 2020. If agreed with the Flag Administration, these guidelines can be used in lieu of the risk-based alternative design process for methanol-fuelled ships.