‘Cars for Kiwis’ UK export boom
A new facility is being opened at the Port of Felixstowe to cash in on record demand from New Zealand and other markets for UK second hand cars.
Stringent emissions laws have pushed the UK ahead of traditional market leader Japan in the car export bonanza. And with demand set to escalate a Japanese company has joined the JV.
Business is so brisk that leading logistics provider Pentalver has partnered with global vehicle logistics specialist Autohub and international inspection company JEVIC, to launch the UK’s first vehicle pre-clearance facility for New Zealand and other markets.
The JV is based at Pentalver’s Felixstowe depot and is designed to service an export market worth around £160 million a year.
Increasingly stringent emissions regulations for new and used vehicles entering New Zealand have prompted the growth of this market for right hand drive, used vehicles from the UK.
Further planned changes will increase that demand, with 2016 being proposed by the New Zealand Transport Agency as a date for euro 5 emissions compliance to be mandatory.
Domestic market vehicles in Japan – currently the largest supplier of right hand drive, second hand cars to New Zealand – are not produced to euro 5 or equivalent standard, so the shortfall will increase dramatically once these regulations are enforced.
2011 saw a significant rise in second hand car exports to New Zealand, with an average of 200 cars per month by the end of the year. The JV partners expect this trend to continue with monthly export numbers set to more than double over the coming year.
Shipping to Auckland from Felixstowe is a maximum 42 days on the water – generally less.
The new Felixstowe facility will also cater for other export markets, handling road worthiness inspections to allow shipment to some East African countries as well as opening up other potential markets.
Pentalver says the great benefit of the new initiative for exporters is a simple one-stop drop-off facility. The vehicle will be delivered to port, inspected and exported in the shortest possible time and with the least inconvenience.
Launching this month, the state of the art facility will enable every vehicle being shipped by Autohub through Pentalver’s Felixstowe depot to be meticulously cleaned of biosecurity contamination and then inspected in order to meet the strict biosecurity standards required by the New Zealand Government’s Ministry of Primary Industries.
New Zealand is world-renowned for having the toughest biosecurity regulations and requires that every vehicle entering the country must be thoroughly inspected for any possible biosecurity contamination, both internally and externally.
A structural inspection is also completed on each vehicle on behalf of the New Zealand Transport Agency. This includes inspection of the underside of the vehicle and all energy management areas.
The clear benefits of the inspections being completed in the UK are savings in valuable time and costs upon arrival in New Zealand and the assurance for the exporter and importer of the vehicles condition.
Pentalver managing director, Chris Lawrenson, said: “I am delighted to announce our joint venture with Autohub and JEVIC, which is a first for the UK and demonstrates how we work with our clients to provide tailored, effective solutions, no matter what the requirement.”
John Davies, MD at Autohub, added: “This is a rare example of a growing export market, with specialised companies like Pentalver, Authohub and JEVIC creating innovative solutions to ensure they are able to react to changing markets and market conditions.
“Over the last year we have seen a sharp increase in UK exports of second-hand cars to New Zealand. The facility has the capacity to process over 30,000 cars per year, which means we are geared up to handle significant growth, whilst capitalising on the cost savings involved in processing the vehicles in the UK as they wait for exportation.”
Pentalver began operations in 1980 and following three decades of investment and expansion is now regarded as one of the largest inland container logistics companies. The company employs over 600 people across four UK facilities – Tilbury, Southampton, Felixstowe and Cannock – operates over 200 articulated vehicles and handles one million TEU of containers each year.
International car exporter Autohub is possibly the only company to take care of all the arrangements for imported vehicles in both export and import countries.
The company offers several shipments monthly to New Zealand from Japan, Australia, Singapore and Hong Kong, making their service one of the most comprehensive and efficient available. With a team of experienced staff in New Zealand, Japan and Singapore, Autohub has a long history in the motor industry, many previously being motor vehicle dealers.
Japan Export Vehicle Inspection Center Co Ltd (JEVIC) is a Japanese registered company and has been involved in pre-shipment inspections/certification of used vehicles in various forms since 2001. JEVIC has an intimate knowledge of the motor vehicle inspection business, the motor vehicle industry and the skills required to deliver a high quality and efficient service.
It has facilities, strategically located throughout the major ports of Japan, in Yokohama (Tokyo Bay), Kawasaki (Tokyo Bay) Nagoya, Osaka and Kobe. Branch offices include New Zealand, Singapore, the UK, South Africa and Kenya.
• PHOTOGRAPH SHOWS: Pentalver’s rigorous vehicle inspection pre-shipment