Union Company

This article is about a New Zealand company. For similarly named companies in other countries, see Union Steamship Company.
Union Steam Ship Company of New Zealand Limited
Industry Shipping, freight and passenger services
Founded 1875
Founder James Mills
Defunct 2000
Headquarters
Dunedin (1875–1921)
Wellington
,
New Zealand
Head office, Water Street, Dunedin designed 1883
Five directors (back) of the Union Steam Ship Company in 1881, including John Richard Jones, John Cargill, and George McLean; David and James Mills in the foreground
Hawea run ashore at the entrance to the Grey River, 1908

Union Steam Ship Company of New Zealand Limited was once the biggest shipping line in the southern hemisphere and New Zealand's largest private-sector employer. It was incorporated by James Mills in Dunedin in 1875 with the backing of a Scottish shipbuilder, Peter Denny. Bought by shipping giant P&O around the time of World War I it was sold in 1972 to an Australasian consortium and closed at the end of the twentieth century.

History

James Mills

James Mills had worked for Johnny Jones and his Harbour Steam Company. After Jones’ death in 1869 Mills tried twice to float a Union Steam Ship Company of New Zealand Limited without attracting enough interest from local investors but in 1875 he found backing from Scottish shipbuilder Peter Denny in return for Union Steam Ship orders for Denny's Dumbarton shipyard. The Denny-built Hawea and Taupo, both then large by local standards, arrived in mid 1875 and entered service. Union Steam Ship took over the Harbour Steam Company's vessels on 1 July 1875.

Local competition

Union Steam Ship became a major shipping line dubbed "The Southern Octopus" with a near-monopoly on trans-Tasman shipping. It steadily mopped up trans-Tasman and coastal shipping businesses including Anchor, Canterbury Steam, Richardson & Co and Holm.

Trans-Tasman

From 1889 there was three-way competition between Union Steam Ship, Huddart Parker and Tasmanian Steam Navigation Company (TSNCo) on the Tasmanian routes (Melbourne – Launceston, Hobart – Melbourne and Hobart – Sydney). TSNCo did not have other routes to absorb their Tasmanian losses and was bought out by USSCo in 1891. The rivalry between USSCo and Huddart Parker lasted to 1895 despite an earlier agreement in 1893. There was undercutting of fares and there were steamers shadowing each other from port to port. USSCo's Rotomahana and Mararoa would sail alongside the Miowra and Warrimoo, with other ships like the Te Anau and Manapouri sailing before and after and bracketing the Huddart Parker ships. The 1895 agreement between the two lines pooled the Auckland-Sydney profits and losses; the Melbourne-Launceston profits were divided 4/7 to USSCo and 3/7 to Huddart Parker. The Sydney-Hobart passenger trade was excluded but the cargo and stock trade was divided 2/3 to USSCo and 1/3 to Huddart Parker. Mark Twain criticised travel conditions on a Union Company ship in 1897 in his travel book Following the Equator.

Mills was a UK resident after 1907 and died in London in 1936. By 1914 Union Steam Ship had 75 ships. It was the biggest shipping line in the southern hemisphere and New Zealand's largest private-sector employer.

Union Steam Ship Company's 3,721 ton MV Kaimiro loading cargo in Lyttelton, New Zealand, in 1968

P&O

In 1917 P&O shareholders were asked to confirm their directors' prior purchase of Union Steam Ship with the information that USSCo had a valuable coasting trade within New Zealand, connections with India and Australia and a line of steamers running between Australia, New Zealand and Canada. The Union Steam Ship fleet was described as 74 high class steamers with a tonnage of 237,860 and of an average age of 12 years. In November 1920, rumours surfaced that the head office of the company would shift from Dunedin to Wellington. At the end of 1920, it became known that the board of directors would remain in Dunedin, but that all headquarters staff would transfer to Wellington. The move happened in late 1921, with all head office functions in Wellington after the New Year holidays. About 70 staff transferred to Wellington, ending 46 years of Dunedin as the company's headquarters.

Norrie Falla

With the Dunedin staff came Norrie Falla as general traffic manager. He had joined as a boy in Westport in 1898 and finished his accountancy exams in 1906. In 1910 he was put in charge of the cargoes and movements of Union's 65-strong fleet. Falla volunteered immediately for service in the 1914—1918 first world war. He was promoted to lieutenant colonel in 1916 and returned to his former post in 1919. He succeeded David Aiken as general manager in March 1934 and was appointed chairman in January 1936 on the death of founder Sir James Mills.

Falla ordered two new passenger ships and began a steady renewal of cargo ships commissioning 11 ships between 1935 and 1939.

Falla also took Union Company into airlines. First in 1934 into East Coast Airways and then Cook Strait Airways in 1935.

Australian National Airways ANA

Union in conjunction with Holyman's Airways and Huddart Parker set up an airline across Bass Strait which began business in September 1934. In 1935 they added Adelaide Steamship Company as a partner in the venture which was renamed Australian National Airways the following year.

Union took up a 20% interest on the formation of Australian National Airways in 1936.

Union Airways NAC

In 1935 Union Airways of New Zealand was formed by Union Steam Ship and it built an air service through New Zealand. Union Airways was nationalised by the government in 1947 and renamed National Airways Corporation. Union Travel remained a substantial operation as travel agents and tour operators.

Tasman Empire Airways TEAL Air New Zealand

Union was instrumental in establishing this business in particular by buying the first three flying boats which began operations in April 1940. TEAL became Air New Zealand.

Falla dies

During World War II, Falla returned to the army with the rank of brigadier. He was later based in London as New Zealand representative on the Ministry of War Transport. He joined the main board of P&O in 1944. On his way back to New Zealand aged 62 he suffered a cerebral haemorrhage and died at sea 6 November 1945.

P&O sell to TNT

Australian road transport business, Thomas Nationwide Transport, had a substantial road transport stake in New Zealand. With New Zealand investors TNT bought USSCo from P&O in 1971.

In 1990 Union Steam Ship operated seven ships, and was involved in ship management, tourism, real estate and other ventures. By 2000, the Union Bulk barge made its last voyage.

Brierley Investments

At the end of the 20th century Brierley Investments bought all the shares, broke Union Steam Ship into components and sold up what it could.

Union Steam Ship Company of New Zealand owned more than 350 ships and has been the subject of a number of books.

Steamer Express TEV Hinemoa, built in England in 1946 and scrapped in Hong Kong in 1971

Ferries

Steamer Express Wellington to Lyttelton

Union Steam Ship began regular sailings between Wellington and Lyttelton in 1895 with the Penguin making two round trips a week. In 1905 this became a daily service year round. In 1933 the name "Steamer Express" was adopted for the service. Over the years a number of ships were used, including two Maoris, two Wahines, two Rangatiras, and a Hinemoa.

TEV Wahine entered service in October 1966 and foundered and sank at the mouth of Wellington Harbour 18 months later in April 1968. The TEV Rangatira entered service in 1972 and was withdrawn in 1976, bringing the Wellington–Lyttelton "Steamer Express" to an end.

Tamahine, built in 1925 and scrapped in 1962

Wellington to Picton

In what has been described as "a fatal mistake", the Union Steam Ship announced in 1956 that the Tamahine was to be withdrawn from the Wellington-Picton route in 1962 and unlikely to be replaced (despite an offer of a $3 million government loan). The designer of the replacement ferry the GMV Aramoana recalled that, "The media said the whole thing was a red herring", adding, "In their view, if the Union Steam Ship Company couldn't make the service pay, Railways definitely couldn't."

Fleet

Main category: Ships of the Union Steam Ship Company
Name Built In service Gross tonnage Notes
SS Aorangi (1883) 1883 1883–1915 4,163 GT Sunk 10 August 1915 at Scapa Flow
MV Aorangi (1924) 1924 1924–1953 17,491 GT Arrived 25 July 1953 at Clydeside for breaking up
TSS Arahura 1905 1905–1926 1,607 GT
MV Hauraki 1921 1921–1942 7,112 GT Captured on 12 July 1942 by Imperial Japanese navy off the coast of Sri Lanka. IJN renamed it Hoki Maru and used the vessel until sunk in Operation Hailstone in Truk Lagoon
SS Hauroto 1882 1882–1915 1,988 GT Missing off the China sea after acquisition by Hauroto Steamship Co. Ltd., Hong Kong
TEV Hinemoa 1946 1947–1967 6,911 GT
SS Katoa 1912 1912–1933 2,484 GT Collier built by Osbourne, Graham & Co Ltd, Sunderland. Sold to Moller & Co, Shanghai (as Winifred Moller) in 1933, to Zui Kong Steamship Co Ltd, Shanghai (as Tsze Yung) in 1946, to Chinese Maritime Trust Ltd. in 1948 and broken up in Taiwan in 1958.
SS Maheno 1905 1905–1935 5,323 GT
TSS Maori 1906 1907–1946 3,399 GT
TEV Maori 1952 1953–1972 8,303 GT
SS Marama 1907 1907–1937 6,437 GT
SS Makura 1908 1908–1937 8,075 GT Arrived 8 April 1937 at Shanghai for breaking up
SS Manapouri 1882 1882–1915 1,783 GT First to have electric lights Sunk 1945.
TSS Maunganui 1911 1911–1957 7,527 GT Sold 1948 as SS Cyrenia; arrived 1957 at Savona for breaking up
SS Monowai 1925 1925–1960 10,852 GT Ex-SS Razmak (1925–1930); sold 1960 in Hong Kong for breaking up
SS Ohau 1885 1885–1899 411 GT She and sister ship, Taupo, were built by William Denny & Brothers. The Ohau arrived on 14 January 1885 and Taupo on 10 March 1885. Ohau sank whilst carrying timber and coal. She was supposed foundered in a heavy gale. Last seen off Cape Campbell on 12 May 1899. Some wreckage was found near Castlepoint. Lost with all 22 crew. An inquiry into the loss dismissed claims that the ship was too low in the water. A council-published heritage trail says locals still find coal on the shore near Cape Campbell, likely from the Ohau.
SS Penguin 1864 1879–1909 874 GT Sunk 12 February 1909 off Cape Terawhiti; 75 deaths
TEV Rangatira 1930 1931–1965 6,152 GT
TEV Rangatira 1971 1972–1976 9,387 GT
SS Rotomahana 1879 1879–1921 1,727 GT The name was used by at least two other ships of the era. The first mild steel ship in the Union fleet. Built by William Denny & Brothers. Scrapped in 1926.
RMS Tahiti 1904 1904–1930 5,323 GT Ex-RMS Port Kingston (1904–1911); sunk 12 August 1930 off Rarotonga; no death
SS Tararua 1864 1864–1881 563 GT Sunk 29 April 1881 off Waipapa Point; 131 deaths
TSS Wahine 1912 1913–1951 4,436 GT Ran aground on the Masela Island Reef off Cape Palsu in the Arafura Sea
TEV Wahine 1966 1966–1968 8,948 GT Sunk 10 April 1968 after hitting Barrett Reef during an extra-tropical cyclone; 53 deaths.
SS Waihora 1882 1882–1903 2,003 GT
SS Waihora 1907 1907–1927 4,638 GT
SS Waipori 1901 1901-1928 1,976 GT Later renamed Tung Lee in 1937. Scuttled in Yangtse River at Zhenjiang in 1937 as blockship by Chinese Government during Japanese attacks.
SS Wairarapa 1882 1882–1894 1,786 GT Sunk 29 October 1894 off Great Barrier Island; 140 deaths
SS Warrimoo 1901 1901–1914 3,326 GT
SS Whangape (1900) 1900 1900–1928 2,931 GT Sister ship to SS Mont-Blanc (1899)

See also