News Article

NEWS ARTICLE

Carter Holt Harvey and Port of Tauranga Enter Long Term Operating Agreement

Posted on 12th February 2009

Carter Holt Harvey and Port of Tauranga Limited announced today that they have entered into a long- term operating agreement. Carter Holt Harvey, through its logistics solutions arm, Lodestar, has agreed to lease key facilities in prime wharf locations on Port land at both Mount Maunganui and Tauranga. The agreement includes the sale to Port of Tauranga by Carter Holt Harvey of a leasehold interest in a 2.6 hectare Mount Maunganui wharf store and also 1.8 hectares of freehold land within the wharf area of Mount Maunganui.

Central to the new agreement is a commitment by CHH Lodestar to export an agreed annual cargo volume through the Port of Tauranga. It also paves the way to work together on a number of key strategic initiatives.

This agreement enables CHH Lodestar to take full advantage of the benefits that exist due to the proximity of Carter Holt Harvey's Central North Island mills to the Port of Tauranga, and allows further optimisation within its integrated supply chain.

Port of Tauranga Limited Chief Executive, Mark Cairns, welcomed the new arrangement, noting that it is mutually beneficial for both parties in the partnership. "This agreement recognises that port investment is for the long-term. Partnerships of this nature allow for rational long-term planning for both parties and reduce the risks associated with short-term speculative spending, a situation that is currently impacting on a number of New Zealand ports.

"We value and appreciate the faith that CHH Lodestar continues to place in the Port of Tauranga as their Port for the Future".

For further information, please contact:

Mark Cairns
Chief Executive
Port of Tauranga
markc@port-tauranga.co.nz
Ph: 07 572 8829

Emily Coffey
HR Manager
Carter Holt Harvey
Emily.coffey@chh.co.nz
Ph: 09 633 1762