Port of Tauranga

Maersk Port Calls Not Unexpected

Posted on 22nd November 2006

Port of Tauranga Chief Executive, Mark Cairns, said today that the decision by Maersk to hub on one upper North Island Port is not unexpected. "But naturally we are very disappointed at Maersk's decision to concentrate the bulk of its business at Ports of Auckland."

"We priced our offer on the basis of providing a long-term sustainable option, which we understood Maersk was seeking. This business currently represents approximately 4,600 containers per month, and a revenue of approximately $1 million per month until the expected merger is completed" said Mr Cairns.

"We don't expect this decision will translate into all of Maersk's current cargo transferring to Auckland. The decision will provide opportunities for the 12 other container shipping lines that call at Tauranga to continue servicing importers and exporters through the most efficient port in Australasia, making $1 million reduction in revenue per month a worst case scenario."

"We are currently putting a lot of effort into merger discussions and Maersk's decision is obviously neutral to the merged business entity. The desired timetable is for the merger to be a reality in the first half of 2007 and is not a short-term strategy in the face of one customer contract negotiation - it is part of a long-term strategy to rationalise the over-capacity in New Zealand ports and strengthen New Zealand's supply chain. If anything, this serves to underline the necessity for this rationalisation" said Mr Cairns.

For further information please contact:

Mark Cairns
Chief Executive
Port of Tauranga Limited
Ph: 07 572 8829
http://www.port-tauranga.co.nz