Port of Tauranga

Ports of Tauranga and Auckland in Talks

Posted on 11th October 2006

The Chairman of Port of Tauranga, John Parker, confirmed today that Port of Tauranga and Ports of Auckland are talking about ways in which the two companies can work together.

“We are in discussions regarding options including the possibility of a merger of both port operations. The discussions are well advanced and we are looking at specific proposals that are well developed but still require a significant amount of detailed work to be completed” said Mr Parker.

“There are definitely major efficiency gains to be had from better utilisation of the capacity and skills of the two ports, but exactly how this can be achieved is still being worked through. We are mindful that there a number of important matters such as regulatory issues that will need to be addressed.

“Changes in the environment in which port companies operate, for example the interest shown by foreign terminal operators in New Zealand ports and the recent consolidation of shipping companies, mean we must look at all options that will allow us to continue to operate successfully in the future, for the benefit of our shareholders, customers and the communities in which we operate.

“We have recognised for some time the need for rationalisation of the port sector in New Zealand. It is clear that some shipping lines are determined to see the number of ports that they serve reduced.

“We are keen to see the shape of the New Zealand port sector determined by New Zealand interests. Strong and efficient ports are an essential component of New Zealand’s supply chain. They play a vital role in overcoming the tyranny of distance faced by our exporters in getting their products to the global marketplace quickly and cost effectively.

“Furthermore, New Zealand needs a much more efficient regional investment in port infrastructure and related transport and logistics. It is vital that New Zealand maintains its international competitiveness through the maintaining of a world class port company. It is imperative that we avoid New Zealand becoming a branch office for overseas terminal operators or simply a feeder service to Australia.”

Geoff Vazey, Chief Executive of Ports of Auckland, confirmed that talks were taking place with Port of Tauranga and echoed the views of Mr Parker.

"We are having constructive talks covering a range of issues and options. We are mindful of the responsibilities both companies have to our shareholders and stakeholders and we are looking at areas where there might be benefits that we can readily achieve, reflecting the complementary nature of our operations and skills” said Mr Vazey.

The Port of Tauranga Board expects to communicate with shareholders before Christmas on this matter.
For further information, contact:

John Parker

CHAIRMAN
Port of Tauranga Limited
Telephone 07 572 8830