Withdrawal from Formal Merger Talks
Posted on 30th March 2007Withdrawal from Formal Merger Talks
Port of Tauranga Chairman, John Parker announced today the withdrawal by Port of Tauranga from formal discussions with Ports of Auckland regarding a potential merger.
A merger of the ports was proposed by Ports of Auckland more than twelve months ago and both ports have invested a significant amount of time and money considering the merits of the merger.
Auckland Regional Holdings, the owners of Ports of Auckland have to date been unable to decide whether the merger is worth undertaking, or the terms on which they would be prepared to pursue a merger, so reluctantly, the Port of Tauranga has withdrawn from the discussions.
Port of Tauranga Chief Executive, Mark Cairns commented that "the economic and financial modelling demonstrates that the merger would generate significant financial benefits to be shared with customers and shareholders alike. The merger would also generate substantial public benefits; reducing CO2 emissions, facilitating better opportunities for coastal shipping, and making a start on the inevitable port rationalisation that needs to occur in New Zealand in the future with the advent of larger, faster container vessels. In a country with a population of approximately four million people (similar to Sydney) New Zealand's tax base simply cannot sustain the funding of high quality road and rail infrastructure connections to all thirteen ports."
John Parker comments further that "we believe a very sound business case exists for the merger and are reluctantly withdrawing from discussions. Port of Tauranga is cognisant of the need for New Zealand to solve its infrastructure deficit and when the opportunity to merge arises in the future, Port of Tauranga is ready and able to participate."