Northland Port chair and council ownership critic quits

Mike Daniel has resigned as chair of Northland Port Corporation, unhappy at its performance.

Northland Port Corporation chairman Mike Daniel is leaving the job, disappointed at the direction of the company.

Daniel, who has been a critic of council ownership of ports, is stepping down as chairman and as a director of the Northland Port Corporation (NPC).

NPC is listed on the NZX, but is 52.4 per cent owned by Northland Regional Council and 19.9 per cent owned by rival Ports of Auckland. Daniel is also a major shareholder.

NPC said last week it has spent $5.37 million buying back 2.17 million shares at an average price of $2.47 each.

Daniel said he had sold shares into the buyback, but said he still owned more than 3 per cent of the company.

He said the port faced considerable challenges which needed to be addressed courageously and commercially in partnership with NRC.

"Regrettably, I've reached the conclusion in recent times that our major shareholder does not share my view. In order to be an effective director I've always felt I must be enthusiastic about the role.

"In the current circumstances I am not. In the interests of the company, it is therefore only appropriate I step down as a director and as the chairman of the board and as a director of all subsidiaries and associate companies."

Daniel declined to comment further but said his views on the ability of regional councils to own business were well known.

At the annual meeting last year Daniel said NRC would not support a plan to separate the "port operations play" from the "property play" through the creation of two listed companies.

Directors were looking at other ways to improve the return to shareholders.

The corporation was forecast to have revenue of little more than $3 million from NorthPort, North Port Coolstores and Northland Stevedores and rent from leased land.

This was inadequate for a business with net equity of $155 million.

Northland's port at Marsden Point has been seen as having a good long term future because it has deep water and is the shortest distance to overseas markets. NPC has substantial land holdings adjacent to the port. But the port does not have a rail link or any permanent container cranes.

Some in the industry believe Northland's port could be a hub port for large vessels but the ports at Auckland and Tauranga are also determined to maintain their positions.

- NZPA