Ports settle legal dispute with NZL

Port of Tauranga has made a payment to transport and logistics operator NZL Group to settle a long-running legal dispute.

A deed of settlement was drawn up earlier this month and a notice to discontinue the proceedings has been sent to the High Court at Auckland.

The agreement extinguishes any contractual rights by NZL to establish its own terminal operation at the Sulphur Point container wharf in Tauranga.

Port of Tauranga chief executive Mark Cairns said the deed had "tough confidential obligations" but he confirmed the out-of-court agreement involved a cash settlement.

"The litigation was a no-brainer and the commercial settlement avoided wasting time and money in court. It all happened fairly quickly," he said.

NZL, which operates a container park at Sulphur Point, believed it could trigger a clause in the 2004 contract to re-establish terminal operations - in effect competing with Port of Tauranga.

Before 2004, P&O; Ports had operations at Sulphur Point and NZL bought P&O; Ports' New Zealand business.

For the next five years NZL operated stevedoring and cargo marshalling services at the wharf and then on Christmas Eve 2008 it withdrew from negotiations with Port of Tauranga to renew its service contract.

Instead, NZL - backed by Ports of Auckland - lodged a claim to run its own terminal, saying it had a right to take up space at the northern end of Sulphur Point - where P&O; Ports used to operate. Port of Tauranga disputed that claim.

Today, NZL's involvement with Sulphur Point is the container park within the confines of the existing terminal. It is one of three contractors which clean, repair and store containers until they are re-hired.

Mr Cairns said NZL could still provide services at the container wharf but that would involve contracting to the shipping lines.

Ken Harris, an NZL director, said everyone was happy with the settlement.

"At the end of the day, the matter drags on and relationships get hurt. It was commercially prudent to find a way forward.

"The relationship is back on track, and I wouldn't rule out NZL providing more services at Sulphur Point," Mr Harris said.