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Home / Business / Companies / Agribusiness

Auckland gets nod over Tauranga in port rivalry

21 Nov, 2006 08:39 PM3 mins to read

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KEY POINTS:

Shipping giant Maersk Line has confirmed its preference for Ports of Auckland over Port of Tauranga to handle most of its North Island services.

In a statement today, Maersk New Zealand managing director Tony Gibson said while the final contract had not been concluded, Ports of Auckland looked
likely to get the significant share of the port calls.

Port of Tauranga would continue to handle three of Maersk's services, he said.

The Auckland and Tauranga port companies are in merger and co-operation talks.

Auckland is the country's biggest import port and Tauranga the biggest exporter.

There is a suggestion they will form a super-port company on the same national benefit rationalisation that dairy giant Fonterra was created.

Maersk handles 40 per cent of New Zealand's seafreight.

Mr Gibson said Maersk recognised the timing of its announcement coincided with public discussion surrounding waterfront development in Auckland.

"However it is crucial that we indicate our preference so that our customers can plan their future shipments with confidence," he said.

"For booking purposes we have given exporters advance notice that our South East Asia hub service and the US East Coast services will call at Ports of Auckland.

"Tauranga will maintain the current North Asia, US West Coast, the Pacific Island services and the coastal feeder calls.

"Further delays in announcing our preference could have presented significant planning difficulties for North Island exporters and importers making logistics and supply chain decisions for next year.

"We are still negotiating with Ports of Auckland to finalise contractual details, but expect these to be completed next month and for the new schedule to be phased in from mid January."

Maersk services will now run as follows:

The South East Asia service, hubbing through Tanjung Pelepas in Malaysia and employing four vessels on a weekly basis, will now call Auckland, Napier and Port Chalmers.

The US East Coast Service, involving nine vessels on a weekly basis, will call on the United States East Coast, Auckland, Australia, Auckland, New Plymouth, Timaru, Port Chalmers, returning to the US East Coast.

The feeder service for exporters and importers to the US East Coast service and Tanjung Pelepas service will call Auckland, Tauranga, Lyttelton, Nelson, Wellington, Tauranga, Auckland and fortnightly to the Pacific Islands.

Last month Maersk said it would continue to service all nine ports it now serviced but was then still tossing up between Tauranga and Auckland on key services.

It said it was dumping direct services to Europe, meaning its service to Asia through its Tanjung Pelepas hub was more important, although the alternatives through the Americas were available.

Port of Tauranga said the decision could cost it $1m a month.

- NZPA

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