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Home / Business / Companies / Agribusiness

Port of Tauranga expands under shadow of Auckland merger talk

NZPA
21 Aug, 2008 11:36 PM2 mins to read

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Port of Tauranga. Photo / Alan Gibson

Port of Tauranga. Photo / Alan Gibson

KEY POINTS:

Port of Tauranga has announced an expansion of its container terminal area, just days after Ports of Auckland said it might be interested in buying the Tauranga container business.

Today Port of Tauranga said plans were under way to expand the Tauranga container terminal operational area by 1.3ha,
providing more than 400 additional container ground slots.

Port of Tauranga chief executive Mark Cairns said the timing of the announcement had nothing to do with comments on Wednesday by Ports of Auckland managing director Jens Madsen.

"It's just an ongoing expansion of the container terminal," Cairns said.

He would not put a figure on the cost of paving and lighting the area, except to say it was in the "millions of dollars".

Just two days ago Madsen said: "The sustainability of New Zealand's existing port sector investment, the industry's ability to invest in the future, and the global competitiveness of the country's supply chain might be assisted by the purchase of Port of Tauranga's container business by Ports of Auckland".

In reply, Port of Tauranga, which was rebuffed in merger discussions with Ports of Auckland last year, said its container business was worth more than Auckland's.

Announcing its container area expansion today, it said the Tauranga container terminal hard-stand area, of 14.7ha with 3462 ground slots currently, had remained unchanged since the pavement was constructed and the terminal opened in 1992.

The expansion, which would begin this month, was a result of 10 per cent compounding annual growth of containers through the terminal since 2000.

Also a fifth crane would be arriving in March, and there had been an increase in the consolidation of export cargo through Port of Tauranga.

Cairns said the volume growth had progressively put pressure on the terminal storage area during peak periods and expansion was needed to maintain efficient terminal operations.

Port of Tauranga had a further 29ha next to the terminal which could be used for port operations in the future.

- NZPA

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