Maritime unions are calling for Port Lyttelton in Christchurch to remain in local ownership.
Christchurch City Holdings Ltd (CCHL) has launched a bid to take over Lyttelton Port Company (LPC) and onsell almost half the port to a Hong Kong company.
LPC's 69 per cent shareholder, CCHL is set to
mail out a full takeover offer for the company at $2.10 a share next Monday. The offer will remain open until at least April 12.
If it gains full control, CCHL plans to sell 49 per cent of LPC to Hong Kong's Hutchison Port Holdings.
A new company -- Lyttelton Port of Christchurch -- would be formed to run the port. CCH would hold 49.9 per cent of this company, with Hutchison holding the rest.
The two unions representing port workers in New Zealand, the Rail and Maritime Transport Union and the Maritime Union, today spoke out against the proposed deal, calling on CCHL to buy the port outright.
Rail and Maritime Transport Union general secretary Wayne Butson said there was potential for the port to be completely privatised some time down the track.
He said the deal would place the country's export trade outside New Zealand control.
"The consolidation of ports and shippers into a few overseas operators could see importers and exporters faced with price hikes," Mr Butson said.
Maritime Union general secretary Trevor Hanson said the deal could destabilise the nation's maritime industry.
"Hutchison could use their international clout to provide business advantages for Lyttelton that other ports don't have," he said.
Hutchison Port Holdings is a subsidiary of Hong Kong-based investor Hutchison Whampoa Ltd, which is the world's largest independent port operator, with 41 ports under management in 20 countries.
LPC has appointed Crighton Anderson Corporate Finance as independent advisers to prepare a report on the merits of the offer. The report is expected to be mailed to shareholders on March 22.
Shares in LPC are trading well above $2.10, ending yesterday's local session at $2.21.
- NZPA
