Port Otago has bought a second new container crane, for $10 million.
The port company, which is owned by the Otago Regional Council, expects its first crane to arrive from the maker in Shanghai in early February. That crane is worth $11 million.
Delivery of the second crane is expected
in early 2007.
Chairman John Gilks said the container crane replacement was earlier than originally planned but several factors made the decision easier. Those factors included:
* The age of the two existing cranes and whether a decision could be justified to replace them two years earlier.
* The benefits of combining with Ports of Auckland, which was ordering two cranes now.
* The strength of the currency.
Gilks said Port Otago had been able to buy forward cover, fixing the crane's purchase price at favourable rates of exchange.
An important factor was the sharing of the project management costs for the crane construction.
"If we combine with Auckland, we can share the project management costs. If we went in two years, we will have to cover 100 per cent of the cost. I expect we will pay a third of the cost," Gilks said.
Port Otago chief executive Geoff Plunket said the makers had advised that the first new crane would arrive on February 5. Commissioning would take four to six weeks.
- NZPA
