Parting shots from Northland Port chairman

Selling shares in Marsden Cove boosted Northland Port Corporation's 2007 bottom line.

Northland Port Corporation chairman Mike Daniel has resigned after failing to agree on a plan for the future with major shareholder Northland Regional Council.

The company faced challenges which needed to be addressed courageously and commercially in partnership with the council, Daniel said.

"Regrettably, I've reached the conclusion in recent times that our major shareholder does not share my view," he said. "[Resigning is a] major decision but really my principles tell me that if you're not being listened to and your board's not being listened to by a shareholder who has influence ... well then it's probably time to go rather than be a puppet."

Daniel had been a board member for 14 years and chairman for nearly a decade at the NZX-listed company, which is 52 per cent owned by Northland Regional Council and 20 per cent by Ports of Auckland.

The performance of the company had been good, Daniel said.

"A decision needs to be made; where to from here and the board offered a number of solutions in the interest of creating shareholder wealth but all those have been turned away," he said.

Last month the company posted a 22 per cent rise in revenue to $2.9 million for the six months ended December 31, with net profit of $1.8 million down 80 per cent on the previous year, which had included a one-off surplus of $7.6 million from selling shares in Marsden Cove. Marsden Cove is a residential marina built in a joint venture with Hopper Developments.

At that time Daniel said the status quo would not be in the interest of all shareholders, while the benefits of selling the company could be had without losing the port and its increasing contribution to the Northland economy of more then $50 million a year.

However, the directors had respected the strategic asset ownership philosophy of the council and its assurance that voters would oppose a change in ownership, and therefore saw little merit in pursuing a sale.

At last year's annual meeting Daniel said a sale could realise $150 million and give the council $75 million to invest in the region or in Government stock where it could earn about $5.5 million, more than three times the return likely from the status quo.

The company's main operating investment was a half stake in the operational port business Northport, of which Port of Tauranga owned the other half.

Northland Port shares closed down 6c yesterday at $2.09.

Northland Regional Council chairman Mark Farnsworth said Daniel had been a fantastic chairman who had worked tirelessly to develop the port.

"He's been there for some time and the port is entering a different phase," Farnsworth said.

"There is a philosophical difference between where the council is heading and where Mike wants to head."

"We see the port as a strategic asset and we see that it is going to be an important element in the future economic development of the region."