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Home / Business

Port of Tauranga takes swing at NZL Group

NZPA
15 Jan, 2009 03:00 PM2 mins to read

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KEY POINTS:

Port of Tauranga said rival Ports of Auckland prepared a Christmas Eve press release by NZL Group, which claims to have the rights to set up a container terminal at Tauranga.

Calling the claim "irksome", the port said it did not agree that if NZL Group were successful
it would, in effect, be operating a private container terminal at Sulphur Pt.

"NZL's contractual rights to re-establish operations are yet to be determined, but in any event, NZL's services would not be greater in scope than when they operated as a marshalling and stevedoring contractor back in 2003," the port said.

Privately owned New Zealand logistics company NZL Group said on December 24 it had a contract dating back to when P&O Ports operated Tauranga's container terminal which gives it the right to set up again.

It has advised the port of its intention to do so, providing shipping companies with a choice of a new private container terminal.

NZL director Ken Harris said yesterday the operation would be a full terminal service.

NZL has said it does not intend to buy cranes but expected to be charged for lifts by the port's existing cranes.

Harris said yesterday he had dictated the press statement but he did have access to a Ports of Auckland computer to send it out.

Ports of Auckland and Port of Tauranga have been bitter rivals but last year did consider merging.

Port of Tauranga chief executive Mark Cairns said his port was the only one in New Zealand to promote competition between stevedores and marshallers in its container terminal.

"Consequently we derive competitive advantage from greater efficiency and superior costs structures," Cairns said. "We fail to see how NZL's proposal would be value or efficiency enhancing to our customers."

Port of Tauranga and NZL Group met yesterday.

Until 2003 P&O Ports operated the Sulphur Pt container terminal. When that arrangement stopped it was agreed P&O would not operate the terminal for five years, which had now expired.

In 2006, former P&O business was bought by a group of New Zealand managers and investor Mike Pohio.

NZL is one of several stevedore operators at the Port of Tauranga.

Harris said he talked to a range of parties and tried to operate a network of transport arrangements.

"We are interested in promoting coastal shipping links and rail links," he said.

- NZPA

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Freight and logistics

Port of Tauranga profits up 9.3pc

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