KEY POINTS:
Ports of Auckland is to go head-to-head with rival Port of Tauranga, on its own patch.
Ports of Auckland said yesterday that it would be the major customer of logistics company NZL Group's planned container terminal at Sulphur Pt, on Port of Tauranga land.
NZL controversially announced on Christmas Eve that it would exercise its right to operate a terminal on the site. The right came from a contract dating back to the days when P&O Ports operated at Tauranga. NZL bought P&O's Tauranga business two years ago.
The operation was merged into the Tauranga port's own activities in 2003 and P&O agreed not to resume the business for five years. That had now expired.
Ports of Auckland said the move was not about diverting cargo from Auckland, but about being able to offer a service out of Tauranga to make itself a more attractive proposition to its customers.
"This gives us an entry point into the Bay of Plenty and access to
existing infrastructure," managing director Jens Madsen said. "It will mean that we and NZL will be able
to expand on our logistics network."
NZL director Ken Harris said it meant customers had a network of solutions, as his company could offer access to an inland supply chain as opposed to just a port gateway.
"We think this is a unique opportunity to generate real efficiency in the supply chain, to generate choices for customers."
He said the Sulphur Pt operation would be a full terminal service, although NZL did not intend to buy cranes but expected to be charged for lifts by the port's existing cranes.
Port of Tauranga disputes NZL's right to set up as a container terminal operator. Chief executive Mark Cairns said that "at best" the only rights that had been triggered were to operate as a stevedoring and marshalling contractor.
"They've never operated as a terminal operator, that's quite misleading. It's mischievous using the word 'terminal'."
He also questioned NZL's claim of offering network solutions.
"NZL are a transport operator - what relationship do they have with rail? We have a capacity agreement with KiwiRail.
"And unless there's been some new announcement, what relationship do they have with coastal shipping services?"
Cairns said Port of Tauranga had always operated within the context of strong competition so it was not fazed by having Ports of Auckland on its doorstep. It would receive income from cargo coming across its wharf no matter who the operator was.
Ken Harris said the existence of NZL's agreement with Port of Tauranga should not come as a surprise to the shipping community as it was referred to in Port of Tauranga's 2004 annual report.
He conceded there would be a number of outstanding issues that needed to be sorted out between the parties to make sure everything worked smoothly.
