The Port of Tauranga Limited is continuing to grow its portfolio with two multi-million dollar acquisitions.
Yesterday, Port of Tauranga's chief executive Mark Cairns announced a $21.6 million strategic alliance had been formed with port company PrimePort Timaru, which he said heralded a new era for the handling of the country's cargo freight. "Port of Tauranga continues to invest in becoming New Zealand's hub port. We see opportunities to grow PrimePort Timaru as a marshalling point for South Island cargo."
He said the investment included acquiring 50 per cent shareholding in PrimePort, and a 35-year lease of the container terminal, and acquisition of the terminal's operating assets.
A new Port of Tauranga wholly owned subsidiary, Timaru Container Terminal Limited will be set up to operate the terminal and the acquisition is funded from within current bank facilities.
Mr Cairns said the strategic alliance with PrimePort would allow South Island exporters and importers to benefit from the large number of international services which call at Tauranga, and significant freight savings coming from the next generation of large ships arriving in New Zealand.