CHH log contract scuppers wharfies

By PAULA OLIVER

A competitive tender process for the right to load Carter Holt Harvey logs on to ships has ended with the incumbent, Mainland Stevedoring, gaining a longer-term deal.

The controversial contract was put out to tender in June after a bitter five-month dispute between the Waterfront Workers Union and Carter Holt.

The union had objected to Carter Holt's use of Tauranga-based Mainland to load ships in the South Island. It also claimed that other stevedoring firms had not been given a fair chance to bid for the work.

The union originally welcomed Carter Holt's move to reverse its standard policy of offering tenders on a ship-by-ship basis - instead inviting several stevedoring firms to bid for a long-term, national contract.

But after several weeks of deliberation, Carter Holt has awarded the contract to International Stevedoring Operations - the parent company of Mainland Stevedoring.

Union national secretary Trevor Hansen told the Business Herald yesterday that the outcome was disappointing.

"I know of two stevedoring firms who tendered and were basically just told 'Thanks, but no thanks'," he said. "But we've gone through the process and that's the way it is."

Mr Hansen had previously said he was suspicious of what the tender outcome might be.

The chief executive of Carter Holt's Lodestar division, Paul Harper, said the tender had drawn a range of good-quality bids.

The winner was now on a contract that would be reviewed every six months, using productivity as a measure.

If International Stevedoring Operations performed well, it was possible it would hold the contract for years to come, he said.

Carter Holt had used five criteria: capability, performance, price, sustainability and innovation.

To most in the industry, Mainland appeared to have the edge in the innovation area because of its revolutionary software system for stowage.

The new contract is a reflection of Carter Holt's overall effort to cut its number of suppliers and contractors.

Chief operating officer Jay Goodenbour said Carter Holt was not using its size as well as it could to secure good deals. The stevedoring contract was just another example.

Mainland Stevedoring is continuing with legal action against the union, seeking damages for time and money it lost during the height of the dispute.