KEY POINTS:
A plan to merge the container businesses of Ports of Auckland and Port of Tauranga has foundered.
Ports of Auckland chairman Gary Judd today said that Port of Tauranga had declined to advance preliminary discussions recently initiated by Ports of Auckland about merging their container businesses.
Auckland had approached Tauranga, with the backing of Auckland Regional Holdings and Auckland Regional Council, on the grounds that such a merger would deliver obvious synergies, cost savings and benefits to all of New Zealand.
"We saw an opportunity to do something that would benefit New Zealand," said Judd.
"Tauranga's decision to withdraw, despite solid evidence of the benefits to shareholders and ratepayers in both regions, is disappointing."
Judd also confirmed that Ports of Auckland would not be pursuing its planned acquisition of Tauranga's container business.
Comments by Port of Tauranga made last August indicating that such an acquisition would be highly unwelcome, and the deteriorating external economic environment, were factors behind the decision.
Auckland and Tauranga ports are arch rivals and the battle has taken on a new dimension as ports contemplate how much they have to invest to be able to accommodate the next generation of container ships.
In August Ports of Auckland revealed it had approached Port of Tauranga about buying its container business.
"The sustainability of New Zealand's existing port sector investment, the industry's ability to invest in the future, and the global competitiveness of the country's supply chain might be assisted by the purchase of Port of Tauranga's container business by Ports of Auckland," Ports of Auckland managing director Jens Madsen said.
In 2007, Ports of Auckland's owner Auckland Regional Holdings, the commercial arm of Auckland Regional Council, rebuffed a proposal to merge the two ports.
- NZPA
