Forestry giant will support Northland deepwater port

WHANGAREI - Forestry giant Carter Holt Harvey will own one third of the company set to run the $65 million deepwater port at Marsden Pt.

CHH is also set to guarantee one million tonnes of cargo a year for the first five years of the port's existence.

Further plans for the port, including new employment opportunities and a $15 million annual boost for the Whangarei economy, were unveiled yesterday in a memorandum Northland Port sent shareholders.

The document outlined design, construction and other details for the new port, along with proposals for a 50-50 joint venture between Northland Port and the Port of Tauranga.

The joint venture, initially known as PortCo, would develop, own and manage the new port facilities.

The new port is needed to cope with the increased tonnage of logs due from Northland's forests during the next decade.

Also outlined in the document is a proposal for a joint venture company, known as OpCo, which would run the land operations at the new port. OpCo would be two-thirds owned by PortCo, with CHH holding the remaining stake. CHH is also building a $150 million lumber plant at Marsden Pt, which would also use the new deepwater port.

Shareholders were being asked to approve the port plans at a meeting in Whangarei on July 17.

That approval is considered a formality because Northland ratepayers own 72.3 per cent of the shares in Northland Port through the Northland Regional Council, which has previously backed the scheme.

- NZPA