Joint venture for Whangarei harbour

By PAM GRAHAM

Ports of Auckland and Northport yesterday announced a joint venture to provide piloting, tug and other services to shipping in Whangarei's harbour, which is predicted to increase as forests in the region mature.

Ports of Auckland is to contribute its larger Takahiwai and Hauraki tugs to the venture and NorthPort, which is owned by Port of Tauranga and Northland Port, is supplying the smaller Waitangi and Kemp tugs, and some smaller vessels.

NorthPort is also paying $3.4 million in cash to Ports of Auckland.

The contract for Marsden Point refinery that Ports of Auckland won previously from Northland Port will be serviced by the new venture.

Marsden Port calls are predicted to grow by only about 2 per cent a year, but other business will expand faster.

The oil companies and forestry company Carter Holt Harvey were "positive about the commercial benefits from this merger," said Will Harvey, general manager for port services for Ports of Auckland.

"The purpose of the joint venture is to rationalise marine operations on Whangarei Harbour, maximise the use of the available marine assets and provide the workloads necessary to create a more efficient operation," the companies said in a joint statement.

There would be a rationalisation of the workforce, but there were no details available yesterday.

Northland Port chairman Mike Daniel said that a forecast of a $4.5 million profit for the 15 months to June 30 next year would be exceeded mostly because of an accounting gain relating to the joint venture.

The company was complying with a new accounting standard which required it to recognise an accounting gain of $2.2 million, which it regarded as a "paper profit".

The company expected a $7 million profit in the period including the gain and "reflecting ongoing positive trading conditions".

Further reading: nzherald.co.nz/marine