KEY POINTS:
Lyttelton Port wants to see how the proposed merger between Ports of Auckland and Port of Tauranga develops before deciding whether to merge with Port Otago.
Speaking after the annual general meeting yesterday, Lyttelton Port chairman Barney Sundstrum said it had supported the idea of a merger between Ports of Auckland and Port of Tauranga for "some time". The port would be watching the merger between the two North Island ports "pretty closely" to see how the new entity worked through inevitable regulatory and policy hurdles.
"Hopefully they will show the way forward," he said. Lyttelton Port had always seen a merger with Port Otago as "rational" because major savings could be made through utilising infrastructure and avoiding duplication of costs.
Earlier this year Port Otago bought a blocking stake in Lyttelton Port, quashing a plan by Hong Kong's Hutchison Port Holdings to take a 50 per cent stake.
Sundstrum said yesterday there had no further talks with Hutchison.
He said a merger between Ports of Auckland and Port of Tauranga would be a "catalyst" for the Lyttelton Port to move into serious negotiations with Otago.
"At an appropriate time we would pursue that [merger]," said Sundstrum.
Lyttelton Port chief executive Peter Davie said both ports would be operational if any merger went ahead with Otago.
Sundstrum said Lyttelton Port would continue to consolidate operations and improve infrastructure over the next year.
Shares in Lyttelton Port closed down 4c at $2.06 yesterday.
