Maersk yet to decide on port preference

A decision about whether Ports of Auckland or Port of Tauranga will get the bulk of Maersk's services has been postponed with the global shipping giant denying it was in response to the ports' proposed merger.

Maersk - which controls 38 per cent of the container market here - confirmed yesterday either Auckland or Tauranga would be cut from its schedule but did not name which one.

Maersk New Zealand managing director Tony Gibson said Wednesday's announcement by Tauranga and Auckland that they were considering merging to create a super-port came as a "surprise" but did not play any part in the delaying of the decision. However, the shipping line would have to step back and "look at what the potential merger will bring to exporters and importers and re-evaluate our position. It is a complex issue and has to be evaluated in its entirety."

An analyst said it was important for Maersk to make the right choice because its ability to change services in the future - if a super-port went ahead - were drastically reduced.

Tauranga commercial manager Graeme Marshall said Maersk was under pressure from the marketplace to come out with the review.

"They were in a position to announce what they can do for the rest of New Zealand but there are really complex network issues they need to get right."

Maersk did say it would end its major direct European service to and from New Zealand, adding additional capacity into Asia through its Malaysian hub and a new service into the US east coast.

The Danish shipping line also confirmed a new coastal feeder service would call into Lyttelton, Nelson and Wellington. The changes will be phased in over the next six months.

Nelson, Wellington and either Auckland or Tauranga are likely to suffer the biggest loss of volume as they currently receive the large international visitors that will dock elsewhere.

After surging about 20 per cent on Wednesday on news of the planned port merger, Tauranga's shares edged up a cent to close at $6.12 yesterday.

Gibson said the decision about which ports would get the coastal services was not made "lightly" and he hoped it was seen as an opportunity as well as guaranteeing surety for long-term investment - such as that with a 30-year time frame. It would also improve the connections between the ports.

He did concede, however, that the coastal service would take volume off road and rail.

He said the company saw it as the best way forward when Government and Toll still had not made any decision around access charges and the future of the railway.

Lyttelton Port chief executive Peter Davie said his company would get a 5 per cent growth in volume from Maersk's coastal service. Shares in the South Island port rose 4c yesterday to $2.15.

Auckland would not comment on the Maersk announcement and neither Wellington or Nelson could be reached for comment.

Commerce Minister Lianne Dalziel said the Government had not considered special legislation to allow the port merger, amid speculation Auckland and Tauranga could seek such approval to overcome competition rules.