Northland Port sale sets off a stoush

Northland has set off a stoush between Port of Tauranga, the half shareholder in its main port, and Ports of Auckland.
The Northland Regional Council decided in principle yesterday to sell its 19.9 per cent of Northland Port Corporation to Auckland for almost $24 million.

The unanimous decision to proceed with the sale was made at a special full council meeting in Whangarei after councillors spent Tuesday hearing 69 public submissions on the proposal.

Council chairman Mark Farnsworth said almost two-thirds of submitters supported the proposed sale, which councillors believed would offer improved financial security and a valuable ally in Northland's efforts to improve infrastructure such as roading and rail.

He said the council would retain a majority 52.4 per cent shareholding in the port corporation, which in turn owns 50 per cent of Marsden Point deepwater port operator Northport.

However, Port of Tauranga has written to the Takeovers Panel and Commerce Commission about the transaction as it believes that only someone with "marbles in their heads" would buy 19.9 per cent of the corporation without having an agreement for representation on Northport's board or other associated agreements.

Auckland yesterday declined to comment on whether there were any agreements beyond the purchase of the 19.9 per cent stake.

Tauranga chief executive Jon Mayson said the purchase of just 19.9 per cent was not something his company could do anything about unless it gave Auckland other rights.

To let Auckland on the board of Northport would be like letting a rival on to a company board. Tauranga believed it did not compete directly with Northport so it was not a problem to invest in it, whereas Auckland did directly compete.