KEY POINTS:
Port Otago and Lyttelton Port Company have signed a memorandum of understanding to explore a merger of operations.
A joint statement from Port Otago chairman John Gilks and Lyttelton Port chairman Rodger Fisher said the boards believed that significant efficiencies and other benefits would result from the proposed integration.
The focus was on operational integration, expected to result in co-ordination of expenditure, reduced environmental impact, increased productivity, and joint development of new services.
A key element of any structure was that each port would retain ownership of core physical assets such as wharves and land. The structure being considered involved the legal separation of infrastructure assets from operations and commercial activities at each port.
A steering group would work with an independent adviser to explore potential benefits and recommend a way forward.
Port of Tauranga chief executive Mark Cairns said the merger plan was excellent news. "Hopefully they can put a workable deal together," he said.
There was a proliferation of commercial ports - 16 in total - and generally most executives would support the need for rationalisation, he said.
"It [rationalisation] certainly needs to happen, but I think given the ownership structures of our ports in New Zealand whether it does or not is another matter."
Merger talks between Ports of Auckland and Port of Tauranga failed last year, although Cairns said talks would still be considered if they enhanced efficiency.
Ports of Auckland in August said it was interested in buying Port of Tauranga's container business.
NZX-listed Port of Tauranga had not yet received a proposal. "The container terminal's an integrated part of our business," Cairns said. "It's not a discrete thing you can chop off and sell."
Ports of Auckland managing director Jens Madsen said the trend towards larger vessels would lead to gradually changing calling patterns in the future, with larger ports likely to handle larger ships and smaller ports handling feeder ships.
Madsen did not comment on the proposal to buy Port of Tauranga's container business.
