Port company unhappy at Commission's order

Northport has expressed disappointment that the Commerce Commission has exerted heavy powers to improve access to Marsden Point port facilities.

Northport, which owns part of Northport Services Ltd (NSL), was issued with the commission's first "cease and desist" order on Friday which it has accepted, thus preventing further action.

The commission claims NSL was blocking a competitor from the most cost-effective means of "marshalling" goods.

Marshalling involves receiving, storing and preparing goods for loading or delivery.

Northport chief executive Ken Crean said his company's actions had "never been wilfully in contravention of the Act. Unfortunately, the commission's statement gives such an impression".

"It should be noted that we brought the commission's attention to the intended marshalling arrangement prior to beginning operations at the port in 2000.

"The investment in infrastructure at Marsden Point was significant (over $100m), supportable on the basis of a business model which included these arrangements."

Mr Crean said the model did not raise any concerns then but the commission now considered there was a prima facie breach of the Commerce Act.

Rather than pursue the matter, Mr Crean said Northport had chosen to consent to the order and alter its business model.

"We would have preferred that our earliest efforts to clarify the situation, in seeking the commission's view six years ago and their neutral response at that time, had been noted."

NSL is 67 per cent owned by Northport and 33 per cent by the Carter Holt Harvey group.

- NZPA