Port merger report delayed to November

Lyttelton Port will boost its container traffic after the Fonterra switch. Photo / Stephen Russell

Announced changes in shipping services have altered the financial information A report on a merger of Port Otago and Lyttelton Port of Christchurch (LPC) by advisers Antipodes has been delayed from the signalled mid-October until late November.

LPC said in its just released annual report that it remained its belief that amalgamation was crucial for the long-term viability of New Zealand ports.

The annual report said work on the merger has taken longer than expected but also that good progress has been made.

Antipodes is an Auckland investment bank run by Alastair Lawrence, David Hay, Kerry Brew and Andrew Wallace.

LPC chairman Rodger Fisher said the report would be delayed because announced changes in shipping services altered financial information.

Port Otago is restructuring as a result of changes by shipping lines over recent months. The Otago Daily Times has reported that the port has lost business from a range of shipping companies as well as being affected by shipping changes announced last month by Fonterra.

The Antipodes report would take a 20-year view and would include the capital expenditure required over that period, Fisher said.

The report is to a steering group consisting of directors and executives from both companies but ultimately the issue will be decided by the individual boards of the two ports.

The report is expected to consider a merger of operating companies split from other port assets.

Last month Fonterra announced big changes in its export shipping, switching shipment of product made at its Clandeboye plant in South Canterbury from Timaru to the container terminal at Port Lyttelton for the next five years, and dropping the port at New Plymouth to ship production from its Whareroa plant near Hawera through Auckland, Tauranga and Napier.

LPC will pick up a boost of as much as 10 per cent in its container traffic.

- NZPA