Port might not accept highest bid for marinas

By PAM GRAHAM

Ports of Auckland says it will not necessarily accept the highest bid in an international tender for Westhaven and Hobson West marinas.

Chairman Neville Darrow conceded that much to shareholders yesterday questioning the sale of a successful business at the company's annual meeting, but the decision to sell was not being revisited.

"We are very conscious of the sensitivity of this issue. However, we believe it is the right decision," he said.

Former transport minister and berth holder George Gair asked if a way could be found to keep the marinas in New Zealand hands.

"You have looked after us as shareholders pretty well, but dollars and cents are not the only consideration. There is also the question of Auckland, the City of Sails, and all that that means," said Gair, who is also a former North Shore City mayor.

"I understand that you are required by law to make it an international tender. May I ask if you are required to accept the highest tender?"

"Absolutely not," replied Darrow.

"Then that does give us some encouragement in the thought that perhaps yachting interests might take over," said Gair.

Shareholders were told that there was a possibility that the Royal New Zealand Yacht Squadron would lead a syndicate bid. A tender will be held early next year by Bayleys Real Estate. A decision had not been made on whether the proceeds will be returned to shareholders.

Darrow said the skill would be in achieving an outcome that was "satisfactory to us all".

The company was not required to accept the highest tender per se.

"We will need to reflect on the prices offered in the tender process but there are a range of criteria that will need to be considered," Darrow said. He also said that directors were conscious of their responsibilities to shareholders.

The port was selling because "we know very little about property development" and it was concentrating on its container handling business.

The sale ignited public concern because of uncertainty about what new owners would do to a prime waterfront area that is a key access point to the harbour for boaties.

Darrow said Ports of Auckland bought Westhaven Marina from the Auckland Harbour Board in 1988 for $11.3 million and had spent $20 million improving it. It created Hobson West marina in 1999 for large yachts that visited during the first America's Cup defence.

Pedestrian access was guaranteed to the marinas by a District Plan covenant and it was not easy in practice to close the marina roads to the public.

In previous property sales the port had protected public access.

Other port properties under consideration were the Western Viaduct, where discussions were being held with Auckland City about a sale and the Western Reclamation, where BP's tank farm is located.

Many ideas for the Western Reclamation area had emerged from a waterfront advisory group but funding for infrastructure and civic ideas had to be found. Discussions with the council were continuing.

The meeting adopted the company's accounts and re-elected Rosanne Meo, Darrow and John Lindsay as directors.