Ruling for Toll firm angers rival

By PAM GRAHAM

A Commerce Commission decision yesterday to let Toll Holdings and Port of Tauranga put stevedoring and log-marshalling companies together has angered a rival.

"This is the wrong decision," said Mike Lambert, owner of log-handling company Quality Marshalling. "It's pretty scary for small fry."

His firm will compete with a new company, sanctioned by the commission, employing 700 people in 12 ports.

The new company will buy Owens Cargo, a log-marshaller owned by Port of Tauranga, and stevedores Toll Logistics New Zealand and Leonard and Dingley, owned by Toll.

Commission chairwoman Paula Rebstock said it was satisfied the new venture would not substantially lessen competition.

Port of Tauranga chief executive Jon Mayson said: "Our objective is to take costs out of the system, which will benefit our competitive position and the cost-effectiveness of the services that we offer to our customers."

Philip Tonks, divisional director of the Toll Logistics Group, said Toll was in New Zealand for the long haul and it wanted to improve logistics.

"It is a long way to some international markets from here. If we can provide more efficient services, then that has got to be good for everyone."

The venture with Port of Tauranga was opposed by Ports of Auckland and Carter Holt Harvey, which uses Lambert.

The concern was about pricing down a supply chain because Toll controls Tranz Rail.

The new business will be based at Port of Tauranga, which has about five other stevedoring companies.