Shipping giant defends review of NZ ports

Danish shipping giant Maersk is defending its review of ports it will use in New Zealand.

Christchurch Mayor Garry Moore said yesterday if Maersk stopped using Lyttelton and other smaller ports they could have to shut.

Maritime Union general secretary Trevor Hanson is urging Maersk to come clean about its plans. He said Maersk's decisions were dragging out and leaving smaller ports in jeopardy.

Maersk New Zealand managing director Tony Gibson said today the company's review had been "well signalled and was intended to ensure a more efficient shipping operation for New Zealand exporters and importers."

This week he said the company wanted to cut port calls in New Zealand from nine to five. Two ports, one in the North Island and one in the South Island, would be primary calling points.

Mr Gibson said today Maersk was in consultation with all parties, including port companies and major customers, and was working with them to plan all possible scenarios.

"This is not a case of Maersk acting unilaterally. We're responding to the needs of our customers to reduce supply chain costs and ensure efficient global connectivity."

Maersk has 40 per cent of the New Zealand market after it took over rival P&O Nedlloyd in December to become the world's largest container shipping company.

Fonterra and meat companies are the major customers in New Zealand and Fonterra is large by global standards. It has been reported previously that P&O and Maersk were Fonterra's principal shipping partners before they merged.

P&O was on the brink of making a decision about whether its biggest service should call at Tauranga or Auckland when Maersk took it over. Maersk traditionally called at more ports in New Zealand.

When the two merged a consortium of shipping companies led by P&O broke up and there was a fragmentation of shipping services. It was expected that the trend of larger ships calling at fewer ports to maximise efficiencies for customers would re-establish.

Traditionally the battle for supremacy has been between Tauranga and Auckland in the North Island and Lyttelton and Port Chalmers in the South Island.

Christchurch's port has been affected in recent years by disputes between management and the Christchurch City Council. Part-owner and rival Otago this year blocked a deal the council planned with a giant Hong Kong port company Hutchison.

MSC, an Italian shipping company owned privately by a Italian couple, has emerged as a global shipping force in recent years. It has been expanding in New Zealand and has a base in Christchurch.

Germany's Hapag-Lloyd has also increased services to New Zealand since the P&O consortium broke up.

- NZPA