KEY POINTS:
The world's third largest container shipping line today announced plans to dump its Nemo service from Ports of Auckland and consolidate on the Port of Tauranga.
Port of Tauranga chief executive Mark Cairns said decision by CMA CGM's was "fantastic news".
"CMA CGM has recognised the Port of Tauranga as a major North Island distribution hub, serving the Auckland market through a unique rail partnership with a rail linked inland terminal (MetroPort Auckland) in the centre of Auckland's manufacturing and distribution centres."
The new service will commence next month and add an additional 52 vessel ship calls a year.
Today's announcement is the latest in a tit for tat battle for supremacy between the two major North Island ports. In 2006, the ports investigated merger but rejected it.
In November 2006, shipping giant Maersk Line, which handles 40 per cent of New Zealand's sea freight, said it preferred Auckland over Tauranga to handle most of its North Island services.
Then, German shipping giant Hamburg Sud announced it was moving its North Island call to Tauranga from Auckland.
Both container ports have pretensions to be regional hubs.
Tauranga uses its "inland port" in south Auckland to compete.
Previously listed Ports of Auckland became wholly owned by Auckland Regional Council in 2005.
Port of Tauranga shares were unchanged on $6.20 after the announcement.
- NZPA
