KEY POINTS:
Port of Tauranga says the proposed merger with Ports of Auckland has been given a boost by the plan to build a waterfront stadium at the Auckland port.
But transport companies that use the port came out against the stadium plan, saying a stadium on the waterfront would
add to costs and to congestion in the country's largest city.
The Government has proposed that a $500 million stadium be built over the water between Bledisloe and Captain Cook wharves at Ports of Auckland - which are currently used for the trade of cars and other non-containerised cargo valued at between $1.5 billion and $2 billion per year, out of total port trade of $21 billion.
Ports of Tauranga chairman John Parker said this trade could be "easily shifted" to Port of Tauranga if a merger went ahead because competition between the old rivals would disappear.
"It makes some potential objections easier to refute ... that it's too hard to shift cargo because we are dealing with the enemy," said Parker.
"It [the merger] would be easier if there was some temporary need for cargoes to be transferred.
"We could be fully co-operative."
Ports of Auckland needed to know how the stadium proposal would affect business and "the fact that we are in discussion is probably helpful".
But there had been no discussions with Government about the potential advantages of a "superport" handling the overflow of trade from Auckland.
"It was only very recently that a stadium was in contemplation.
"There was a considerable doubt that it needed to be taken seriously," said Parker.
Last month Ports of Auckland and Port of Tauranga revealed they were in merger talks to form a single superport, which would have the dominant slice of the cargo shipping market.
Port of Tauranga chief executive Mark Cairns said yesterday that a stadium on the waterfront would lend "better weight" to the merger proposal because a superport with two terminals could better handle large volumes.
Ports of Auckland chief executive Geoff Vazey has previously raised concerns about the stadium plan.
He said it could disrupt trade, but has not commented publicly since the Government confirmed its preference for the Auckland waterfront stadium last week.
A source at Ports of Auckland said yesterday that the port needed to find substitute facilities to conduct its existing business "without forfeiting" the port business.
Ports of Auckland had taken two years to reclaim 5.5ha of seabed reclamation for the extension of the Axis Fergusson container terminal and still had to build the terminal extension.
Mainfreight managing director Don Braid said he was concerned a stadium would cause more congestion in and around the Ports of Auckland - which already operated at full capacity - for its import and export customers.
"It's bad enough as it is, let alone making it any worse," said Braid.
Braid was worried about the lack of consideration of the economic impacts on Auckland being taken by the Government, especially given the trend for ports to be able to cater for larger vessels and shipping lines.
"I find that absence in the public debate to be deplorable," he said.
Toll Owens, New Zealand's largest stevedoring company, handles Ports of Auckland's car trade, and its chief executive Sean Bolt said most of the cars that were discharged at the port were destined for Auckland.
The economics for transferring cars to Port of Tauranga was "sub-optimal" because most of the car trade would have to be transported back to Auckland, he said.
"The devil will be in the detail of what plans will be put in place to either compensate Ports of Auckland and what alternative arrangements are going to be put in place and over what timeframe," said Bolt.
"There is a huge consultation process that someone has got to go through with the users."
Shipping lines including Armacup, Kiwi Car Carriers, Toyo Fuji, MOL, Wallanius Wilhelmsen, Navix and Lauritzen Cool dock at the wharves targeted for the stadium.
State of play
* October 12: Ports of Auckland and Port of Tauranga say they are in merger talks.
* November 10: Government says it prefers a stadium on Auckland's waterfront, not an extension to Eden Park.
* November 24: Auckland Regional Council and Auckland City Council must report back on preference to Government.
* Late November: Ports of Auckland and Port of Tauranga lodge merger proposal to their boards.
* Late December: Ports of Auckland and Port of Tauranga will announce whether they have merger approval.
* May 2007: Government aiming to start construction of the stadium.
* Mid-2007: Merger finalised.