KEY POINTS:
Port of Tauranga says it is unsure if the proposed merger with Ports of Auckland is able to go ahead, in a sign that the deal could be unravelling.
Tauranga chairman John Parker said yesterday it would be discussing "whether or not, and how the merger went ahead" with Ports of Auckland next month.
He said the two parties wanted the merger to proceed, but: "The devil is always in the detail; agreeing something in principle doesn't always mean that it is done."
Parker would not comment about why he had doubts about the feasibility of the merger.
His comments follow the decision by container line Maersk in November to run the bulk of its service through Auckland at the expense of Tauranga.
Parker said the port expected to report on the merger to the stock exchange in March.
"One will always hope that we come to some degree of finality, but then again it may be partial - who can tell?" said Parker.
Observers said the Maersk contract had weakened the position of Tauranga in the merger talks and boosted the position of Auckland Regional Holdings, owners of Ports of Auckland. Tauranga has said the Maersk deal would cost it $1 million a month.
Parker has said that the market's expectations of a speedy process were "slightly unrealistic" because so many vested interests were involved in the merger.
The two parties announced in October last year they were entering merger talks.
Ports of Auckland did not answer calls made by the Business Herald yesterday.
The development comes as Ports of Auckland released its full financial report for the year to June 2006.
The port's net profit dropped to $35.5 million from $38.6 million in the previous year despite moving more cargo, compared with a decline in profit for Port of Tauranga of 7.8 per cent to $31 million.
A buy-up of a large number of shares by First NZ Capital pushed up Port of Tauranga's shares by 25 cents to close at $6.10 yesterday.
