KEY POINTS:
Two days after Ports of Auckland said it was interested in a takeover, Port of Tauranga has announced plans to expand its container terminal.
Port of Tauranga yesterday said it would begin expanding its operational area by 1.3ha this month. The expansion on to adjacent land will provide the port with over 400 extra container ground slots. Chief executive Mark Cairns said volume growth had put pressure on the terminal storage area during peak periods and expansion was required to maintain efficient operations.
"One of the major strengths of the port is that we can incrementally expand as required, at relatively low capital cost. We currently have an additional 29ha of land positioned adjacent to the terminal which can be used for port operations in the future."
Cairns said the company had seen 10 per cent annual growth of containers through the terminal since 2000.
Additional drivers for the expansion included the arrival of the fifth Liebherr crane in March 2009 and an increase in the consolidation of export cargo through Port of Tauranga, he said.
Expansion of the hard-stand is expected to be completed by September this year, followed by the installation of three new light towers.
The hard-stand area, comprising 14.7ha and 3462 ground slots, has remained unchanged since the pavement was constructed and the terminal was opened in 1992.
On Wednesday, Ports of Auckland's managing director, Jens Madsen, dropped a bombshell when he said the sector would benefit from Auckland buying Tauranga's container business, during a meeting to release the company's annual results.
Previous merger talks between the ports failed last year.
Cairns said he was surprised by Madsen's public announcement and responded by saying Tauranga would consider a "merger". Shares closed yesterday up 5c at $7.10.
