The Wellington Regional Council has been told it should sell its shares in the city's port as their value could be cut by a proposed rail service between Palmerston North and Auckland.
But yesterday the council downplayed the threat posed by the planned Ports of Auckland rail link and said it did not plan to sell its 77 per cent stake in CentrePort.
Rob Mercer, head of research at brokers Forsyth Barr, had earlier said the rail link, which would ship containers to the Auckland port, might lure business away from CentrePort.
This could see some shippers drop Wellington from their schedule if Auckland could offer them full loads with one stop.
"If a ship can stop in Auckland and get a near-full load, both imports and exports, it is very efficient for it.
"CentrePort may have a substantial imbalance of imports and exports, so that ship call comes under pressure."
Council chairman Stuart Macaskill said the threat was overstated and it had not changed the council's mind about the merits of owning the port.
"The proposal from Auckland has nowhere near the significance some media are attributing to it."
He said CentrePort had operated a hub facility in Palmerston North for two to three years and had been improving its results from that area.
"My reaction to this worst-case-scenario-type thinking that some analysts have put on this, is that it's a bit over-the-top."
The council kept an open mind about owning the port, he said.
"We are not in the business of holding on to the port company at any cost."
The Manawatu-Wanganui Regional Council, which owns the other 23 per cent of the port, agreed the Auckland rail line would do little damage to CentrePort.
Council chairman Chris Lester said he did not believe the rail link would affect the value of the council's investment.
- NZPA
Councils scoff at Centreport threat
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