Port firms in merger talks

WELLINGTON - Ports of Auckland and Lyttelton Port Company are believed to be in talks that could lead to a merger.

An unnamed industry source told the Evening Post newspaper that the two listed port companies were in the early stages of working out a merger deal.

Geoff Vazey, chief executive of the Auckland company, declined to comment to New Zealand Press Association specifically on whether his company was in talks that might lead to some kind of deal with Lyttelton Port, adding: "We are listed on the stock exchange and obviously can't talk about these things."

But in broader terms he said: "We look, from time to time, at the possibility of doing things with other ports both in New Zealand and overseas.

"Quite clearly, when we branded part of our business Axis Intermodal in the middle of last year, part of that [move] was to have a generic name to look at possibilities over time and we weigh these things up from time to time."

Lyttelton Port Company chief executive David Viles would not confirm talks had taken place with Ports of Auckland. But he did tell the Post that the port had been looking for ways to expand outside Lyttelton.

The South Island port had had a number of discussions with half a dozen parties during the past 12 months.

Of the port industry overall, Mr Vazey said: "We do believe the country has got far too much total port capacity with three million people and 14 ports.

"We certainly advocate that all ports in New Zealand should be part-listed and those that are perhaps aren't big enough to qualify for listing should be part-privatised.

"That really is in the belief that this would give them a far better commercial governance structure because directors have to act in the best interests of the company and all its shareholders.

"We think that it is a better model than purely political ownership.

Rationalisation of the port industry is probably somewhat limited under political ownership rather than part privatisation." - NZPA