Port takes contract battle to court

Port of Tauranga says having to go to court is disappointing. Photo / Bay of Plenty Times

Port of Tauranga has made the first move in having its long-running dispute with transport and logistics operator NZL Group settled in court.

Mount Maunganui-based NZL wants to "re-establish" terminal operations at the Sulphur Point container wharf.

But the port company describes NZL's previous role at the wharf as a "marshalling" operation.

Port of Tauranga has lodged proceedings in the High Court, seeking a judgment in an attempt to resolve the long-running dispute.

Port chief executive Mark Cairns said his company had never been unco-operative in trying to resolve the dispute and had responsibly sought legal opinions on the contractual interpretation.

"We are disappointed to have to initiate proceedings but as a listed company we cannot allow this important matter to remain unresolved, nor allow NZL to continue trying to litigate this issue through the media," Cairns said.

On Christmas Eve last year NZL lodged a claim to re-establish marshalling operations at Sulphur Point.

This notice heralded an unexpected withdrawal by NZL from negotiations to renew a service contract agreement with Port of Tauranga, which they had been operating under for the past five years, Cairns said.

NZL director Ken Harris said: "We had expected some mediation but resolving the matter [in court] sooner rather than later is useful. We will be pursuing the matter with vigour."

Harris said a deadline of December 24 last year was set to finish negotiations over the service contract.

"We weren't able to conclude an agreement that worked commercially and the contract expired," Harris said.

NZL, which has stevedoring and container transport/storage divisions, believes it can trigger a clause in the 2004 contract to re-establish a terminal at Sulphur Point - in effect competing with Port of Tauranga.

Before 2004, P&O Ports had operations at Sulphur Point and NZL bought P&O Ports' New Zealand business.

NZL has delivered a formal letter to Port of Tauranga, which owns the land, asking for a terminal operator's licence.

Local law firm Sharp Tudhope and Auckland-based solicitors Kensington Swan had already started preliminary work for NZL, backgrounding the issue.

Port of Tauranga said that as the case was now before the courts it would not be making any further public comment.

- BAY OF PLENTY TIMES