KEY POINTS:
Port of Tauranga yesterday made the national-interest case for its planned merger with Ports of Auckland, but the Auckland port's owner cast doubt on the project.
Releasing Port of Tauranga's record half-year earnings, chairman John Parker said constructive merger discussions with Ports of Auckland were continuing.
"The merger would generate substantial public benefits and provide the potential for significant financial and efficiency gains," he said.
"It will ensure New Zealand retains its own port company with world class container terminals in Auckland and Tauranga."
Parker's comments were quickly followed by a reply from Ports of Auckland owner Auckland Regional Holdings, which said it wanted "more specific detailed information on the business case of a potential merger ... as the information provided so far is inconclusive".
ARH chairwoman Judith Bassett said yesterday her board needed to undertake "more robust scrutiny of the economics and competition consequences of the proposed merger before it can be in a position to consider an agreement in principle. The importance of this decision demands that the ARH board be totally satisfied that it has carried out its duties in relation to proper governance and the future prudent management of its major asset, and this we will do."
Last October the two ports announced plans to merge to create a "super port" that would control 60 per cent of the country's container traffic and have more bargaining power against the shipping lines.
Parker said Port of Tauranga planned to make a final decision on whether to proceed with the merger by the end of next month.
The port released a record profit of $21 million for the six months to December, up 56 per cent over the same time last year. Revenue was $70.8 million, up from $59.7 million. The strong profit increase was driven by a boost in most cargoes, containers and bulk, he said.
Parker said the second-half of the year would be affected by the decision from container line Maersk to withdraw most of its services, but was confident that the full-year result would be "well ahead of last year".
Port of Tauranga's shares yesterday closed up 25c at $6.40.
