Napier Port approves plan to invest in new $170m wharf

Approval means the Hawke's Bay Regional Council is a step closer to selling the port. Photo / File

Napier Port's board has approving the business case to invest in the development of a new $170m wharf known as 6 Wharf.

This will be subject to funding confirmation.

The port's approval of the business case is a condition set by the Hawke's Bay Regional Council, prior to a final decision on whether to approve a minority initial public offer (IPO) of shares in the port.

The business case approved by the Napier Port Board includes an updated estimate of the projected investment required of approximately $170-$190 million.

Regional Council chairman Rex Graham said the port had tested the 6 Wharf business case against detailed trade and revenue forecasts, design and engineering standards and resource consent requirements.

"What this does reinforce is the need for external capital for port development as funding 6 Wharf would now be an even bigger hurdle for ratepayers.

"We are fully committed to our original objectives: supporting the port to invest in its growth, de-risking the council's investment portfolio, retaining majority ownership and control of the port and protecting ratepayers from Port development costs."

Napier Port chairman Alasdair MacLeod said the port's objectives remain focused on delivering an infrastructure asset to serve Hawke's Bay.

"6 Wharf is a highly strategic, intergenerational infrastructure asset that will ease increasing constraints at the Port and put it in a better position to respond to any future growth."