INDEPENDENT NEWS

Merger of Ports of Auckland, Tauranga logical

Published: Wed 11 Oct 2006 12:59 AM
Wednesday, October 11th, 2006
Merger of Ports of Auckland, Tauranga logical
A merger of the ports of Auckland and Tauranga has the potential to reduce port costs while remaining independent from the dominant international port and shipping companies, the Employers & Manufacturers Association (Northern) says.
"Though Auckland and Tauranga have respectively the largest bulk and container ports in New Zealand, both are small by international standards, so the proposal makes sense," said Alasdair Thompson, EMA's chief executive.
"However, port customers ought to be allowed to share in the development and investment savings that should flow from the merger, and from the port monopoly it would create in the top half of the North Island.
"The regulatory framework to ensure this can take place will be challenging, but is imperative for the protection of port customers.
"While the issue of competition is important, most port customers realise the dominant shipping companies are currently capturing substantial benefits at present by playing the two ports off against each other.
"New Zealand arguably needs one port of international scale as ship sizes continue to increase; otherwise the risk is our containers will be shipped via Australia at some future point.
"The merger would also allow Auckland and Bay of Plenty regional councils to rationalise their dominant ownership of both ports. For example, they could retain ownership of surplus port land for redevelopment, such as the Tank Farm, and of operating port land, but publicly float the combined port company allowing a solid investment opportunity for New Zealanders savings while freeing up ratepayers' capital for investment in other infrastructure."
ENDS

Next in Business, Science, and Tech

NZ EU FTA Coming Down To The Wire – Hold The Line, Says Business Forum
By: NZ International Business Forum
NZ space sector set to star in Moon mission
By: Ministry of Business Innovation and Employment
The Sky Is The Limit - Air New Zealand To Relaunch 14 International Routes In 16 Days
By: Air New Zealand
Cashing In On Carbon: The New Carbon Marketplace Helping Native Forest To Thrive
By: Carbonz
Entrust Dividend Will Be Welcomed After Another Tough Year
By: Entrust
NZ Economy: Prevailing Headwinds
By: BusinessNZ
View as: DESKTOP | MOBILE © Scoop Media