Forum Archive Index - May 2004

[Robin Benson <rob@hammerheadmedia.co.uk>]

Hi G/J et al

So it seems we can conclude that the union issues don't do LPC any 
favours when it comes to perception but because it is unashamedly an 
income stock.

Regarding management, it seems to me the two big issues are building 
business with both shipping companies and exporters and keeping the 
operation rolling and efficient, which includes both good industrial 
relations *and* the right investments on the operational side. On the 
latter front, I note LPC just invested in new straddles [1].

Robin

[1] LPC - 21/05/2004 - ASSET

REL: 1409 HRS Lyttelton Port Company Limited (NS)

ASSET: LPC: Lyttelton Port purchases new straddles

"Lyttelton Port purchases new straddles"

Investing in future growth at its container terminal, Lyttelton Port 
Company
has placed an order for four new Kalmar straddle carriers at a cost of 
$5M.

Commenting on the investment, Chief Executive Peter Davie said, "We are
taking a long-term approach to building the port's assets, and the 
purchase
of four new straddles is one of the first steps in our overall plan to
provide fast, efficient turnaround for our customers.

The straddles are expected to arrive in January and will both assist in
improving service levels to shipping lines and reduce waiting times for 
key
supply chain partners such as road and rail.

In the process of evaluating our infrastructure and assets, we 
identified
that we required additional straddles to cope with the continuing volume
growth in containers. It is the first significant investment in new 
equipment
at the terminal for a number of years."

The new straddles will be capable of lifting 50 tonnes, a 25% increase 
in the
capacity of the existing machines. They will have on-board weighing 
systems
and twin lift capability, which will also help increase productivity.

Two of the new straddles will replace older less reliable machines,
increasing the overall fleet from 11 to 13. Lower maintenance on the new
straddles means additional resourcing can be allocated to improve the
reliability of the remaining fleet.

"We are confident that our long-term approach to investing in assets and
infrastructure, coupled with our commitment to delivering fast, 
efficient
turnaround will result in Lyttelton Port delivering on its potential," 
said
Mr Davie.

- ENDS -

Peter Davie
Lyttelton Port Company
PH: (03) 328 8198
End CA:00100443 For:LPC    Type:ASSET      Time:2004-05-21:14:09:46

On 23 May 2004, at 09:03, Gordon and Jackie Hossack wrote:

> Hi Snoopy and others,My thoughts on LPC:
> no it is not going ahead like the other ports in terms of share 
> price.Is this  solely a union problem?.I've been in ports up and down 
> the country and in Oz and I don't think that the Lyttelton watersider 
> is too much different from other wharfies. In fact the "bolshiest" 
> wharfies used to be in Auckland. Macdunk uses the easy label "pommy 
> union", but the proportion of poms at Lyttelton is negligible. 
>  It looks as if management would get credit if all was well, but the 
> staff take the flak when the going gets tough. It doesn't work like 
> that, management get paid to manage and I have confidence that  the 
> new  chief executive  Peter Davie  will succeed where his predecessors 
> failed.
> So for the moment its a good dividend share,especially if you can get 
> it  around or below $1.60.


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