|
Friday 10th July 2009 |
Text too small? |
Stevedore and logistics group NZL has presented its plans to compete in container handling to Port of Tauranga, a move that the port has resisted as the two companies argue over whether NZL has historic rights.
NZL’s Sulphur Point Container Terminal subsidiary submitted details of its proposed terminal operation, claiming it is exercising its right “to re-establish a full service container terminal at Sulphur Point.”
It operated a container operation there prior to 2004.
“SPCT will play a key role in providing competitive options for shipping companies and shippers visiting Tauranga,” Ken Harris, NZL director, said in a statement.
The presentation of the plan will reignite a stand-off over rights to use the Sulphur Point terminal. Port of Tauranga chief executive Mark Cairns has said the turf war may need to be decided by the High Court because of the lack of progress finding common ground.
The port only recognizes NZL has rights to set up as a marshalling contractor, which means handling cargo away from the ships.
Harris this week said relations with the port were “hugely frosty. I can understand they don’t want to give up any business but we have contractual rights.”
Port of Tauranga stock rose 0.8% to $6.10 today and has slipped 6.4% so far this year.
The shares are rated ‘hold,’ according to the consensus of five analysts’ estimates compiled by Reuters. One rates it ‘outperform.’
Harris said a foothold in the container business would offer the chance of increased returns.
“It’s an incredibly attractive proposition,” Harris said. “Margins in the supply chain industry are very fine.” Long-term, NZL could end up joining Port of Tauranga as a listed company, joining Freightways and Mainfreight on the NZX. Going public “is in the back of our minds,” Harris said.
“We probably just want to take our time on that – we think we’ve got work to do yet.”
“Tauranga's reputation has been built by the hard work and efficiency of competing companies and the re-establishment of the NZL terminal will be good for all,” he said.
Under NZL’s proposal, its re-established Sulphur Point terminal would be operational by early next year.
Businesswire.co.nz
No comments yet
Port of Tauranga may increase dividends, make extra payments, as spending returns to normal
Port of Tauranga shares fall to 3-week low after losing major log marshaling contract
Success a burden for Port of Tauranga
Port of Tauranga prepares for big ships, reports record profit
Port of Tauranga makes first foray into South Island, with $21.6M PrimePort deal
Port of Tauranga buys $37.2 mln property to expand South Auckland operations
Port of Tauranga chairman Parker will retire in October after 17 years as a director
Port of Tauranga rewards investors with 1H dividend hike, retains FY guidance
Port of Tauranga spends $34M on log marshaling business
Asciano to buy Port of Tauranga's 50 percent stake in C3 for $70M
