Breakthrough for Lyttelton Port

By Chris Hutching

Friday 1st October 2004

Lyttelton Port Company achieved a small breakthrough in its union talks when the Employment Authority ruled in its favour over permanent part-time positions at the port.

The parties sought a ruling from the Employment Authority after reaching an impasse over a clause relating to the port's ability to recruit permanent part timers and the ratio to full timers

Chief executive Peter Davie said yesterday that after receiving the ruling the two parties had agreed to resume formal talks over the next fortnight.

The talks come against a background of "one-off" payments, special mediators, and resignations of senior board members and executives over the past couple of years.

In the latest annual report Mr Davie and chairman Barney Sundstrum warned shareholders about consolidation of port trade while highlighting the near-monopoly the port holds over ocean freight coming into Canterbury and Solid Energy's coal exports.

The share price has held relatively steady with "buy" quotes at $1.76, albeit down on the high last November of $2.03 a share.

Over the past three years the company has trodden water, with revenue at around $61 million as shipping lines have switched between various ports, while after-tax profit has similarly remained steady around $12 million, but debt and asset levels have risen faster.

The company's overall financial position is slipping and requires a significant breakthrough such as an employment agreement or new customers to attract shippers over other ports.

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