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New Zealand’s largest port makes first South Island foray
Port of Tauranga has formed a strategic alliance with PrimePort Timaru in what New Zealand’s largest cargo port is heralding as a “new era” for the country’s freight industry.
For a total investment of NZ$21.6 million, Port of Tauranga will acquire a 50 percent stake in PrimePort, excluding its investment properties, and lease PrimePort’s container terminal for up to 35 years. As part of the agreement, Port of Tauranga will also gain the South Island port's container terminal operating assets and will set up a new wholly-owned subsidiary, Timaru Container Terminal Limited, to operate the terminal.
“The alliance with PrimePort will allow South Island exporters and importers to benefit from the large number of international services that call at Tauranga, share the significant freight savings that will come with the arrival in New Zealand of the next generation of large ships, and benefit from Port of Tauranga’s container terminal expertise and world class productivity,” said Port of Tauranga chief executive, Mark Cairns.
“Port of Tauranga has the financial strength, location and transport connections to be New Zealand's hub port.”
“Not only can Tauranga Container Terminal accommodate large ships, with our significant land holdings we have the potential to continue to expand at a lower cost than all other New Zealand ports.”
The transaction is subject to the successful outcome of the Timaru District Council's public consultation process.
