Tauranga and Auckland still talking

By NZPA

Thursday 21st December 2006

Port of Tauranga and Ports of Auckland are still talking but they haven't agreed merger terms.

Port of Tauranga chairman John Parker said the continuing discussions were constructive and positive.

"There is still a considerable amount of detail to work through. We expect that this work will take some months to complete and we will advise shareholders when merger terms have been agreed.

"Our current objective is to report again to shareholders by the end of March next year," Parker said.

The release from the port included a statement from Ports of Auckland owner Auckland Regional Holdings (ARH), the commercial arm of Auckland Regional Council.

ARH Chair Judith Bassett said: "ARH supports the continuation of merger discussions between the two parties and looks forward to advancing mutual understanding".

Ports of Auckland chairman Gary Judd said both companies' boards recognised the potential for significant efficiency gains and the importance of ensuring the dynamics of the New Zealand port sector were determined by New Zealand interests.

The port merger plan was believed to be a response to pressure on ports from shipping line Maersk and its major customer Fonterra.

It was believed that they pitched the idea to both ports of Maersk's container terminal operating unit, a foreign company, running a container terminal at either Auckland or Tauranga in return for choosing one port over another.

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