Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Lyttelton Port Settles With Insurers

19 December 2013

Port Settles With Insurers

As advised at the Company’s annual meeting, Lyttelton Port Company Limited (LPC) and its insurers (Vero, NZI and QBE) have entered into a mediation process. The outcome of that process is that all the various claims of the Company against its three insurers under the Company’s material damage, business interruption and contract works insurance policies, arising out of the September 2010, February 2011 and June 2011 earthquakes, have been settled with the insurers.

The settlements involve the payment in aggregate by the three insurers of $438.3 million plus GST (being a gross amount of $450 million less deductibles of $11.7 million) in full and final settlement of the claims. The Company has already received payments from its insurers of $55.6 million, so that the total amount remaining to be paid by the insurers in respect of all of the claims will be $382.7 million plus GST. Payment will be made in full by 28 February 2014.

All of the sums received will be expended over time in the rebuilding and reinstatement of Lyttelton Port’s facilities. Approximately $66 million has already been expended. The Port has flexibility on how and when assets will be reinstated.

There remains one outstanding matter with a third party that may result in the Company making an additional recovery. The Company is not in a position to provide further details at this time.

Chairman Trevor Burt thanked the insurers for participating in a constructive mediation process. Mr Burt said “Both parties are satisfied with the outcome, coming 3 ½ years after the first earthquake in September 2010, and recognising the complexity of the claims. This enables LPC to rebuild the Port, with freedom to optimise facilities for the future”.

LPC is looking to put in place contract works insurance cover (including earthquake cover) for the rebuild programme. Work is progressing on the rebuild of Cashin Quay 2 and the Company expects to be able to fully insure this asset (including for earthquake) when the reinstatement is completed. It is anticipated that as the overall programme progresses, all assets will be able to be fully insured.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>


Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>


Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>


Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>



Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>


'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>


Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>


Efficiency: Businesses And Households To Save From New Energy Plans

Minister of Energy and Resources Simon Bridges today announced three energy efficiency initiatives to improve business productivity, save money and reduce carbon emissions. More>>


Get More From Scoop

Computer Power Plus
Search Scoop  
Powered by Vodafone
NZ independent news