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


Kotahi deal helps Tauranga win Maersk's Southern Star slot

Kotahi deal helps Port of Tauranga win Maersk's Southern Star slot from Auckland

By Jonathan Underhill

July 17 (BusinessDesk) - Port of Tauranga will bolster annual container volumes by 8 percent to 10 percent after its deal with the Fonterra Cooperative Group and Silver Fern Farms-led logistics company Kotahi led to it winning a slot in Maersk's Southern Star service from Ports of Auckland.

The Southern Star service is a rotation that runs between Malaysia's Tanjung Pelepas port, Singapore, Brisbane, Tauranga, Lyttelton and Port Chalmers. Based on current volumes, it will add about 70,000 TEUs (twenty foot equivalent units) a year at Tauranga, the port company said in a statement. It represents an 8.3 percent gain on the 848,384 TEUs Port of Tauranga shifted in the 2013 financial year and cements its place as New Zealand's biggest container port.

"The driver to the shift is the deal we announced with Kotahi," Cairns told BusinessDesk. He was reluctant to comment further ahead of the release of the company's annual results on Aug. 21.

Kotahi said last month it had agreed to commit 2.5 million export containers to Maersk over ten years, giving the shipping company confidence to plan for the introduction of larger 6,500 TEU vessels. It will put 1.8 million TEU of export containers through Port of Tauranga over ten years, and will put significant volumes through the Timaru Container Terminal developed by Port of Tauranga over ten years.

Kotahi will take a 49.9 percent shareholding in the Timaru Container Terminal and Port of Tauranga will issue one million of its own shares to Kotahi and one million more as volume grows under the terms of the deal.

Shares of Port of Tauranga last trade at $15.50 and have climbed 154 percent in the past five years, almost twice the gains of the NZX 50 Index. The shares are rated a 'hold' based on the consensus of five analysts polled by Reuters, with a median price target of $14.62.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news