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

 

Merger of Ports of Auckland, Tauranga logical

Wednesday, October 11th, 2006

Merger of Ports of Auckland, Tauranga logical

A merger of the ports of Auckland and Tauranga has the potential to reduce port costs while remaining independent from the dominant international port and shipping companies, the Employers & Manufacturers Association (Northern) says.

"Though Auckland and Tauranga have respectively the largest bulk and container ports in New Zealand, both are small by international standards, so the proposal makes sense," said Alasdair Thompson, EMA's chief executive.

"However, port customers ought to be allowed to share in the development and investment savings that should flow from the merger, and from the port monopoly it would create in the top half of the North Island.

"The regulatory framework to ensure this can take place will be challenging, but is imperative for the protection of port customers.

"While the issue of competition is important, most port customers realise the dominant shipping companies are currently capturing substantial benefits at present by playing the two ports off against each other.

"New Zealand arguably needs one port of international scale as ship sizes continue to increase; otherwise the risk is our containers will be shipped via Australia at some future point.

"The merger would also allow Auckland and Bay of Plenty regional councils to rationalise their dominant ownership of both ports. For example, they could retain ownership of surplus port land for redevelopment, such as the Tank Farm, and of operating port land, but publicly float the combined port company allowing a solid investment opportunity for New Zealanders savings while freeing up ratepayers' capital for investment in other infrastructure."

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


Bell Gully: Uncertainty Ahead With New Unconscionable Conduct Legislation

new prohibition against ‘unconscionable conduct’ in trade is one of a number of changes to the Fair Trading Act 1986 that come into force from 16 August 2022. The new prohibition may have wide-ranging implications for many businesses... More>>


Statistics: Food Prices Increase 7.4 Percent Annually
Food prices were 7.4 percent higher in July 2022 compared with July 2021, Stats NZ said today... More>>



REINZ: Market Activity And Prices Continue To Ease, First Home Buyers Start To Return To The Market

New Zealand’s winter property market continues its recent trend, slowing from the pace of sales and price rises of last year — properties stay on the market longer and median prices dip... More>>



Kiwi Group Holdings: Fisher Funds Acquires Kiwi Wealth Business

Kiwi Group Holdings Limited (KGHL) today announced the sale of Kiwi Wealth to Fisher Funds for NZ$310 million... More>>



Retail NZ: Welcomes Return Of Cruise Ships

“Cruise visitors were big spenders in retail prior to COVID-19, and retailers in Auckland will be celebrating the arrival of P&O’s Pacific Explorer this morning... More>>



ASB: Full Year Results: Building Resilience Today And For Our Future

In its 175th year, ASB has reported a cash net profit after tax of $1,418 million for the 12 months to 30 June 2022, an increase of $122 million or 9% on the prior year... More>>