Scoop has an Ethical Paywall
Licence needed for work use Learn More

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


Port of Tauranga takes $21.6M stake in Timaru's PrimePort

Port of Tauranga makes first foray into South Island, with $21.6M PrimePort deal

Aug. 13 (BusinessDesk) – Port of Tauranga, New Zealand’s busiest export port, has agreed to buy a half stake in PrimePort Timaru in a $21.6 million deal aimed at strengthening the Tauranga site as a hub for coastal shipping.

The deal is subject to public consultation because PrimePort is 71.4 percent owned by Timaru District Council’s investment arm. The process will start on Aug. 17 and is expected to take a month.

Under the deal Port of Tauranga would buy a 50 percent stake in PrimePort excluding its investment properties, lease PrimePort’s container terminal for up to 35 years, acquire container terminal operating assets and create a new subsidiary, Timaru Container terminal, to operate the terminal, the company said.

“Port of Tauranga continues to invest in becoming New Zealand’s hub port,” said chief executive Mark Cairns in a statement. “We see opportunities to grow PrimePort Timaru as a marshalling point for South Island cargo.”

The arrangements raise the possibility that Timaru could win back cargo lost primarily to Port of Lyttelton, including output from Fonterra Cooperative Group’s Clandeboye plant, the world’s second-largest dairy processing site.

That cargo was lost a year ago when global shipping lines Maersk and Hamburg Sud pulled the plug on the central South Island port, effectively scuppering Timaru’s container business.

Timaru District Council is backing the proposal ahead of the public consultation, saying it would be “a giant boost” for PrimePort and the district.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

Timaru District Holding’s, the council’s investment arm, also owns 47.5 percent of Alpine Energy, South Canterbury’s power distribution network.

Shares of Port of Tauranga rose 1.1 percent to $14.45 and have gained 8.7 percent this year. The stock is rated a ‘sell’ based on the consensus of six analysts surveyed by Reuters, with a median price target of $13.90. Lyttelton shares rose 3.6 percent to $2.90.


© Scoop Media

Advertisement - scroll to continue reading
Business Headlines | Sci-Tech Headlines

GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More


Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.