A new era is set for New Zealand freight following the Port of Tauranga’s NZ$21.6m (US$17.26m) investment in the South Island’s PrimePort Timaru.
The investment is part of Tauranga’s “strategic alliance” with PrimePort Timaru that will see coastal shipping and rail increase as transport infrastructure in the region is redeveloped. It will also allow for the development of flexible and cost-effective routes to and from international markets for South Island exporters and importers.
Under the agreement, the port will acquire a 50% shareholding in PrimePort, lease PrimePort’s container terminal for up to 35 years. Tauranga will also acquire terminal container operating assets to set up a new wholly owned subsidiary, Timaru Container Terminal Limited, which is expected to being operating the terminal as of 1 December 2013.
Mark Cairns, chief executive, Port of Tauranga, said: “The alliance will allow South Island exporters and importers to benefit from the international services that call at Tauranga, share the significant freight savings that will come with the arrival in New Zealand of the next generation of large ships and benefit from the port’s container terminal expertise and productivity.”
Elsewhere, the Port of Tauranga is expanding its MetroPort inland port operations in South Auckland after acquiring Gateside Industry Park from Goodman Property Trust for US$37.2m. It says this acquisition will be key to expanding access to and from international markets for Auckland.
The additional property adds a further 2.28 hectares to potential development land, bringing Tauranga’s total holdings to nearly 190 hectares and is expected to provide rental income of around US$3m per year.
