OCEANIA

More bumps for Lyttelton

16 years ago

Since the Lyttelton Port of Christchurch (LPC) admitted that it is battling subsidence following earthquake damage in September, the port has had to deal with speculation about the size of its insurance claim.

LPC suffered “extensive damage” from the earthquake but it will continue to operate during repairs. Photo:G OBeirne

Information in the media has suggested that the port’s insurance claim could be between NZ$50m and NZ$200m. However, LPC chief executive Peter Davie has, in a recent press release, tried to calm the rumours by saying that it does not yet have a clear view on the value of the claim, adding, “Lyttelton Port Company will continue to operate and meet its customers’ needs while the repairs are being undertaken”.

Mr Davie pointed out, “The damage to the port is extensive; however the port was operational within hours of the earthquake and will continue to operate. LPC is working closely with its insurers to measure the damage to the assets, and determining the appropriate next steps for reinstatement. The company has insurance cover for asset replacement to current standards, along with business interruption insurance. We will continue to keep the market informed.”

The company is planning to update the full year forecast at the announcement of the results to 31 December 2010 in late February 2011. Mr Davie added, “Due to accounting requirements in the recognition and timing of insurance proceeds and the related expenditure, the impact on the profit is extremely difficult to forecast at this time.”