Lyttelton insurance claim breakthrough

This comes after LPC received an update of further insurance payments for damage caused during the 2010 and 2011 earthquakes, which destroyed around 500 assets including the head office building in Lyttelton, container terminal wharves and piles.

After providing an indemnity valuation report for six key harbour structures, LPC says insurers have confirmed a ‘pay as you go’ policy as its assets are repaired.

Despite this, uncertainties remain as to whether assets will be fully covered.

The port will receive an extra NZ$17.4m from insurers, bringing the total progress payments to date to approximately NZ$53m.

In a statement released last week, LPC said: “It is anticipated that there will be many complex issues. LPC will be reviewing the payment of dividends at the 2013 year end; it is anticipated that the payment of dividends will resume in the first half of 2014.”

In 2012, the port, which is jointly owned by Christchurch City Holdings, the Christchurch City Council and Port Otago, capped repairs spending to NZ$50m until the insurance dispute was resolved.

Repairs at the port are still in the planning stage, though LPC says reconstruction could start by the end of the year.