Quake halts Southern port merger

Although managing a return to operation soon after the event, LPC has nonetheless incurred significant damage to infrastructure and facilities. About 40% of its wharves have been affected and latest reports indicate the container terminal – which is on reclaimed land – has slumped up to 30 centimetres in areas and may continue to sink for another three years.

LPC deputy chairman Bill Luff said the earthquake had necessitated the port reviewing its short and long term asset management and development plans. “The landscape has changed significantly,” he said.

“Given this situation, it is only fair and prudent to cease the merger negotiations in order to allow the full resources of LPC to focus on both running the port and undertaking the recovery and rebuild project.”

The port, which is fully insured, had initially estimated the damage bill to be about NZ$50m (US$38m). However, it now appears repairs will be more expensive.

One positive aspect is that expansion and beautification plans may be brought forward as part of the rebuilding project.