South Island ports talk merger

Port Otago and Lyttelton Port of Christchurch have signed a memorandum of understanding to explore a merger of their respective port operations.

Port Strategy: Otago (pictured) and Lyttelton hope for increased synergies as one unit

Jointly announcing the initiative, the key South Island ports said integration could deliver significant efficiencies and other benefits that would otherwise not be possible.

Those purported potential benefits include:

– co-ordination of future expenditure to avoid duplication

– reduced environmental impact through co-ordinated road and rail use

– increased productivity at each port

– joint development of new services

– significant efficiencies.