OCEANIA

Southern ports merger gains pace

17 years ago

Port Otago’s sole owner, the Otago Regional Council (ORC), has declared strong interest in merging with Lyttelton Port of Christchurch (LPC) and has voted to consult its public on the issue.

Port Strategy: 'De-risking' a big driver for merger of Otago (pictured) and Lyttelton

The announcement follows both ORC and Christchurch City Holdings – the majority owner of LPC – being briefed on a confidential merger report prepared by consultancy Antipodes from a working committee including both ports’ chairpeople and chief executives.

“De-risking” is being mooted as a prime reason for the merger, given the two major South Island ports are in constant contest over a finite client base.

It is also widely held the local port sector needs to consolidate to efficiently accommodate the next generation of larger containerships.

The commissioning of the report in 2009 signalled a reopening of negotiations between the two ports after discussions had fallen silent since late 2007.

Port Otago is 100%-owned by the Otago Regional Council, with the two major shareholders in LPC being Port Otago at 15% and Christchurch City Holdings (the investment arm of the Christchurch City Council) at 78.16%.