45% of Napier could be sold to fund growth

Napier Port Napier Port needs to invest in new infrastructure, including a new NZD$142m wharf by the end of 2022. Credit: Napier Port
Industry Database

Hawke’s Bay Regional Council could sell up to 45% of Napier Port in New Zealand to fund the port’s growth requirements, while retaining majority ownership and balancing the council’s investments.

Regional Council Chair Rex Graham said he believes floating a 45% stake of the port on the New Zealand Stock Exchange was the best option for the people and economy of Hawke’s Bay, though Council, which owns the port on behalf of ratepayers, had a very open mind to other options.

“This option would clear the Port’s $86 million of debt, from which point it will be able to self-fund its growth. This option funds the Port’s growth, allows locals to maintain ownership and control, provides an opportunity to invest directly in our Port and does not require more money from ratepayers.

“Additionally, the Port currently makes up three quarters of the Regional Council’s revenue-generating assets. This is poor risk management. A minority share float allows Council to diversify investments while benefiting from continuing to own a strong commercial asset.”

NZD$320-350m needed

The proposal is one of four suggestions in a consultation document by the council, which needs NZD$320-350m over 10 years for it to support the growing Hawke’s Bay economy.

The council’s states a preference for a sharemarket listing of up to 49% of the port. Funding the port’s growth via rates would see average rates rise by 53% over the next year, Mr Graham said.

More borrowing would lead to unmanageable debt, but the port has experienced a 25% increase in cargo volumes over the last two years and needs to expand its capacity and invest in new infrastructure, including a new NZD$142m wharf by the end of 2022.

The chair of Napier Port, Alasdair MacLeod, said the Board supports the Regional Council’s decision to consult on the ownership structure of Napier Port.


Standard and Safety Controller now in one unit.

The new ecomat Controller from the ecomat series from ifm electronic has two independent, powerful 3... Read more

MAN 175D Selected for First IMO Tier IIICompliant Harbour Tug Designed for Operation in Mediterranean

2 x IMO Tier III-compliant 12V175D MM engines to power harbour pusher tug Read more

First mobile 3D sensor system with integrated 2D camera and overlay function – now all in one.

This 3D smart camera from ifm electronic designed for mobile applications is the first 3D sensor sys... Read more

ShibataFenderTeam delivered Cone Fenders to new Hutchison Icave Container Terminal

In 2018 the Hutchison Icave Port in Veracruz, Mexico was expanded by a new container terminal. Shiba... Read more

TGI’s NEW Dashboard Module.

The “Dashboard” module allows you to create one or more dashboards. Read more

CodaOctopus® Underwater Survey Explorer ("USE") Version 8.5 Release

Coda Octopus is pleased to announce the release of Version 8.5 of CodaOctopus® Underwater Survey Exp... Read more

View all