CentrePort Wellington earthquake repairs to cost NZ$340m (US$246.7)

Industry Database

The cost of mending the damage to CentrePort Wellington from the Kaikoura Earthquake in November last year is expected to reach NZ$340m (US$246.7), the Greater Wellington Regional Council's (WRC) holding company has said.

In a Statement of Intent for the financial years ended June 30, 2018, 2019 and 2020, WRC Holdings forecast NZ$170m of earthquake repair costs up to 2020 and expects to spend a further NZ$170m in the years after this date.

According to the statement, business interruption insurance, which is in place until November 2019, will cover a loss of profit from the container sector and rental income from its investment properties, such as Statistics House and BNZ.

CentrePort, in a Statement of Intent from May 2017, made an allowance for NZ$400m of insurance money and forecast it would spend around NZ$23m in the next three years to attempt to improve the resiliency of its liquefaction-prone reclaimed land, as well as forecasting NZ$20m of temporary repairs to render its ship-to-shore gantry cranes operational once again.

In WRC Holdings’ statement, the company said that the immediate priority was making improvement and taking practical steps to re-establish operational capability further at CentrePort, with a particular focus on restoring container operations, which were most affected by the earthquake.

“The Harbour Quays investment properties were also damaged in the earthquake and CentrePort continues to work with its engineers and insurance assessors to determine the extent of the damage,” WRC Holdings said.

“The longer-term plan to repair or reinstate the Port infrastructure, damage to the land, and investment properties will commence once damage assessment reports are completed.

“The long-term recovery plan and strategy will be widely consulted on with stakeholders,” the company added.

The earthquake, which took place on the South Island of New Zealand November 14 last year, had a magnitude of 7.8 (Mw).

It caused land at CentrePort to subside or collapse into the sea and rendered its container terminal inoperable.

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