Top ports accused of loss-leading

Mr Layton’s Port Performance and Ownership – an Assessment of the Evidence report states the ownership situation has “militated” against the rationalisation of port activities in New Zealand and the introduction of experienced international operators into port management.

Furthermore, it says there is “some evidence” Ports of Auckland and possibly Lyttelton Port of Christchurch, have in recent times “succumbed to local pressures to retain and grow the volume of trade through their port by agreeing to provide international shipping lines with levels of service at charges such that the services may not make a full economic return”.