Hearing to determine wharf fees

Two of the largest companies in Southland will attend an arbitration hearing today to solve a long-standing dispute about wharf charges.

Representatives from South Port and New Zealand Aluminium Smelters will attend the hearing in Wellington to determine an appropriate charge for the use of the Tiwai wharf and its access bridge.

A report released by South Port in February says the smelter renewed its historic agreement in April 2008 to use the port's Tiwai wharf for a further 35 years, but the two companies have not been able to agree on a fee.

South Port chief executive Mark O'Connor would not comment about the specifics of the arbitration hearing or what each party wanted the fee to be for using the wharf, but said the outcome of the hearing would be binding for both companies.

A smelter representative could not comment on the hearing either, but a statement sent on behalf of general manager Ryan Cavanagh said South Port and the smelter retained a good working relationship.

The decision between South Port and its largest customer by volume should be known by the end of the 2010 financial year.

- © Fairfax NZ News

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