PrimePort set to boom
'Activity will be greater than 2008'AUDREY MALONE AND FAIRFAX
A new shipping deal will see activity at port of Timaru reach an all time high.
It was announced this morning a 10-year deal was struck between the Port of Tauranga with freight and logistics management company, Kotahi.
While Kotahi has struck their own 10-year deal with major shipping line Maersk.
Port of Tauranga will issue 2 million shares to Kotahi (1.5 per cent of issued share capital) in two tranches, subject to Kotahi delivering on certain freight volume commitments over 10 years.
Kotahi will provide up to 1.8 million TEU (twenty-foot equivalent units) export cargo containers during that time.
Kotahi will also get a 49.9 per cent shareholding in Port of Tauranga subsidiary Timaru Container Terminal (TCTS) in exchange for committing to run more cargo through the terminal at PrimePort Timaru.
Both deals begin August 1.
Port of Tauranga corporate services manager Sara Lunam said the impacts on South Canterbury would huge, including job creation and opening of services to more overseas ports.
''The levels of activity will be greater than 2008 levels [when it peaked in Timaru],'' she said.
Although Lunam could not quantify the exact amount due to commercial sensitivity, in 2008 Timaru's container terminal had 80,000 TEU moving through it.
- The Timaru Herald