Partnership proposed for Timaru, Tauranga ports
TIMARU HERALD STAFF REPORTER
BREAKING NEWS: Container shipping is back on the agenda at the Port of Timaru in a partnership deal just announced with the Port of Tauranga.
In what is being touted as a giant boost for Timaru, the proposal would see the Port of Tauranga buy half of the shares in PrimePort, 21.43 per cent from Timaru District Holdings Ltd (TDH) and 28.57 per cent from a group of local investors.
The Mayor of Timaru, Janie Annear, said the agreement will secure profitability of the port well into the future. The agreement is for 15 years, with two further rights of renewal.
TDH will acquire full ownership of the investment property at the port, while the Port of Tauranga will operate the container terminal under a long term lease arrangement.
TDH will receive approximately $2 million from the deal, which will be used to pay down debt.
''Port of Tauranga is anticipating a significant increase in container volumes through Timaru, something PrimePort would be less likely to achieve on its own,'' Mrs Annear said.
She described the deal as the most exciting she had seen in her 18 years in local government.
The proposal needs to be approved by the Timaru District Council and must undergo a month-long consultation process with ratepayers.
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