Deal sets port's growth in motion
PrimePort Timaru is in discussions with new clients as its strategic alliance with the Port of Tauranga becomes operational.
PrimePort chief executive Jeremy Boys yesterday described the transition as "seamless".
The Port of Tauranga invested $21.6 million in a 50 per cent share in PrimePort Timaru and will lease the container terminal for up to 35 years.
Mr Boys said there were opportunities to grow the business and leverage off Tauranga with freight savings.
"There is huge growth in the rural sector, including the new dairy company and irrigation," he said.
"We are in discussions with a number of possible clients and PrimePort is well positioned to offer a suite of cost-effective options."
The agreement combines the capacity of the Port of Tauranga, New Zealand's largest and most efficient port, with PrimePort's strategic position and huge commercial potential in the South Island.
The Port of Tauranga has established a new company, Timaru Container Terminal Ltd (TCT South), which is a fully owned subsidiary of the Port of Tauranga.
This company will operate the container terminal in Timaru and will lease the North Mole from PrimePort. TCT South will manage the container trade, multipurpose cargo and related container business on the North Mole and will own all container cranes and forklifts.
PrimePort will continue to manage all other trades.
The governance of PrimePort Timaru has also changed. There are three new directors: David Pilkington of Wellington, William Bayliss of Queenstown and Port of Tauranga chief executive Mark Cairns, who join Roger Gower (chair) of Auckland, Philip Wareing of Methven and Nigel Gormack of Timaru.
- © Fairfax NZ News