Changes for container service
New Zealand’s largest port company is negotiating to take 100 per cent ownership of the Timaru Container Terminal (TCL) business.
The Port of Tauranga (POT) already owns 50.1 per cent of the country’s largest containerised freight managing company it set up in 2013 to operate the terminal but is now set to buy back the remaining 49.9 per cent that partner Kotahi Logistics LP Ltd has held since 2014.
A POT spokeswoman said yesterday it will take over Kotahi’s shareholding within weeks, but more details cannot be released as the deal was still in the negotiation process.
The deal was flagged in a statement on September 23 from port operator, PrimePort Timaru, which is jointly owned by POT and Timaru District Holdings Ltd.
PrimePort Timaru, in announcing a net after-tax profit of $5.6 million, said it received ‘‘significant income from the lease to Timaru Container Terminal Ltd’’.
‘‘Kotahi plans to exit its shareholding in TCTL in the near future, but will continue its commitment to container volumes,’’ the PrimePort statement said.
TCTL, which employs about 100 people including contractors, had a small upturn in TEU (6.1-metre) container volumes during 2019-20, increasing by 1400 to 80,000, according to PrimePort.
The POT spokeswoman said there were no expansion plans in place for the container terminal.
‘‘We just wanted to make sure we had signalled the intention by
Kotahi, there’s no change to the future of the terminal.
‘‘We are always looking for new customers, but we are expecting growth plans for the terminal to remain unchanged.’’
Kotahi will continue its commitment to container volumes, the company’s chief executive, David Ross, confirmed.
‘‘We have worked with Port of Tauranga to establish Timaru Container Terminal’s robust position and now is the right time to move on from port asset ownership.
‘‘Kotahi’s focus is on creating digitally enabled and resilient ocean freight supply chain solutions in an evolving and challenging global landscape.’’
POT chief executive Mark Cairns said the change will have no impact on cargo volumes handled through the container terminal.