Keep Our Port Public

Joint statement from Port Otago Limited Chairman, John Gilks and Lyttelton Port Company of
Christchurch Chairman, Rodger Fisher, 30 October 2008

“Port Otago Limited [POL] and Lyttelton Port Company of Christchurch [LPC] have today announced
that a Memorandum of Understanding has been signed to explore a merger of their respective port
operations.

A steering group representing both companies has been established to work with an independent
advisor to explore the potential benefits and recommend a path forward. The interests of all
stakeholders will be considered throughout the process.

This is a major step forward, however, whilst there is much support for this process from the two
Boards, it must be emphasised that this is the first stage and there is significant work to be done.
The focus is on operational integration to strengthen the performance and future of both companies.

The Boards believe that significant efficiencies and other benefits that could not otherwise be achieved
will result from the proposed integration.

A key element with any future structure is that each port will retain ownership of its core physical
assets [such as wharves and land]. This is recognised as being of significant importance not only to
shareholders but to local interests.

Core port assets will remain in local control. To achieve this, the structure being considered involves
the legal separation of the infrastructure assets from the operations and commercial activities that
occur at each port.

Key stakeholders including staff, unions and shareholders are being briefed and will be kept informed
on progress.

The integration of the operations of POL and LPC would result in:
• Co-ordination of future expenditure to avoid duplication
• Reducing the environmental impacts through co-ordinated road and rail use
• Increased productivity at each port
• Joint development of new services
• Significant efficiencies being achieved

The need for port rationalisation within New Zealand has long been recognised. This investigation
takes up that challenge. It will address both the interests of stakeholders and any legal obstacles to
integration.

An operational merger such as this could help future proof both ports and it is important for both LPC
and POL to continue contributions to the economy at the same or better level than currently.

Customers have specific requirements that necessitate long-term infrastructure worth millions of
dollars and an operational merger could potentially allow for co-ordinated port development.

POL Chair John Gilks and LPC Chair Rodger Fisher are confident that there is a robust process in
place to ensure both companies give serious consideration to how they could work together in the
future in the interests of all stakeholders.

The Chairmen of the two companies are enthusiastic about the signing of the MoU, which is the first
stage of this process. They are also committed to investigating all the options; the potential
challenges and benefits, and then recommend an appropriate path forward.

It would be inappropriate for the companies to make any further public comments during the
investigation process.”

. This entry was posted on Thursday, November 6th, 2008 at 4:09 am and is filed under In the media. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.