Port Chairman calls for Govt action on ports
May 21st, 2009
Port of Tauranga chairman, John Parker, appears on a collision course with transport Minister, Steven Joyce, on the role of Govt in reshaping the country’s ports. Parker believes some council-owned ports are performing badly and the Govt should give them a “nudge” and facilitate port rationalisation. “Most ports make truly abysmal financial returns on their assets and most rational investors would sell and put their money in lower risk, higher returning bank deposits or, give it back to ratepayers.” Parker is not prepared to name specific ports he claims are under-performing.
Rather than outright privitisation, he wants the Govt to require councils to put port assets in holding companies with a majority of independent directors he says would be competent managers rather than just “compliant mates.” He says such a move is required so the port sector can rationalise and deliver the efficiency gains possible through sector restructuring such as allowing 6000TEU capacity container ships to call at NZ ports. “The bigger ships are available now and pressing to come to New Zealand. The huge savings estimated by Fonterra are tantalisingly within reach.”
Parker’s comments fly in the face of those of Joyce who says the National Party believes it is up to international shipping lines and exporters to determine which ports should invest to handle larger capacity ships and which should become feeder ports. This policy position is despite concerns from within the sector such a hands-off approach could in fact see the interests of international shipping lines come before those of exporters and the wider business community.
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