Keep Our Port Public

http://www.stuff.co.nz/4231604a23399.html

Hong Kong giant Hutchison Whampoa made an approach to buy a stake in the Ports of Auckland after its failure to shore up a deal with Lyttelton Port, inside sources say.
Hutchison, the vehicle of magnate Li Ka-shing, has port operations in every continent except Australasia. It is one of the world’s largest privately-owned operators of container terminals with a network of 45 ports.
Hutchison Port Holdings (HPH) approached the Ports of Auckland after its thwarted attempt to take a 50.1% stake in Lyttelton Port last year, a move which sparked talk of consolidation in the sector.
The Independent Financial Review understands Hutchison’s offer to the Ports of Auckland was included in documentation for the merger proposal, dubbed Project Marco.
Hutchison was not directly involved in the merger negotiations, said sources.
HPH corporate affairs manager Anthony Tam said it was “constantly evaluating large numbers of potential investment opportunities in many regions of the world, including Australasia”. He declined to comment further.
Ports of Auckland’s owner, Auckland Regional Holdings, denied being approached by HPH.
Analysts had tipped a buy-up of the North Island ports after the action at Lyttelton Port. Ports of Auckland was seen as an obvious opportunity.
Land and port infrastructure could be separated from the operating company and the operating company could be bought by, or sold into, a joint venture with HPH or another player, said industry observers.
There has been a string of major port transactions in recent years as Hutchison, Dubai’s DP World, and Singapore’s PSA seek scale in response to shipping line mergers.
Global container shipping giant AP Moller Maersk said this year it was interested in buying container terminals at New Zealand ports.
It was speculated the decision by its shipping arm, Maersk, to put the bulk of its cargo through the Ports of Auckland over Tauranga, was an attempt to stop the ports merger.
ARH chair Judith Bassett has said the merger proposal gave one-third ownership of the merged entity to Quayside Holdings, majority shareholder of Port of Tauranga, one third to minority Port of Tauranga shareholders,and one-third to Auckland Regional Holdings.
Port of Tauranga chair John Parker said Bassett’s assertion the merger proposal gave a guaranteed one third to Port of Tauranga’s public shareholders was “simply not true”.
Auckland Regional Council chairman Mike Lee said Port of Tauranga was “hell bent” on retaining a third share in the merger.