The latest port alliance was struck yesterday between Ports of Auckland and Napier Port, with expectations the alliance will largely benefit exporters from the Hawke's Bay region.
Three years ago, Port of Tauranga took a surprise 50%, $22million stake in Timaru's then flagging PrimePort, which has since seen a revival in its operations.
The Napier alliance announcement yesterday follows hard on the heels of the Government last week committing to a $25million boost for three road improvements to benefit Napier Port.
The Auckland-Napier move is seen by sector analysts as Auckland trying to increase its sphere of influence, to counter the Port of Tauranga, which among other produce now handles Fonterra's ex-Taranaki dairy exports, through joint venture freight company Kotahi, which Napier once handled.
Napier is combing further afield in its hinterland to gain more exports, given its roading and rail infrastructure is not user-friendly for exporters.
Announcing the $25million roading boost, Economic Development Minister Steven Joyce said improved port access was a key contributor to economic growth in Hawke's Bay.
"This connection is one of the three or four key pieces of infrastructure for Hawke's Bay's future prosperity,'' he said in a statement.
Port of Tauranga took the 50% stake in Timaru's PrimePort with a view to snaring South Canterbury produce to make its way to Tauranga for export.
In June 2014, freight company Kotahi, which is a joint-venture business between Fonterra and Silver Fern Farms, committed to boosting export cargo through Timaru, to push 2.5million TEU (twenty foot equivalent container units) to shipping giant Maersk over 10 years, and also to export 1.8million containers through Port of Tauranga.
Port Otago at the time had fewer than 10,000 TEUs coming south from Timaru on its rail corridor to Port Chalmers, and that was now less than about 5000 TEUs, Port Otago chief executive Geoff Plunket said yesterday.
"[However] we're continuing to offer that service ... there will always be some customers who will want to use it,'' Mr Plunket.
When asked, he said Port Otago was not in any active discussions with another port about forming an alliance, such as Tauranga-Timaru or Auckland-Napier.
Napier Port chief executive Garth Cowie said the port's vision was to be central New Zealand's leading provider of port and logistics solutions.
"This alliance fits with the natural flow of freight in the North Island, based on ports close to demand centres and Auckland's weighting towards imports and our strong export base,'' he said in a statement.
Ports of Auckland chief executive Tony Gibson said the ports of Auckland and Napier were the gateways to two of the largest North Island provincial economies, with significant growth and demands on infrastructure.
"It will prompt even greater competitive contestability and resilience in New Zealand's supply chain to help lower costs to exporters and importers,'' Mr Gibson said.
The partnership would allow Napier and Auckland to work together to find ways to optimise services for freight customers and achieve further scale and efficiencies in the supply chain, he said.
Mr Joyce said the Napier Port package was part of a wider $245million investment in land transport around that region during the next three years, including public transport and cycleways.
