In a surprise move about five weeks ago, Port of Tauranga announced plans to take a 50%, almost $22 million stake, in Timaru's PrimePort, which is expected to revitalise the port, with its 35-year lease on container operations, land and other assets.
Port and transport sector analysts have admitted to not knowing what Port of Tauranga wants to achieve with the joint venture, while Tauranga has said Timaru could become a ''marshalling point'' for South Island cargo, to link with international services from Tauranga.
The Timaru council will sell 21.43% of its total stake, taking its stake down to 50%.
The balance of POT's 50% will come from the sale of private company Port Industry Holdings Ltd's entire 28.57% stake, the latter owned by nine private South Cantabrians, mainly from Timaru.
Following the departure from Timaru by giant shipper Maersk about two years ago, Lyttelton Port of Christchurch had picked up about 70,000 containers annually from Timaru, while Port Otago had opened a rail link and handled about 10,000.
Port Otago chairman Dave Faulkner said recently Port Otago was confident of retaining its share of containers from South Canterbury.
A Timaru District Council spokesperson said yesterday there had been 44 public submissions put to the council yesterday, 41 in support and three against, after which the 10 councillors and mayor voted to unanimously support the proposal.
