Brief public submissions last week from two Port Chalmers residents to the Otago Regional Council, Port Otago's owner, suggested the facade be saved, a refrain taken up by the Port Chalmers branch of the Maritime Union of New Zealand, which had been using the building for the past 73 years.
Port Otago has said the non-historic building was asbestos ridden and needed earthquake strengthening, while long-time tenants the Maritime Union of New Zealand had to be formally evicted from the site earlier this month.
Demolition has begun and will take up to six weeks to complete.
Port Otago chief executive Kevin Winders said while consideration was given to retaining the facade, the boundary and fenceline it sat on were part of a ''key'' electrical infrastructure upgrade.
Several buildings would be demolished in order to create a ''straddle park'' for 18, hybrid-electrical container-carrying straddle vehicles. He said the cost of retaining building facades was also a consideration.