A 16-month-old merger proposal between Port Otago and listed Lyttelton Port of Christchurch is continuing, after a joint statement yesterday which shed little light, however, on the complexity of the parochial issue.
The ports believe by merging operations they will achieve large savings in capital expenditure, rather than each replicating the others' services.
Despite both saying they were "treating this issue with the utmost urgency", shareholders and the public of Otago and Canterbury should prepare for a long wait, as Port Otago and LPC mull over the first consultant's report, which was not made public because of its commercial sensitivity, and a more recent report, reviewing the first report.
Chairmen John Gilks of Port Otago and Rodger Fisher of LPC said in a joint statement yesterday both were satisfied the potential benefits of a merger meant continuing with negotiations would be worthwhile.
"We are now looking at the next stage of more detailed negotiations, based upon the content of the [consultant] Antipodes report.
"We appreciate this will take some time as it is a complex concept, but it is important that a robust process is followed."
Any decision to merge would require shareholder agreement, with LPC 75%-owned by the Christchurch City Council and Port Otago 100%-owned by the Otago Regional Council.
Then competition regulator the Commerce Commission would have to give its approval, a decision which would set a precedent for the port sector.
In an interview yesterday, Mr Gilks said he had kept the ORC "reasonably well informed" during the past 12 months and would brief the council next week.
"We will seek their expression of support, or otherwise."
He stressed Port Otago was not seeking a decision, but "a judgement from the ORC on its position; if it is comfortable that we move forward [in more negotiations]".
The chairmen reiterated in the statement a key provision of talks was that each port company retain ownership of its respective land and wharves, as "significant" to both shareholders and "local interests".
