By Pam Graham of NZPA

Wellington, Dec 24 NZPA - The tradition of Christmas Eve business news bombshell continues in the form of a short statement from NZL Group about plans to set up a container terminal at Port of Tauranga.

The large privately owned New Zealand logistics company says it has a contract dating back to the days when P&O Ports operated Tauranga's container terminal which gives it the right to set up again.

It has advised the port of its intention to do so, providing shipping companies with a choice of a new private container terminal, the first of its kind in the country.

"I haven't had a reaction from the port. We advised the port a couple of days ago that we would be re-establishing our container terminal," said NZL director Ken Harris.

He said NZL had rights to use a considerable area of Port of Tauranga's Sulphur Point container terminal.

"We understand NZL think they are going to establish a container terminal," said Port of Tauranga chief executive Mark Cairns. He said the matter would be discussed with NZL in the new year.

NZL is not saying if it has any shipping customers lined up and is not saying how much it will invest in the venture.

"We believe there is enough support for us to take this step," Mr Harris said.

Until 2003 P&O Ports operated the Sulphur Point container terminal and when that arrangement stopped it was agreed that P&O would not operate the terminal for five years. That five years has now expired.

In 2006 former P&O business was bought by a group of New Zealand managers and investor Mike Pohio. Mr Pohio has links with Tainui. Tainui is not involved with the NZL investment, Mr Harris said.

Sulphur Point has been operated as one terminal by the port for five years, Mr Harris said.

"We think it is actually better to have two terminals," he said.

NZL expects to be able to have the port operate its cranes and charge NZL for the lifts for its terminal business.

"Port of Tauranga has always been fantastic about encouraging competition and we are very hopeful this can work for both parties," he said.

"We are not here to do anything to hurt the port. We are here to encourage port users. We want to work in with them as much as possible while providing a competitive choice," Mr Harris said.

NZL is one of several stevedore operators at the port.

Port of Tauranga competes for work from shipping operators with Port of Auckland so this move also has ramifications for Ports of Auckland.

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