8 Oct 2013

Northland Port urged to trim sails

7:18 am on 8 October 2013

Northland Port Corporation's board has too many directors on it, the company's costs are rising unnecessarily and it may be missing a strategic opportunity, the Shareholders' Association says.

Alan Best, who is associate director of the association and editor of its newsletter, said his organisation had a lot more questions than answers about the investment company, which is 52% owned by the Northland Regional Council.

"It's a relatively small investment company whose earnings really come from its holding in the port and its stevedoring and cool storage and then, to a minor extent, its landbank beside the port," Mr Best said.

"Income about $10 million but it has a board that's the equivalent of Fletchers - eight people - and that's really too big for a company of that size. In addition to that, its expenses seem to keep rising."

The association believed minority shareholders were being disadvantaged because the corporation "really should be trimming its sails" and paying its shareholders - the ratepayer - more, he said.

The corporation should take a leaf out of sharemarket darling Port of Tauranga's book; its shares were worth more than $14 - up from $2-3 only a few years ago. One of the reasons for its change of fortunes was aggressive management, Mr Best said.

Northland Port Corporation holds its annual shareholders' meeting on 18 October, and the association is seeking proxies from its members.