7 Jul 2014

Tauranga could become NZ's hub port

9:12 am on 7 July 2014

The Port of Tauranga is poised to become the New Zealand hub for big ships, taking business away from all its competitors.

The Australian investment research company, Morningstar, says Port of Tauranga is the most productive port company in Australasia.

Morningstar says barring any downturn in the Chinese housing market, or significant slowdown in global trade, the port will continue to strengthen its dominant position in both the North and South Islands.

Analyst Nachi Moghe said the company had made all the right decisions in positioning itself for future growth.

He said the port has a dominant position for logs and is growing in the container business. Mr Moghe said it is also the lowest cost operator in the business as far as containers and logs go.

He said it is a well run and well managed company which thinks ahead and so is proactive.

Mr Moghe said it was likely that in the future there would be consolidation of cargo in New Zealand and Port of Tauranga was best suited to be the hub port in New Zealand.

Shares in Port of Tauranga have risen from $14.37 before it announced its 10-year freight deal with Kotahi, a freight company owned by Fonterra and Silver Fern Farms to as high as $15.80.

Port of Tauranga.

Port of Tauranga. Photo: PHOTO NZ