A contract to build an $11 million tug boat and two cranes has been signed in the first phase of Port Otago's expansion plan.
The company was granted full consent in December last year to begin channel-deepening between Port Chalmers and Taiaroa Head.
The Otago Regional Council owns the port. Chairperson Stephen Woodhead says the $100 million expansion will bring it up-to-date and allow it to handle bigger ships.
Mr Woodhead says the tug and cranes will be built overseas.
