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Productivity Commission Favours Port of Tauranga Model

Date: 12 January 2012

 

The New Zealand Productivity Commission speaks highly favourably of the Port of Tauranga Limited operating and ownership models in in January 2012 Draft Report on International Freight Transport Services.

The draft report noted "In the Commission's conversations with port managers and others from around the country, it was clear that they generally regard Port of Tauranga as the nation's best-performing port. Tauranga's better performance was generally attributed to three factors:

  • ownership structure (an NZX-listed firm with a substantial private shareholding);
  • owner behaviour (Bay of Plenty Regional Council treating the port as a financial asset rather than an asset to control); and
  • business model (emphasising contestability between service providers within the port).

It went on to ask "what has the Bay of Plenty community lost through having New Zealand's best-performing port in their region? What have they gained? To the extent that the Port of Tauranga ownership model has led to better financial performance, then the ratepayers of that community have benefited though lower rates. To the extent that the ownership model has driven efficiencies at the port, attracting increasing volumes of freight, then the regional economy has gained."

Quayside Holdings Limited is a 54.94% holder of the Port of Tauranga Limited through its subsidiaries.

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