The Hawke’s Bay Regional Council has announced options to sell a stake in Napier Port.
Council chairman Rex Graham says the move is necessary to “avoid having all investment eggs in one basket”.
Cargo volumes at the port, which is wholly owned by the council, are set to increase by about 50% over the next 10 years.
Around $275 million of investment is needed for the port to keep up with the demand and growth.
The port currently makes up 74% of the council’s income generating investments and concerns are being raised that ratepayers are overly exposed to one asset.
A report released on Wednesday lists a partial sell-off or NZX listing as possible options.
“One of the reasons behind commissioning this report is to understand how we can support our economy by enabling the port to grow without placing undue pressure on ratepayers and port users or reducing our ability to protect and enhance our environment,” Graham says.
“As it currently stands, a natural disaster impacting Napier Port would have a significant and immediate impact on rates and reduce our ability to do the important work of the Council in enhancing the Hawke’s Bay environment.”
Graham says council members will consider options raised on the report and will be carrying out community consultation before final decisions are made.
