Transport options in the Canterbury region are likely to receive a boost with news that the Port of Tauranga has agreed to buy half of PrimePort Timaru.
The $21.6 million dollar deal is subject to public consultation over the next month.
Under the deal, PoT will buy a 50% stake in PrimePort, lease the container terminal for up to 35 years, acquire the container terminal assists, and create a new subsidiary, Timaru Container terminal, to operate the terminal.
“Port of Tauranga continues to invest in becoming New Zealand’s hub port,” said chief executive Mark Cairns in a statement. “We see opportunities to grow PrimePort Timaru as a marshalling point for South Island cargo.”
The deal is good news for the immediate region, with Timaru losing two major container lines from the port in the last year.
Timaru District Council, whose commercial arm owns a stake in the port, is backing the deal saying it would be a ‘giant boost’ for the district.
