The Port of Tauranga Ltd has purchased half the Port of Timaru for $21.6 million, the company announced to the New Zealand stock exchange today.

PTL is buying a 50 per cent shareholding in Timaru's PrimePort, excluding its investment properties.

Port of Tauranga has purchased 50 per cent of the Port of Timaru.

It is to lease PrimePort's container terminal for up to 35 years, acquire the container terminal operating assets and set up a new Port of Tauranga wholly owned subsidiary, Timaru Container Terminal Limited, to lease and operate the terminal.

Port of Tauranga's purchase includes all plant associated with the container terminal including cranes, forklifts and mobile plant.

Port of Tauranga is funding the acquisition from within current bank facilities.

The transaction is subject to the successful outcome of the Timaru District Council's month long public consultation process that commences on 17 August 2013.

Port of Tauranga and PrimePort share many customer relationships, says Port of Tauranga Chief Executive Mark Cairns.

PrimePort is located in the heart of one of the country's leading primary production regions, while 75 per cent of the South Island's population is located within a 200 km radius of Timaru's port gates.

PrimePort is also ideally positioned to tranship more South Island cargo across Port of Tauranga's container terminal, and it has capacity to grow.

In 2008, PrimePort was handling 80,000 TEU a year. This number has declined as shipping lines have rationalised port calls in New Zealand.

'We see opportunities to grow PrimePort Timaru as a marshalling point for South Island cargo,” says Mark.

'The alliance with PrimePort will allow South Island exporters and importers to benefit from the large number of international services that call at Tauranga, share the significant freight savings that will come with the arrival in New Zealand of the next generation of large ships and benefit from Port of Tauranga's container terminal expertise and world class productivity.”

'We are looking forward to working with PrimePort to develop opportunities to ship coastally and realise the significant economic benefits that the next generation of ships offer the national economy,” says Mark.

Port of Tauranga offers greater flexibility and choice to exporters and importers with more than fifteen international services calling at Tauranga Container Terminal.