Lyttelton Port Company (LPC) will invest $821 million to build a new deepwater wharf and container terminal at Te Awaparahi Bay, aiming to strengthen the South Island’s key international trade gateway for decades to come.
According to a report by 1News, the project, announced in partnership with Christchurch City Holdings Limited, will include a 388-metre wharf, a five-hectare container terminal and four new ship-to-shore cranes. Construction is expected to be completed by 2031.
LPC chairperson Barry Bragg said the investment represented an important milestone for the port and the wider South Island economy.
"We've spent the last decade rebuilding and strengthening the port. Today's announcement is about creating the capacity, resilience and capability needed for the next generation of South Island trade," he said, 1News has quoted.
Chief executive Graeme Sumner said the investment was driven by ageing infrastructure, increasing demand, larger vessels and growing export volumes.
"The resilience of some of the container berths is a major driver for the project. Rebuilding them would take at least three years and significantly disrupt container operations," as quoted by 1News.
According to a report by 1News, the existing Cashin Quay 3 and 4 berths were damaged during the 2010 and 2011 Canterbury earthquakes and subsequently repaired. However, their age and previous seismic damage mean they may not remain operational following another major earthquake.
Sumner said the new development would eliminate the need for a major rebuild of those berths.
"Building the Te Awaparahi Bay expansion removes the need to rebuild these wharves and allows the port to continue operating at full capacity," as quoted by 1News.
The proposal has faced opposition from port unions. The Maritime Union of New Zealand and the Rail and Maritime Transport Union have called for the project to be paused, demanding greater transparency and consultation with workers and the community. They said the decision had been made "behind closed doors," as quoted by 1News.
The unions have also raised concerns about potential automation, the forecasts supporting the project and the level of debt being taken on by council-owned companies.
The project will be funded through LPC debt and approximately $300 million in equity from Christchurch City Holdings.
According to a report by 1News, Christchurch City Holdings chairperson Bryan Pearson said the company had approved the investment after extensive due diligence into the project's strategic importance, business case and funding arrangements.
"This approval by Christchurch City Holdings Limited reflects confidence in Christchurch, the South Island economy and our strong belief in Lyttelton Port Company's role as the South Island's key international trade gateway," Pearson said, 1News has quoted.
Once completed, the port is expected to have annual berth capacity of about 850,000 twenty-foot equivalent units (TEU). The new terminal will be capable of handling vessels carrying up to 15,000 TEU.
The terminal will also use semi-automated gantry yard cranes, allowing the port to handle more containers within a smaller footprint.
Sumner said the project followed a period of strong financial performance for LPC and credited the company's workforce with the company's progress.
"None of this happens without our people. Today's announcement reflects the commitment, expertise and hard work of generations of Lyttelton Port Company staff," he said, as quoted by 1News.
ISSUE
Leave a Comment