LPC

[Marilyn Munroe]

"The Christchurch City Council is the majority shareholder of LPC, with 75%, and would appear to be the logical buyer"

Hmm. The Christchurch City Council has received a recent report from Korda Mentha on their financial position. It revealed the Council is about to suffer a significant cash squeeze caused by under insurance and cost blow-outs on earthquake reconstruction projects. Christchurch City Holdings will come under pressure to provide cash for the Council. While in normal times CC Holdings would have liked nothing better than to take out the minority shareholders and gain direct access to the Ports cash flow these are not normal times. I doubt if the council would be happy if CC Holdings committed precious cash to balance sheet engineering.

An alternative option presents itself if Otago wishes to quit its shareholding. CC Holdings could join Otago and do a John Key style privatisation selling their interest down to 51%. The cash raised would be gratefully received by the Council.

Boop boop de do
Marilyn

[Snoopy]

Hmm. The Christchurch City Council has received a recent report from Korda Mentha on their financial position. It revealed the Council is about to suffer a significant cash squeeze caused by under insurance and cost blow-outs on earthquake reconstruction projects. Christchurch City Holdings will come under pressure to provide cash for the Council. While in normal times CC Holdings would have liked nothing better than to take out the minority shareholders and gain direct access to the Ports cash flow these are not normal times. I doubt if the council would be happy if CC Holdings committed precious cash to balance sheet engineering.

Cost savings could be gained by delisting LPC Marilyn. Less people on the PR side of the business to deal with all those pesky small shareholders. No more fees to the NZX, and possibly reduced auditing costs as well. The AGM expenses would be reduced to a single cup of tea with the mayor.

Now remember the MRP director fee hike just before listing due to the bringing on board of public shareholders? This time we would have the reverse. Directors would willingly take a fee cut because they no longer had any direct public accountability. OK maybe that last one is descending into the world of fantasy.....

SNOOPY

PS On the other option of a John Key style 49% listing. If this were to happen I would predict a full takeover first, then the council raiding of the LPC insurance boosted piggy bank, before the floating of shell version of LPC in the future.

[percy]

Freight companies in Canterbury region will be pleased with today's announcement that Port of Tauranga's signing of a conditional agreement to buy 15 hectares at Rolleston for development as an intermodal freight hub,to receive,pack and distribute containerised cargo.

[Marilyn Munroe]

This is interesting and will put LPC on their mettle.

I assume this inland port will be adjacent to the siding already used by Westland Dairy in the industrial area.

POT-Timaru will need to invest in straddles and ship to shore container cranes to make this work. Their tower crane and forklift method shipside will strugle to handle any increase in through-put.

I wonder if Kiwi Rail will reinstate the Rolleston Triangle to make connections to the South Line easier, and what strategy POT-Timaru has, will Timaru feed Tauranga via coastal shipping or will Timaru become an direct shipment port?

How can LPC repond? More gantry capacity at Chapmans Road, more truck lanes at the Lyttelton Terminal, bring forward the terminal expansion on to the Te Awaparahi Bay reclamation. If they really wanted to take the battle to POT-Timaru they could set up their own inland ports at Temuka Washdyke and Ashburton.

Boop boop de do
Marilyn

[percy]

This is interesting and will put LPC on their mettle.

I assume this inland port will be adjacent to the siding already used by Westland Dairy in the industrial area.

POT-Timaru will need to invest in straddles and ship to shore container cranes to make this work. Their tower crane and forklift method shipside will strugle to handle any increase in through-put.

I wonder if Kiwi Rail will reinstate the Rolleston Triangle to make connections to the South Line easier, and what strategy POT-Timaru has, will Timaru feed Tauranga via coastal shipping or will Timaru become an direct shipment port?

How can LPC repond? More gantry capacity at Chapmans Road, more truck lanes at the Lyttelton Terminal, bring forward the terminal expansion on to the Te Awaparahi Bay reclamation. If they really wanted to take the battle to POT-Timaru they could set up their own inland ports at Temuka Washdyke and Ashburton.

Boop boop de do
Marilyn

Although I agree with what you have written,I think it comes down to fewer large ship visits.
I was not joking when I wrote NZ's hub port will be either Tauranga or Melbourne.I think, and hope it will be Tauranga.
POT are also involved in Northland Port.Anything they do they do it right first time.

[Marilyn Munroe]

In reply to Percy;s post above;

It is unlikely their would be only a single container hub in New Zealand. The reason; the cost of moving boxes across the iron bridge on Cook Straight. Hubbing is trend in container transport but in Aoteroa the gap in the middle means that consolidation will take place separately on each island

The Danes already hub their boxes at either Malaysia or Panama. I can't see the logic of hubbing in Melbourne, it is not on the way toward anywhere else.

Wandering off-topic a bit. If the National Government were serious about their aim of assisting economic development in Northland they would get Gerry the Colossus of Rhodes to pull the pin on the wasteful Holiday Highway extension and spend the money on a spur rail line to Marsden Point instead.

Boop boop de do
Marilyn

[percy]

We can only hope you are right.
Larger ships means fewer ship visits.
Port calls will be decided by shipping lines.
Melbourne?? Again hope not.
NZ being at the bottom or end of the world means we do not rate highly on shipping company's radar.

[percy]

From the internet.Australia's largest container port is Melbourne.Annual TEU 1.9mil.

[Marilyn Munroe]

There is a, on one hand.. on the other hand, item by Marta Steeman in todays Christchurch Press,

Her conclusion, its not quite as easy for POT-Timaru as you would think.

http://www.stuff.co.nz/the-press/bus...efit-Lyttelton

Boop boop de do
Marilyn

[percy]

There is a, on one hand.. on the other hand, item by Marta Steeman in todays Christchurch Press,

Her conclusion, its not quite as easy for POT-Timaru as you would think.

http://www.stuff.co.nz/the-press/bus...efit-Lyttelton

Boop boop de do
Marilyn

Loved the quote "It's very early days."
So true.