People in Northland are being urged to have their say in a proposal that would see the Northland Regional Council significantly increase its shareholding in Northport.
Council Chair, Geoff Crawford says the Council is one of three parties in a consortium that wants to bring full control of Marsden Point-based Northport under a single ownership umbrella via a new joint-venture company combining Marsden Maritime Holdings (MMH) and Northport.
Under the proposal, the Council would hold a 43% stake in the new company. Council’s partners in the initiative are Port of Tauranga (POT) – which would hold a 50% stake in the proposed venture – and Tupu Tonu (Ngāpuhi Investment Fund Ltd), which would have a 7% stake. The Council and POT would have equal decision rights.
Chair Crawford says the council is currently consulting on its plans and residents have until Friday 28 March to have their say.
“Council is proposing the deal because it would set the region’s port up for the future and simplify MMH’s ownership structure by combining the port and land-based assets and bring full control of Northport and MMH under a single ownership umbrella,” he said.
“Importantly, this proposal keeps ownership of the port in New Zealand, gives Northland a bigger stake and influence over the future direction of this regionally significant infrastructure asset, and strengthens our strategic partnership with Port of Tauranga, the country’s largest port operator.”
The proposal would also ensure – via NRC and Tupu Tonu’s combined interest – that half of the shareholding in the port is held in Te Taitokerau. Tupu Tonu is a Crown-owned investment company tasked with establishing a portfolio of commercial assets that can be offered in future Treaty settlement negotiations with Ngāpuhi.
Chair Crawford says the Council’s share of the proposed deal is not expected to impact rates. The additional $40 million required from Council – on top of its current shareholding in MMH – would be paid for by borrowing from the New Zealand Local Government Funding Agency as well as selling some of the council’s non-strategic property assets.
The Council says the deal would also:
- Give council a bigger stake in the revenue-generating elements of the assets, including the port;
- Help ensure council investments – which help subsidise rates – are performing optimally on behalf of its communities;
- Give council more visibility, control and influence over future port growth and development.
Chair Crawford said the deal would see the consortium buying-out other parties’ shares in MMH, delisting MMH from the New Zealand Stock Exchange and creating a joint-venture company that combines MMH and Northport.
He says that under the proposed deal, the Council would hold a much bigger stake in the resulting new-look Northport.
“That sounds counter-intuitive, but the way MMH is structured now means council, with its current 53.6% share, effectively owns only 26.8% of Northport.”
“In contrast, as part of the consortium proposal the council would own 43% of Northport.”
Chair Crawford says that because the proposal involves a ‘strategic asset’ (NRC’s investment in MMH), it would mean an amendment to its Te Mahere Roa | Long Term Plan 2024-2034.
“The only parts of the Long Term Plan that would change are those impacted by the proposal, like our financial statements.”
“It wouldn’t change our strategic direction, or community outcomes; and our levels of service, KPIs and work programmes will remain as they are.”
He says the decision of whether to proceed with the deal would only be made after hearing from the public and he urged as many people as possible to familiarise themselves with the details of the proposal and let the council know what they think.
To find out more about the proposed deal and have your say on it, visit www.nrc.govt.nz/MMHproposal.
