Inland port competition fears
Port Otago competing with Calder Stewart to establish an inland port could have a "serious impact" on the Otago Regional Council's financial position, a regional councillor says.
Calder Stewart last week proposed what it called a "$3 billion" inland port at its 200ha Milburn site, near Milton.
The Clutha-based construction giant's announcement came days before a proposed Port Otago-Dynes Transport inland port at Mosgiel got a major boost from Regional Development Minister Shane Jones in the form of an up to $8.2 million loan from the government's Regional Infrastructure Fund.
The back-to-back announcements prompted debate and uncertainty, which was picked up on at a full council meeting yesterday.
Port Otago is 100% owned by the regional council and Cr Gary Kelliher raised concerns about what would be a "a very sizable, very substantial investment" if the two projects went head to head.
"It could have a very serious impact on our balance sheet if both of these projects go together.
"And there are obvious issues appearing with the Mosgiel one already."
After the meeting, he said the main issue he was concerned about was transport related "and the heavy traffic" that would be added to the local roading network if or when the Mosgiel port was established.
"Also, that the Milton port has kind of appeared out of the blue — but these are possibly both billion-dollar projects and the Port Otago balance sheet will be carrying the development proposed by Port Otago," Cr Kelliher said.
"As ORC owns Port Otago I am immediately concerned that there are now two proposals advancing, both saying they are proceeding with knowledge of each other, and really there's only need for one.
"I think an inland port is a really good idea, but surely both proposals need to be aligned into one that meets the total needs and allays the concerns of Mosgiel residents about increased heavy traffic."
At the meeting,
Cr Michael Laws said Otago was but "one region with limited resources" and asked whether the two proposed facilities would be in competition.
"Is Shane Jones right when he says it's frustrating that there wasn't some coalescing of minds in the region before what seems to be two competitive proposals are placed against each other?"
Cr Kate Wilson, who is chairwoman of the Otago regional transport committee, said she wanted to assure people "that regional planning is going well in Otago and Southland".
"And the idea that inland ports aren't planned for is incorrect.
"The place to find that stuff is in the regional transport plan.
"And while companies can compete, well and truly outlined in there is an option that businesses will in the end, or the market, will fix the solutions."
Council chairwoman Cr Gretchen Robertson said the council was regularly briefed by Port Otago on its programme of works and another briefing was due "reasonably soon".
There was also a process through the port company's issuing of a statement of corporate intent where councillors could tell the company how they expected it to operate, she said.
"There's always competition in any business — that's healthy — and it's not our place to dictate that, I don't think," Cr Robertson said.
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