Vero stalls on LPC payout
Insurers stall on Lytelton Port payout
NZX-listed Lyttelton Port Company [NZX: LPC] has received $53 million from its insurers but it needs $465 million to reinstate earthquake-damaged facilities.
Te port is negotiating with its insurers led by Vero and will meet with them in December for mediation.
Shareholders at the annual meeting today heard from chairman Trevor Burt and chief executive Peter Davie about plans to for another $500 worth of redevelopment over the next 20 years in addition to the resintatement.
The bold plan envisages moving the port operations from the inner harbour further east towards the harbour entrance.
To facilitate this the port company will seek consents to expand a reclamation area to the east at Te Awaparahi Bay to 30ha from the 10ha already consented, of which 4.5ha has been completed.
The company has been using rubble from demolished buildings in central Christchurch.
The move would open up the inner harbour to more recreational facilities – a reversal of previous plans under a former board to evict pleasure boats from an inner city marina and expand port operations there.
But meantime, over the next year or two the company will redevelop Gladstone Pier, which involves removing a breakwater on the western entrance to the inner harbour to allow room for cruise ships to enter.
Lyttelton Port company is majority owned by Christchurch City Council with a minority holding held by Port Otago and smaller individual holdings.
The earthquake-adjusted profit after tax was $15.2 million, down 11.1% from $17 million last year. The company moved outside its business interruption indemnity periods for the loss of its cruise ship revenues of approximately $2.2 million.
Operating revenue were $110.7 million, up 5.8% from $104.5 million the previous year.
No dividend will be paid but Mr Burt says they will resume in 2014.
Mr Davie says the port has enjoyed strong trade from logs and machinery used for the Christchurch rebuild.
Chris Hutching
Fri, 08 Nov 2013
Fri, 08 Nov 2013
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Vero stalls on LPC payout
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