Port of Tauranga - Kotahi Deal
Thursday June 26, 2014
The Port of Tauranga has today announced the conclusion of containerised volume commitment agreements with Kotahi Logistics. The 10 year arrangement will see a significant increase in container volumes being shipped through the Port of Tauranga.
Kotahi is a joint venture between Fonterra and Silver Fern Farms, and controls the shipping logistics of a significant proportion of the country's dairy and meat exports to international markets.
These volume commitments from Kotahi will allow the Port of Tauranga to now undertake its consented dredging operations in the Tauranga shipping channels, thereby increasing the size of container vessels which are able to call at the Port. These commitments will also see an increase in container volumes being transhipped through the Port of Timaru, which the Port of Tauranga has a significant strategic interest in.
Holland Beckett partner Mark Tingey, led the legal team for the Port of Tauranga in the documentation and completion of the arrangements with Kotahi. Holland Beckett regularly advises the Port on commercial and strategic matters, having also recently represented the Port in successfully obtaining resource consent for the deepening and widening of shipping channels in the Tauranga Harbour. Mark noted that “not only is the deal with Kotahi a significant step for the Port in becoming “big ship” capable, it is also a significant step change for local businesses in Tauranga. The Port has always been a significant commercial driver for Tauranga, and is serviced by a large number of local businesses from trucking companies through to logistics and other service industries. Local business owners should be feeling pretty excited by this news as when the Port is doing well, local business also does well. We were very pleased to be able to work with the Port on the Kotahi alliance and demonstrate our commercial capabilities on a transaction of this size and complexity. Its good to see that the Port has the confidence to use a local law firm in a transaction which has not only regional economic significance, but also at a national level for New Zealand Inc. as well.”
Mark was assisted by Ken Hawkes, who recently joined as special counsel to Holland Beckett.
Ken, an experienced commercial lawyer, has recently returned to New Zealand after many years practicing as a partner with international law firm, White & Case. “We are fortunate to have someone of Ken’s experience on board to assist on the Port’s strategic alliance with Kotahi,” Mark commented. With Ken on board, the commercial team at Holland Beckett is well placed to provide other clients of the firm with advice on sensitive and complex commercial transactions.