Port Taranaki loses out on coal contract

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

30 Nov 2007

Port Taranaki will miss out on an $NZ80 million ($A69.17 million) export coal contract after Pike River Coal Ltd announced on Tuesday they will send their coal to Lyttelton, near Christchurch. Solid Energy signed an 18-year agreement with fellow coal miner Pike River to carry coal on the Midland rail line to Lyttelton Port for export. Two years ago Pike River entered a contract to deliver 1.3 million tonnes of coal a year from its West Coast mine to New Plymouth for export. Port Taranaki chief executive Roy Weaver said Tuesday's announcement was a "bombshell", the Taranaki Daily News reported.Port Taranaki was to make an $NZ18 million ($A15.56 million) investment in upgrading and had started a purpose-built coastal bulk ship.The port has also just spent $NZ20 million ($A17.29 million) on a dredging project designed to deepen the harbour so it can accommodate much bigger ships .Pike River chief executive Gordon Ward said that while Port Taranaki would have to wear some financial losses, he doubted the loss of the contract would impact the company's bottom line.