Lyttelton Port Company will spend $821 million building a new deepwater wharf and container terminal at Te Awaparahi Bay, in a move it says will safeguard the South Island's key international trade gateway for decades to come.
The project, announced today in partnership with Christchurch City Holdings Limited, will deliver a 388m wharf, a five-hectare container terminal and four new ship-to-shore cranes, and is expected to be complete by 2031.
Lyttelton Port chairperson Barry Bragg said the investment marked a significant step for the port, Christchurch and the wider South Island economy.
"We've spent the last decade rebuilding and strengthening the port. Today's announcement is about creating the capacity, resilience and capability needed for the next generation of South Island trade," he said.
Port chief executive Graeme Sumner said the case for investment was clear, pointing to ageing infrastructure, growing demand, larger ships and rising export volumes.
"The resilience of some of the container berths is a major driver for the project. Rebuilding them would take at least three years and significantly disrupt container operations."
The existing Cashin Quay 3 and 4 berths were damaged in the 2010 and 2011 Canterbury earthquakes and later repaired, but their age and past seismic exposure mean they would probably not remain usable after another large quake.
Sumner said the expansion removed the need for that rebuild altogether.
"Building the Te Awaparahi Bay expansion removes the need to rebuild these wharves and allows the port to continue operating at full capacity."
The plans were met with criticism from the port's unions. The Maritime Union of New Zealand and the Rail and Maritime Transport Union called on the port company to pause the project, open its books and commit to genuine consultation, saying workers and the community have been shut out of a decision made "behind closed doors".
The unions also opposed any move toward automation without full discussion with affected workers, and questioned the forecasts underpinning the business case and asked how much debt was being loaded onto council-owned companies.
The project will be funded through a combination of debt taken on by LPC, along with about $300 million in equity from Christchurch City Holdings.
Christchurch City Holdings chairperson Bryan Pearson said the board approved the major transaction following extensive due diligence into the project's strategic need, business case and funding pathway.
"This approval by Christchurch City Holdings Limited reflects confidence in Christchurch, the South Island economy and our strong belief in Lyttelton Port Company's role as the South Island's key international trade gateway," Pearson said.
Once complete, the port's annual berth capacity will sit at around 850,000 twenty-foot equivalent units, or TEU, with the new terminal able to service vessels of up to 15,000 TEU. The terminal will use semi-automated gantry yard cranes to handle more containers in less space.
Sumner said the announcement followed a period of strong financial performance for the company.
"None of this happens without our people. Today's announcement reflects the commitment, expertise and hard work of generations of Lyttelton Port Company staff," he said.
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