CHRISTCHURCH City Holdings, the investment arm of Christchurch City Council, has knocked back a proposal by DP World and local interests to invest in and manage the port of Lyttelton.
The “unsolicited” proposal was lodged with CCHL in mid-June [DCN 19 June] and involved the Tōnui Consortium, a joint venture between DPW and three Runanga: Ngāti Wheke, Ngāi Tūāhuriri, and Te Taumutu.
The consortium proposed acquiring a majority interest in a long-term lease of the operating entity of Lyttelton Port Company.
The plan was immediately opposed by the Maritime Union of New Zealand and Rail & Maritime Transport Union, which immediately characterised it as “privatisation by stealth” and mounted a series of public protests which are reported to have generated strong support.
In a decision announced on Thursday [30 July] CCCH said it had “declined to proceed with a proposal to lease operations at the port”. CCHL chair, Bryan Pearson, acknowledged the effort by the Tōnui Consortium in considering the future of Lyttelton Port and preparing the proposal.
“Lyttelton Port is a strategic asset for the city and region, and there are diverse groups within our community with interests in its future,” Mr Pearson said.
“Our assessment of the proposal, as presented, is it does not meet the threshold for ongoing consideration and is not sufficiently compelling to warrant further detailed investigation by CCHL, or additional consultation with Council given its Letter of Expectation.”
CCHL is mindful of the LPC workforce and the breadth of community interest in the port’s operation, the company said. Christchurch City Council’s 2026/2027 Letter of Expectation to CCHL is explicit in its direction, which does not support leasing the port and encourages retention of a directly employed workforce.
CCHL reached its conclusion specifically considering LPC’s improving operational and financial performance, as well as input provided by LPC on the resilience of its infrastructure and the leadership required to maintain a culture of safety and efficiency.
"CCHL maintains full confidence in the LPC board and management and their operation of the port, and continues to work closely with LPC in considering the port’s long-term development and associated investment," Mr Pearson said.
DCN understands the Tōnui Consortium’s vision included striving to make Lyttelton the main South Island container facility by extending landside links with other sea ports while expanding the network of inland ports.
The generation of additional throughput would be accommodated and supported by major investment in the Lyttelton Container Terminal. This would enable much higher volumes to be handled on the existing footprint without the need for additional reclamation in Lyttelton Harbour.
CCHL said that due to commercial and confidentiality considerations it would make no further public comment on the detail of the unsolicited proposal.