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Lyttelton board approves expansion, Otago names new tug

Written by Dale Crisp | Dec 17, 2025 12:00:01 AM

THE INVESTMENT case for Lyttelton’s continued Te Awaparahi Bay expansion has been approved by the port company’s board and approval will now be sought from Christchurch City Holdings Ltd and ultimate parent Christchurch City Council.

“The Te Awaparahi Bay development is vital for Canterbury and the South Island economy, and crucial for business confidence and supply chain resilience,” Lyttelton Port Company CEO Graeme Sumner said.

“It would ensure Lyttelton Port can manage increased trade volumes and larger vessels, strengthen Canterbury’s role as the South Island’s main gateway for global commerce, supply chains, and support exporters and importers,” Mr Sumner said.

“I look forward to progressing the investment case with CCHL and engaging with Council.” (CCHL is Christchurch City Holdings Ltd, the investment arm of the Christchurch City Council and holds shares in six infrastructure trading companies.)

LPC will present the investment case to CCHL in the first quarter of 2026.

“As we approach our container berth capacity, expanding our infrastructure is essential to meet the growing demands of the New Zealand supply chain,” LPC says. “Our current modelling indicates that by 2029-30, we will no longer be able to berth enough vessels of sufficient capacity to keep up with these demands.”

The initial 10ha of the Te Awaparahi Bay reclamation project was completed in 2019. The next stage, totalling six hectares, was completed in December 2020. This current stage, totalling seven hectares, is expected to take two years to complete.

This project will enable Lyttelton to handle up to 850,000 TEU per year and accommodate the largest vessels that visit New Zealand, solidifying its position as the South Island’s main hub port. The reclamation work is a continuation of the Port Lyttelton Recovery Plan, a statutory document under the Canterbury Earthquake Recovery Act 2011, and has been fully consented since January 2018.

Port Otago's new tug Ōtepoti. Image: Port Otago

Further south, Port Otago’s new tug is about to depart Damen’s Changde yard in China for Port Chalmers.

The 70-tonne bollard pull Damen ASD 2312 tug has been named Ōtepoti, the Māori name for the upper harbour area where Dunedin city was developed.

The port’s original tug Dunedin was steam-powered and unfortunately “blew her boiler” - so spectacularly that it was condemned and eventually sunk by the USS Mills, which used it as target practice fodder in 1964, according to the port company. Ōtepoti is powered by the latest Caterpillar 3512 engines.