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- Release Date: 02/03/12 17:28
- Summary: GENERAL: LPC: LPC DEFERS CRUISE BERTH DEVELOPMENT
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LPC
02/03/2012 15:28
GENERAL
REL: 1528 HRS Lyttelton Port Company Limited (NS)
GENERAL: LPC: LPC DEFERS CRUISE BERTH DEVELOPMENT
MEDIA RELEASE
LPC DEFERS CRUISE BERTH DEVELOPMENT
Lyttelton Port of Christchurch [LPC] has announced it will defer a decision
on starting the development of cruise berth facilities.
In late 2010, the company announced plans for a $13.7million purpose built
cruise berth facility.
The devastating earthquake on 22 February 2011 and the subsequent major
aftershocks prompted a comprehensive review of all pending development and
enhancement plans around the port given the overall damage suffered - which
is in the hundreds of millions of dollars.
This review included reassessing the original cruise berth plan and the
proposed designs in light of the seismic activity. This modification has
increased costs by approximately 40% to around $20 million.
Chief Executive Peter Davie says the decision to defer the start of the
cruise berth development has been difficult but is right for both the Port
and the Cruise Industry in New Zealand at this time.
"When we do this cruise berth development, we need to do it right. If we don
't get this right and fail to provide an experience of international standard
then we not only put at risk the reputation of Lyttelton but also of New
Zealand as a cruise destination."
Peter Davie says the design and construction review had to be done to ensure
the safety of the cruise berth ships and their guests.
"LPC is simply not prepared to take short cuts on or risks with the design
and construction given what we now know about seismic activity in this region
and impact on physical structures."
The cruise berth facility would have needed to be complete by October and
that timeframe was looking increasingly challenging. It was also becoming
more unlikely that the supporting infrastructure such as roads and parking
for coaches and the cruise berth terminal would have been completed by then.
Some cruise lines had already decided to continue calling at Akaroa for at
least another year anyway given the risk and uncertainty around the
completion date for the Lyttelton cruise berth facilities.
Peter Davie says LPC must be financially responsible at a time when it is
facing a massive rebuild of the port operation.
"LPC has ongoing discussions with its insurance company over its complex and
challenging claims. The current uncertainty of funding has contributed to
this deferral decision." (Further details on insurance have been advised in
our recent media release on the financial results to 31 December 2011).
Peter Davie says the cruise industry remains a priority for recovery of
tourism in Canterbury and LPC will play a role and will still cater to small
cruise vessels that can berth in the ports Inner Harbour.
"We have to do it right first time around and we have to be fiscally
responsible. It has been a difficult decision but in the long run will prove
to be the right decision."
-Ends-
For further information contact:
PETER DAVIE
Chief Executive
Lyttelton Port of Christchurch
027 444 1254
End CA:00220312 For:LPC Type:GENERAL Time:2012-03-02 15:28:38
