New port-related Council-Controlled Organisation

Submissions closed on 31 July 2020, 05:00 PM

Port

The Council is consulting on a proposal to establish a new port related Council-Controlled Organisation (CCO) for the purposes of developing, operating and maintaining the Whanganui Port and associated assets. 

Once established, the Council intends to place the $12.3M of capital, approved under the 2019/20 Annual Plan for the port redevelopment, along with Harbour Endowment Portfolio into the CCO. Assets from the CCO along with $12.5M of Crown funding through the Provincial Growth Fund (PGF) will form part of a Special Purpose Vehicle (SPV) with the Council owning between 70-80% of the SPV with the Crown owning between 20-30%. The SPV will be responsible for investing capital from both the Council and the PGF in the port redevelopment and will have similar reporting requirement to that of a CCO.

The SPV will manage the Harbour Endowment Portfolio on the Council’s behalf with revenue being used for the purposes of developing, operating and maintaining the Whanganui Port and associated assets.

Options 

Option 1

The Council establishes a new port related CCO for the purposes of developing, operating and maintaining the Whanganui Port and associated assets. (Proposed)

This proposal involves the establishment of an entity (SPV) that will undertake the redevelopment and future management of the Port. The Council’s initial equity investment in the entity will comprise $12.3M in cash and Harbour land and other assets (including the Harbour Endowment land).

Option 2

The Council does not establish a new port related CCO for the purposes of developing, operating and maintaining the Whanganui Port and associated assets.