Port and Airport proposed to merge

Port Nelson and Nelson Airport are proposing to join forces and operate under a new company after looking for ways to prepare for an uncertain future.

The proposal is currently before Nelson City Council and Tasman District Council, which own both the port and the airport, 50 per cent each.

The proposal, which is being led by the board of Port Nelson, began at the end of last year.

The port started to look at several options to help “realise synergies” across the two organisations, according to a joint statement by Nelson City Council and Tasman District Council.

The proposal would see a new company formed and the councils’ 50/50 ownership transferred into it.

It would be run as a council-controlled organisation, or CCO. The operational structure of both companies would continue.

However, the statement acknowledges that there would be “financial benefits” to the proposal and “increased resilience” across both the port and the airport.

“In the early part of 2020, the operations of both companies were impacted by Covid-19,” the joint statement says.

“Whilst they are performing well, there is still considerable uncertainty about the long-term impacts on the global economy.”

Neither Port Nelson or Nelson Airport management or governance would comment on the proposal.

Tasman Mayor Tim King says, should the proposal be agreed to by councillors, it will be consulted on as part of each council’s Long Term Plan.

“Both councils will need to be assured that it is in the best long-term interests of our region.”

Nelson Mayor Rachel Reese says there are various options that will be put to the public to seek their views if elected members decide to proceed with a proposal.

“It’s important that all options are considered against a wide range of criteria – not just financial benefits, to determine whether this change is in the best interest of the shareholders.”