Port Otago outlines projects

Geoff Plunket.
Geoff Plunket.
Port Otago outlined several new projects to 100%-owner the Otago Regional Council yesterday, including warehouse expansion, earthworks at Flagstaff Hill overlooking Port Chalmers and Dunedin property developments.

Port Otago chief executive Geoff Plunket delivered the port company's annual ''statement of corporate intent'' to the ORC's finance committee yesterday, prompting plenty of questions from councillors.

Probably of most public interest are proposed earthworks on Flagstaff Hill, where the Ralph Hotere sculpture garden is sited adjacent to the lookout.

The earthworks were put in place after the late Hotere's studio was demolished by the port company in 1993 because of instability on the high bluff.

In the late-1990s, Port Otago had to undertake remedial earthwork benching at the bottom of Flagstaff Hill, following a slip, Mr Plunket said, after the meeting.

However, the road below the hill has had to be moved recently, and now overlaps the rail tracks, because of stability issues at the bottom of the hill, on its northern side.

When asked if the proposed earthworks would alter the hill's profile, or be undertaken at its top or mid-section, he said.

''No ... we're extending the [existing] benching to make it safe.''

He said a resource consent application will be lodged in September, and he expected it would be publicly notified.

The project was likely to cost between $500,000 and $1million.

He was ''hopeful'' that the 35,000cum of spoil could be used by NZTA for its Port Chalmers cycleway.

Otherwise, a separate resource consent might have to be sought for a contractor to take it elsewhere.

ORC chairman, Stephen Woodhead asked about Port Otago's property developments in Dunedin, saying it was the issue of most interest to ratepayers he spoke to.

Mr Plunket told him more developments were planned, and said after the meeting that negotiations were under way for a build and lease-back development of port land in the industrial, foreshore area, potentially worth more than $5million.

There are growing concerns about the amount of whole milk powder being held and stockpiled by Fonterra, domestically and overseas, given the price slump and global glut of milk powder.

Cr Michael Deaker asked whether the extension of warehousing at Back Beach and building of a further, 3800sqm shed at Sawyers Bay was because of ''increased production'' by dairy companies, or because ''it's not selling''.

Mr Plunket said Back Beach was being extended so inbound dairy goods, being packaged and awaiting export, were always in an enclosed space.

The Sawyers Bay facility was being extended ''for a range of customers, not just dairy''.

To a question from Cr Bryan Scott, Mr Plunket said there would be minimal impact on the community from the Back Beach extension, as it was ''filling in gaps'' between sheds D and E, and neither its colour, size or height ''would change its footprint much''.

When asked by Cr Doug Brown as to when larger ships could be expected to call at Port Chalmers - which has prompted the channel dredging - Mr Plunket said that was still unknown.

However, he highlighted ships carrying up to 6500 20-foot equivalent units (TEUs) would be able to arrive more heavily laden than in previous years, once the channel depth was increased by a metre.

Cr Deaker asked about cruise ship visits and possible wharfside facility upgrades.

Mr Plunket said while cruise numbers this season would decline from last year's 75 to 70, more passengers would arrive, and 86 cruise ship visits were already booked for the 2016-17 season.

There were no plans for cruise ship facilities and Mr Plunket said the cruise ship sector was ''happy'' with existing facilities.

Cr Trevor Kempton asked if Port Otago planned to debt-fund new developments, but Mr Plunket said the company was drawing on cash reserves from the $65.7million sale of its former stake in Port Lyttelton.

simon.hartley@odt.co.nz

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