Although Port Otago seems likely to benefit from the decision by two major shipping lines to stop container shipping work at Timaru's port, a union organiser has cautioned there is "no long-term winner".
Up to 50 jobs could be cut following Maersk and Hamburg Sud's decision. The service will now steam direct from Otago to Napier from September 17.
Port Otago chief executive Geoff Plunket declined to comment yesterday.
Rail and Maritime Transport Union (RMTU) South Island organiser John Kerr said it was likely to result in more cargo handling at Port Otago and he assumed that would require taking on more staff.
However, the reality was that it "may not be for very long", because there was no national port strategy in New Zealand and ports competed against one another.
The reality of having a population of 4 million people meant shipping companies "just look at New Zealand as a single entity and shop around among the ports".
In a statement, RMTU general secretary Wayne Butson said the job losses at Timaru were the "inevitable result" of the lack of a port strategy.
"Shipping companies sign up for short-term deals with individual ports. They make the necessary investment in plant and infrastructure and as those contracts come up for renegotiation, the shipping lines move their business on to the cheapest bidder.
"The result is a boom and bust business cycle for the ports, which is no good for working families, the ratepayers in those towns and cities, or for New Zealand as a whole," Mr Butson said.
Many ports were over-capitalised as they had invested to try to remain, or be, more competitive. They had little choice but to "engage in cut-throat competition" to try to secure business in an attempt to provide a return on that investment to their communities.
Moving to a national ports strategy would level the playing field when business was done with the shipping lines.
That could be achieved by taking the ports under central public ownership, thereby rationalising investment decisions and dealing with shipping companies from a position of strength, he said.
Otago Chamber of Commerce chief executive John Christie said the decision was "devastating" for the South Canterbury community, but Otago seemed likely to benefit.
He did not know the industry well, but there was always change within it, he said.
Product would still need to be shipped and he imagined Port Otago would be likely to pick up a substantial amount of that additional export trade, Mr Christie said.
The handling of that material to get to the port would probably also see some increased economic activity, he said.
