Christchurch City Holdings Ltd has rejected a proposal to lease out the operation of Lyttelton Port. 

The unsolicited proposal from Tōnui Consortium, representing Dubai based logistics company DP World and three Runanga Ngāti, Wheke, Ngāi Tūāhuriri, and Te Taumutu, was received by CCHL in June.

The consortium proposed acquiring a majority interest in a long-term lease of the operating entity of LPC.

CCHL owns the port on behalf of ratepayers. 

CCHL chair Bryan Pearson acknowledged the effort put in by the Tōnui Consortium in considering the future of Lyttelton Port and preparing the proposal.

“Lyttelton Port is a strategic asset for the city and region, and there are diverse groups within our community with interests in its future,”he said. 

“Our assessment of the proposal, as presented, is it does not meet the threshold for ongoing consideration and is not sufficiently compelling to warrant further detailed investigation by CCHL, or additional consultation with council given its letter of expectation.”

CCHL is mindful of the LPC workforce and the breadth of community interest in the port’s operation.

Christchurch City Council’s 2026/2027 letter of expectation to CCHL is explicit in its direction, which does not support leasing the port and encourages retention of a directly employed workforce.

CCHL reached its conclusion specifically considering LPC’s improving operational and financial performance, as well as input provided by LPC on the resilience of its infrastructure and the leadership required to maintain a culture of safety and efficiency.

Pearson said “CCHL maintains full confidence in the LPC board and management and their operation of the port, and continues to work closely with LPC in considering the port’s long-term development and associated investment.”

CCHL board members were set to deliberate on the consortium’s proposal on Friday.

Despite already making a decision on the DP World proposal, unions and advocacy groups will continue plans to hold a protest outside CCHL’s offices from 8am.  

CCHL is still set to consider LPC’s expansion proposal in Te Awaparahi Bay, estimated to cost $800 million.

Keep Our Port Public organiser Harry Robson said in a media release, issues surrounding the port do not end at stopping DP World. 

“We understand CCHL will also be deliberating on the proposal to fund the reclamation and expansion program at Te Awaparahi Bay to the tune of almost a billion dollars without public consultation or input,” he said. 

“This reclamation carries with it significant consequences for the health of the harbour, including its impact on mahinga kai (customary fisheries) for Ngāti Wheke, and, without due consideration, imposes a significant debt burden on the city when rate increases have already been capped, putting pressure on CCC to privatise assets to fund the project.” 

The Maritime Union of New Zealand and the Rail and Maritime Transport Union have called for a decision on the expansion to be paused. 

MUNZ Lyttelton branch secretary Gerard Loader said CCHL has allowed port management to act unilaterally, rather than treating mana whenua, local communities and the workforce as strategic partners.

“The port cannot charge ahead with a major project without the backing of the community and the workers who keep it running.”

The unions have called for the LPC board to change course immediately or resign.

Lyttelton residents have strongly opposed the DP World proposal, with former radio personality Gary McCormick calling for a possible blockade of the Lyttelton Tunnel if it had progressed any further. 

He made the call at a community meeting in Lyttelton two weeks ago, attended by more than 100 people.

McCormick told Allied Media he wanted to make it clear to DP World that if it wanted to take over the port’s operations, it was going to have a “major problem” on its hands.

A petition was launched two weeks ago against DP World’s takeover of the port which attracted close to 1200 signatures.