Community, unions meet over Lyttelton Port takeover bid, as decision looms

A management takeover bid being proposed for the South Island's largest port is continuing to rock the boat with unions, as the Lyttelton community meets to discuss it.

Port operator conglomerate DP World, a state-owned company in the United Arab Emirates, has put forward an unsolicited proposal to take the reins of running Lyttelton Port, under a lease arrangement.

DP World (موانئ دبي العالمية) was a subsidiary of investment company for the Government of Dubai, Dubai World, and was ultimately owned by the ruling royal family of Dubai.

The Port was currently run by the Lyttelton Port Company (LPC) and owned by city ratepayers via Christchurch City Holdings (CCHL), the investment arm of the Christchurch City Council.

It was considered a key entry and exit point for primary industry goods across Te Waipounamu.

More than $7.5 billion of exports including logs, coal and refrigerated goods like meat left the country via the port in the last financial year, its records showed.

DP World's bid to take over running the port was endorsed by Tōnui, a collective of Te Hapū o Ngāti Wheke, Te Ngai Tūāhuriri Rūnanga and Te Taumutu Rūnanga, which declined to comment further at this stage.

Who is DP World?

Starting in the 1970s with just Dubai's Port Rashid, DP World was now operating more than 60 ports and terminals worldwide, including four in Australia (Sydney, Melbourne, Brisbane and Fremantle).

DP World employed more than 126,000 people globally and already had a logistics office in New Zealand, offering services like freight forwarding, marine services and contract logistics.

The logistics company moved 10 percent of the world's trade across 85 countries, according to its website.

Port owner considers proposal

Port owner, CCHL managed billions of dollars in city assets, including the Christchurch International Airport.

CCHL chairman Bryan Pearson told the city council it was considering the proposal, without independent advice at this stage.

He said it would not make any decisions without first consulting the city council.

"What's been proposed would be a material change to the operating model at the port," Pearson told council during a finance and performance committee meeting last month.

"This has nothing to do with the sale of the port or the port assets."

Pearson said it would be fully aligned with council as a shareholder on any decision making.

"CCHL will give due consideration to that proposal, and once we've done that, we'll be in a position to discuss it with council.

"But we wouldn't make that decision independently.

"We know that there is considerable public interest, and we're particularly mindful of the anxiety things like this can cause key stakeholders, and in that regards, we're very mindful of the LPC staff."

LPC chief executive, Matthew Slater explained the next steps.

"The CCHL board will be briefed on the outcome of both its own and the LPC's board's initial assessment at its meeting in late July, with council engagement shortly thereafter," he said in a statement.

"Further details cannot be provided due to the commercially sensitive nature of the matters under consideration."

The Tōnui rūnanga collective and Lyttelton Port Company declined to comment further than the public statements before the meetings.

Unions concerned about port privatisation

But unions with members at the port, the Maritime Union of New Zealand (MUNZ) and the Rail and Maritime Transport Union (RMTU) opposed it.

MUNZ spokesperson Victor Billot said the bid would privatize the publicly-owned port to a company owned offshore.

"We don't believe it will be a good thing for the local community, Canterbury, New Zealand or rūnanga to have a global multinational controlling such an important part of our infrastructure," he said.

"We have serious concerns about that."

Billot said the port was an important part of the economy and community, with many feeling strongly that they did not want the port to be sold, despite the lease arrangement.

"Call it whatever you want, an operating lease, etcetera, but for 30 years, they would have control of the Lyttelton Port," he said.

"With that comes a lot of power because it's a natural monopoly. The South Island depends on it for imports and exports.

"What is good for DP World is not necessarily good for the people of Canterbury."

RMTU Lyttelton branch secretary, Mark Wilson said CCHL and the council should ditch the proposal.

"We want a strategic partnership that respects both workers and the community, ensuring our port is controlled and operated by and for our region and our country."

The unions would be speaking with locals during a community meeting on Friday to discuss the proposal.

The bid prompted small protests in the harbour township by a group called Keep Our Assets Canterbury, that featured well-known activist John Minto.

Convener Murray Horton shared its concerns with the city council at a recent meeting.

"The proposal to take over the revenue stream of a Lyttleton port company is nothing more than privatisation by stealth, using backdoor methods," said Horton.

"It's our opinion, and it's certainly not held by us alone, that control is just as important as ownership.

"Why would you allow to contract out such a vital public asset?"

LPC in the black

More than $7.5 billion of exports left Lyttelton Port in the financial year 2025, according to its annual report from last year.

Meanwhile, more than 833,000 tonnes of bulk imports valued at $6.38 billion entered the port, like fuel, cars and bulk goods.

Lyttelton Port Company earned a net profit after tax of $71.6 million in FY25.

DP World was approached for comment.