Christchurch’s main port is facing a dramatic drop in cruise ships calls and a legal battle with its insurer. ACCORDING to several reports in New Zealand’s media, Lyttelton Port’s lead insurer is disputing its latest insurance claim from the earthquake that hit the city in February. So far, the port...
Christchurch’s main port is facing
a dramatic drop in cruise ships
calls and a legal battle with its
insurer.
ACCORDING to several reports in New
Zealand’s media, Lyttelton Port’s lead insurer is
disputing its latest insurance claim from the
earthquake that hit the city in February.
So far, the port has received payments of
more than NZ$35 million for business
interruption and material damage, and a
further progress claim of NZ$11 million was
made in August, which has since grown to
NZ$20 million with additional expenditure.
This week, the insurer allegedly advised that
it was disputing the level of insurance for
reinstatement of assets.
Lyttelton Port Company chairman Rodger
Fisher said they would be seeking legal advice
as “it is our view…that LPC’s assets are covered
for reinstatement”.
Lyttelton will welcome only three cruise
ships this season, down from 64 last year.
However, the port reported a record quarter
in the three months to September and is
forecasting a trading profit of at least NZ$13
million for the full-year.
Fisher said this growth was due to new
shipping services and a record number of
containers handled in October.
The reduction in cruise ship visits will reduce
annual gross revenues by NZ$3 million, less
associated costs, and this is included in the
port’s insurance claim.
The port is majority owned by the
commercial arm of Christchurch City Council.
