Antarctica NZ confirms decision to exit Timaru

Thursday, 29 August 2024

Antarctica New Zealand has confirmed it will not use land leased at Timaru’s port as part of the Scott Base redevelopment project.

Timaru has been awaiting a decision on whether it would still play a role in revised plans for the Scott Base rebuild after Antarctica NZ announced a new design early last month.

At the time, Antarctica NZ said a previous design had been scrapped as it was too risky to transport.

That plan would have involved modules being put together at Timaru’s port before being shipped to Scott Base. The new plan will involve accommodation and living facilities built, and the refurbishment of the Hillary Field Centre and scoping of a third building for workshops, plant and machinery. It also aimed to “extend the life of current buildings where practicable”.

On Wednesday, Antarctica NZ acting chief executive Jordy Hendrikx put an end to any speculation over Timaru’s involvement, confirming the port would not be used.

The proposal includes a new accommodation and living building, the refurbishment of the Hillary Field Centre, to scope a third building for workshops, plant and machinery, and to extend the life of current buildings where practicable.

“We are very grateful for the support that PrimePort, the Timaru District Council, and Venture Timaru have shown for the project. However, the lease with PrimePort was predicated on being able to construct the new Scott Base facilities and deliver them via the Timaru port.

“This option has been found to be in excess of the project budget and with too high a degree of operational risk.

“This regrettably means we will be developing options for design and delivery that do not require the port land.”

In a joint statement, PrimePort and Antarctica NZ said they would jointly explore alternative opportunities to better utilise the land. Until any alternative had been identified, Antarctica NZ would continue to honour the lease commitments entered into with PrimePort, it said.

PrimePort Timaru chief executive Phil Melhopt said the decision was disappointing, but the port respected it had been a tough decision to make.

“I acknowledge the hard work that the PrimePort team put into securing the initial contract and preparing the Evans Bay site for the build.

“We thank Timaru District Council, Venture Timaru and the Timaru community for all the support they provided us.”

Venture Timaru chief executive Nigel Davenport.

However, the chief executive of the district’s economic development agency, Venture Timaru’s Nigel Davenport, was less accepting of the decision and called on the Government to step up and show some support for provincial New Zealand by mandating the project “be completed in Timaru”.

“To say I am absolutely gutted is an understatement. Having partnered with PrimePort and council over many months to successfully attract this once-in-a-lifetime project, this recent development is such a massive disappointment.

“For this to happen as a result of factors, completely outside of our control locally, makes it even harder to swallow.”

Timaru won the bid to be the New Zealand-based construction location for the Scott Base redevelopment contract in November 2021.

The following month, The Timaru Herald revealed an offer from the district council to invest $1.5 million in the town’s port infrastructure had tipped the scales in its favour.

The project was originally expected to start in late 2022 and was expected to be a six to eight-year construction project which would generate up to 700 jobs, with 170 jobs at the peak of the work.

Davenport said the excitement and prospects that brought would have “really put Timaru district on the map”.

“Timaru securing the project was rightly seen as one up for provincial New Zealand - opening up a variety of aligned and potential future opportunities.”

Paddy Gower talks about his new show that sees him freezing in Antarctica.

However, that did not happen - and in in late 2023 Antarctica NZ undertook an option analysis after the project was placed on hold due to blow-outs to the $498m budgeted.

“Whilst we can all appreciate the commercial realities of any projects undertaken will ultimately dictate scope and location, the reality is our chance to retain this project have all but been extinguished.

“As such, wouldn’t it be nice to see the Government, via MFAT as the ministry responsible for the project, step up and tangibly evidence their support for provincial NZ by mandating the project still be completed in Timaru?“

Davenport said all of the strengths, which helped Timaru secure the project, remained in place.