Lyttelton Port’s future draws closer to a decision, with automation lurking in the background

Saturday, 27 June 2026

Protesters have opposed moves they fear could weaken public control of Lyttelton Port and threaten jobs.

A proposal backed by Dubai-based DP World to run Lyttelton Port is expected to reach city councillors by early August, bringing a potentially major change in the port’s future a step closer.

Initial assessments by Christchurch City Holdings and the port company are due to go before the CCHL board on July 31, with councillors expected to be briefed soon afterwards.

The proposal would place port operations in the hands of a new company, Tōnui, backed by DP World and three rūnanga, while Christchurch would retain ownership of the land and strategic assets.

Tōnui declined to answer further questions while CCHL’s assessment was under way, including how long the proposed licence would run, how much capital it would invest, and how it would meet future freight growth without Te Awaparahi Bay.

At the same time, CCHL is considering LPC’s separate proposal for an $800 million expansion at Te Awaparahi Bay.

CCHL says it is not choosing between rival plans, but the two proposals bring sharply different futures for the port into view. Neither is guaranteed to proceed.

Tōnui proposes a jointly owned operating company involving CCHL and the consortium. The port’s land and major assets would remain publicly owned, but the new company would take over day-to-day operations.

Automation could feature in Lyttelton Port’s future, although LPC says it is not currently trialling autonomous straddle carriers or cranes.

Port workers are protesting against the Tōnui proposal, fearing it could threaten jobs.

LPC’s board approved the expansion proposal last year, and CCHL is now reviewing it. The proposal will then go to the CCHL board before consultation with the council. CCHL says it will be considered separately from the Tōnui proposal, but on a similar timetable.

LPC has already started preliminary work and committed $50m to the development, although the overall project has not received final approval.

At Wednesday’s finance and performance committee meeting, councillors were told LPC remained financially strong, with higher bulk volumes helping lift earnings. The port is forecasting revenue of $221m for the 2025/26 financial year, and a net profit of $29.2m, alongside a proposed $14.6m dividend.

Lyttelton Port is one of the busiest in the country, and a squeeze on capacity is expected in the next few years.

The expansion would include a new wharf capable of berthing two large container ships at once, easing a capacity squeeze LPC expects by 2029 or 2030.

Automation could feature under either path.

LPC chief executive Graeme Sumner said the proposed Te Awaparahi Bay development had been designed for long-term flexibility and could include some automation and remote operation.

He said the port was not currently trialling autonomous straddle carriers or cranes.

Sumner said any significant technological change at LPC would need a full assessment of safety, workforce and customer effects, with union representatives included in relevant project groups if the development went ahead.

CCHL has also confirmed DP World showed it its Boxbay automation system in December 2024. CCHL said the discussion was part of broader market engagement and did not focus on LPC’s future operating model.

Tōnui declined to say whether automation formed part of its proposal, what technology it would use, or what the implications could be for staffing and future recruitment.

CCHL chairman Bryan Pearson told councillors the company had the power to decide on the proposal, but would not act independently of the council.

He said transferring operations to a joint venture would be a material change to the port’s operating model, and any decision would be made “hand in hand” with councillors.