By Jono Hutchison
Auckland's lost another major shipping contract - this time it's Fonterra, the dairy giant, shifting its exports elsewhere.
And we're talking big money - Fonterra does $27 million of export business every week.
So the question being asked is, does the port actually have a future? It says the union's threat of strike action is to blame.
Ports of Auckland management says Fonterra's export business is worth about $100,000 a week, so this will hurt. The dairy co-operative is the second major company to move its business elsewhere in just over a month.
Fonterra's moving all the exports it has been doing from Auckland to the Tauranga and Napier.
Losing the world's biggest dairy exporter will cost the Ports of Auckland $5.2 million dollars in revenue annually.
"If it is doing so much damage, you'd think the port company would be in mediation with us today, trying to resolve it," says Garry Parsloe of the NZ Maritime Union. "We've made ourselves available all over Christmas and New Year to mediate."
Ports of Auckland say it's getting more and more frustrated with the union.
"We never, ever received an official response during mediation to our proposals and we haven't done since," says Tony Gibson, "so I'm not sure what we're supposed to respond to, or go back to mediation to."
The ports are owned by the Auckland Council, which gets dividends from the company. Councillor George Wood told 3 News the loss of business is hurting ratepayers.
Ports of Auckland says it has now made a final offer to the union, and they want a formal response by January 13.
"I don't know how you get a definitive final offer and then you're meant to mediate on that, but of course we will pick up on that and go to mediation," says Mr Parsloe.
The next strike is planned to begin this coming Tuesday, and unless there's a change from either side before then, it's likely to go ahead.
Fonterra's move is the second big loss for the port in just over a month. Shipping giant Maersk already announced it was shifting its Southern Star container service to Tauranga.
Ports chief executive says the threat of strikes creates uncertainty and it's inevitable companies will want to look elsewhere.
Fonterra put out a brief statement today simply confirming it would move all its export operations out of Auckland until further notice.
The company says the decision was made to ensure certainty of supply to its international customers.
The Ports of Auckland says the decision is unsurprising, and it knows of other companies that are considering moving their shipping operations out of the city as well.
3 News