In an NZX market update yesterday, South Port chief executive Nigel Gear said the Invercargill City Council was seeking legal title to three parcels of land the ownership of which is disputed, alleging they were transferred to South Port in error in 1988, after the establishment of South Port, following a port plan approved under the Port Companies Act 1988.
''As well as seeking legal title to the land, the proceedings also seek unspecified damages together with costs and interest,'' the update said.
The harbour had operated since 1877 and South Port was created in 1988, having taken over the assets and liabilities of the former Southland Harbour Board. Its largest shareholder was the Southland Regional Council.
Mr Gear said based on legal advice, the proceedings would be defended by South Port.
He said South Port had been provided with a valuation, by a registered valuer, which assessed the land's current market value at $1.27million.
The current rental received by South Port was less than $10,000 a year and was not considered material to the issue.
