Port of Tauranga CEO Mark Cairns is backing the company's chances of becoming one of two international hub ports in New Zealand.

Mark Cairns.

He believes there will eventually be one international hub port in the South Island and one North Island hub, which Mark thinks should be the Port of Tauranga.

His comments follow the release of the New Zealand Institute of Economic Research report, commissioned by the Ministry of Transport.

The report looks at several current issues in the sea freight industry from an economic perspective and explores three possible scenarios, including hubbing New Zealand's international trade through Australia, having two main container ports in New Zealand and a reduction in ship operators servicing the New Zealand market.

Mark says analysis in the report suggests the emergence of two main ports in New Zealand is a likely outcome.

He disagrees with this, saying there will always be a need for New Zealand's existing ports, although their purpose may change over time.

'What we've always said is that New Zealand ports shouldn't close.”

'New Zealand will need all of its ports because of the growth forecast.”

'We agree there will be a hierarchy of ports. There will be international container hub ports, we're backing ourselves that we'll be North Island hub port and other container hub ports will feeder to that.”

The report also explores port pricing structures, which Mark believes could solve many of the problems facing ports if configured correctly.

'If ports simply price and invest to achieve a cost capital return then it will resolve itself quickly.”

'Across the port sector the returns on the amount of assets tied up in ports are achieving no where near what a commercial entity would look to achieve for that sort of investment.”