Gareth Vaughan
Talk to Jon Mayson for long and the word integrity is likely to come up. It's a quality the CEO of Port of Tauranga Ltd looks for in others and it's something people who know him reckon Mayson has plenty of.
Speaking to The Independent as the Queen Elizabeth II sat alongside the wharf at Tauranga for the first time, Mayson said his Oamaru upbringing by Christian pacifist parents developed his sense of fair play, honesty, and a can-do approach to life.
He is keen to see Port of Tauranga apply those values in the business world.
Being a good corporate citizen with social and environmental responsibility is good business practice, too, Mayson maintains.
A scan through the company's annual report shows the extent to which the port follows its CEO's values. There are pages on social, environmental and economic sustainability. Port of Tauranga is a keen advocate of triple bottom line reporting.
"Port of Tauranga, under its current culture, embodies a lot of the beliefs I live by," Mayson said.
Before taking the helm at Tauranga, Mayson was one of three co-leaders of the now-defunct Values Party, from 1981-84.
Green Party co-leader Jeanette Fitzsimons, an old Values Party colleague, said Mayson is typical of many former Values Party figures that hold influential roles outside politics.
He retains an interest in the values espoused by the party, Fitzsimons said. For example, Port of Tauranga makes good use of rail, with 46% of its container volume and 62% of its log trade moving by rail.
At 16 Mayson joined the merchant navy and went to sea against his parents' wishes.
A seamate from those days says he most remembers Mayson's enthusiasm.
Port of Tauranga director Lloyd Morrison, whose company, Infratil Ltd, is the port's second-biggest shareholder with a 9.98% stake, describes Mayson as an unusually good and effective CEO.
"Leadership is the thing that stands out with him."
Mayson's years at sea taught him about Management. While not quite describing himself as a reluctant leader, Mayson favours an inclusive leadership style and promotes a team-based approach.
"When he is required to lead on the front foot he does it effectively, otherwise he lets his managers get on with it and grow," said Port of Tauranga CFO Colin Boocock, who has known Mayson for 30 years.
Mayson has an encyclopedic memory. "Despite his relaxed manner he is fiercely competitive."
Mayson aims to utilise the complementary skills of his Management team and adheres to consensus decision-making.
"This isn't difficult if you know where you want to go," Mayson said. "I recognize the buck stops on my desk."
Tony Gibson, NZ general manager of P&O Nedlloyd, described Mayson as a lateral thinker who has brought a great deal of informality to the industry.
Tauranga Mayor Jan Beange said Mayson isn't the standard "suit and tie" chief executive.
"He's one of the city's characters and I say that in a good way. He's prepared to speak his mind, with colour, at times."
Mayson calls a spade a spade and has the "personal integrity" to do so, she added. Beange appreciates Mayson's advocacy for the region with central government, especially on roading issues.
Talking to Mayson about two of the port's recent news-making events, the conversation returns to integrity.
When Greenpeace activists boarded a ship last August to object to coal imported for Genesis Power, Mayson said he understood the activists' desire to protest about carbon dioxide and global warming. But, he said, they placed his staffers' lives at risk and broke the law.
"They had no integrity."
Just before Christmas broker Forsyth Barr raised Mayson's ire by issuing a report predicting Tauranga would lose to arch-rival Ports of Auckland Ltd in a duel for P&O's Asian express service.
Forsyth Barr listed Tauranga's apparent difficulties in accommodating P&O's huge ships with capacity to handle 4100 20-foot containers as one of the reasons it reckoned Auckland would get the contract.
Clients should reduce their holdings in Port of Tauranga and buy Ports of Auckland shares, it recommended.
But Tauranga won the contract two days after the report was released, a decision Ports of Auckland said will cost it up to $2.5 million a year.
Mayson complained to NZX about Forsyth Barr but has yet to receive any feedback.
"It was an issue of integrity," he said. "Forsyth Barr had been briefed by us at the port on the issue of handling the 4100s and continued to pump out erroneous information. They came out with egg on their face."
Tauranga can handle the huge vessels, Mayson says, and anyway, P&O isn't using them for the Asian service.
One source close to the report said the reference to the 4100 vessels was a single sentence and one reason given for an opinion, which brokers are paid to give. Forsyth Barr's recommendation to reduce shareholdings in Port of Tauranga might be what "really riled him."
Winning the P&O contract isn't the first time Tauranga shaved money off Ports of Auckland's bottom line.
Tauranga's Metroport, established on Tranz Rail land in Auckland and linked to Tauranga by rail, has attracted business from shipping lines ANZDL, Columbus Line, FESCO, P&O, and Mediterranean Shipping Company.
Metroport is now the country's fifth-largest container port in its own right, which is something Mayson is clearly proud of. A $1.5 million Metroport expansion project's now on the agenda.
Mayson describes Tauranga's competition with Ports of Auckland as "healthy."
"It's not our desire or intention to push Auckland from its position as the number one container port," Mayson said.
Geoff Vazey, Ports of Auckland's CEO, says while the two ports compete for business, the two men get on well.
"We always give each other the time of day and have a beer."
Vazey describes Mayson as pragmatic and a hard worker.
"He [Mayson] is well respected by me and by the industry. He has come up through the ranks and knows the industry and players well."
Vazey noted the two rivals are partners in North Tugz, a joint venture between Ports of Auckland and Tauranga's 50% owned Northport. North Tugz provides piloting, tug and lines services in Whangarei. Mayson is chairman and Vazey a director.
Asked if it's difficult being in partnership with a major competitor, Vazey said it's a matter of putting the right hat on at the right time. "And we do."
One industry observer, speaking on condition of anonymity, described Mayson as aggressive, even arrogant.
"I'm not saying arrogant in a nasty way. He has the profit performance behind him to be pretty chuffed. It's a well-run port with world-class labour relations and world-class container movements. He has had good foresight."
Mayson said the ability to envisage the future is the key to success.
Under Mayson's watch, Port of Tauranga, traditionally reliant on forestry exports, has diversified. It developed Metroport, NZ's first inland port, took a 50% stake in the $65 million Northport at Marsden Point, gained a Management services contract at Port Marlborough, bought bulk cargo marshaller The Owens Cargo Company, and started importing coal for Genesis Power.
Through Northport, Mayson now has his eyes on more Ports of Auckland business.
Northport is seeking resource consents for two more berths, in addition to the port's existing two berths, that would enable it to target more liner services.
Mayson said Northport wants to "attract back" to Northland 200,000 tonnes of dairy exports, plus forestry products from Juken Nissho and Carter Holt Harvey's Northland mills, about four fifths of which is now exported through Auckland.
Despite the strong $Kiwi and forestry downturn, Port of Tauranga last week posted a 1.5% rise in half-year net profit to $14.7 million, or 11 cents a share, up from $14.5 million, or 10.9 cents a share, in the same period of the previous year. The interim dividend was raised 1 cent to 7 cents per share.
Half-year group revenue rose to $72 million from $71.4 million. Revenue from forestry as a percentage of the port's overall revenue is down to about 30% from 55% five years ago. The Port of Tauranga handles about one-third of NZ's exports.
Following a career at sea that culminated in a Foreign Going Masters Certificate, Mayson came ashore to Tauranga, a city he had frequently called at and "fallen in love with."
His first job was at Owens Services BOP Ltd, owned by Sir Robert Owens. Mayson also worked as a tug master and spent 14 years as a harbour pilot before moving into operational Management at the port in 1998.
From 1974 to 1980 Mayson was an elected member of the Bay of Plenty Harbour Board, and had some "grand old stoushes" with board chairman Owens. But a mutual respect developed between the two, Mayson said.
Owens became a big influence on Mayson.
In 2002 Port of Tauranga bought Owens' company, since renaming it Owens Cargo Company.
John Halling, Mayson's predecessor as CEO, remembers when he arrived at the port in 1990 it was just after the reforms of the 1980s.
Mayson was the port's representative on the industrial council that took Tauranga through the reforms. Tauranga, Halling said, achieved more than other ports.
Today Port of Tauranga has a good relationship with its workers' unions.
Drew McFarland, Tauranga Port branch secretary of the Rail & Maritime Transport Union, describes Mayson as straightforward.
"There's no messing around. The relationship we have with the Port of Tauranga Management is very good."
Halling said Mayson spent time on special assignment to him with a roving commission, helping in areas such as marketing, operations and client liaison.
After completing an MBA, Mayson became operations manager in 1992 with direct responsibility for running the port.
In March 1997 Mayson succeeded Halling as CEO.
His inclusive style extends beyond Management and staff.
"We have five independent stevedores operating at Tauranga which, to a large degree, are responsible for the port's success. We realise we don't have to do everything and there's room for intra-port and inter-port relationships."
Morrison describes Mayson as a very good New Zealander.
"He's a person of principle and integrity and he has got a good long-term vision of the role he can play in making NZ a better place."
Mayson respects people in the port industry, especially in Tauranga, who are prepared to be tall poppies. People committed to making a difference inspire him.
He admired David Lange's Labour government of the 1980s for its "very courageous" independent foreign policy.
Furthermore Labour's free market economic environment created opportunities for major change in the port industry.
Tauranga's shares were sold for $1.05 each in 1992s initial public offering. In August 2002 they split two-for-one.
When Mayson took the CEO reins in March 1997 the shares were worth $2.96. Ignoring the share split, they've risen from $2.96 to about $9 under Mayson, Boocock said.
However, one view held by some industry players is that port Management can't really lose.
In Mayson's case, Port of Tauranga's profit performance suggests he has done an extremely good job, one industry observer said.
"But a port has a natural customer base on its doorstep who need to use it day-in and day-out."
Still, the industrial problems and subsequent loss of business by Lyttelton and redevelopment issues and convoluted sale at Gisborne over the past two years show it is possible for port Management to get it wrong.
Jim Smellie, general manager of Northland Port Corp, Port of Tauranga's partner in Northport, said Mayson is a team-builder whose strength lies in relationship building with staff, customers and business partners.
Modesty and self-confidence allow Mayson to delegate to capable people underneath him, allowing him to create an effective team, Morrison maintains.
"Where you get the combination of good Management, good attitude and good experience, such as in Jon's case, then it makes it very effective," Morrison said.
Five years from now, Mayson, 58, is sure the port will be under different Management.
"I would like to think I would leave it in a better state than I found it."
In the meantime diversification and joint ventures will continue.
As for his "flirtation" with politics, is it something he'd do again?
"I never say never."
The Independent, 3 March 2004