New Zealand port company Ports of Auckland is to sell Queens Wharf to the government and Auckland Regional Council for $40m, it has been revealed.

In a deal approved by the Auckland Transitional Authority the company will vacate Queens Wharf by April 2010, according to managing director Jens Madsen.

The port will use the sale proceeds to replace the cargo-handling capacity and facilities.

Princes Wharf will be used as Auckland’s primary cruise terminal until a new facility is built.

Under the agreement, Ports of Auckland will service cruise ships from the new terminal on Queens Wharf.