Ports of Auckland could become a make-or-break issue for the Coalition

An artist’s impression of a port-less Auckland. Graphic/Stop Stealing Our Harbour

An artist’s impression of a port-less Auckland. Graphic/Stop Stealing Our Harbour

New Zealand First appears as closed-minded on the Ports of Auckland as the other vested interests, who are either opposing change or advocating for alternatives.However dysfunctional those charged with providing vital transport infrastructure can be, they somehow always manage an instant massed-wagon-circling at the very mention of reform.

The Government is about to receive reports on both the future location of the Ports of Auckland and the feasibility of upgrading Northland’s rail. Labour’s support partner, New Zealand First, is fervently committed to moving some of Auckland’s port business to Northland, saying it will relieve our biggest city of congestion and bring much-needed growth to the north. For the coalition, this could become a make-or-break issue.

Unfortunately, NZ First appears as closed-minded on the issues as the other vested interests, who are either opposing change or advocating for alternatives, such as Tauranga, the Firth of Thames or Manukau Harbour.

Because of the complex governance and ownership issues of Ports of Auckland and other potentially affected ports and public entities, any Government changes will be extremely hard to negotiate. The choices available will also be sandbagged by the virtual impossibility of getting any case for new or restored rail to stack up financially.

However, the biggest hurdle will be patch protection – not just from commercial interests, but also from public agencies who too quickly forget the wider obligation that their state-conferred monopoly status puts on them.

Chief interested party is Auckland Council, which owns 100% of the Ports of Auckland. It has consistently defended its right to the port’s undiminished annual dividend of more than $50 million – to the point of vowing to build a multistorey waterfront car park for more revenue.

Mayor Phil Goff is adamant the port is essential to Auckland’s future. However, this assertion is debatable, given that a city such as Sydney survives very well with its harbour reserved for cruise ships and cargo sent to Port Botany, Wollongong or Newcastle.

Loss of port revenue would, however, doubtless force Aucklanders to pay for the loss with even higher rates, for benefits mostly accruing outside its boundaries. This would be unfair, especially to those on low incomes, and so politically dangerous that no sane administration would cause it to happen.

Perhaps a better starting point would be to regularise, even centralise, the haphazard patchwork of ports ownership. This would inevitably land the Government with a fat compensation bill, but the existing potpourri of local body, port-specific and private shareholders is a barrier to efficiency. Intra-agency competition and multiple interests – Auckland part-owns Tauranga’s and Northland’s port as well – further occlude the picture.

The National Party’s policy of treating the ports as discrete commercial entities immune from state interference is recklessly hands-off. But, by the same token, Aucklanders may be incensed at seeing their port asset commandeered, especially with NZ First so blatantly using Northland as its electoral base.

Yet, Auckland’s port must somehow be restored to being part of the national ports network. Aucklanders, used to the city’s infamous congestion, would be the first to agree it remains an international embarrassment that a prime waterfront site is used to store second-hand cars. Moving the port would unlock 77ha of superb shore land.

Northland’s Marsden Point tempts as an existing deep-water port, which, with a suitable rail spur from the Auckland line, could handle the business. Tourist and even commuter growth could ensue. Yet, there are other considerations, including the likelihood that moving the port to Northland would hugely increase congestion in Auckland, since most goods exported out of it are produced south of the city and would have to pass through it. Even if some of the goods went by train – and the expense of building rail tracks could itself prove prohibitive – the trains would be more frequent and longer, causing frustrating delays at level crossings. There are also the climate-change considerations, with increased emissions from transporting freight over longer distances.

In New Zealand, 99.7% of all imports and exports travel by sea, so the ports issue is not trivial. Any changes to these assets will affect, for better or worse, numerous other sectors and projects, not least the still-uncosted light rail to Auckland Airport. The sheer complexity and political risk may simply end in inertia. But everyone concerned has a duty to approach this debate with the country’s best interests at heart.

Tauranga leaders say port will thrive regardless of Auckland decision

Port of Tauranga. Photo / File
Port of Tauranga. Photo / File

By: Jean BellJean is a multimedia journalist for the Bay of Plenty Timesjean.bell@nzme.co.nzbay_times

Tauranga’s port will continue to “flourish” regardless of whether Auckland’s port moves, city leaders say.

But some warned infrastructure investment was needed to make that happen.

The comments come as the Government is poised to make a big call on whether or not to shift Auckland’s port to the economically-deprived region of Northland.

It followed New Zealand First leader Winston Peters vowing to move Ports of Auckland up north in 2017 and a Labour-led coalition Government leading a study into the three Upper North Island ports with a focus on moving Ports of Auckland to Northport at Marsden Point.

An interim report on that study by a working group headed by Wayne Brown, a former Far North mayor, had been provided to ministers and was due to go to Cabinet shortly.

Ports of Tauranga chief executive Mark Cairns said nobody had seen the recommendations yet, but he believed Tauranga’s port would continue to perform well whatever the outcome was.

He believed the port’s strong growth would continue due to Tauranga’s location as the origin of a majority of the goods exported out of the port are located south of Auckland, not north.

The port owned a half share of Northport, he said.

Tauranga mayor Greg Brownless said if the shift happened, it would not happen for some time.

Tauranga’s port would become busier if it did, due to its good reputation throughout Australasia, he said.

He did not think any increase in activity at the port would be short-lived as it had the capacity for double the number of containers currently moved there.

Congestion caused by inadequate roading would become an issue if Tauranga’s port did get busier, so investment into the city’s state highway, roading and rail network would be vital to cater for any increased freight activity around the city, he said.

He said the port would need to ensure the benefit would be shared with the community.

Bay of Plenty Regional Council regional transport committee chairman Stuart Crosby said it was too early guess what the impact would be, but he was confident Tauranga’s port would continue to operate successfully regardless of what happened up north.

“We have the best operating port in Australasia and it will continue to flourish in the future.”

The Government, however, did need to invest “billions of dollars” in infrastructure to keep up with the port’s development.

An electoral double-whammy on Auckland Port’s future

Container straddle cranes are being automated as part of moves to extend the terminal's capacity and life
Container straddle cranes are being automated as part of moves to extend the terminal’s capacity and life

Todd Niall – RNZ.

OPINION: The future of Auckland’s downtown port deserves careful and unemotive consideration – the problem is, it will become entangled in two elections in the next two years.

The big question is, should all or part of Ports of Auckland’s current operations go elsewhere, either to existing upper North Island ports, or to a brand new port?

Before the 2017 general election New Zealand First pledged to move the whole thing to Northland by 2027 – with the vehicle import trade gone this year.

Mayor Phil Goff (2nd from right) and Councillor Paul Young (left) watching the arrival of new container cranes at the port
SUPPLIEDMayor Phil Goff (2nd from right) and Councillor Paul Young (left) watching the arrival of new container cranes at the port

 A working group led by former Far North mayor Wayne Brown has finished an interim report after canvassing the views of major stakeholders on the futures of the three major upper North Island ports, but it has yet to go to cabinet, and is described as “non-decision-making.”.

A more substantial “final” report from the group is expected in September, a month before local body elections.

Cruise ship berths will eventually move further east, as Ports of Auckland shrinks its cargo and container space
Cruise ship berths will eventually move further east, as Ports of Auckland shrinks its cargo and container space

That is expected to be only the end of the beginning of the debate, signalling the investigations needed if the idea is to be pursued.

Those who were at an early meeting involving Brown and Auckland mayor Phil Goff, described the tone as “interesting”, and the pair clashed publicly even before that meeting.

Goff is navigating a tricky political path, having himself campaigned in 2016 on moving the car trade, and eventually the port, but now having to defend the interests of ratepayers who own Ports of Auckland through the council.

The mayor has quickly filed away a report he commissioned in 2017, hoped to show the economic argument for shifting the vehicle trade out of Auckland.

The report by NZIER in fact found the gain of reclaiming part of the waterfront to be $115 million, but the net cost of losing the trade to be around $1 billion.

If the Brown group report is delivered in the run-up to the local body elections it risks fuelling political posturing on an issue needing no urgent decisions.

Ports of Auckland is working to ensure it can do its job for another 30-40 years within its existing footprint, and even then no one knows what new technology, or trade patterns might extend that.

Automation of the container terminal alone will nearly double the capacity it has today.

Ugly though the port might be, it directly employs about 500 staff, pays $68m in wages, and chips a $51m annual profit into council coffers.

In short, it may never have to move, but there are arguments in favour of it doing so, and releasing prime waterfront land for more public enjoyment.

Any huffing and puffing this year over the port might pale against what could happen next year, as the parties in the coalition government return to their individual stances in the run-up to the general election.

NZ First will want to show progress on its 2017 pledge, with both leader Winston Peters and list MP Shane Jones – who oversees the port work – wanting to keep faith with their Northland supporters.

Labour’s influence in the cautiously worded work now underway suggests less enthusiasm for a rush to undertake the biggest infrastructure project the country has ever seen, in relocating all or part of a port, with the roading and rail links needed.