Government ministers are considering the terms of reference for an official inquiry into moving the Ports of Auckland operations to Whangarei.

NZ First campaigned on the idea and the feasibility study was a key part of its coalition agreement with Labour.

The terms of reference are understood to involve a greater role for rail, ensuring New Zealand has better negotiating leverage with international shipping companies, and NZ First’s commitment to a structure that would stop direct competition between the New Zealand ports and instead encourage more co-operative model in which they all work in the country’s national interest.

No names have yet been discussed to chair the inquiry, so the terms of reference are unlikely to be finalised before Christmas. It is understood that several people have been appointed to be part of the inquiry board, and Ports of Auckland is lobbying to have its interests represented among the board’s members.

Auckland Mayor Phil Goff and Regional Economic Development Minister Shane Jones held a meeting about the inquiry on Friday morning.

It comes six weeks after Goff wrote a letter demanding the inquiry consider national, regional and Auckland interests.

Jones has been given oversight of KiwiRail, which gives him power over decisions about the railway line that would serve the Whangarei port.

The port is worth about $50 million a year to the Auckland Council, and although Goff has said it will have to move from the Auckland CBD eventually, he would like to see it remain within greater Auckland.

The council wants to disestablish Auckland Council Investment (ACIL), the council-controlled organisation that manages its major investments.That would give it more hands-on control of the Ports of Auckland board. ACIL manages $2.3 billion of assets but operates with a skeleton staff.

Jones said: “I accept there is a measure of scepticism around yet another review about our ports. What I want to emphasise is it will not be a Clayton’s review. It has to be fair to the stakeholders of Port of Tauranga, Ports of Auckland and Northport.

“But this is a government that had put in its coalition agreement that there would be serious consideration going to a more enhanced role of Northport in relation to Ports of Auckland.”

Jones said he would ensure KiwiRail was involved in discussions about the port move.

He said Treasury was still undertaking an analysis of the role KiwiRail would play in the transport network, alongside rail corridor owner the NZ Railways Corporation.

The inquiry’s terms of reference were now being considered by ministers. “Once the full Cabinet has endorsed the terms of reference, a public statement will be made.”

Goff would not get into detail about the meeting with Jones.

“We talked about the broad terms of reference for the study into the Upper North Island Ports and Supply Chain Strategy.” Goff said.

Goff said he’d spoken to Jones about it before and, on Friday, they discussed his letter.

“It makes sense that the decision we make about the Ports of Auckland meets the needs of the city, the region and the country,” Goff said, adding that it also had to make economic, environmental and social sense.

“I expressed my expectation that whatever happens in the future with the port needs to have a strong business case behind it and be evidence driven. We need to be looking at how the ports – Northport, Auckland and Tauranga – could best work together and what the infrastructure requirements are,” Goff said.

He said the inquiry was not ideologically driven and that he and Jones were both prepared to consider options. “We’re not going into it with a conclusion and working backwards.”

Goff also noted that any decision about the future of the port was an important financial investment decision for the people of Auckland.

Northport and Ports of Auckland refused to comment. Northport is already working through its own expansion plans.

 – Sunday Star Times