Auckland Council cannot shy away from its responsibility in the debacle which has led to the Ports of Auckland ditching its costly and controversial container terminal automation project, says senior councillor Chris Darby.
And he believes the $65 million the Auckland Council-owned port company will write off as a resultof the decision "can be multiplied several times" when lost value and lost opportunity is considered.
The troubled port's new board of directors and chief executive have decided to abandon the project, which six years on from its launch had yet to be near full implementation.
The distraction and disruption of the project - always considered by sector observers a risky mission given the difficulties of implementing it in an operational port - has been blamed for worsening New Zealand's supply chain crisis and driving up freight costs in the post-pandemic shipping space crunch.
Darby, a strong critic of the port's performance who last year accused the council of being a "lazy" port owner, said the $65m write-off cited by new chief executive Roger Gray, in the job just 10 weeks, is "a bottom-end number".
"You can't quantify the dollar value of the lack of confidence in (the port), the lost business, the congestion at the port that's not linked to global supply chain issues but the port (performance) itself."
Auckland councillor Chris Darby. Photo / Dean Purcell.
Darby, who is standing for re-election in North Shore this year, said there was "no shying away from the responsibility sitting with the ultimate parent (the council)".
"To suggest otherwise does not reflect the ultimate governance responsibility of the mayor and all councillors. It's just how it is and you've got to take it on the chin."
Outgoing mayor Phil Goff and council chief executive Jim Stabback said the decision to cancel the project, which has been plagued by delays and stoppages outside Covid interruptions, was "appropriate to the circumstances". They have asked the port board to review the project as soon as possible.
Goff noted there had been a substantive shake-up of the port leadership in the past 12 months and moves taken to strengthen council oversight of the port company.
"The decision by POAL's previous chief executive and former board is of deep concern to council, as the sole shareholder of the ports," he said.
"I have consistently expressed the view that when it comes to implementing new technology, being at the cutting edge of implementing that tech carries a high level of risk. I am concerned that the former chief executive and board did not do sufficient due diligence to determine how those risks would be managed before committing to significant capital expenditure."
Former chief executive Tony Gibson, who left suddenly last year, has been approached for comment. The Herald has also approached for comment immediate past chair Bill Osborne, who stepped down in September last year, and his predecessor Liz Coutts who stepped aside a few months earlier, in January last year.
Darby said councillors had tried to get information about the automation project from the port company, without success.
"We came late to demanding answers but when we did in confidential sessions we were quite rudely strung along, and with short answers that did not address our questions.
"We have tried to extract information but we came to ask those questions late."
Asked for his message to Auckland ratepayers, Darby said new chair Jan Dawson, appointed by the council late last year, and new CEO Gray "have actually shown the strength expected of them by council".
"They've promptly undertaken two reviews (of the project) and made a clear call to cancel - and communicated that promptly to all parties, something that's been lacking in the past. It's come to a head because of clear leadership."
Darby said he expected further shakeups within the port company.
The port had a long journey ahead to regain the confidence of Aucklanders and the freight and supply chain sector.
"Aucklanders can have confidence, as I do, in the new regime. It's dealt with the biggest problem."
New Ports of Auckland CEO Roger Gray. Photo / Dean Purcell.
Maritime Union national secretary Craig Harrison said the port's leaders had made "a pretty hard decision to walk away".
"We've long said the port was too small. It's encouraging they've made the decision now not in 12 months. We've been vindicated."
Harrison said it was a "totally different port" under Gray's leadership.
"He's not frightened to knock management heads together. He's made a difference in a short time."
Shipping giant Maersk, among lines to introduce Auckland congestion charges on containers due to congestion and delays at the height of issues at the port, said it preferred not to comment on the automation decision, but trusted the decision of the board.
Maersk said it looked forward to improvements in port productivity and the reinstatement of regular berthing windows over time.
