The debate about a working port in central city Auckland rolls on. Photo / Michael Craig
The debate about a working port in central city Auckland rolls on. Photo / Michael Craig
Given Auckland's "downtown" skyline isn't impressive as big cities go, the debate over having a working port there could give some thought to shifting downtown itself, a freight industry summit has heard.
In a panel discussion about the future of the city's port, Professor Tava Olsen, director at the centrefor supply chain management at Auckland University, said if the city was going to "think big" because people didn't like having a port in downtown Auckland, perhaps it was time to think about moving downtown.
"I've had visitors from overseas ask me if there are height restrictions on buildings in downtown Auckland. Our downtown doesn't look that impressive in terms of buildings.
"Should we move downtown Auckland? It's something to put on the table.
"A lot of land [use] is moving west, already the Viaduct is developing in that direction. We'd have to rethink transport a bit but it'd certainly be cheaper than building a new port in the Firth of Thames."
Panellist Wayne Brown, an Auckland mayoral candidate and leader of a 2019 government-commissioned study on port relocation, said people would "never return to city offices in the same numbers" after the pandemic. CBDs around the world were under pressure, he said.
Auckland wasn't growing at the rate predicted, and with digital working, many people were quitting the city. "Look at Kerikeri, it's booming."
Olsen said a new greenfield port for the region was "not going to happen" because of the "billions of dollars" it would cost and the environmental concerns.
"I really don't think the rest of New Zealand is going to be very excited about paying that much money - Auckland Council can't afford it - just to give Auckland a bit of a nicer space on the waterfront. If we are going to spend money on infrastructure, is that really a priority? I would argue not."
Olsen told freight and supply chain sector leaders gathered in Auckland that Manukau harbour, suggested in the port debate as a new port site, was a "great location", but safe access for ships was an issue.
"It's great the government doing an engineering study. Let's settle that question."
Olsen said Auckland city wasn't using its land efficiently.
"There's a huge amount of ground space not being used - we have car rental companies and panel beaters in downtown Auckland. Last time one of the wharves was given back we built a hotel on it. That doesn't improve access to the waterfront."
Deleting the port would decrease the resilience of the supply chain.
"Are we running out of space? I would argue no. It's important to realise automation is coming. The current automation failed, but it's coming. We are getting autonomous vehicles....technology will help us be more efficient wherever we have our port so keep that in mind when making 50-year plans."
Brown said the value of the 77 hectares of port land was driving the need for change.
The Auckland Council-owned port company "is sitting on $6 billion worth of land and paying nothing. It doesn't pay rates, it doesn't pay a dividend." (Dividends have been heavily trimmed because a port development project required capital.)
Aerial view of Ports of Auckland's 77 hectares. Photo / Brett Phibbs
If he was elected mayor, Brown said he'd demand the port immediately start paying $400m a year to the council.
"That's only a 6.5 per cent return, which is a crap return, but it would force change."
Brown thinks building a port at Manukau is a terrible idea.
"A, we rang Lloyds and they won't insure ships going in there. B, it's on the wrong side of New Zealand. Most ships come down [from] the east."
Brown said because of Manukau's sand bar, it would be necessary to excavate 29 million cubic metres of sand - which would move again in a storm.
To understand how much sand that was, Brown said people should imagine a 100ha dairy farm.
"To store that 29 million cubic litres...on a 100ha farm, it would be nine storeys high.
"I don't think the politicians have thought their way through that."
Brown noted New Zealand was the world's only maritime nation without a port strategy.
There was "competition" between ports which resulted in over-capitalisation when the "real competition" was in the overseas boardrooms of shipping companies, he said.
"We're the only country not flat out building freight rail in the past 10 years. We have the only port, Northport, missing a railhead."
Brown said consolidation of ports would be part of a "rational" national strategy.
Auckland University's Olsen said port ownership in New Zealand was "wrong at the moment" with neither centralised ownership nor competition, and serving local interests.
Because Ports of Auckland was owned by the city council that structure "is causing a lot of issues".
Asked if there was scope to split port functions between Auckland and Northport, Brown questioned why "New Zealand's biggest city needs coal on the edge of the harbour blowing coal around?"
Olsen said it would only take "the flick of a pen" to stop bulk shipping at the city centre port.
Brown: "But the main thing is Auckland's port is not paying to be where it is."
