“The port was already on a price path to deliver the financial return Auckland Council was seeking,” he said.
“This sudden escalation does nothing to improve port productivity or services for customers, it is a cash grab, plain and simple,” he said.
The timing couldn’t be worse, Tighe-Umbers said.
Exporters, importers, manufacturers and ultimately consumers stand to bear the estimated $25 million per year cost increase, during a cost-of-living crisis without seeing a single improvement in return.
“We accept that Auckland Council needs to make a fair return on behalf of ratepayers, and the Port of Auckland is already on track to do that.
“But the council will be stripping another $25m a year out of the productive part of the economy and adding no value themselves.”
He said the council was treating the port as a “revenue tap”.
The port had taken on board feedback from the freight sector, extending the timing of the total increase to July 2026, Tighe-Umbers said.
“But in the end, the increase has still doubled, and will still impact the competitiveness of our exporters, importers and manufacturers and in turn increase the cost of living for consumers,” he said.
Port of Auckland chief executive Roger Gray confirmed the price increase.
“A year ago we gave indicative advice that we would target in the vicinity of about $175 on January 1, 2026.
“Then, we signalled that we would probably go to $230 or that vicinity, on January 1, 2027.
“What we’ve decided to do is move forward the January 1, 2027 charge increase, by six months to July 1, 2026.
“So the first increase is in seven months’ time and the second increase is in 13 months.”
Gray said the port had given notice of price increases much earlier than many other organisations would have, but he conceded they were substantial.
The increases came down to two factors.
“The first is that we are playing our part as part of the council’s objective to see a time-of-use change in the supply chain in New Zealand.
“So what we’re doing is we’re increasing at-the-peak access charges, but we’re keeping off-peak at less than half of that.
“What we’re trying to do is encourage more and more of the New Zealand supply chain to come after hours or on weekends.
“It’s an incredibly underutilised time,” he said.
Gray said the second point was that the port was on a “profit growth trajectory”.
“We’ve been very clear about that in our commitments in the long-term plan, and this is part of our goal to get to $100m net profit after tax for the council and for the ratepayers of Auckland, and we’re doing that through this process.”
The volume of containers going through the port was growing.
“We’ve seen an almost 7% increase in containers in the last year, so we’re getting more volume,” he said.
“And yes, we are putting up the price.”
Jamie Gray is an Auckland-based journalist, covering the financial markets and the primary sector. He joined the Herald in 2011.