Supply chain leaders alarmed at scuttling of Northport expansion plans

Northport wants to expand its container terminal and freight capacity with a major development proposal. Photo / Tania Whyte

Northport leaders say the scuttling of multi-million dollar expansion plans for the shipping gateway near Whangārei is “deeply disappointing” and supply chain insiders say it’s a big hit on New Zealand’s growth prospects.

Independent commissioners have turned down the Northland shipping gateway’s application for a resource consent due to the scale and extent of a 11.7ha reclamation proposed.

The port, jointly owned by NZX-listed companies Marsden Maritime Holdings and Port of Tauranga, said in a statement it would now review the commissioners’ 96-page decision and consider its options.

The company can appeal the decision. It is also applying to be included on Schedule 2 of the Fast Track Approvals Bill — a list of projects that will either automatically go through fast-track consenting or be considered by ministers for fast-tracking.

Port of Tauranga chief executive Leonard Sampson said the decision was “very disappointing” from his company’s perspective.

“We see Northport as playing a significant role in a resilient and efficient Upper North Island supply chain.”

Northport had applied to the Northland Regional and Whangārei District Councils in late 2022 for a raft of resource consents needed for the project.

The proposal would have increased the port’s freight storage and handling capacity and supported its transition into a high-density container terminal.

Northport became a go-to gateway for container ships compromised by Port of Auckland congestion and long delays in the North Island supply chain crisis during and immediately after the Covid pandemic.

It was recommended as a strong development prospect alternative to the Port of Auckland by a government-appointed committee headed by Wayne Brown, now Mayor of Auckland.

Brown was not available to comment his office said.

The port’s application was heard over multiple hearing sessions between October 2023 and last month.

Northport was recommended as a strong development prospect alternative to the Port of Auckland by a government-appointed committee headed by Wayne Brown, now Mayor of Auckland.

Independent commissioners Greg Hill (chairman), Hugh Leersnyder and Jade Wikaira refused all the consents sought.

Supply chain participants are privately dismayed by the decision, with one observer saying it bodes ill for New Zealand’s future growth and prosperity. He noted that out of the upper North Island’s three main ports - Tauranga, Auckland and Northport - only Northport has room to grow and expand.

Infrastructure NZ chief executive Nick Leggett said the decision “doesn’t help take Northland, or New Zealand forward”.

“This project will build resilience in our supply chain and have huge economic and social value for Northland,” Leggett said.

“While we respect the process undertaken, we are concerned at the decision. It demonstrates why the RMA must be urgently replaced, and why the Fast Track legislation is required in the meantime, until that occurs.”

Charles Finny, spokesman for the New Zealand ports’ chief executive group said it was “studying the decision very closely and considering the implications of the decision for the wider sector and for infrastructure investment in New Zealand”.

The decision was “concerning”, said New Zealand Council of Cargo Owners chair Mike Knowles.

“We support the expansion of Northport as an important opportunity to increase freight efficiencies, capacity and resilience in the supply chain,” Knowles said.

“New Zealand’s international competitiveness is continually threatened by inadequate infrastructure investment – new strategically located and connected freight infrastructure to support growth in cargoes is critical for cargo owners and the wider New Zealand economy.

“In our view this decision underlines the importance of urgent reform of the current RMA and the reasoning of the Government in proposing the Fast Track Bill.”

NZ Council of Cargo Owners chair Mike Knowles. Photo / George Novak

The proposed expansion called for about 11.7ha of reclamation and associated coastal structures for a 250m wharf extension at Marsden Point.

It would also have involved 1.72 million cu m of capital dredging and associated disposal and ongoing maintenance dredging.

In their decisions, the commissioners accepted that had they granted consent there would have been a several positive effects.

“These include a range of economic and social benefits associated with a dedicated container terminal at Whangārei, which would be part of an integral and efficient national network of safe ports.”

However, the commissioners said they refused consent due to the scale and extent of the proposed reclamation as it stood.

That was due to significant adverse effects on cultural values of tāngata whenua and the loss of recreational values and public access to and along the coastal marine area, their decision said.

“We find that the adverse effects of the reclamation’s scale and extent, which results in the severance of the physical relationship to this cultural landscape, the beach, the dunes and the takutai moana (marine and coastal area), are significant and irreversible.”

Those effects were not mitigated by the applicant’s proposed conditions.

The commissioners found granting the consents sought would not sufficiently maintain and enhance public access to and along the coastal marine area.

“We accept public access and recreational opportunities will still be provided,” the decision said.

“However, due to the scale and extent of the reclamation, and the extent of the loss of beach ... we do not consider sufficient mitigation or offsetting for that loss has been provided to address the significant residual adverse effects of the loss of recreational values and public access to and along the coastal marine area.”

The commissioners said the cultural values and access issues were of “national importance” under the Resource Management Act (RMA).

As part of their deliberations, the commissioners considered a raft of other matters including economics, coastal processes, marine ecology, marine mammals, avifauna, terrestrial ecology, landscape, natural character, visual amenity, noise, navigation, traffic, stormwater and air quality.

The adverse effects of all of those could have been avoided or appropriately mitigated (or offset), however, “given the applications were lodged as a ‘package deal’ we have refused all of the applications applied for”.

Northport has the right to appeal the decision within 15 working days of receiving notice of the decision.

Andrea Fox joined the Herald as a senior business journalist in 2018 and specialises in writing about the $26 billion dairy industry, agribusiness, exporting and the logistics sector and supply chains.