A new port should be built in the Firth of Thames to handle growing freight volumes say business groups. Photo / NZME
A new port should be built in the Firth of Thames to handle growing freight volumes say business groups. Photo / NZME
Debate over a future port to serve the swelling populations of the upper North Island is too important to be left to politicians, theoretical economists and consultants defending their reports, says the Waikato Chamber of Commerce.
Chamber chief executive Don Good is calling on business, along with the public andlogistics operators, to pile into the discussion over a replacement for the Ports of Auckland.
It's business which will have skin in the game, not politicians and economists, he said.
The Waikato chamber supported a debate and recommended last year's "politically independent" Auckland Chamber of Commerce port report, which backs construction of an island port in the Firth of Thames to serve for 100 years.
The Ports of Auckland, sited in the city's CBD and, prior to its shipping congestion issues, New Zealand's main imports gateway but now second to the country's biggest port, Tauranga, is generally considered unlikely to be able to handle forecast freight volumes longer term.
Good said the Waikato, "geographically and demographically the natural logistics centre of New Zealand", had much at stake in the debate.
"We need to have the port conversation now and the chamber will be lobbying local and central governments and advocating for the business voice to be heard and listened to."
Don Good, chief executive Waikato Chamber of Commerce. Photo / Supplied
The Waikato sat in the middle of the so-called economic "golden triangle" of Auckland, Waikato and Tauranga, the fastest growing area in the country.
The triangle's population was expected to grow by 7.8 per cent a year in the next three years, while the rest of the country's growth was forecasted to be 2 per cent.
When the Auckland city of Drury was created, the triangle would encompass four of New Zealand's six largest cities.
"In order to reduce the carbon footprint of transportation, proximity to the end user must be a key consideration.
"Auckland, Tauranga, Whangārei and Manukau are surrounded by fast-growing urban populations, which due to Nimby-ism will withdraw the social licence to any port expansion," Good said.
The price of land for transhipment and transport links around urban areas would only increase exponentially. Greenfield development of this infrastructure would be cheaper.
The Auckland Chamber proposal was based on what is best for NZ Inc and what can be done now, while considering the environment, with design and technology already proven.
Good said most of New Zealand's containerised exports were generated between a line drawn from New Plymouth to Napier up to Auckland. The western side of the Firth of Thames was in the middle of the golden triangle.
The emerging massive inland port at Ruakura would link well with a port on the Firth of Thames, he said.
"The new port is too important to the future prosperity of NZ Inc to leave to local government. As the sole shareholder of the Ports of Auckland, the Auckland Council has proven to be a failure. The Port of Tauranga has proven to be a better model as a steward of our gateway to the world."
However, Good questioned whether Port of Tauranga's "significant" shareholding in Northport was a sign of "a dominance developing".
Northport is a 50:50 joint venture between the NZX-listed Tauranga port and listed Marsden Maritime Holdings. Ports of Auckland has a nearly 20 per cent share in MMH.
Asked to respond, Port of Tauranga chief executive Mark Cairns wondered if Good knew this.
A Government-commissioned report by Sapere last year put the infrastructure costs - road, rail and port - of a new port on the Firth of Thames at $17.4 billion. The port infrastructure development cost alone was put at $8.4b, though that was scaleable according to the initial capacity built.
This compared to $11.3b total infrastructure costs of developing a new port at Manukau; $12.8b to develop Northport and Tauranga to take on Auckland port's cargo; $13.1b for Northport; $6.2b for Tauranga.
Asked who would pay for a new port at the Firth of Thames, Good said as it would be an asset to all of New Zealand, the cost should be met by central government and private business.
Cairns wondered if Good was familiar with a recent analysis of the Firth of Thames option, which gave it a negative NPV (net present value) of $44b.
Cairns said he stood by his previous comments to the Herald that Auckland's cargo would likely migrate to both Tauranga and Northport as location demand dictated, mirroring the migration of some Sydney port operations to nearby ports.
