The country's biggest port has long warned it would run out of capacity without getting the green light for a container terminal extension.
The country's biggest port has long warned it would run out of capacity without getting the green light for a container terminal extension.
Port of Tauranga, New Zealand’s main export port, says it has no space to accept any new container shipping services to Europe and the US.
The NZX-listed port company has been trying since 2018 to get regulatory approval to extend its container terminal wharf. It warned last year it wouldrun out of container space within two years without getting the green light for the project, the cost of which after continuing regulatory and hearing delays has ballooned from $68.5 million in 2018 to an anticipated $90m today.
In December, eight months after an Environment Court hearing, the port received an interim decision from the court granting resource consent for Stage 1 of the planned extension, subject to further matters being addressed to the satisfaction of the court.
The port was given six months to complete those matters before the court considered starting the process to making a final decision. This could be subject to appeal to the High Court by the project’s challengers, 11 local iwi and hapū groups.
Port chief executive Leonard Sampson told the Herald with a couple of months to go ahead of the court’s six-month deadline, he was hopeful the project would be consented by the end of this calendar year. The extension would take 18 months to two years to build.
Meanwhile, Sampson said, “We have no spare berth capacity.”
“There’s no room for new shipping services to America and Europe. There’s just no capacity. That means less choice for New Zealand exporters and importers.”
Asked if there was any prospect of accelerating the pace of the project under the new coalition Government, Sampson said it had been “supportive” in discussions so far.
“We look forward to seeing the revised fast-track legislation.”
The port was encouraged to apply for fast-track approval for the project under the previous government but was unsuccessful. That application process was one of many red-tape delays the project has encountered.
Port of Tauranga chief executive Leonard Sampson.
Stage 1 of the expansion project involves constructing 285m of additional berth to the south of the port’s existing container berths, and associated dredging.
Decisions on whether to grant consents for Stage 2 of the Sulphur Point wharf extension, and for proposed works at the Mount Maunganui wharves, were reserved by the court in December pending the provision of further information. The further information required by the court includes environmental evidence, and discussions with tangata whenua and Bay of Plenty Regional Council. The council owns 54 per cent of the port company.
Eleven iwi and hapū groups associated with the greater Tauranga Harbour raised “unresolved concerns” about the port and its plans with the court, citing significant adverse effects on the coastal environment, marine species and diversity, and cultural values.
The Environment Court hearing began a year ago.
The port made its final submissions to the court in April last year.
The court states that it aspires to issue judgments within three months of final submissions from parties, although sometimes it can’t achieve this due to pressure of work.
The court did not answer the Herald’s inquiry as to the reason for the delay in making a decision last year, saying only that involved parties could contact the court if concerned.
As the port waited for a court decision last year, the delay to the project was likened to “a train crash in slow motion before our eyes, from the country’s perspective” by Mike Knowles, chairman of the New Zealand Council of Cargo Owners.
“It’s very frustrating and concerning. Port of Tauranga is the country’s largest export port. This whole thing is about productivity,” he said.
Andrea Fox joined the Herald as a senior business journalist in 2018 and specialises in writing about the dairy industry, agribusiness, exporting and the logistics sector and supply chains.
