Artist impression of the proposed expansion of Northport once complete. Image / Supplied
Artist impression of the proposed expansion of Northport once complete. Image / Supplied
Northland has huge potential. However, that potential needs to be realised. Increasing inclusion and equitable outcomes requires new opportunities for people.
The Northport Vision for Growth provides a blueprint that could help springboard Taitokerau Northland towards accelerated economic growth.
With the potential to better support and grow existing industries andgenerate job creation, the proposed Northport expansion and construction of a shipyard and floating dry dock are significant infrastructure developments that are seldom on offer in our region.
Northport's operations contribute about $40 million in regional Gross Domestic Product (GDP) per annum, playing an important role in the Northland regional economy, which is further strengthened through the connectivity its operations enable to both regional and international markets through import and export activity.
The Northport Vision for Growth proposes important development that could have the potential to greatly increase this figure, shifting the dial on contribution to regional GDP as well as serving as a catalyst for growth in Northland's key sectors, generating job creation, injecting income into our communities and ultimately increasing the wellbeing of residents.
As the region's Economic Development Agency, Northland Inc commissioned the Socioeconomic Impacts of Northport Expansion on Te Tai Tokerau/Northland report to provide an independent view of the potential impact the proposed expansion of Northport along with an accompanying shipyard and floating dry dock development could have on the region's economy.
The results showed significant job creation should the development go ahead, on a scale rarely seen in New Zealand today. The report estimated 1500 new jobs could be created by 2060 through the Northport expansion, along with an additional 1135 estimated new jobs through the shipyard and dry dock development.
The injection of new job opportunities through infrastructure development on this scale is particularly significant when considered in the broader economic context of Taitokerau Northland.
Vaughan Cooper, general manager investment and infrastructure at Northland Inc. Photo / Supplied
We are all familiar with the struggle the region endured during Covid-19 lockdowns and regional isolation, with business operating restrictions impacting not only Northland's economic resilience, but filtering down to business closures, job losses and financial pressure on regional communities.
This has only been compounded by the decision to shift Marsden Point oil refinery to an import-only terminal, significantly impacting the contribution of the manufacturing sector to the region's economy where petroleum refining contributes $530m to Northland's GDP. Beyond this, the ripple effects of the scale-back have been felt through the loss of 240 highly skilled jobs along with up to 564 related manufacturing jobs, directly impacting communities and families.
The report states that "such loss of major capacity and employment through the closure of the Marsden Point oil refinery will have a significant negative impact on average regional productivity, by greatly reducing a major capital-intensive productive asset".
Northland needs an injection of capital investment if there is any intention to offset the negative regional impacts of the refinery scale-back.
The marine sector has strong roots in Northland, and while relatively small, there is a competitive advantage through its contribution to the region's GDP being higher in Taitokerau than it is nationally (2.5 per cent of the Northland economy versus 1.7 per cent of the New Zealand economy).
Boatbuilding and repairs have been increasing while shipbuilding and repairs have been dropping; however, a significant infrastructure development such as the shipyard and dry dock development has the potential to supercharge growth in this sector.
As forecast in the report, the potential contribution to regional GDP from the shipyard and dry dock development alone is estimated to be $290m, along with an additional $160m through the Northport expansion, a firm step in the right direction of stimulating economic growth.
The importance of the surrounding infrastructure development to the region should the Northport expansion go ahead should not be overlooked.
A rail spur to Northport, better roading connectivity to Auckland and the potential for naval training facilities would provide the infrastructure for a resilient Northland supply chain to increase productivity, as well as develop ongoing job opportunities and skills development. These contribute towards creating regional economic resilience for the future, however, hinge on central government decisions to ensure completion.
Northland has huge potential. However, that potential needs to be realised. Increasing inclusion and equitable outcomes requires new opportunities for people.
The Northport expansion and accompanying shipyard and dry dock development offer Taitokerau Northland the chance to capitalise on such an opportunity and build economic resilience for the future.
Vaughan Cooper is general manager of investment & infrastructure at Northland Inc, the region's Economic Development Agency. The Socioeconomic Impacts of Northport Expansion on Te Tai Tokerau/Northland report can be found at northlandnz.com/northportreport
