Dubai company eyeing Ports of Auckland, nurses set to strike and the Government’s call for Kiwis to leave Iran in the latest New Zealand Herald headlines. Video / NZ Herald
A Dubai-based global port operator is looking at a takeover of Auckland's ailing port business, which the Super City's new mayor opposes.
Senior executives from DP World could be in Auckland as early as next week for secret talks on securing a lease to run Ports of Auckland.
This wouldbe under the operator company/property company - "opco/propco" - model that would see ratepayers continue to own the CBD-based port land and DP World securing a long-term lease to run the port business.
David Lewis, a principal with the government relations agency Thompson Lewis, said the agency is "doing a bit of work" with DP World, prompted by a Herald article about leasing out Auckland's port operations.
Auckland Mayor Wayne Brown has firm ideas of freeing up public land occupied by Ports of Auckland. Photo / Michael Craig
He declined to comment further about the work the agency is doing for DP World.
A second source said meetings have been scheduled next week in Auckland for senior executives from DP World, including Asia Pacific & Australasia CEO and managing director Glen Hilton, his business development manager Sean Barrett and senior Vice President for finance and business development Anil Mohta.
The source said the executives plan to meet with the NZ Super Fund, Ports of Auckland, and officers at Auckland Council, which owns the port company and its CBD-based waterfront land.
Last week, new Auckland Mayor Wayne Brown set out his expectations for Ports of Auckland in a letter to board chairwoman Jan Dawson.
Brown wrote: "I am not interested in any arrangement involving a long-term lease, which would lock the port into its current footprint for decades."
Last night, a spokesman for Brown said the mayor was busy working with the community.
"He has nothing new to add to his extensive commentary on the matter in the past," the spokesman said.
The infrastructure arm of the Canadian pension fund, CDPQ, is also involved in the plan and next week's, said the source.
Auckland Council was cagey about DP World, saying at first it was not correct representatives of the two companies are visiting Auckland and the council has no plans to meet with the entities.
This was followed by an admission from procurement general manager Jazz Singh that the council is aware of DP World and frequently gets approached by entities about buying or taking an interest in council assets.
"This includes recent interest in and speculation on the council's shareholder relationship with Ports of Auckland.
"On these occasions we follow due process which typically comes with obligations of confidentiality, which we must honour," said Singh.
Auckland Council chief executive Jim Stabback is staying mum about what, if anything, he knows about DP World and Ports of Auckland. Photo / Michael Craig
Council chief executive Jim Stabback and chief finance officer Peter Gudsell refused to say if they had talked with anyone at DP World or knew about talks between staff and the port operator.
A Super Fund spokesman said he could not comment on DP World's and CDPQ's travel plans and was unaware of any meetings planned with anyone from the fund.
A spokeswoman for Ports of Auckland said the company is unaware of anything involving DP World.
DP World is a global port operator based in Dubai with more than 70 marine and inland terminals in 40 countries, including four container terminals in Australia.
CDPQ is a Quebec-based pension fund, with funds of about $390 billion worldwide, that made an unsolicited bid through its infrastructure arm with the NZ Super Fund in 2018 to build light rail in Auckland.
Ports of Auckland has been under fire in recent years for a grim health and safety record, poor productivity, weak returns to the city's ratepayers, and a costly and fruitless effort to implement an automation project with an associated write-off of $65 million.
Former chief executive Tony Gibson and board chairman Bill Osborne quit last year following a damning review that found systemic problems with health and safety.
