Nation ‘$1b poorer’ if port leaves Auckland
With a working group's third report on Port of Auckland's future not available to the public, others are pushing ahead with their own analysis, Dileepa Fonseka reports.
A third port study will go before a Cabinet committee on Wednesday but on Tuesday Finance Minister Grant Robertson gave a clear indication it wouldn’t be enough on its own to persuade him to support moving Auckland's port to Northland.
“The report’s a useful contribution, but as I've said to you previously, I've got further questions I want answered.”
“This is a massive, massive move we're talking about here. So you know, we'll go through the process, but we haven't made a decision to do it.”
Meanwhile another report into the future of Auckland’s port has been released.
The NZEIR report calculates New Zealand would be $1b poorer if the Port of Auckland’s functions were taken up by either Northport or Tauranga.
“Auckland is both the largest source of import demand in New Zealand, and the largest concentration of commercial activity,” says the report.
“An equally profitable port elsewhere, employing the same number of people, would have a similar direct effect on its local economy, but its wider economic effect would depend on how efficiently their customers’ exports and imports moved from the port to their doors.”
The use of diesel trains to transport goods from Northport to Auckland would emit 121,461 tonnes of carbon dioxide into the atmosphere every year.
“Longer and more frequent road or rail trips would be required to bring imports to their ultimate destination or to the port for exporting.”
Most of the costs of relocating the port would be borne by Auckland in terms of reduced consumption, higher prices, and longer wait times for freight.
People and businesses in New Zealand’s largest city would see the cost of their imports go up by $549m if port operations moved to Northland or $626m if port operations moved to Tauranga, the report says.
But the rest of the country would see the cost of their imports go down if the port's business was taken up by Port of Tauranga or Northport.
Economist Laurence Kubiak, who authored the report, said this was because other ports, like Centreport in Wellington for example, would import more and goods would have to travel a shorter distance to get to consumers in those areas.
Anticipating the report's release
Both Infrastructure Minister Shane Jones and Upper North Island Supply working group chair Wayne Brown told Newsroom last week they were looking forward to a possible release of the full report this week after Cabinet deliberations.
After details of the report leaked, Auckland’s Mayor Phil Goff has bristled at its reported suggestion POAL could be taken off Auckland Council with only waterfront space as compensation, and Jones has called POAL CEO Tony Gibson a “recreant” - cowardly renegade - after details emerged that Jones warned Gibson not to put his head in a “political noose” by going up against NZ First on the port issue.
Others have expressed concern at the mode shift that would be required from shippers of freight - who have been favouring trucks in greater numbers - in order to make a Northport option work.
Supporters have lined up behind moving the port from its current location in Central Auckland too.
RNZ reported former Prime Ministers John Key and Helen Clark were backing a “Waterfront 2029” to get rid of POAL and The New Zealand Herald reported National MP Nikki Kaye had expressed a preference for moving the port but wanted to explore a number of options including the Firth of Thames.
Get it early – This article was first published on Newsroom Pro and/or included in Bernard Hickey’s ‘8 Things’ morning email of the latest in-depth business and political analysis. Get it early by subscribing now or starting a 28-day free trial.
Help us create a sustainable future for independent local journalism
As New Zealand moves from crisis to recovery mode the need to support local industry has been brought into sharp relief.
As our journalists work to ask the hard questions about our recovery, we also look to you, our readers for support. Reader donations are critical to what we do. If you can help us, please click the button to ensure we can continue to provide quality independent journalism you can trust.