Auckland port move: Government to explore options more fully

Thursday, 12 December 2019

It'll cost twice the price of a diesel tug, but Ports of Auckland's e-tug will be cheaper long term (first published June 2019).

The planned moving of Auckland's port is to edge cautiously forward with the government commissioning more studies after not accepting some of the more aggressive recommendations of a working party, nor accepting that Northport is the best location.

While cabinet has agreed unanimously that the 'status quo is untenable' it has asked the Ministry of Transport to 'fully test' the view of the working party that Auckland's port should move to Marsden Point within 10-15 years.

'We see there are potentially some good strategic arguments to support further examination,' wrote officials in a paper to cabinet after reviewing the group's final report.

Associate transport minister Shane Jones has accepted cabinet not yet sharing his view of moving Auckland's port to Northland

'It remains my view that Northport is the most sensible relocation option but I accept this is a whole-of-government decision,' said Associate Transport Minister and New Zealand First MP Shane Jones, who has driven the port relocation case.

**READ MORE:

* Auckland port move: Time for a deep breath by Cabinet

* Port move - Auckland don't blow your one shot

Northport at Marsden Point is not yet accepted by Cabinet as where Auckland's port operation should move to

* Auckland Port move: CEO decries 'made up facts' by pro-move group

* Auckland port move: Study favours $10b plan to shift hub**

The ministry will carry out an extensive programme of further study over the next six months, which cabinet is expected to consider in May next year.

The ministry and Treasury officials did not agree with all of the working party's recommendations, one of which was setting a twelve month deadline for the port companies of Auckland, Tauranga and Northport, to agree commercial terms for a relocation.

'There are also risks with a more directive approach that the working group is recommending, such as implications for private property rights,' said officials.

Cabinet agreed the group's report 'provided a good basis upon which further work can be undertaken'.

Officials said more work was needed on the working group's estimate that the relocation would cost $10.3 billion.

'There could be further, as yet unknown, significant costs to the Crown of the recommended option,' wrote officials.

Auckland's mayor Phil Goff, whose council owns Ports of Auckland, noted that officials found the case for a full move to Northport had not yet been made.

'Most particularly I welcome the recognition by Treasury and the Ministry of Transport that the private property rights of Aucklanders who own the Ports of Auckland cannot be dismissed as the Working Party implies,' said Goff in a statement.

The chair of Northport Murray Jagger said he hoped to convene a meeting of the chairs of the three upper North Island ports included in the working party report.

'We need to digest the ramifications of what we've seen and heard today, and flesh out a win-win-win situation not just for our three communities, but for all of New Zealand,' he said.

Work to be carried out by officials includes 'optimal locations for port operations, logistics and supply chain investment costs and environmental considerations, together with a transport and freight analysis which includes the feasibility of a West Auckland freight hub'.

The working group's final report has also been formally released today, but was widely leaked to the media and reported a week earlier, and contains little information additional to the group's interim report released in October.

The recommendations included a heavy investment in rail lines through Auckland to the port, and the creation of a freight hub in West Auckland, but the total cost estimate of $10.3 billion was challenged by economic analysis commissioned by Ports of Auckland.

Moving Auckland's port was a New Zealand First election policy in 2017, and the funding of the working group was agreed in the co-alition agreement with Labour, although until this week the government had made no commitment to advance the idea further.