Auckland port move: Study favours $10b plan to shift hub to Northport at Marsden Point

Thursday, 3 October 2019

The future roles of ports at Auckland, Tauranga and Marsden Point are being reviewed

Auckland's port would close in a shift to Northport at Marsden Point, costing $10 billion, under the preferred option of a Government-backed working party.

New Zealand's most ambitious infrastructure project ever proposed could be well-advanced within 15 years, with additional rail-tracking worth $1.6 billion, a freight hub in northwest Auckland, and a major expansion of Northport.

The Government has not yet taken a position on the plan, which will be refined in a final report going to Cabinet next month.

The winding-down of Auckland's por, and expansion of Northport was New Zealand First Policy in 2017, and approval for the study was included in its agreement to form a coalition government with Labour.

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'We would like nothing more than to be able to proceed on the basis of what I have no doubt will be a robust (final) report,' said Associate Minister of Transport and New Zealand First MP Shane Jones, who has driven the work.

Associate Transport Minister Shane Jones hopes the port relocation work can progress over the next year

Jones acknowledged that how much could be achieved on advancing the idea during this term of government 'is a challenge.'

Auckland Mayor Phil Goff, whose council owns Ports of Auckland, favours an eventual move but said there were big unanswered questions in the latest work.

Rail freight is a major part of the proposed Northport expansion

'We are not about to just give away port assets worth $600 million – that is something the study needs to consider,' Goff said.

The mayor said it didn't look at indirect job losses in Auckland or the economic and environmental impact of forwarding goods an extra 150km into the city.

A six-member independent working group chaired by former Far North Mayor Wayne Brown selected the full Northport option ahead of four others, such as leaving the ports of Auckland, Tauranga and Northport, as they are, or building a new port in the Firth of Thames.

'I think most people realise there is going to be a relocation, but it depends over what time,' Jones said.

The $10.3 billion estimate includes many costs that would still be incurred even under a do-nothing scenario, such as some rail and roading upgrades.

The work is officially called the Upper North Island Supply Chain Strategy, covering the relative roles of all three ports, but was always focussed on the ability of Northport to significantly expand.

The Northport option proposes by 2034 that a further 900 metres of berthing space would be built at Marsden Point, including a container terminal, space for vehicle imports, and dredging of the harbour.

A major investment in rail lines includes a $650 million upgrade of the line between Auckland and Northport, and the construction of line from Avondale to freight hubs at Southdown, using a route that was designated but has never been built.

An additional track on Auckland's Western Line to Newmarket is also proposed to separate freight trains from commuter services.

A second phase of expansion at Northport is proposed between 2034 and 2049.

Rail alone would not handle the freight demand, and the study calls for the four-laning of State Highway One north of Auckland to be accelerated.

The study does not detail how the transition from Auckland to Northport would roll out, but suggests the vehicle trade could move first, followed by containers and bulk cargo.

Auckland would retain facilities for cruise ships, and the Port of Tauranga would continue to develop its own business.

The economic analysis calculates the council would be $48 million a year better off due to the rates and leasehold revenue from 77 hectares of prime waterfront land once re-developed. The cost of that redevelopment is not mentioned, and Goff disputed the figure.

'I don't think that our economists are convinced by that figure and I don't believe it's sufficiently robust,' the mayor said.

Goff said the working party had not been in touch with the council, Ports of Auckland or other stakeholders since December last year, and a lot of discussion was needed before the final report.

'The government will also have to be convinced the figures stack up, and they are not there yet,' he said.

A survey of 500 Aucklanders conducted as part of the working group's study, found 55 per cent support for the city's cargo port to move to a new location.

On the question of how quickly any change should happen, 34 per cent wanted the waterfront redevelopment to occur within 10 years, and 21 per cent 'as soon as possible.'

Goff campaigned in 2016 favouring an early shift of the car trade and a likely relocation of the port, but has insisted ratepayers should not lose out through a shrinking of the company Ports of Auckland.

Jones acknowledged the 2017 coalition agreement provided only for the study to be done, with no commitment to implement the findings, although he underlined the status of the work done so far.

'This is a government report, it's not purely a [New Zealand First] party report,' he told Stuff.

'The third and final version [next month] I want to be focussed – it has to withstand the scrutiny of those who harbour suspicions, including the [Auckland] supercity council,' he said.

An 85-page economic analysis of the options, led by consultants Ernst and Young, questioned the ongoing investment in Ports of Auckland, if the shift was to occur.

'It would be prudent to develop Northport at a scale and in a timeframe that would avoid the estimated $500 million to be spent prior to 2026 to implement automation (in Auckland),' they said.

Goff said the report itself raised unanswered questions about the future at Northport.

'Such as what if the shipping companies decide they don't want to use that port and say we will go to Tauranga instead - you would have to be certain they would use it,' he said.

'There are a lot of questions that have to be answered.'