Port reclamation key to lifting productivity

Port reclamation key to lifting productivity

Media Statement
15 April 2013

"Ports of Auckland's revised proposals to extend Bledisloe wharf between 135m and 179m are key to lifting port productivity, meeting future freight demand and supporting jobs," says Stephen Selwood, Chief Executive of the New Zealand Council for Infrastructure Development.

"Approximately $26.4 billion of trade passes through Ports of Auckland (POAL) each year, roughly 31% of New Zealand’s total trade, and more than 90% more than the next largest by value (Port of Tauranga).

"An economic impact analysis undertaken by Market Economics in 2011 reported the total impact of port activities on the Auckland economy at $247.6 million in value added, or 2,027 employees. At a national level they estimate that, by 2031, around $598 to $720 million of the economy will be dependent on the existence of POAL, equivalent to between 9,200 and 11,100 jobs.

"Failure to provide capacity for growth will seriously constrain the economic potential of the city as well as national capability to service growth in upper north island freight, at reasonable cost.

"While it would be desirable not to have to extend Bledisloe wharf at all, providing extra capacity there is much more efficient than continued dependence on Captain Cook wharf. The second expansion alternative proposed by Ports of Auckland provides for the return of Captain Cook wharf to the city. This, combined with the redevelopment of Queens wharf and the opening of Wynyard Quarter, means that Aucklanders will progressively have access to 2.5 kilometres of Auckland's waterfront from Captain Cook Wharf to Westhaven.

"On the other hand, continued debate about whether or not the port should be allowed to expand feeds uncertainty and puts a significant number of future jobs for Aucklanders at stake.

"Suggestions that Auckland should build a new port somewhere else are unrealistic. Apart from the huge costs involved in building a new port and the supporting transport infrastructure, it is unclear where this port would locate, what its environmental effects would be or how such a significant decision would impact the economy.

"Ports of Tauranga and Northport provide an option for capacity expansion, subject to those ports obtaining necessary consents for expansion. However this approach would also have significant economic consequences in terms of additional investment in supporting infrastructure and increased supply chain costs for exporters and importers.

"In contrast, Ports of Auckland's alternative proposals provide for improved productivity at reasonable cost while containing the need for reclamation into the harbour and, under the second of their options, further expanding the opportunity for Aucklanders to access to the waterfront.

"This is a potential win win scenario and should be supported," Selwood says.

ENDS

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