National

Auckland port's automation scheme scrapped, Mayor responds

18:07 pm on 8 June 2022

A failed automation project at Ports of Auckland has cost $65 million and the Auckland Mayor says he is "pretty brassed off" with the port's former board's decision to fund the project.

The port's new board has canned the controversial project that would have seen driverless straddle carriers or cranes load and unload trucks and largely operate the container yard at Fergusson Wharf.

It was supposed to lift productivity and profitability but the company says automation is not performing to expectations and it cannot say how long and how much it would cost to get it up to scratch.

The project has previously been paused because of safety concerns after an out-of-control straddle crane slammed in wall.

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Goff told Checkpoint the project decision was made about seven years ago and it had failed to deliver what was promised, and it was a decision he had serious doubts about.

"In fact 16, 18 months ago I wrote to the board asking that it be reviewed, at that point it was due for implementation within months and I said 'once you've got it going, I need a review of this'."

Former chief executive Tony Gibson had told him it was innovative, groundbreaking and had not been done before, which made him sceptical, Goff said.

Goff said he was waiting for the results of the review before saying Gibson was incompetent.

"I want to know what processes were followed ... I want to know what analysis was done, I want to know what risk assessment was made."

The scrapped project cost the council-backed port $65m.

Ports of Auckland Photo: RNZ / Kymberlee Fernandes

It was money that the port really needed, Goff said.

"It's money that could've been paid in dividend to council and could've gone to the benefit of Aucklanders so as you can imagine I'm pretty brassed off, not with the new board and the new chief executive ... but with the original decision that was made six or seven years ago."

The review would not change the reality of losing $65m, Goff said, but it would discover culpability in terms of the decision.

"What will also be discovered in the review is presumably how not to go about introducing a new IT project in an innovative way."

Goff said he had been informed that if the already overdue project had continued, it would have taken a further two years to complete leading to ongoing disruption and lowering productivity and profitability.

The port's operational board and chief executive made the decision to scrap the project, but Goff said he thought they had made the right decision in this instance.

Port automation had failed and was being a distraction when Ports of Auckland needed to focus on improving its competitiveness and profitability and restoring its dividend to council and Aucklanders, Goff said.