Auckland Mayor Wayne Brown says the sale of a long-term lease for Port of Auckland will not go ahead under the terms of a new deal.
Brown signed an agreement in front of media, alongside Port of Auckland chief executive Roger Gray and Maritime Union secretary Grant Williams, on Tuesday morning.
The port land, assets and operations would be retained under council ownership, he said.
It was set to bring in $1.1 billion in profits to Auckland Council over the next 10 years, exceeding the projected net returns from investing the proceeds of a port lease by $172 million.
"Port of Auckland has agreed to deliver much improved profits to Auckland Council and we have agreed to take the proposed sale of a long-term port lease off the table," Brown said.
"This plan reflects my commitment to get better value and better returns from our strategic assets, and strengthen the council's long-term financial position. These higher returns will require increased port charges and improvements in productivity, and all parties are supportive of this."
Port chair Jan Dawson welcomed the move, saying it provided "a clear direction and certainty for the port staff, our customers, and the community".
Auckland Council and Eke Panuku have developed a framework plan for the central wharves to make better use of prime waterfront space.
The port is backing the plan for the mayor's proposal to return Captain Cook Wharf and Marsden Wharf to Auckland Council.
Auckland Mayor Wayne Brown makes an announcement on the future of the Ports of Auckland on 7 May, 2024. Photo: RNZ / Marika Khabazi
Brown has also negotiated public access to parts of Bledisloe Wharf, as a shared space for public use and cruise ships.
"Auckland's harbour and waterfront is a big part of what makes our city special, and it's important that we get this right. The success of the plan will be based on cooperation and joint planning, and the inclusion of mana whenua, stakeholders, and the public."
The plan will be part of the mayor's proposal on the Long-Term Plan to be considered by the budget committee and governing body next week.
Williams was also pleased with Tuesday's deal, saying the agreement highlighted the port's importance to the city.
"We're pleased to see that the value and contribution of port workers has been recognised by the mayor, councillors and the community."
A formal arrangement will be made by way of Port of Auckland's annual statement of corporate intent and the council's Long-term Plan through to 2034.
Brown said the port's board and management had already improved the port's performance and returns "and met our demands head-on".
All the parties signing up to the agreement would work together to make the most of the port and the space it occupied.