New Zealand / Business

Why Port of Auckland may be better for the city where it is

19:30 pm on 9 November 2023

Mayor Wayne Brown has been vocal about his wish to make Port of Auckland more efficient. Photo: RNZ / Kymberlee Fernandes

Explainer - Auckland mayor Wayne Brown wants the port's land freed up for the public, but the port argues it can deliver $1 million a week back to Aucklanders if it stays put.

When first elected, Brown pinpointed Bledisloe Wharf as land he wanted the general public to be able to use.

However, that's also where the port's most profitable activity takes place - its roll-on roll-off operation - which Port of Auckland chief executive Roger Gray says is one of the last activities he would want moved.

Roll-on roll-off cargo includes cars, trucks and buses from all around the world, which the port says are typically moved off the port site within 48 hours.

The Bledisloe Wharf may be valuable real estate, but the argument for keeping these operations in the same place is its location: 60 percent of containers brought into Auckland are expected to end up within a 40km radius.

And while it would be nice to use the land for something else, the port's profitability is also good for the public - it paid Auckland Council a $30m dividend for the 2023 year.

Gray, in an interview with Checkpoint in August, bet his job on being able to lift that to $1 million a week - or about $52m a year - within three years.

Port of Auckland chief executive Roger Gray. Photo: Supplied/ Ports of Auckland

The port says about a third of all containers that come into the country arrived at Port of Auckland.

Port head of planning Jonathan Hulme said about 850,000 containers came through the terminal every year, carrying all manner of products.

"Consumables, toothbrushes, components, soap, bedding, clothing, all sorts of items," he said.

In 2022, the port ditched its failed $65m automation project, which had caused major problems and drove a wedge between the company and the union.

The 27 driverless straddle carriers bought for that project are now being converted to manual operation.

Brown has been critical of the millions of dollars wasted on the botched automation project, vocal about his desire to make the port more efficient, and for it to free up land for redevelopment.

Auckland Mayor Wayne Brown. Photo: Auckland Council

In a recent interview with RNZ, Brown said the port was making better use of the land.

"It is getting better, they are going to slowly reduce their footprint, they agreed to do that," he said.

"We are talking about making better use of things for Auckland.

"I didn't say it'd be done overnight - it's a long-term process - but if you don't start, we'll never get there."

Brown wanted to push the port along, starting with the land around the smaller Captain Cook and Marsden wharves next to Bledisloe.

"If you allow someone to have space, they just fill it up with stuff," he said.

"If you go down there and turn to the right it's very disappointing; if you turn to the left it's a wonderful city."

The port said it planned to increase user charges next year.

Increasing volume and the number of ship calls would also help increase profits, the port said.