Auckland Port and the Unitary Plan Dr Douglas Fairgray
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1 Auckland Port and the Unitary Plan Dr Douglas Fairgray Source: Auckland Sir George Grey Special Collections, Auckland Libraries, NZ Map 374
2 Scope The interface between the Unitary Plan and the Port s role in the economy Port infrastructure options for growth : Auckland and the upper North Island Timelines and trade-offs in port infrastructure and capacity
3 Unitary Plan and Port Role Major port, located close to CBD, on Auckland waterfront. Waitemata Harbour and waterfront - significant resources & places for Auckland Community The seaport has a core role in the Auckland economy Consequent competition for space and resources: CBD and Port Waitemata Harbour and Port Port and Economy (incl CBD) regional and national Unitary Plan multi-faceted - social, economic and cultural wellbeings, and the natural and built environment Appropriate balance among benefits & costs, going forward
4 Unitary Plan and Port s Role - History Initial Port location very logical shelter, deep water, no bar, southern shore of Waitemata (closer to southern hinterland) CBD co-located with Port from day #1 : remote trading nation, needs international linkages business activity locates at interface between Auckland and rest of World. Close inter-relationship of Port and CBD, growing in parallel for 175 years Over time, Auckland spatial economy more specialised : Industry gradually separated from the Port Commerce still focussed in the CBD Port integral to economy, with limited mobility
5 Port in Auckland, NZ Economy 2015 Port deeply integrated in Regional & National economy Fundamentals have not changed NZ remote island, needing sea-trade for regional and national economy Auckland is major urban and regional economy, >35% of NZ Will attract major share of NZ population and economic growth for next 50 years, and beyond Seaport and Airport = main interfaces with all other economies Interfaces have a core role in future economic growth Auckland key part of Upper North Island port (Port of Auckland, Port of Tauranga, Northport) & transport infrastructure
6 Port has grown with Auckland s Economy
7 Port s current economic role 1. POA Operation: Port activities sustain 2,000+ jobs and $248 m value added (VA) in Auckland economy (2010 year). 2. Cruise Operation: NZ cruise industry highly dependent on POA. Currently sustains c 800 jobs and $50 m of VA. 3. POA-dependent Trade: import and export activity directly dependent on POA generates $444 m of VA, sustains 6,800 jobs (2010). The activity in Auckland dependent on the existence of POA is currently valued at $741 m, and c 10,000 jobs. 4. POA Facilitates Trade: Wider POA role facilitating trade, by exporters & importers for whom Auckland is the best (ie chosen) port : helps support $12.5Bn in regional VA, and $21.5Bn in NZ VA c187,000 jobs in Auckland about 22% of Auckland economy
8 NZ Ports role still growing National Level As a small open economy, import & export trades have grown significantly. 1. Trade v Economy: export and import values increased faster than GDP (1.6 times). 2. Trade v Population: export and import values increased much faster than population (4 times). Global economic processes will see trade volumes expand due to: population and economic growth geographic specialisation of business activity
9 Base 1990 = Base 1990 = 1000 Auckland Port s roles growing Auckland Level 1. Exports: in terms of weight Auckland has stabilised over the last five years. 2. Imports: in terms of weight has continued to grow rapidly Exports Gross Weight (Tonnes) Auckland Seaport cf North Island Total & South Island total : Imports Gross Weight (Tonnes) Auckland Seaport cf North Island Total & South Island total : Auckland Seaport North Island Total South Island total Total Auckland Seaport North Island Total South Island total Total 0
10 Port s future economic role TEU Forecasts, 1. POAL has a capacity of around 2 million TEU under current technologies and 3 million if other available systems are implemented, 2. Current forecasts (M.E, NZIER, and PwC) suggest that TEU s may reach 2 million mark by 2041, There is expected to be sufficient capacity, in terms of TEU, at the port for the next 20+ years. 3,500 3,000 2,500 2,000 1,500 1, POAL Container Trade Forecasts (TEU '000) POAL Capacity (available future tech) POAL Capacity (todays tech) M.E - High M.E - Medium PwC - High PwC - Low NZIER
11 Port s future economic role General Cargo Forecasts 1. POAL has almost reached berth capacity for General Cargos, 2. Current forecasts (PwC and M.E) suggest that new capacity is required. Capacity has decreased with the loss of Queens Wharf (2009), Golden Bay Cement movement from Wynyard (2010) while demands have increased, with more building materials and vehicle imports. 3,000 2,500 2,000 1,500 1, POAL General Cargo Forecasts (Tonnages '000) POAL Capacity ME - High ME - Medium PwC - High PwC - Low
12 Port s footprint evolving Recently some of Ports of Auckland - Wynyard Quarter & Queens Wharf - transferred back to community for other uses.
13 Future prospects General agreement among economic forecasters that : 1. POAL will experience capacity constraints in near future 2. Port s role in the Auckland Economy is important and growing. Question : How do we deal with the potential conflict between the Port s operational outcomes and the community s needs in terms of access and use of the water front and harbour, while taking into account the role of the Port in the economy.
14 Unitary Plan and Auckland Economy Issues stem from effects of Port activity in that location Political, community pressures and views......forcing evaluation of the Options Issues unlikely to disappear: Population and economic growth substantial in next decades Port with key role in future economy, and as growth driver More port capacity will be required Unitary Plan has key role in defining and implementing Options
15 Unitary Plan Provisions Regional Policy Statement (RPS highest level) acknowledges the importance of infrastructure, incl ports: the airports and ports, which provide transport for imports and exports, and tourists, support Auckland's international status and contribute to its economic success. Chapter B - eight Issues of regional significance, with associated outcomes, priorities and strategic directions. For economy and Port, 3 RPS Issues most relevant: Issue 1 enabling quality urban growth; Issue 2 enabling economic well-being; and Issue 6 sustainably managing our coastal environment.
16 Options for Port to serve Auckland Options: The question is not whether Auckland needs a seaport, but the most efficient location for that port capacity. Alternatives are: 1. a sea port in its current location; 2. a new seaport in another location within or close to Auckland region; 3. no seaport in Auckland, all Auckland trade re-routed through PoT and/or North Port; 4. a limited capacity seaport in Auckland, with more of Auckland s trade re-routed through PoT and/or North Port.
17 Port Options #1 Current location issues from competition for space and resources New Auckland Location several assessments of alternative sites (most recent Beca 2014), without a viable option being identified. Core issues: high net additional cost of a new port effects of that cost recovery on viability and competitiveness of exporters and importers high net additional environmental costs of new port in fresh location
18 Port Options #2 No Auckland Location major issues due to core role of seaport in economy UNI trade task large and growing - current and future trade volumes through POA very large cf potential capacity of alternatives (North Port and PoT). Very substantial land transport freight task north and south road and rail infrastructure Additional freight costs negative impact on competitiveness of exports, costs of imports Alternative uses of existing Port land would make substantially smaller contribution to Auckland economy
19 Port Options #3 Constrained/Capped Auckland Port similar issues to No Port, to lesser degree Reduced role for Port as economic interface Less efficient economy Slower economic growth, employment growth
20 Auckland Port and Unitary Plan Important effects and trade-offs from how the Unitary Plan deals with Port of Auckland, and Port capacity, and economy Key issues well covered in PAUP hearings process, in evidence already presented Unitary Plan has effects at various levels RPS level - recognises importance of key transport infrastructure Precinct level affecting processes through which Port capacity may grow Major Port Study in early stages, scope and coverage TBD.
21 Questions
22 4. Unitary Plan and Options Auckland Unitary Plan: The Regional Policy Statement (RPS) generally acknowledges the importance of infrastructure, including ports: the airports and ports, which provide transport for imports and exports, and tourists, support Auckland's international status and contribute to its economic success. Chapter B defines eight issues of regional significance, with associated outcomes, priorities and strategic directions. From an trade and port perspective three issues in the RPS are most relevant: Issue 1 enabling quality urban growth; Issue 2 enabling economic well-being; and Issue 6 sustainably managing our coastal environment.
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