Ports of Auckland is Back on Track

One of the big issues for Auckland is the future of the Ports. It’s become a hot topic in the local body elections, as it should be. Sadly, the “lost decade” just gone by seriously set the Ports of Auckland back. For many years, the direction was dominated by an aggressive and seemingly unaccountable management culture. Negative outcomes included bad relations between management and workers, serious health and safety issues, and the recently cancelled automation project.

Finally, the Ports have turned a corner following a clean out of senior managers and the Board. The new management have chosen to engage with their workforce and relationships have improved as a result. Health and safety is being taken seriously. The automation project was taken out back and put out of its misery. Things are back on track.

None of these past problems means POAL is a liability. It is an essential strategic asset for Auckland and New Zealand. It just needs to be operated properly. The difficult history of Ports of Auckland makes it an easy target for “something must be done” rhetoric but the reality is complex.

There is a push for getting rid of the Ports to free up real estate for developers. There has been a lot of noise about options for relocating or downsizing. Frankly, the majority of working class Aucklanders don’t come into the City for fun. They aren’t going to get much use out of high end retail or expensive waterfront restaurants when they are trying to pay the rent and make it through to the next week. The Ports are too important to be treated as a lifestyle inconvenience for a minority.

The Maritime Union view is Auckland needs a working port. We are entering a period of increased global volatility. Our freight supply chains and our fuel security are under severe pressure and there is no indication this will improve in the short to medium term, or perhaps ever. This is not a good time to be introducing more radical disruptions to our supply chain, which is already disrupted. In the “new normal”, the goal will be security and resilience. “Just in time” is over and the new buzzword is “just in case.”

New Zealand is unusual in its number of ports and their small scale. Part of the problem is our ports have developed into competing small empires and are seen as cash cows for local Government and shareholders, or reserves of real estate. Seeing them as standalone businesses is an error. It has led to wasteful duplication and competition, when co-operation is required.

The role of ports in a complex national and international supply chain sometimes gets forgotten amongst parochial agendas. They must be seen as infrastructure that determines the success or failure of our productive economy, first and foremost.

The future of Ports of Auckland cannot just be left to local Government. We need a national ports strategy that focusses on the rational development and integration of ports into the supply chain. This strategy needs to acknowlege the unique geography of New Zealand, and the fragile nature of land links under stress with ever more intense climate-driven weather events.

Ports of Auckland should be left intact. Moving Ports of Auckland would be a massive exercise with the potential for cost blowouts, major environmental issues, technical challenges and disruption. There is no need to increase the footprint of the current port. We will need extra capacity on top of Ports of Auckland. Northport could provide some of this, but the links have to be there. If we have learned anything over the last couple of years, New Zealand needs to build resilience and a level of redundancy into our transport networks. Port of Tauranga will continue to grow, although issues with health and safety and the wellbeing of workers in that Port need to be examined more closely.

There is a lot happening in the wider transport sector and supply chain. After decades of neglect, a modest investment by Government has seen an unprecedented renaissance of coastal shipping this year. A number of new services are coming on line and linking New Zealand ports with New Zealand crewed ships. Together with investment in rail links, this will relieve some of the supply chain pressure and storage issues. These low-emission modes also point the way to a decarbonized future for New Zealand transport.

One initiative supported by the Maritime Union is a worker representative on the POAL Board of Directors. This would provide a safeguard and much needed on the ground experience. It should be a feature with all large companies and is standard practice in successful European economies. Some candidates in the mayoral race have expressed interest in this concept.

Debate will continue, which is a good thing. But we can’t afford to make the wrong calls on Ports of Auckland. Too much is at stake for Auckland, and New Zealand as a whole.

Who we are The Maritime Retirement Scheme (MRS) is an industry-based scheme providing retirement and other benefits to workers in the waterfront and seafarer industries throughout New Zealand. MRS provides benefits to members in the event of retirement, death, total and permanent disablement, sickness or injury, redundancy and resignation. How it works If you join the Maritime Retirement Scheme, and work for a participating employer, the MRS collects contributions from you and your employer. These are a percentage of your wages and are usually deducted direct from your pay. These contributions are invested into the fund to earn a return (interest). Over time, combined payments from you and your employer, plus your returns (interest), will grow. The MRS is an investment fund, not a bank account. This means the returns you get from the MRS will vary over time and so the amount in your account can go up and down. These investments will generally increase in value over time despite short term fluctuations. Due to the type of investment, there are no guarantees regarding returns or performance. Many maritime workers have benefited from the MRS.

Contact Us Maritime Retirement Scheme PO Box 1096 Wellington 6140 Freephone 0800 947 357 Email maritime@mjw.co.nz www.maritimeretirementscheme.nz

The information contained in this document is provided for general information purposes only and does not constitute financial advice or take into account your particular financial situation or goals.

The Trustees of the Maritime Retirement Scheme and the Maritime KiwiSaver Scheme are the issuers of the scheme. A Product Disclosure Statement for the offer of membership in each of the Schemes is available online at www.maritimeretirementscheme.nz or from the fund administrators:

Maritime Retirement Scheme, PO Box 1096, Wellington 6140 Freephone 0800 947 357 Email maritime@mjw.co.nz