Port lease off table
The Mayor of Auckland has announced the proposed sale of a long-term lease for the Port of Auckland Ltd (POAL) has been taken off the table and the port land, assets, and operations will remain under council ownership.
Wayne Brown says a new plan has been agreed between Auckland Council, POAL and unions, which aims to make the most of the city’s port and prime waterfront.
The port has agreed to deliver improved profits to Auckland Council as part of the new arrangement, which will be formalised in the port’s annual statement of corporate intent and the council’s long-term plan for 2024-34.
POAL will contribute $1.1 billion in profits to the council over the next 10 years, which exceeds the projected net returns from investing the proceeds of a port lease by $172 million.
In the 2025 financial year, the port has promised to deliver a $70m profit, up from the previous projection of $67m.
This will rise to $93m and $110m in the following two years and compares with previous forecasts of $78m and $84m respectively.
“We’ve taken time to explore all options for the port, and test the market. It’s helped us understand what the opportunities are and what our expectations ought to be,” explains Brown.
“We looked at a couple of options to improve returns and this is the best solution.
“These higher returns will require increased port charges and improvements in productivity, and all parties are supportive of this.”
Jan Dawson, POAL chair, adds the tripartite agreement provides a clear direction and certainty for the port staff, its customers, and the community.
The Maritime Union of New Zealand has represented unions in negotiating the port’s future and secretary Grant Williams says the agreement acknowledges the importance of the site to Aucklanders.
The council and Eke Panuku, one of four council-controlled organisations, have developed a framework plan designed to make better use of Auckland’s prime waterfront space.
POAL says it supports the mayor’s proposal for the council to buy Captain Cook and Marsden wharves, with the funds being used by the port for upgrades at Bledisloe Wharf.
Steps in the framework plan include having an interim cruise terminal in the ground floor of the Bledisloe car-handling building.
A second car-handling building may also be needed in the medium term and the plan notes POAL will seek to make this relocatable to preserve long-term flexibility.
