The Port of Tauranga (POT) is New Zealand’s largest port. POT reported a 6.9% increase in total trade to 6.8 million tonnes in the first quarter of the 2022 financial year. Exports increased 5.3% to 4.3 million tonnes and imports increased 9.8% to 2.5 million tonnes. Container volumes increased 8.1% to 310,997 twenty foot equivalent units (TEUs). Log export volumes increased 2.4% to 1.6 million tonnes. Direct dairy exports increased 6.7% in volume and kiwifruit exports were also strong, up 7.1% on the first quarter of last financial year. Shareholders are happy.
This busy port has seen growth despite Covid-19. The returns are glowing, but frustration is expressed in the Annual Report. The port needs more capacity but Ardern’s Labour Government is not interested. In fact, they have turned them down. Ardern apparently sees no importance in facilitating economic growth in New Zealand.
The POT Stella Passage Project involves extending berths to the south of the existing wharves. Ardern’s Government turned down the required resource consent applications – twice.
What is exasperating is that the applications were made when Ardern and Robertson were busy promising their party was supporting ‘shovel-ready’ projects to give people jobs and help the economy. The port project was urgently needed to double container capacity, was shovel-ready, and even more baffling is that it wasn’t going to cost the government anything – there was no request for funding.
The annual report from the Chair of the POT, David Pilkington, states:
… As you will be aware, last year we suspended the special dividend scheme in favour of accelerating capital expenditure to build capacity.
Unfortunately our progress in this regard has been frustratingly slow due to the red tape involved in the resource consenting process.
We require Resource Consent for our proposed Stella Passage Project, which has been outlined in detail in the Regional Coastal Environment Plan since 1991 and involves extending berths to the south of the existing wharves.The $68.5 million first stage at the container terminal will create an estimated 368 jobs through the construction phase, and more than 81 permanent jobs after completion.
This is a project of national significance, in that it will bring urgently needed capacity and resilience to New Zealand’s supply chain and go a long way to reduce the pressure on Ports of Auckland congestion and operating issues.No Government funding is being sought for this project, however in the hope that we might expedite the resource consenting process, we applied last year for consideration under the Government’s “shovel ready” and “fast track” consenting programmes aimed at helping the economy recover from the Covid-19 pandemic.
Unfortunately, we were turned down for both. […] (emphasis mine)
29 October 2021
The annual report from Chief Executive of the POT, Leonard Sampson, states:
[…] the 2021 financial year was a challenging one thanks to our co-star Covid-19 and congestion…
[… ]Longer-term, our berth extension project and terminal automation will help us more than double container capacity at the Tauranga Container Terminal.
29 October 21 The Chief Executive of the POT – Leonard Sampson annual report.
Globally, we can see a looming influx of new vessels into the shipping fleet, with near record order books in shipyards to address the current shortage in capacity. But that, again, is a longer-term fix and no comfort for shippers currently experiencing freight cost increases.
We must remain as competitive and attractive as possible to ensure shipping lines continue to call in New Zealand and avoid further reductions in capacity. Our economy depends on it.[…]
The full Annual Report to the AGM is here.
Let’s refresh our memories about Ardern’s shovel-ready projects funding promises.
The Prime Minister promised a $3 billion fund for infrastructure in shovel-ready projects to be shared around the country in 14 regions. The government fund was estimated to create 20,000 jobs across 150 projects.
Auckland gets $500 million, Northland gets $150 million, Otago $260 million and Canterbury $300 million. The money is going toward projects such as 80 apartments run by Auckland City Mission and town centre rejuvenation in Whangarei.
“I think it’s only fair for the different regions to all have their day in the sun,” Robertson said smiling.
Newshub
The country had mixed reactions to these promises.
As the downturn impacted covid-hit Queenstown, Ardern gave the town heart saying,
These projects came to our attention as shovel-ready and able to deploy affected workers.
Stuff 26 June 20
Michael Barnett, CEO of the Auckland Business Chamber, reminded the government of the many shovel-ready promises made.
What Auckland needs to see is results and meaningful progress…,
There are billions of unallocated funds available but what is needed post-election is a rapid timeline for delivery – no more wasted time on chopping and changing plans and politicking.
(Auckland Business Forum) Scoop 6 Sept 20
Tauranga, a rapidly growing city, now knows that Ardern supports projects that give her credit but rejects others. This Labour Government makes it impossible for the city’s port to remain competitive in a busy global shipping market. The POT application via the government’s own shovel-ready and fast-track routes was made believing that Ardern would be right behind progress.
She wasn’t.
