Auckland mayoral candidate John Tamihere: Sell the ports and give ratepayers back their land

Monday, 13 May 2019

Auckland Mayoral candidate John Tamihere and running-mate Christine Fletcher at their first policy launch in March

Auckland mayoral candidate John Tamihere says he'd sell the Ports of Auckland if elected in October, but retain its land for future re-development.

Tamihere said in a statement the sale would provide Auckland with a cash injection and open up 77 hectares of prime waterfront land.

The location of the Ports of Auckland has long been a controversial topic among Aucklanders.

The election policy would allow the buyer of the port operation to lease the existing land for only 25 years.

He also wants to shift trucking operations in and out of the port and downtown area to night-time.

Auckland mayoral candidate John Tamihere said splitting the business from the land was the best way to keep the land in the hands of Auckland ratepayers (file photo).

Auckland Mayor Phil Goff said last month relocating the ports had some 'clear advantages', however acknowledged the need for a cost effective and efficient way of delivering goods and services to Auckland's 1.7 million residents (file photo).

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Tamihere expected potential buyers could include Port of Tauranga, or overseas interests, perhaps from Singapore.

The plan was based on the expectation the ports operations would move from the Auckland site, and the buyer would gain a stake in whatever new port arrangement was created.

Tamihere acknowledged it was not certain the port would move, or that 25 years would be a long enough lease.

'You've got to be pragmatic, but you've also got to set a deadline,' he told Stuff.

A transition fund with council contributions would be established to support the current workforce into new employment, he said.

Tamihere believed splitting the business from the land was the best way to keep the land in the hands of Auckland ratepayers.

'I have to give clarity and direction so we can all plan for the next 25 years.'

Tamihere said easing congestion at the ports was also a priority, and heavy trucks should be excluded from the central business district between 9am and 5pm.

'We are a city that never sleeps and like the ports operations, we must be to the forefront of this conversation.'

The mayoral challenger said he would try to negotiate an end to daytime trucking with stakeholders, but if that couldn't be achieved within a year, a congestion tax would be imposed.

Tamihere said it was not yet decided whether the truck exclusion zone would be a five kilometres or 10 km radius around the CBD.

Courier vans and light vehicles would continue to have access to the CBD under this policy.

The future of Auckland's port is currently tied to a government review of the three main upper north island ports.

A review report is due soon, recommending possible options for the ports in Marsden Point, Auckland, and Tauranga, and the transport links required.

The future ownership of Ports of Auckland was previously considered in two council-commissioned reports in 2015.

Consultants Cameron and Partners, and EY, both weighed up the value of splitting the port company operations, from the ownership of the land - which would remain in council hands.

EY envisaged the lease revenue for the council could be similar to the annual dividend it receives from the port company, and would forgo after a sale.

However, this was based on a lease running for 75 years, not the 25 years proposed by Tamihere.

Cameron and Partners thought lease income would be less than future dividends, and that selling the port operation as a business, could reap $588 million.

Both forecasts were prepared before a later study concluded Ports of Auckland may outgrow its current site by around 2055, and could be relocated.

Auckland Mayor Phil Goff said in April the relocation of the ports had some 'clear advantages', including opening up the land to more valuable uses.

'As in other international cities, it could enhance the attractiveness of Auckland as a place to live, work, enjoy and to visit.'

Goff has also said a relocation would reduce congestion caused by freight movement and resulting pollution.

However, he agreed there was a need for a cost effective and efficient way of delivering goods and services to Auckland's 1.7 million people.

Tamihere said he would be releasing an infrastructure policy in the near future.