Winston’s big port up North won’t have any business

In the first shot in the pork-barrelling for a by-election, veteran New Zealand populist Winston Peters wants to stop the expansion of the Port of Auckland and move the extra shipping traffic up north to the Port of Whangarei:

And we will upgrade the Auckland to Northland railway line and build the rail link to your port

The Port of Whangarei is about two hours north by car from Auckland. Auckland is a global city of approaching 2 million. Whangarei is the only city up North, with a population of 50,000.

45% of the import traffic to the Port of Auckland is cars. Around 90% of light vehicle imports in New Zealand come through the Port of Auckland. The rest may go through Littleton.

Jellicoe and Freyberg wharves are located between the two container terminals.

Bledisloe multipurpose Wharf

Striving to move some of this light vehicle imports from the Port of Auckland up north to the Port of Whangarei where they be unloaded from a ship onto trains for a short train ride to Auckland, unloaded again onto trucks all seems unnecessary expense.

Photo: Port of Whangarei.

Auckland appears to have spare container capacity up until at least 2035, so this port up North will simply not have much to do in terms of extra container traffic because it will have to compete on the basis of cost and proximity to markets.

Photo: The Marsden Point Oil Refinery on the opposite shore of Whangarei Harbour.

The traffic that is coming under pressure regarding capacity of the Port of Auckland is multi-cargo traffic such as building materials, vegetables, wheat, vehicles and other goods. The situation is further aggravated by the rapid increase in the number and increased size of cruise ships.

As a good part of the market for the multi cargo traffic is in Auckland, landing them away from their main market just makes no sense and will not happen unless the port of Auckland is prohibited by law from expanding and ships are not allowed to divert to ports such as Wellington and Christchurch.

The number of cruise ships visiting Auckland in the last 10 years to about 90 and is expected to reach one 20 by 2020 and 150 by 2030. That traffic cannot be diverted up north to the Port of Whangarei.

Any export traffic that would be viable to send through the Port of Whangarei up north will already be going through it. Export competitiveness is highly sensitive to costs as exporters must simply take the going price in the international market.

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