I'm interested in hearing your views on which specific ports you think require intervention and what exactly do you believe needs to be done?
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Quote from above Percy...The only people who look to the future and act are the board and management of POT.
This sums it up exactly. Shown by,that there is now 7 shore cranes at the POT terminal for a reason. The dredging of the channel is also in the making. An umbilical cord of rail up to Auckland with the dry land metro port there.
And guess what, POT is also in with, Port Timiru in the south Island, with its umbilical cord of rail up to the dry port in Christchurch .
And do not forget that POT owns 50% of Northport.
I think they are planning for the one stop (south Island) and one stop (North Island) for the big shipping lines. There after tranship to other NZ ports and collect the double container movement.
POT management are planning for the future.
Disc :Holding POT shares
By having regional ports competing against each other and trying to generate cash for their local rate payers, the large shipping companies like Maersk must be laughing all the way to the bank as they avoid paying the true costs of freight forwarding in NZ. Why not have one north island port eg POT that acts as an exporting gateway? Land based freight forwarding infrastructure (ie government) expenditure though out the North Island could be focussed on that port. This would mean Govt and ratepayers no longer wasting money on providing expensive roads through downtown Auckland for trucks trying to get to the port. This would stop the need for more reclamation of the Waitemata Harbour and even reduce the present footprint of the onshore component of the port.
In the South Island, Lyttelton is spending millions (of insurance money plus ratepayers money) on rebuilding its port. What for? To compete against other South Island ports (eg Timaru) for the lions share of exports and imports. Again the shipping companies are enjoying a free (or at least cheap) ride subsidised by you and me.
We need to learn from the history of NZ ports and see the same old pattern emerging of capital expenditure being wasted as the port network contracts.
The present port model looks like market failure to me as a ratepayer. Perhaps the government should step in and change this model to benefit the whole of NZ, not just a few large foreign shipping companies? Conversely economics will probably achieve this anyway but it will be a more expensive and slower death for some ports in NZ.
Some years ago, I read 100 years of the port of otago. Exactly the same thing happened then Port Chalmers versus Dunedin Cost many many thousands
That is true Rainey. Something closer to your home from NZ History http://www.nzhistory.net.nz/culture/oamaru-harbour
"In his 1981 book Landmarks, Kenneth Cumberland called Oamaru ‘Kiwitown’, the archetypal regional servicing centre, with its shops, stock and station agencies, railway and, of course, its harbour.
Ports were the beachheads of colonial expansion. No town could prosper without one. Those that had natural harbours spent huge sums deepening them to accommodate ever larger ships. Towns that lacked natural harbours spent even more money – ‘Harbors where nature has not provided them’, as Otago’s provincial harbourmaster complained in 1868 – and risked bankruptcy doing so. Napier, New Plymouth, Timaru and Oamaru all built big artificial harbours to stay in the progress game.
Oamaru Harbour closed to shipping in 1974 and is now a registered historic place. It’s the best place in the country to see how and why all New Zealanders once depended so heavily on sea transport"
Yep. And Auckland would be rejuvenated by having a vibrant harbour area. Cruiseliners, maybe a stadium, inner city living, marina's, harbour access, eateries etc etc. I have wondered if that was where Auckland City council was heading by taking ownership of Ports of Aucklands.
Additionally, probably a reduction in trucks on our roads.
It would take some real leadership and vision by central government tho, more than is being shown by simply straightening out a few curves to allow the trucks to travel faster. Even tho I was/am against asset sales....this would be the kind of infrastructure project that would really take the country ahead.
Great post Arbitrage.
Yes for those who want an adrenalin rush, try driving around down town Auckland especially between the motorway and the port where you can wrestle for road space with container laden trucks. For an extra thrill I recommend a small old car with no air bags.
I agree. There are certainly inefficiencies in NZ's distributed port infrastructure and establishing one or two major deep-water hubs, with sea/land/air connections to other regions would resolve most of these issues, however government intervention that creates a private monopoly has generally been unpalatable to the NZ voter. Many regional ports are profitable and are sold to ratepayers as a method to keep rates down, with any attempt to forcibly divest the asset meeting with a potentially severe backlash. the On this basis I think that local/national Government intervention would be a hard sell and so your latter point of a slow death for some (but certainly not all) ports is the most likely outcome.