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Don’t Misrepresent the Federation

Media Release

13 December 2019

Don’t Misrepresent the Federation: we are neutral as to port locations for Auckland

The Federation is concerned that we are being misrepresented as to issues surrounding the location of the Auckland port. We are neutral.

Ships go where the cargo is.

Any decision carries risk. For example:

If a new port is developed but not used fully, the port has to carry the cost of the optimistic but orphan infrastructure investments. When this happens the cost of the orphan infrastructure has to be recovered from whoever does use the port. This is both expensive and wasteful. It can lead to a downward spiral for that port.

If the usage of the Waitemata site is restricted, e.g., to cruise ships, or to cruise ships and tankers, the cost of port infrastructure (such as wharves, tugs, pilot boats, staffing to operate the port) are carried by a much smaller number of users and become very expensive to those users.

Duplication of port infrastructure (e.g., because the Waitemata site is used for cruise ships and tankers while an alternative port is used for cargo) is expensive.

Supply chains to Auckland need to be secure across all types of cargo. Continuity of the supply of fuel is at greatest risk from any decision to remove storage tanks from Auckland.

Such costs ultimately get passed onto the consumer.

ends

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