Waikato Regional Council Submission on the Upper North Island Supply Chain Strategy

Transcription

1 Document No: Enquiries to: Bill McMaster 14 February 2019 Wayne Brown Chair, Upper North Island Supply Chain Study panel C/O Ministry of Transport P O Box 3175 WELLINGTON 6140 Tena koe Wayne Waikato Regional Council Submission on the Upper North Island Supply Chain Strategy Thank you for the opportunity to make a submission on the Upper North Island Supply Chain Strategy. Attached is Waikato Regional Council s submission regarding the strategy. This submission was formally endorsed by the Council s Strategy and Policy Committee under delegated authority on 12 February Waikato Regional Council looks forward to being involved in further discussion regarding the development of the strategy. Should you have any queries regarding the content of this document please contact Bill McMaster on (07) or by bill.mcmaster@waikatoregion.govt.nz. Regards Tracey May Director Science and Strategy Doc #

2 Submission from Waikato Regional Council on the Upper North Island Supply Chain Strategy 14 February 2019 Introduction 1. Waikato Regional Council appreciates the opportunity to make a submission on the Upper North Island Supply Chain Strategy. 2. Council also wishes to thank the Upper North Island Supply Chain Strategy Working Group for the opportunity for our Chief Executive to present in person to the Working Group on 24 January 2019 on our key messages. The feedback from that discussion has helped shape our submission. 3. Council also appreciates the Working Group s approval of an extension of time to 12 February 2019 to allow our Council time to consider and endorse this submission. This endorsement was given at the Strategy and Policy Committee meeting held on 12 February Submitter Details Waikato Regional Council Private Bag 3038 Waikato Mail Centre Hamilton 3240 Contact person: Bill McMaster, Special Projects Advisor, Transport and Infrastructure Policy bill.mcmaster@waikatoregion.govt.nz Phone: (07) Doc #

3 Background 1. The Government is conducting an Upper North Island (UNI) logistics and freight review, to guide the development and delivery of a freight and logistics strategy. This includes exploring options for moving some of Ports of Auckland activities (such as cargo) to Northport or Port of Tauranga, while retaining cruise-liner visits. 2. The UNI Supply Chain Working Group is seeking feedback from interested parties to a number of questions in respect to the Study. 3. Waikato Regional Council s (Council) role in regard to ports, freight and logistics is set out in the Land Transport Management Act 2003 (LTMA) and Resource Management Act 1991 (RMA). The LTMA requires Council, through the Regional Land Transport Plan (RLTP) to set out how we intend to develop the region s land transport system, and identify proposed regional transport activities. The RMA requires Council to develop objectives, policies and methods for the strategic integration of infrastructure, which includes ports. Key Messages 4. The Waikato region is a key player in the Upper North Island (UNI) freight, logistic and ports system due to its strategic location in the centre of the UNI. Significant volumes of freight pass through the road and rail networks in the Waikato region and the future location of ports is critical to the regional transport system. It is important the Waikato region has a strong voice in the discussion on future location of ports in the UNI. 5. There has been considerable investment in the Waikato region s road, rail and inland port infrastructure over many years to support the two main upper North Island ports of Port of Tauranga and Ports of Auckland. The region is concerned that any proposed large investment going into developing a main port in Northland will undermine that investment and could result in stranded assets in the Waikato region creating significant economic detriment to the region and UNI. 6. The Upper North Island port system must be supported by strong road and rail networks. The ability of the inland transport system to handle UNI freight to ports must be a key driver when considering the location of port operations. It is important that the review takes this into account together with their contribution toward national and regional economic development. 7. The use of inland ports and freight hubs in the UNI will become increasingly important to improve the efficiency of port operations and reduce the overall supply chain costs. The location of freight hubs/inland ports in the Waikato region, all with excellent road and rail connections, play a strong role in the functioning of the UNI ports by consolidating freight/goods and moving it by rail. In Waikato these include Fonterra Crawford Street, Ruakura (Tainui Group Holdings) and Northgate/Horotiu (Ports of Auckland) as well as the large Mainfreight road/rail hub at Rotokauri. 8. Council supports the UNI Supply Chain Strategy (the Strategy) looking at current and future drivers of freight and logistics and identifying priorities of investment in rail, roads and other supporting infrastructure. Increased coastal shipping in the future also opens up opportunities. We support the Strategy taking a 30 to 50 year view or longer with a clear implementation pathway including key actions to be taken over the next five years. 9. Council is not convinced that investigating options for moving the location of the Ports of Auckland by giving serious consideration to Northport is a sound move. It is Council s strong view that the future location of ports identified through this Strategy and the priorities for infrastructure improvements must be based on thorough analysis of options. Any recommendations from the Working Group with regard to a preferred scenario should be accompanied by robust analysis in the form of a cost-benefit assessment. Doc #

4 10. Council submits that a fundamental principle for the Strategy should be that freight and cargo should be located at the port nearest to the population that it is serving. This ensures that internal freight movements and associated costs are kept to a minimum. 11. Council seeks that the Study understands how the operations and investment of Ports of Auckland (POA), Port of Tauranga (POT) and Northport can better align for the benefit of the UNI and also delivers a safe transport system. 12. Availability of industrial and port land available for future portside operation expansion is an important consideration to take into account. 13. The study should also be aware of the implications of examining options for new seaport locations outside the existing POA, POT and Northport. It is Council s view that the Port of Tauranga and Ports of Auckland are the key ports for the foreseeable future and this has been supported by previous port studies. The Waikato Context 14. The efficient movement of freight is vital to the Waikato and UNI economic success. The UNI s road and rail transport network connects Auckland, Hamilton and Tauranga and carries the majority of New Zealand s people and goods (55%). 15. The National Freight Demand Study 2014 found that 29 million tonnes of freight were moved in the Waikato region in 2012 (12% of national total) and projects a 66% increase in freight by 2042 (total freight flows including internal movements). 16. For the Waikato region, protecting the North Island Main Trunk (NIMT) and East Coast Main Trunk (ECMT) rail corridors for interregional freight movement is a priority. The Waikato and Bay of Plenty regions have the most intensely used section of the national rail network, accounting for about one third of rail traffic, with a focus on the Port of Tauranga. The ECMT is the heaviest used rail line in the country with an average of 1,000,000 TEUs carried per year (of 2,300,000 TEU carried nationally by rail). 17. It is estimated that growth of throughput processed by the POT could add up to 75 per cent to rail freight movements over the next 30 years. 18. Within the Waikato and throughout New Zealand there is also an increasing number of inland ports, which consolidate goods before or after exiting or entering a sea port. This is also changing the pattern of freight movement around the country. Waikato Regional Council response to the Working Group questions 19. The following section contains the Waikato Regional Council responses to the questions raised by the Working Group. (a) What are the strengths of UNI current 3 port freight system? The UNI three-port system has a number of strengths, noted below: The comprehensive road and rail network in the Waikato region, supported by strategically located inland ports is a key strength to the UNI 3 port freight system. The strength of the system depends on the further development of these networks through the Waikato region. The UNI contains New Zealand s three largest ports (by volume) POA, POT and Whangarei Seaport (Northport). These three seaports have relatively discrete and distinct markets with varied import/export profiles. This provides options for exporters and importers and encourages competitive tension. The three-port system also provides for network resilience and capacity to manage change. Doc #

5 There is infrastructure in some places to accommodate projected growth. POT is a deep water port, and thus can already take larger container ships, responding to the global trend towards using larger ships to extract economies of scale. Northport and POT have port and industrial land available for future portside operation expansion. POA services Auckland s large population directly, which is important for servicing the freight/goods needs of Auckland, particularly for imported goods. The Port also services the UNI centres. The UNI ports are supported by freight hubs and inland ports at strategic locations in UNI. This brings efficiencies into the system particularly in respect to reducing transport of empty containers. POT and POA are international standard container ports, with high efficiencies and modern crane facilities. This allows container carrier consolidation at ports. There are generally good road and rail network connections in the UNI. One notable example is the Metroport rail line between POT and POA (East Coast Main Trunk and North Island Main Trunk). (b) What are the weaknesses? The UNI 3 port freight system has a number of weaknesses, noted below: Pressure will be placed on ports and supporting infrastructure as UNI ports are projected to experience strong growth over the next 30 years. The freight task in the upper North Island is expected to increase by 59 per cent by There are some bottlenecks, congestion issues and inefficiencies in the landside logistic chains, which will become more pronounced and costly as the freight task increases. These challenges are particularly evident within Auckland, and between POA and Northport. Some of these challenges are outlined below: Within Auckland o POA is located in central Auckland. This means road freight traffic (trucks) coming into POA must travel along congested motorway systems, experience delays and add to the overall congestion problem. o The NIMT rail network through Auckland is critical to service POA and for UNI freight movement. However, this network will increasingly come under pressure from competing passenger rail services and freight services. It will be important to have the Third Main and Fourth Main rail network developed in Auckland to alleviate rail congestion issues. Ideally, a dedicated freight rail line through Auckland would be best. New time slots on this network are limited until new capacity is built. o The Auckland Transport Alignment Project (ATAP) is planning for NIMT track upgrades between Wiri and Quay Park, including a third main rail line, upgrades to Westfield junction and access improvements to the Port. KiwiRail has advised around $800 million of future investment in track upgrades would deliver the following projects: Fourth main rail line between Westfield and Wiri Third and ultimately Fourth Main between Wiri and Papakura Third Main between Papakura and Pukekohe. o POA has limited land available for portside expansion. If POA is unable to gain resource consent approval for an expanded footprint into the Waitemata harbour, then some of the projected freight growth will need to be accommodated at other UNI ports. o In respect to roading - ATAP allows for the widening of the Southern Motorway between Manukau and Papakura to address existing bottlenecks and improve 1 Upper North Island Freight Story Doc #

6 reliability and safety (Southern Corridor Improvements). Future widening of the Southern motorway between Papakura and Drury is one of few locations where additional capacity will generate enduring benefits. The upgrade will help ensure Auckland s key link with the Waikato can continue to function effectively as this area urbanises and travel demand on the Southern motorway increases. The possible use of dedicated freight lanes could be considered. POA to Northport o The NIMT between Auckland and Whangarei is in poor condition and needs upgrading. It would be very costly to upgrade this to allow for shifting POA activities to Northport. If significant numbers of containers were to come into Northport, the rail line to Auckland would require extensive upgrading otherwise the State Highway network would be under pressure. The work includes improvements to 13 tunnels, 2.4km of bridge structures and 20 kms of rail track strengthening. o It is costly and inefficient to transfer goods from Northport to Whangarei as there is currently no rail connection between Northport and Whangarei. POA to POT o The Kaimai Tunnel on the East Coast Main Trunk (ECMT) line, through the Kaimai ranges, requires remediation work to the tunnel floor. This is currently underway. o The NIMT between Hamilton and Auckland also has constraints, particularly through the Whangamarino wetland section of the line. This section is single track and the required double tracking of this section is challenging due to the significant cultural and environmental importance of the site as a wetland of international importance under the Ramsar Convention. o In respect to roading - current work on the Hamilton to Auckland Corridor has identified that investigation is required to realign the NIMT for future increased freight and passenger rail movements on SH 1/29. The Waikato region has prioritised the extension of the SH 1 Waikato Expressway from Cambridge to Piarere (SH1/29 Intersection) as a high priority in its Regional Land Transport Plan. This route forms a very important component of the UNI transport freight system. This project is currently under re-evaluation by NZTA. The RLTP also prioritises investment on SH 29 from Piarere to Tauranga as a high priority. (c) What opportunities exist to improve UNI freight system over the next 10, 25, 50 years? The Working Group should explore opportunities for: Double tracking the North Island Main Trunk between Hamilton and Auckland as a key short term priority. Extend the Waikato Expressway from Cambridge to Piarere to four lane standard. Undertake roading improvements to SH 29 from Piarere to Tauriko Further development of inland port systems Metroport Westfield (POT), Ruakura (Tainui Group Holdings), Northgate/Horotiu (POA) and Crawford Street (Fonterra) as a way of reducing pressure on land requirements adjacent to ports. A freight distribution hub at Orewa/Silverdale could assist the Northland-Auckland supply chain. As an example the consolidation of dairy produce at Fonterra s Crawford Street facility on to rail has removed 50,000 truck movements per year from the road network since opening the hub in This has resulted in a reduction in fuel consumption of 500,000 litres per year and a drop of 2,000 tonnes in carbon dioxide emissions. Relocating some freight activities between the UNI ports however this would need a robust assessment of the effects on inland freight routes between Auckland, Tauranga, Hamilton and Whangarei. Doc #

7 Greater use of coastal shipping. Coastal shipping has provides alternative routes for Northland businesses, avoiding Auckland congestion and expensive storage/packing costs. Currently, there is an existing coastal shipping link between POT and Timaru. The development of inland ports and improvements to transport and distribution networks may help to reduce the supply chain costs. Rail network improvements on the North Island Main Trunk through Auckland such as the third and fourth Main ( A new rail link between Northport and the existing NIMT is 20 kilometres long and would cost an estimated $200 million to build. The land is already designated. Future ECMT improvements are also being looked at, including additional passing loops and signalling improvements. By way of example back in funding received by the region through the Joint Officials Group (JOG) process of $8.5 Million enabled the doubling of capacity on the ECMT line from 2 trains an hour to 4 trains per hour. A second tunnel under the Kaimai ranges for freight is a long term option to keep on the table. (d) What are the main threats? There are a number of threats to the freight system in UNI. These include: As noted previously, the Waikato Region has made considerable investment into road, rail and inland port infrastructure to support the two main upper North Island ports of Port of Tauranga and Ports of Auckland. The region is concerned that any proposed large investment going into developing a main port in Northland will eventuate in stranded assets in the Waikato region. This will have significant economic impacts on the UNI freight system. The strategic arterial road network in Auckland will become more congested as freight volumes into POA grow. If the rail line is not upgraded through Auckland then rail freight traffic will eventually be compromised by increasing passenger rail services. There is a lack of resilience within the network. For example, research has found that if POA was taken out by an event (e.g. earthquake/volcanic eruption) then POT could not accommodate all freight for UNI 2. Public push back against expanding POA wharves into the Waitemata harbour meaning consenting for this activity will become more and more unlikely. Safety on the road network will reduce due to increased freight movement. Planning is needed to maximise rail freight transport and minimise road freight transport. There will be increased supply chain costs as constraints at one port increase, the cost of handling freight will increase. This will encourage importers and exporters to move freight through the alternative port and potentially change the freight movement and distribution patterns in the UNI. (e) Do you think the ownership structures of the 3 UNI ports are providing optimal freight outcomes for NZ Inc.? If not, why not and what would you change? Council does not have a firm position on the ownership structure of a port. It may be that the best ownership model is similar to that of POT, where the majority shareholder is Bay of Plenty Regional Council and minority shareholders are the public. This may provide a good tension to deliver for private shareholders and provides a strong revenue source for BOP Regional Council as the local authority majority shareholder. The ownership model should be the model that provides the best return for the community. 2 Impact on the North Island Freight Infrastructure in the event of a disruption of the Ports of Auckland. Dissertation. David Kriel, Doc #

8 (f) If you could redesign UNI freight system from scratch: a. How many ports would you have? Council recommends retaining all three existing UNI ports as it provides strong competition to the benefit of exporters and importers, and also operational flexibility and resilience in the UNI s trade and logistics supply chains. It is also recommended to expand existing and future inland port systems to support current ports and service them by efficient road and rail links. b. Where would you locate them? Retain in same location Auckland, Tauranga and Marsden Point. c. What would their roles be? Northport: The role would be similar, taking forestry (logs), oil, and containers. Freight could be reallocated from other UNI ports, for example vehicles imports could be catered for as Northport has 10 hectares of land under construction. POT: Their role would be as the predominant UNI port for bulk commodity goods dairy, logs, kiwifruit, palm kernel, coal etc.(mainly export) and containers (import and export), as well as possible vehicle import port. Cruise ships visits would also be continued. POA: Role would be predominantly containers (mainly import) and cruise ships. Could possibly relocate vehicle imports to POT or Northport, as mentioned above, as they have more on-port space. d. Who would own them? Council supports a mix of local authority ownership (majority share) and public ownership as currently operated at POT. e. Who would operate them? As it is now, dedicated Port Companies. (g) What feedback do you have on the questions implied by our current terms of reference (pg. 9 and 10) for the review? We support the comments provided already by the Upper North Island Strategy Alliance in December 2017 (Attachment A). It must be noted that the preferred UNI ports system must be supported by strong UNI road and rail networks. The ability of the transport system to handle UNI freight to ports is a key driver on where the future port operations are located. Government investment into the road and rail networks is critically important for the ports sector. The role of inland ports is also a key consideration when determining the future role/location of UNI port. Ports are commercial entities and government intervention into the sector needs to carefully consider the commerciality of ports. To avoid negative economic impacts of shifting ports it is vital that all new options must be supported by robust cost benefit analysis. Thank you for the opportunity to provide our comments on the Upper North Island Supply Strategy and we look forward to being involved in the next stages of the Strategy development. Doc #

9 Attachment A: UNISA feedback provided to the Ministry of Transport on the supply chain study CONSIDERATIONS FOR MINISTRY OF TRANSPORT 2018 SUPPLY CHAIN STUDY The Upper North Island Strategic Alliance (UNISA) has developed a series of considerations to put forward to the Ministry of Transport for their 2018 supply chain study: Outcomes sought from the study need to be clear What is the intent/goal of the study? A clear and sharp focus will be vital to a useful outcome. Clarity on the outcome intent will be key, i.e. is the report intended to set direction that must be followed or a high level scene setter or something between? We recommend the following high level objectives are included in the intent of the study: o Effective and efficient movement of people and freight Creating an agreed plan to improve the efficiency and effectiveness of the Upper North Island s freight distribution system. o A better understanding of how the operations and investment of POA, POT and NorthPort can better align for the benefit of the Upper North Island o Delivering safe transportation o Developing activities that support our future investment in infrastructure o Creating a sustainable transport/freight system o Providing clarity about the future freight task for ports in the Upper North Island in the short, medium and long term, including all freight types going through the ports o Developing options for managing the total Upper North Island freight task and its distribution, particularly in the medium and long term o Understanding the broad economic, social, environmental and cultural costs and benefits of different options for ports and freight distribution in the Upper North Island to inform future decision-making. The Study s scope will need to be clearly defined Setting a clear scope for the project. UNISA recommends: o Ensuring the geographic area covered by the study is clearly defined o Being clear about what is meant by short, medium and long term. What period of time will this study cover? (UNISA has used 0-25 years, years and 50+). o Providing clarity on what parts of the transport system are covered by the study. This should not seek to replicate other existing transport planning processes and should be fairly tight. One of the first steps is to define key supply chains that will be included in the study o UNISA recommends a clear definition of what types of freight are included in the scope of the study. For example, are small parcels and demand driven by internet shopping included? o Definitions of technical terms need to be agreed so all participants are speaking the same language and reporting the same measures. o We recommend including expected changes to supply chains over the study period. o The study should be aware of the implications of including scenarios of other seaports being built (outside of the current POA, POT and NorthPort ports) as this would significantly broaden the scope, increase the study work schedule and introduce significant assumptions. o Will the study focus on export-orientated supply chains or include critical imports? UNISA believe it should include both exporting and importing, particularly given Auckland s high Doc #

10 reliance on imports through POA. Previous studies have used products with future growth potential that are representative, and can be used as proxies for other products. These have been wine, forestry, meat, fresh flowers and groceries. UNISA freight and people movement will need to be considered within the wider geographic context While we understand the study will start with the Upper North Island, it is important that it is considered within the wider North Island context and the region s connections to Taranaki, Wellington and Manawatu. UNISA also has an interest in what happens in other regions - their developments and capacity to incorporate and provide freight and people movements from and to this region. The value proposition of this study will be its level of systems-thinking: everything is connected UNISA welcomes a whole of system approach which shows consideration of the wider context that supply chains sit within, in particular the four wellbeings of environment, social, culture and economy, and the interrelationships between these. The study should not only cover the integrated use of land and infrastructure, but also extend consideration to freight modes and linkages (including airports, ports, road, rail and inland ports/container terminals). It is important that the study looks explicitly at the relationships between ports, road and rail for freight and people and considers modes and how they are funded from a neutral perspective. This includes considering the externalities of different transport modes (e.g. effect on road safety, noise, emissions, and amenity values). The study will also need to consider relationships (and tensions) between the movement of freight and people within cities, regions and production/employment hubs, and include what is the best use of existing infrastructure and corridors. Environmental considerations are quickly increasing in importance and will need to be included, including system resilience and contingencies (e.g. effects on key transport routes from earthquakes and flooding), and sea level rise implications for freight transport routes. The study needs a future focus Ensuring a short, medium and long-term approach Major changes to ports infrastructure and inter-regional transport connections require significant investment and need to be undertaken over substantial periods of time. This means long-term certainty for decision-making is critical. The study should explore key factors that will shape the Upper North Island s freight distribution system over time, including: o Key factors influencing freight volumes and demand (e.g. demographics, changing economic structures, consumer behaviour etc.) o The impact of changing technology. A clear implementation pathway with agreed trigger-points for decision-making will need to be developed. Given the long timeframes for making major change and the uncertainty about factors like freight demand growth, such a pathway becomes critical to providing clarity in the face of uncertainty. Changing the location or role of ports or other major transport infrastructure has significant implications for other parts of the transport network and may also have substantial land-use implications. Providing certainty is of enormous value to transport and land-use planning. It is also important that the study incorporates global projections and the changing nature of exports (e.g. raw products to processed goods). Developments with modes of transport will also be important to include (e.g. freight only lanes and coastal shipping opportunities). Of particular importance is an assessment of the capacity of existing infrastructure (e.g. ports capacity for more and larger ships, ageing rail infrastructure). Also important are implications on the transport sector of labour force changes including ageing. Doc #

11 The impact of technology needs to be addressed in the study We recommend including consideration of changes to technology and impacts on supply chains (e.g. driverless trucks, automation of both ports and transport) as well as labour force requirements and capacity. To be effective, the study must include a range of perspectives Which parties/signatories to this study does Ministry of Transport intend to involve? There will be substantial public interest in this work and a very wide variety of perspectives, many of them competing and potentially in conflict with each other. Ensuring a robust and balanced process for stakeholder and public engagement will be critical to the study s success. Clear communications will be critical. We recommend involvement of a range of key and diverse perspectives to inform the study, including the following: o Operators e.g. Coda, Mainfreight, Fonterra o Inland Port operators e.g. Ruakura, Northgate o Airports e.g. Hamilton and Auckland o Coastal shipping e.g. Maersk and P&O o Logistics companies, freight brokers o NZ Transport Agency o Bay of Plenty Freight Logistics Action Group (FLAG). This study s interrelationship with other studies will need to be carefully managed A number of previous studies regarding ports have been undertaken for the upper North Island. Previous studies/reports must be taken into account and incorporated into this work. Of particular interest will be: o Providing clarity about how this work relates to the Ports Future Study initiated by Auckland Council o Integrating with NZTA s Long Term Strategic View, which seeks to provide clarity on longterm inter-regional roading requirements o Integrating with the Government Regional Development Fund initiatives, in particular as it relates to rail o Integrating with investigations into improving inter-regional passenger rail services between Auckland, Hamilton and Tauranga o Integrating with transport planning processes within Auckland, such as the update to ATAP currently underway. Doc #

12 APPENDIX Previous studies Some of key related studies findings are explained below, with a list of further studies included further below. Independent Port Study: A report for UNISA 2012 In 2012 PWC was commissioned by UNISA to undertake a technical study of the supply and demand for ports and port-related infrastructure in the UNI. This was to address the problem that ports in the UNI might be competing against one another and over-stating growth. This study found that: POT, POAL and Northport have relatively discrete and distinct markets with varied export profiles All projected to experience strong growth over the next 30 years. The port network has capacity to meet the freight task over the next 30 years. To meet the growth that is predicted, operational efficiencies and investment are required. If each port is to manage their share of trade as projected, it was expected each port will need to develop further capacity over the study period, through development of berthage at all three ports and further reclamation at POAL. This report was referenced in the Auckland Port Future Study 2016, explained further below. Research into freight hub/inland port development in the Waikato 2013 (Document can be sent to MoT) Report looks at freight precincts and inland ports, and their influence of freight movement in the Waikato region. Key findings: UNI is the primary producer and consumer of freight in New Zealand, and the freight task is increasing Freight movements and import and export volumes are relatively small on a world scale and there are few capacity constraints, except for the following: a) Some bottlenecks, congestion issues and inefficiencies b) Road and rail congestion is particularly an issue in South Auckland c) There is limited ability to expand the land area of POAL and POT. Current data suggests the broad pattern of land-use and freight movement in UNI is unlikely to change significantly in foreseeable future; however the overall freight task is expected to double. Number of key trends will influence freight movement in UNI, including internet sales, investment in large distribution centres, smaller producers and businesses, decline of general manufacturing in New Zealand. There is likely to be increasing congestion on train paths in the UNI and need for further investment in track duplication, passing loops and rail heads in strategic locations. There is also likely to be increasing congestion on the urban road network, particularly around the Port of Auckland and south Auckland. This is likely to be most pronounced in the peak periods, and may impact on the efficient movement of freight in the area. The development of inland ports and freight precincts can assist in making the movement of freight more efficient and therefore decreasing the cost of doing business. Key success factors for new inland ports and freight precincts would include proximity to primary markets, proximity to major road and rail infrastructure, capacity of the site and freight handling infrastructure, co-location of warehousing and light industry, and buffering from nearby sensitive land uses. There is a need for an integrated strategic framework across all levels of government for the planning and management of freight movements across the UNI. Doc #

13 (Auckland) Port Futures Study 2016 In 2012, the Auckland Plan proposed to extend POAL 250m into the Waitemata Harbour. This aligned with the recommendations in the PWC technical study. The proposal prompted considerable public feedback, and in part led to the scope of the Port Future Study The objective of the study was to recommend a long term strategy for the provision of facilities to accommodate sea-based imports and exports. Findings: Based on these findings, the POAL will not be able to accommodate the long- term ( years) freight task and cruises on the current footprint. No further reclamation beyond what is already consented in the port precinct is required for freight purposes in the short to medium term. Other changes needed: o Securing berth length in the multi-cargo area for the short to medium term o Additional berth length Retaining the bulk of port functions in Auckland provides better outcomes for Auckland. In the long term, other existing North island ports would be unable to cope with the totality of the Auckland freight task together with their own capacity requirements. Cruise facilities should be retained in the CBD. Two possible new port locations Manukau harbour and the north of the Firth of Thames warrant more investigation. Neither option is considered favourable. A move is likely necessary over the long term. A move might be identified as beneficial or necessary dependent on monitored relocation triggers. Triggers for a move would comprise economic, social, environmental and cultural elements. Recommendations: 1. A port relocation option is established for freight. 2. Comprehensive investigation of the identified location area options Manukau Harbour and the Firth of Thames is undertaken to decide which specific option is chosen. 3. Regular monitoring of relocation triggers is undertaken to identify the time at which the port relocation option should be exercised. 4. Subject to confirmed and credible commitment to establishing a port relocation option and establishing sufficient additional berth length to accommodate expected growth in large cruise and multi-cargo vessels, the port should not expand beyond its current footprint. Other reports to inform the study Upper North Island Key Sector Trends to 2015 and Labour Demand to 2020 (June 2016) UNISA/key%20sector%20trends_Overview_Report.pdf Upper North Island Industrial Land Demand (2015) UNISA Report: Opportunities for port networks (October 2011) Upper North Island Freight Story: Reducing the cost of doing business in New Zealand through an upper North Island lens (April 2013) ht%20story%20-%20shared%20evidence%20base%20document%20- %20FINAL%20April% pdf Doc #

14 How can we meet increasing demand for ports in the Upper North Island? A report for the Upper North Island Strategic Alliance (November 2012) rth_island_ports_study_final_(s)_pdf.pdf The Business Growth Agenda 2015/16 Consultant s report to the Port Future Study (2016) (Auckland) Port Future Study: Recommendations Report of the Consensus Working Group (July 2016) df Container productivity at New Zealand ports (2011) Ports of Whangarei (2010) ble%20infrastructure/30-50-port-of-whangarei.pdf Ports Companies Act New Zealand Productivity Commission: International freight transport services Doc #