A ship is loaded with containers at Sydney's Port Botany container terminal March 4, 2013. Australia's trade deficit shrank by much more than expected in February to its smallest in 14 months thanks to higher prices for resource exports, a likely boost to
A ship is loaded with containers at Sydney's Port Botany container terminal March 4, 2013. Australia's trade deficit shrank by much more than expected in February to its smallest in 14 months thanks to higher prices for resource exports, a likely boost to profits and incomes that also gave the local dollar a lift. Wednesday's figures from the Australian Bureau of Statistics showed exports climbed 3.3 percent overall to a seasonally adjusted A$25.64 billion, the highest total in eight months. Earnings from farm goods, coal, metals and iron ore all increase in the month thanks in part to rising prices. Picture taken March 4, 2013. Reuters/David Gray

Auckland port is struggling with congestion and wants to add more space. But, its proposal for reclamation of the Waitemata Harbour is being resisted. The issue of space crunch faced by the port has now been highlighted in a recent study commissioned by the Auckland Council. It has warned that the shrinking wharf space of the port will become acute in another 20 years unless steps are taken to add more space by way of reclamation.

The Stuff.Co.Nz reports that a study conducted by New Zealand Institute of Economic Research looked into the prospect of how long Ports of Auckland can operate within its current footprint. Then it also analysed external constraints inhibiting the port’s expansion and its likely impact on the central wharves' development plans and port operations. There is already a report by PricewaterhouseCoopers that studied the freight needs of ports in the upper North Island.

Auckland Unitary Plan

The study by NZIER was commissioned by Auckland Council to decide on the rules for port reclamation in the Proposed Auckland Unitary Plan. The port company owned by the council, has been pushing to reclaim part of the Waitemata Harbour for adding more space to its operations.

However, the council made reclamation a "non-complying" activity until it can assess the potential costs and benefits of reclamation of the harbour. Already, some experts have suggested moving the port away from Auckland's waterfront. But NZIER was not mandated to look into the long term location of the port.

Cargo Pressure

The study concluded that eventually Ports of Auckland will need more multi-cargo wharf space for its growth. Else, some of its business will go to competing ports.

The study, authored by Nick Allison, noted that the capacity of the multi-cargo wharves is coming under pressure. It said the wharves are being used to land cargos that are typically not carried by containers. They include building materials, vegetables, wheat, vehicles and other goods used by households in Auckland and in other parts of New Zealand. The report said while ships are getting bigger, wharves are not growing adequately to manage such vessels.

Allison said the situation has been aggravated by the rapid increase in the number and size of cruise ships. NZIER chief executive Laurie Kubiak also said the goods coming through the multi-cargo wharves are important in the livelihood and economy of Aucklanders. Bulk of New Zealand's vehicle imports are coming through the Port of Auckland. There about 3500 jobs to be saved that are linked with imports, mostly in vehicle wholesaling and distribution businesses. Most of these jobs are concentrated in South Auckland.

Mayor Mum

Meanwhile, New Zealand Herald reports that Auckland Mayor Len Brown is tight lipped on the issue whether he supports further reclamation of the Waitemata Harbour by Ports of Auckland. The Council is due to take a decision on the issue. Port of Auckland is pushing with its expansion plans after a council-commissioned study endorsed its demand for more wharf space.

The report put up by NZIER has added pressure on the council to loosen its rules of reclamation, which are being opposed by many Aucklanders. The council is expected to meet soon to take a position on the matter.

Brown said the review he promised in 2013 was supposed to look into the economic, social and environmental impacts of the port on wider Auckland. But that review cannot take place until after the new zoning rules are finalised. The Mayor assured that the review would address the long-term future of the port in an informed, mature and thoughtful way.

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