Tauranga confidence grows, business booms

Port of Tauranga chief executive Mark Cairns expects growth to continue to accelerate.Photo / John Borren

Economic growth in Tauranga increased by 4.4 per cent in 2014, almost double the New Zealand average of 2.5 per cent - and the city is "going forward on all fronts", business leaders say.

Millions of dollars have been pumped into expansion at the Port of Tauranga and research and development by central Government, while investment in the kiwifruit industry is expected to create hundreds of new jobs.

Statistics from Infometrics show in 2014 Tauranga's job growth lifted 3 per cent to 58,739 people in jobs ahead of the national average of 1.7 per cent.

Healthcare, social assistance and construction were the biggest contributors to economic growth.

Priority One projects manager Annie Hill said the city was "well positioned" and there was "a strong move from industries that support population growth from retail and construction to more innovative, higher-value exporting businesses".

However, the biggest challenge would be funding infrastructure to support that growth, she said.

But Tauranga Mayor Stuart Crosby said the council had earmarked $400million to $450million in its 10-year plan for growth-related infrastructure.

"We do recognise that is an issue and we are intending to provide for it. The last thing I, as mayor, or the the elected members and our organisation wants to do is put barriers in place for strong economic growth."

It was important Tauranga did not stagnant or go backwards, he said.

"I see it as an investment into the future. We are not going backwards, we are definitely going forward on all fronts."

Port of Tauranga chief executive Mark Cairns said the port had experienced significant growth and was now the biggest in the country in terms of total cargo volumes.

Since 2010 cargo volumes had grown 45 per cent, up from 13.7 million tonnes to about 20 million in 2015, and container volumes had risen 70 per cent at the same time, with total shareholder return at 18.4 per cent per annum during the past 10 years.

"There is the growth in jobs and economic contribution to the region that comes with that."

The port had also spent $350million on capital expansion including $50million on dredging the channel to make the port "big ship capable". That job went out to international tender last week. "We have had a strategy in mind for the last 10 years and have just quietly got on and executed that, so dredging is the last big-ticket item."

Zespri chief operating officer Simon Limmer said Zespri expected strong growth in volumes as the season marked the return to pre-Psa volumes, with gold kiwifruit predicted to reach 30 million trays, up from 29 million trays exported in 2011.

In February the Bay of Plenty Times reported post-harvest companies had spent more than $35million upgrading facilities to cope with demand and expected to take on more staff.

Mr Limmer said Zespri, which employed 310 people around the world, expected to recruit an additional 40 positions in the next 18 months.

Tauranga Chamber of Commerce interim chief executive officer Toni Palmer said businesses were experiencing an increased sense of confidence and a growing positive outlook.

A survey revealed 18 per cent of its employers expected fulltime employee numbers to rise and 44 per cent expecting to work longer hours to meet rising demand, she said.