Air NZ was badly hit by the crisis which cut fuel supplies to 30 per cent of normal. Photo / Jason Oxenham
Air NZ was badly hit by the crisis which cut fuel supplies to 30 per cent of normal. Photo / Jason Oxenham
Editorial
EDITORIAL:
Two years ago, airlines operating from Auckland Airport were running on fumes.
A rogue digger operation had resulted in the rupture of the Marsden Point to Wiri pipeline responsible for supplying aviation fuel to the gateway meant airlines for a period were down to 30 per cent of normalfuel rations.
But aside from quintessentially Kiwi way it happened, it wasn't a complete surprise.
In 2012, Air New Zealand warned a government department the airport pinch point was vulnerable to a supply shock and storage was inadequate. There was no action.
Now the Government inquiry into the crisis has echoed that warning to the firms which own or control the infrastructure; BP, Mobil and Z Energy.
This time there's a costly lesson to draw from which could have been worse, the rupture came at a relatively low-demand period for air travel and storage was high.
The Marsden Point to Wiri fuel pipeline ruptured three years after being hit by a digger. Photo / John Stone
The Auckland Fuel Supply Disruption report makes 21 recommendations. It urges the ''diversity of supply'' and, importantly, expansion of storage at or near Auckland Airport to provide 10 days of cover for 80 per cent of airline operations.
The airline umbrella group the Board of Airline Representatives has already been working with fuel companies to fortify infrastructure, but says progress is not fast enough.
It would take a bold or foolish contractor to start digging near the pipeline now, but it could happen again today, with similar consequences. The recommended resilience is years away.
To hasten progress, the report says the Government should use its statutory powers if the industry doesn't commit to the investment needed.
Energy Minister Megan Woods says the Government is working on a full response but arming itself with real teeth would be a good tactic. The fuel industry is already in the spotlight over petrol prices, and will want to avoid provoking further government ire.
There's precedent for a big improvement in infrastructure resilience. Transpower learned some hard lessons 15 years ago when failures led to blackouts.
There are some encouraging signs, with the forecast demand for air travel helping. Z Energy says demand for jet fuel is forecast to rise by up to 120 per cent during the next 20 years and has begun investigating increased resilience. It is ''willing and able'' to invest where it makes commercial sense.
BP is not specifying how much but says it has committed funds to invest in more storage at the Wiri Oil terminal.
Auckland Airport says it is already following advice in the report, including a new jet fuel supply co-ordination group, new ways to update and share demand forecasts, and ensuring resilience is taken into account when planning the new on airport fuel-tank area.
Woods is interested in another of the recommendations; toughening up the penalties for operators who damage core infrastructure.
There's precedent for a big improvement in infrastructure resilience. Transpower learned some hard lessons 15 years ago when failures led to blackouts. About $2 billion was spent rebuilding the system which, while not bullet-proof, is far more robust.
The magnitude of spending to keep planes flying and give airlines confidence is not of that order. But the need to get on with the work is just as urgent.
