Calm reign over seas of change

By PAM GRAHAM

Management theorists might say 30 years is too long in one job, but Port of Tauranga chairman Fraser McKenzie says in reality he's done three periods of 10 years.

McKenzie retires at this year's annual meeting, having stood many times to say, "I'm pleased to report a record profit".

This year he will also make closing remarks on an association with the port that started when he was elected to the harbour board in 1974.

The harbour board era lasted until 1984, the reform era until 1994 and since then the port has been a publicly traded company with a 55 per cent local authority shareholder that has not interfered.

"In 2004, I've done 10 years with the company," said McKenzie.

Even in the harbour board era, men such as Sir Bob Owens were thinking commercially, he said. Containerisation had arrived and any port wanting to be up with the trend needed a terminal.

However, the Government of the time said there would be four container ports and Tauranga was not one of them. Instead, Prime Minister Sir Rob Muldoon said the port could buy a multi-purpose crane. So the stevedoring and marshalling companies bought container handling equipment.

The harbour board started the container terminal but once the industry was deregulated and the company partly privatised, it invested another $120 million in the facility. For five years it was a white elephant.

"There was only one thing we miscalculated, and that was Auckland's ability to respond to our pressure," said McKenzie.

"The thing that frustrated me intensely was the shipping lines would come to us and ask what we could do for them and they would then go back to the opposition and say, 'This is what we can get in Tauranga what can you guys do for us?"'

The rest is history - by using rail to get containers to South Auckland Tauranga attracted shipping lines from Auckland. Now it is planning a fourth container crane and the rail line is straining. Auckland has eight cranes.

The other big event of McKenzie's tenure was the shutdown of the port for 35 days in 1989 to get agreement to work ships 24 hours a day, seven days a week.

"There is a wonderful photo from that time when every berth was occupied and ships were waiting outside," said McKenzie.

There is no need to queue at a port working 24 hours and no need for new wharfs.

"The turnover of log ships went from 10 days to a maximum of three days, which made massive changes in the requirement for facilities."

The port's chief executive, Jon Mayson, was the port representative on the industrial council during the shutdown. He was also elected to the harbour board in 1974.

"By chance we sat beside each other and talked to each other and have been talking ever since," said McKenzie. They have not always agreed but they have always been able to talk.

McKenzie cuts to the chase and has clears view. "Don't get me started on the dairy industry," he said.

The son of an academic family, he said the people who told him not to convert a rough central North Island block of land to dairying were wrong. He is retiring to a successful farming business.

McKenzie is not a fan of foreign control of local assets. A Hong Kong company wanted a majority stake in the port when it was being privatised, but McKenzie's view was "not while I'm around".

Tauranga's yacht marinas, however, stayed with local authorities. "We had a huge debate when the company was established but decided we would get offside with the public, so we walked away from marinas."

McKenzie said his time at the port has always been challenging.

"There has always been something you can see ahead of you. The situation now is so different to 10 years ago."

Shippers still play ports off against each other but there is more talk now about long-term relationships and supply chains beyond the port.