KEY POINTS:
The Government is on board with the long-talked-about idea that Marsden Point will become a major container port with an all-important rail line inland, according to Northland Port Corporation chairman Mike Daniel.
"It appears central government now recognises the inevitability of a one stop international deepwater port at Marsden Point," he told shareholders at the annual meeting.
The idea that Marsden Point could rise to threaten Ports of Auckland and Port of Tauranga has been around for decades. The port has ample cheap land and the commercial port for Whangarei has moved to Marsden Point. But the port does not have any large container cranes or a rail link that would connect it to the important Auckland region and beyond.
The port now has a mobile lifter than can handle containers and incredibly some of the 40 foot (12.19m) containers it has been handling have contained logs. Log ships have become so scarce and freight so expensive on them that some logs are now being put in containers.
Mr Daniel is disappointed that a proposed merger between Ports of Auckland and Port of Tauranga did not go ahead. If it had proceeded it could have triggered a rationalisation of the entire port industry, he said.
The industry suffers from parochialism. Ports owned by regional councils keep investing in their port when for the nation it might make more sense for large hub ports to develop.
Further developing Auckland's port, which is on expensive land in the middle of the city "is putting a finger in the dyke", Mr Daniel said.
In the next ten years the amount of containers on Auckland roads will double.
"Let's get rid of this Ranfurly Shield bullshit because it just goes on and on. It is a crying shame that Auckland and Tauranga didn't get together," he said.
Mr Daniel said a rationalisation of the port industry would "arrest the huge transfer of shareholder and ratepayer wealth to the large shipping lines who continue to successfully play one port off against another to their sole benefit".
He said progress has been made on designating a rail corridor to Marsden Point port on which a rail line could be built.
Rail network operator Ontrack has said it will designate the corridor once purchases of land by Northland Regional Council are completed.
"The advent of rail to Marsden Point will be the catalyst - regardless of the continued creation of very expensive capacity at the marginally profitable Port of Auckland," Mr Daniel said.
NZPA understands that the Government is on board with the designation of the corridor but there has not yet been a commitment to building a line. Ontrack could consider that issue as early as next year.
The issues with the line include that it will cross an area of wetland and a cutting into a hillside will be needed. The line would cost at least $150 million to build.
The Government is also yet to agree track access charges on the existing rail network with Toll Holdings but the Australian company said last week at its annual meeting that it expected a deal by the end of this calendar year.
- NZPA
