The Government appears to have withdrawn the $45 million of funding approved for the proposed barge port at Wharekahika (“East Cape Marine Project”).
Shane Jones squeezed this funding approval out of the taxpayer before he was booted out in 2020. The withdrawal may also reflect a growing lean away from poorly managed log harvest on highly erodible soils.
The proposed barge port could reduce log truck use on SH35 but would destroy the peaceful environment of Wharekahika. It was opposed by many locals.
It is also likely to cost a lot more than estimated, once supporting infrastructure is included. If it proceeds, the majority should be paid for by the log industry not the taxpayer or Trust Tairāwhiti.
The business case would need to be refreshed to include costs of the port and supporting infrastructure. This is likely to top $100 million before likely ongoing operational losses are included.
