Coke fights route for $4b highway

By MATHEW DEARNALEY

Global soft-drink giant Coca-Cola has weighed in against Auckland's $4 billion eastern highway project, threatening to fight the recommended route through its property.

Local subsidiary Coca-Cola Amatil (NZ) has told Auckland City Mayor John Banks that it will oppose the route "by all means at our disposal" unless there is a compromise.

The company employs more than half of its 1000 New Zealand staff at its Mt Wellington bottling plant.

It wants to add a $40 million to $45 million automated warehouse at the front of the site, along Waipuna Rd.

But this is in the way of a preferred route which engineering consultants have recommended for the 27km highway.

The company is one of more than 400 commercial properties and about 1200 homes along the route between Te Irirangi Drive in Manukau and Parnell. Owners are awaiting a decision on the route by next month.

Coca-Cola Amatil managing director George Adams has written to Mr Banks saying that a "substantial conflict" had arisen between the route and his company's operations, which generated $433.5 million in operating revenue last year.

"As this issue threatens our continued presence in Auckland City, we are writing to inform you of this situation and ask for your help in resolving it."

Seeking a site meeting with the mayor, Mr Adams said the company had already approached city officials but with disappointing results.

The company had suggested reconfiguring "adjacent park assets" as a possible solution without "material loss of recreational space".

He is understood to have meant Fisher Park, but would not comment last night on what he told the Herald was a private communication, despite having sent copies to all 19 Auckland City councillors.

It was unfortunate the letter had reached the newspaper, he said.

Mr Adams told Mr Banks the officials indicated the company should change its plans to make way for the highway.

But the costs of doing so were significant, he said, and the council had expressed no willingness to help out.

Mr Adams said Coca-Cola had already spent $150,000 on design plans, and it could cost up to $13.3 million to move an existing building and then build the new warehouse on land not in the path of the highway.

"The current expectation appears to be that we will simply incur these costs (and others) without any guarantee we could obtain compensation for this if the road is developed.

"While we are not necessarily opposed to the [eastern highway], we cannot accept that we should incur substantial costs at this time to provide for it at some undetermined time in the future.

"If this conflict cannot be resolved, then we will be forced to proceed with our current plans and this will in turn mean that we will need to opposed the proposed [eastern highway] alignment by all means at our disposal."

The company would be forced to take a "confrontational approach", said Mr Adams.

Mr Banks could not be reached last night, but mayoral spokesman Cameron Brewer emphasised the highway steering group had yet to make up its mind on the route.

Manukau Mayor Sir Barry Curtis said he was confident a solution could be reached with Coca-Cola Amatil.

The consultants want to split the project's Mt Wellington sector to build a four-lane highway for general traffic next to Waipuna Rd and to provide two lanes for buses and two for other vehicles along the existing Lagoon Drive to the northeast of Panmure Basin.

Auckland City works committee chairman and Mt Wellington resident Bill Christian suggested last night there was no need to have upset Coca-Cola Amatil, as there was insufficient traffic growth to justify widening Waipuna Rd for many years.

- additional reporting: Wayne Thompson