Auckland’s port saves Aucklanders over $500 million a year

News

Closing Auckland’s port will increase the cost of imports by between $533 million and $626 million a year. Divided between 1.7 million Aucklanders, that’s between $313 and $368 a year each.

That cost will fall on adults and children alike – hitting families the hardest. A family of four will pay between $1250-$1470 a year.

The study, carried out by independent economic consultancy NZIER, looks at what would happen if Auckland’s port was closed and freight had to be delivered to Auckland from distant ports.

The study found multiple negative regional and national impacts such as over $1.2 billion a year in reduced GDP nationally, fewer exports (putting jobs at risk) and less investment.

Closing Auckland’s port will also increase carbon emissions because freight must travel further by land to reach market in Auckland.  CO2 emissions will rise between 121,000 and 212,000 tonnes annually.

Ports of Auckland’s CEO Tony Gibson said “Some people claim that closing Auckland’s port would not increase prices, but this is not true. Currently, the price of imports through distant ports like Tauranga is kept low by competition. Think of it as the ‘Gull effect’ for ports. Just as opening a Gull petrol station lowers prices at stations nearby, having a port in Auckland keeps import prices low.”

“I am also very concerned about the increase in carbon emissions that would be caused by using distant ports to handle Auckland’s freight.  This does not seem to be in line with the aims of the Zero Carbon Act, nor does it seem wise given the urgent need to tackle climate change,” he added.

Ports of Auckland is releasing this report because we believe a decision on the location of the port for our nation’s largest city should be based on facts.

For comments on the NZIER report please contact Chief Executive Laurence Kubiak:

Tel 04 470 1802 | Mobile 021 613 178 | email:  laurence.kubiak@nzier.org.nz

 

Related Articles
2023 Infrastructure Budget
The government’s announced $71 billion investment in infrastructure over five years is a much-needed commitment given the challenges Aotearoa is facing, says Engineering New Zealand Chief Executive,...
How the industrial metaverse empowers workers for more efficient production and distribution
Courtesy of Emad Afghani, vice president of sales ANZ, TeamViewer The latest data indicates that Australians have some understanding of the metaverse, and with 26 per cent of people reporting they’ve...
Tim Fisher becomes president of Engineering New Zealand
Engineering New Zealand Te Ao Rangahau is delighted to confirm Dr Tim Fisher’s appointment as its new Board President. Tim has served on Engineering New Zealand’s Board for four years, most recently...