Rumours that a Dubai-based global logistics operator is eyeing a takeover of Ports of Auckland is being shut down by the new mayor and maritime union.
The NZ Herald is reporting senior executives from DP World and Montréal-based global investment group CDPQ could soon be in Auckland for talks on securing a lease to run the facility.
This would potentially be under an operator company/property company (opco/propco) model that would see ratepayers continue to own the port land and DP World securing a long-term lease to run the port business.
David Lewis, a principal with the government relations agency Thomson Lewis, confirmed to the Herald the agency is working with DP World although declined to say what the work involved.
The Herald reports a second source saying meetings have been scheduled with top level management from DP World and the NZ Super Fund, Ports of Auckland, and officers at Auckland Council, which owns the port company and its CBD-based waterfront land.
However, Auckland mayor Wayne Brown has rejected the idea of the port’s privatisation and responded to the Herald’s article saying he’s “utterly opposed” the idea.
“There are no circumstances in which the Auckland Council Governing Body would ever agree to sell the port land or enter into a lease agreement that would lock it into used-car and container port operations for decades – and it is well known I am utterly opposed as Mayor,” Brown said in a statement.
“My mandate from Aucklanders is to retain the port land in public ownership in perpetuity and return it to mixed used for the people of Auckland as soon as practical, while maintaining cruise-ship and coastal shipping services in the city. This would take time and there would need to be a just transition for every port worker that might be affected, but we need to get on with it.
“I have had very constructive discussions on the future of the port land with incoming councillors, Prime Minister Jacinda Ardern, Local Government Minister Nanaia Mahuta and Auckland Central MP Chlöe Swarbrick and expect to report progress in the coming months,” he says.
Brown adds he is seeking advice from Auckland Council chief executive Jim Stabback on what, if anything, council officers, former mayor Phil Goff and members of the former Governing Body knew about DP World and CDPQ’s aspirations to take control of Auckland’s waterfront land before making any further comments.
In a letter sent to port chair Jan Dawson last week, Brown set out his priorities for the port which include having vehicle imports and container services removed from its current site.
“I will be considering how the council can incentivise the port to utilise its land better and return it for the enjoyment of the people of Auckland where possible. However, I am not interested in any arrangement involving a long-term lease which would lock the port into its current footprint for decades. Any other ideas you have on the medium-term transition of the use of the land is welcome,” Brown wrote.
Meanwhile, NZ Maritime Union national secretary Craig Harrison says talks of privatisation at the port are concerning and not welcome as the port has a great future as a public asset.
He says after a decade of mismanagement, the port is now back on track to deliver.
“The previous problems of the ports were not caused by public ownership, but by lack of oversight by the owner and board of the previous management and their bad decisions.”
Harrison says it is not clear under whose authority council staff are engaging with DP World.
He says the union is one of many stakeholders discussing the role of the port with the new mayor Wayne Brown.
“There is already a constructive discussion about the best way forward for the ports, and to have these extra distractions flying around is not helpful.”
Harrison says the Maritime Union supports a continued role for the Ports of Auckland as a productive asset for Aucklanders and an essential hub in New Zealand’s supply chain.
He says the difficulty and cost in relocating port operations is underestimated.
“Maintaining a secure supply chain should be the number one priority for New Zealand in the current volatile economic environment.”
Harrison says DP World does not have a great record, and is the owner of P&O Ferries, whose sacking of ferry crews in the UK by text earlier this year led to mass condemnation from the British public and even UK Government MPs.
He says previous attempts to sell off the Ports of Auckland failed, as did a 2006 attempt to part-privatise the Port of Lyttelton with the involvement of the GNT Hutchison Port Holdings.
