The New Zealand Herald

CAR IMPORTS

Northport’s new plan

- Andrea Fox

While Auckland’s been jawboning about what to do with the giant import car park on its waterfront, Northport’s been doing, coming up with a new trafficlit­e handling idea for imports that’s getting car-industry attention.

Northport and its halfowner Marsden Maritime Holdings (MMH) have for nearly three years been researchin­g how to cash in on new and used vehicle import growth, but in a way that meets the future delivery needs of the sector without increasing road congestion.

Chairman of both companies Murray Jagger said the model they’d come up with was for all road compliance and certifying to be done landside at Northport, making vehicles customer-ready on the spot. Vehicles could then head south on small carcarrier vessels, on road transporte­rs, by rail or be collected directly by buyers.

“So instead of multiple movements through greater and greater congestion in Auckland, we have the opportunit­y in one stop to fully comply and have them customer-ready,” Jagger said.

The mixed-distributi­on model would be cost-neutral on the price of a vehicle, he said.

MMH is the infrastruc­ture provider for the deepwater port at Marsden Point near Whangarei.

Jagger said it had enough space to accommodat­e 5000 vehicle imports tomorrow.

Vehicle importers and dealers would own the new system, leasing the land and any supporting infrastruc­ture builds they required from the port operators, he said.

“We’ve had discussion­s with importers and car dealers and VIA (used imports associatio­n) and they see the merit in it.”

Dedicated vehicle shipping companies which called at New Zealand had also been consulted. Next step was to commission an independen­t economic and strategic analysis of the idea.

“We now need to do a more detailed piece of work to give clearer economic transparen­cy around it,” Jagger said.

Listed MMH is 19.9 per cent owned by the Ports of Auckland. The Northland Regional Council owns 53 per cent. The other half of Northport is owned by the listed Port of Tauranga.

Jagger said there was no intent to compete “head to head” with the Ports of Auckland for vehicle imports. They were a lucrative business for the Auckland port requiring small capital investment, with more than 300,000 new and used vehicles landed a year.

The independen­t analysis would be done whatever the outcome of the final report of the working group on a Upper North Island Supply Chain Strategy.

The focus of the Government-appointed working group was port reform, with Coalition partner NZ First keen for Northport to take over Auckland cargo operations. The final report, due for release after Cabinet scrutiny this week, is expected to conclude council-owned Ports of

Auckland is not economical­ly or environmen­tally viable and should be closed to all but cruise shipping. Northport was the working group’s favoured alternativ­e for developmen­t in an earlier interim report.

Jagger said no one should be in any doubt that Northport had a vision for growth and was developing regardless of the brouhaha around the working group’s reports.

Inquiries were strong from several sectors for space in MMH’s marine precinct.

Jagger said a port operator had to think 30-50 years ahead.

“How will people want vehicles delivered in the future? It won’t be as it is today.”

Northport and MMH quickly realised the distributi­on model would have to change if vehicles were to head to Marsden Point. At Auckland’s port, after vehicles

It won’t be as it is today.

Murray Jagger

are unloaded from specialise­d car carrier vessels, they are trucked to various places in the city to be made customerre­ady.

“If you look at the current model you have to ask is it sustainabl­e in future? People would say it’s not. Auckland is going to become increasing­ly congested.”

Jagger said when the prospect of vehicle imports at Northport was mentioned, people jumped to the wrong conclusion.

“Everyone automatica­lly latches on to unloading and then trucking (them) to Auckland. There’s no advantage in that.

“The advantage we have is a mixed distributi­on model for a fully compliant vehicle. All done at Marsden Point.”

The Port of Tauranga has been landing vehicle imports for two years.

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