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Exporter Issues Headlines
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Exporter Issues
Ports merger would be good for exporters
Monday, 06 November 2006
Changes to infrastructure seem to be very much in the news.
The possible merger between the Ports of Auckland and Port of Tauranga is a logical response to the increasing size of container vessels and should ensure New Zealand ports don’t become just feeder services to the east coast Australia ports.
It is a welcome sign that we are responding to the big changes happening to global supply chains. This may well be the start of further rationalisation of ports as it is something of an anachronism that we still operate with so many ports of call for international shipping lines, rather than use coastal shipping or rail to consolidate goods in fewer locations.
It may also stave off a raid by overseas interests intent on gaining control of key strategic assets. While there are clearly some big hurdles to climb before the ports merger becomes a reality and a clear understanding developed that the efficiency gains will flow back to exporters and importers, the proposal deserves our full support.
Contrast the positive moves by the big ports with the consultation document released by Transit NZ on tolling Auckland’s Western Ring route. Tolling may well have its place in the overall long-term development of our roading infrastructure. However, to apply it to the fundamental road network that has been on the plans for more than the last 30 years, and then try to claim urgency, offering an option of tolls or waiting at least another 25 years for possible completion, is a disgrace to their so-called consultation process.
Not content with a totally ‘one option’ document, Transit fails to advise that nearly half of the revenue will go just on administration. Why are increased petrol taxes not an option and frankly with the government surpluses in excess of $11 billion it’s time for Transit to stand up and get the funds for this crucial link in the motorway network from central government. The economic benefits are such that it will surely pay for itself handsomely.
You can’t help thinking that the organisation is long on planning and short on any ability to implement. How many times has the link from Manukau on the Southern Motorway to the airport got to the final plan stage and then been withdrawn as the costs are over budget? This should have been completed long ago and tolling would not have been an issue.
Somehow needing another decade, even with tolls, to take the total time to more than 40 years to plan and build the Western Ring Route just seems incredible to the countries with which we are competing in Asia and globally. With this level of performance it’s no wonder, as the NZ Institute has so succinctly pointed out in its discussion documents, we are falling behind as a country.
Good infrastructure is vital to drive increased productivity, encourage inward foreign direct investment and keep our businesses globally competitive.
• Bob Walters is chief executive at Export New Zealand.
