Category: privatization

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Selling Port of Auckland would be “letting the vultures in”

Source: Maritime Union of New Zealand

The Maritime Union says ongoing uncertainty about the future of Port of Auckland is a threat to the economic stability of Auckland City and New Zealand.

The Mayor of Auckland is proposing two options – the sale of an operating lease of the Ports of Auckland (with proceeds going into a fund), or continued Council ownership of the Port with a gradual reduction in size.

The stated preferred option for the Mayor is privatisation – sale of a long term operating lease.

Maritime Union of New Zealand National Secretary Craig Harrison says the Port of Auckland must remain in public ownership.

Mr Harrison says there is danger of massive price hikes on freight if Port of Auckland was privatised, as recently happened in Australian ports operated by global port conglomerate DP World.

“It will be worse than the chickens coming home to roost if we hand over the port to an outfit like this – it will be the vultures coming home to roost.”

Mr Harrison says there is currently no feasible alternative to the Port of Auckland, with other ports operating at capacity, and lack of infrastructure to move freight to Auckland from other ports.

He says it is not realistic to shrink the Port without having a plan in place as how the growing quantity of freight will be handled.

“Any major changes to port location or the supply chain would be a multi-billion dollar, decades long process, requiring central and local Government co-ordination, including coastal shipping and rail links.”

“Put simply, the current value of the Port of Auckland as a trade gateway for the country far outweighs its value to the Council as a one off cash injection.”

Mr Harrison says according to polling carried out for the Maritime Union, a strong majority of Aucklanders oppose any sale of the Port, and elected representatives would be held to account if they went against the will of the people.

“There is no doubt Auckland City faces difficult decisions, but the sale of the port is not a solution.”

“The best approach is to maintain a steady course for the Port of Auckland as a profitable strategic asset for the people of Auckland.”

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Massive price hikes in DP World Australian ports must scuttle Auckland port privatization plans

Source: Maritime Union of New Zealand

DP World, the global port operator linked to a privatisation agenda at the Port of Auckland, is embroiled in controversy in Australia after massive price hikes for port users.

Terminal fees are set to jump more than 50% at DP World’s Brisbane, Melbourne and Sydney operations, leading to one freight industry manager describing the situation as “daylight robbery”.

The price hit also led to Australia’s former competition watchdog chair, Graeme Samuel, saying the Government needed to take control of the model of privatisation that had led to “rampant high prices”.

Maritime Union of New Zealand National Secretary Craig Harrison says the news confirm findings in a report released in September 2023 by the Union that warned of major price hikes on freight if Port of Auckland was privatised.

Mr Harrison says the Union had accurately predicted the failure of the previous automation project at Port of Auckland, and it did not want to be proved right about port privatisation.

He says Auckland City needs to immediately dump any proposals to privatise the Port of Auckland, unless it wanted to wreck the local economy.

Mr Harrison says the DP World in Australia is currently at war with freight businesses, importers, exporters and their workforce.

“Do we really want to hand over a strategic asset and natural monopoly to this type of outfit?”

Protected industrial action is ongoing in Australian ports, with the Australian Council of Trade Unions last month calling on DP World to ‘return to good faith bargaining and abandon their attacks on hard working maritime workers in Brisbane, Sydney, Melbourne and Fremantle.’

More bad news about the practices of the multinational came out in a report released this week in Australia, showing DP World in Australia paid zero income tax in Australia over the last eight years, despite revenues of over $4.5 billion in that period.

A poll released by the Maritime Union on 11 October showed an overwhelming majority of Aucklanders wanted the Port of Auckland kept in public ownership.

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Does DP World dodge taxes? Port giant under spotlight

Source: Maritime Union of New Zealand

The multinational involved in the proposed privatisation of Port of Auckland is the subject of a new Australian report “Does DP World dodge taxes in Australia?”

The report is published by The Centre for International Corporate Tax Accountability and Research (CICTAR).

Key findings show DP World in Australia paid zero income tax in Australia over the last eight years, despite revenues of over $4.5 billion in that period.

DP World appears to have used complex methods to artificially reduce taxable income and shift income offshore, according to the report.

Maritime Union of New Zealand National Secretary Craig Harrison says Aucklanders should be watching closely what is happening with DP World across the Tasman.

Protected industrial action has recently taken place in Australian ports, with the Australian Council of Trade Unions last month calling on DP World to ‘return to good faith bargaining and abandon their attacks on hard working maritime workers in Brisbane, Sydney, Melbourne and Fremantle.’

“Selling a strategic asset and natural monopoly like Port of Auckland to a global operator like DP World would be leaving a vampire in charge of the blood bank.”

Mr Harrison says the disturbing record of DP World in Australia can be compared with the positive situation in Port of Auckland.

He says with new management working with the Union at the Port of Auckland, there have been rapidly improving returns for the people of Auckland.

“Why would we want to mess with this successful Port?”

The Australian tax report on DP World follows on from a report released in September 2023 by the Maritime Union of New Zealand that warned of major price hikes on freight going through a privatised Port of Auckland.

A poll released by the Maritime Union on 11 October showed an overwhelmingly majority of Aucklanders wanted the Port of Auckland kept in public ownership.

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Aucklanders show strong opposition to port sale in new poll

Source: Maritime Union of New Zealand

The Maritime Union has released a new poll that shows an overwhelming majority of Aucklanders support keeping the Port of Auckland in public ownership.

Polling was carried out by Talbot Mills from 4–9 October 2023 on a sample of 517 Aucklanders.

In answer to the question “Do you think Aucklanders should continue to own and profit from the Auckland Port?”, 63% of respondents answered yes, 7% answered no and 30% were unsure.

In answer to the question “Mayor Wayne Brown has suggested selling the Auckland Port to overseas investors. Do you support or oppose the sale of the Port?”, 64% were opposed to the sale, 15% were in support and 21% were unsure.

Maritime Union Auckland Branch Local 13 Secretary Russell Mayn says the poll confirms Aucklanders are opposed to privatisation of the Ports of Auckland by an overwhelming majority.

The polling follows the September 2023 release of a report commissioned by the Maritime Union that detailed how port privatisation in Australia had led to major increases in port charges as private owners sought to recoup their investment.

Mr Mayn says there has been no convincing argument for port privatisation and there is no mandate for a sell off.

“This is an asset that is immensely important to Auckland’s economy and to New Zealand’s supply chain. The Mayor of Auckland needs to share the details of his privatisation plan and party leaders need to tell voters where they stand on this risky and reckless privatisation proposal.”

He says the Mayor of Auckland has a difficult job in dealing with the financial pressures on Auckland City, but the clear message is Port privatisation is not the answer.

“As the Mayor has acknowledged, the Port of Auckland is currently making good returns for Aucklanders.”

Mr Mayn says the Maritime Union is calling on Auckland Councillors who have not yet stated their position on port privatisation to confirm their views in the interests of transparency.

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‘Show us the numbers’ on port privatisation

Source: Maritime Union of New Zealand

The Maritime Union says the Mayor of Auckland should “show us the numbers” about Auckland’s finances before pushing port privatisation as the easy answer to its problems.

The Maritime Union was responding to claims by the Mayor reported in the media last week about the need for service cuts and asset sales as a solution to rising rates. 

Maritime Union Auckland Branch Local 13 Secretary Russell Mayn says Auckland ratepayers are aware of pressures on City finances, but want to see some hard evidence as to how privatisation is a solution.

“At the moment it seems largely to be doom and gloom tactics to try and generate a panic and justify an existing agenda.”

He says that selling profitable strategic assets comes with substantial costs of its own.

Mr Mayn says a report commissioned by the Union showed how port privatisation in Australia had led to major increases in port charges as private owners sought to recoup their investment.

These charges would be passed onto businesses and consumers, he says.

Mr Mayn says the Port of Auckland is making good returns and has a very positive future with its current ownership model.

“Privatisation of assets would lead to Aucklanders losing the family silver, and then facing increased costs through profit gouging at a private port.”

Mr Mayn says it makes no sense to be talking about major waterfront beautification projects on port land while at the same time claiming that the City was broke.

“The Maritime Union understands the pressures on Auckland’s finances, but selling off the prime assets of the City for a one-off sugar hit does not address the long term issues and would lead to all sorts of consequences.”

He says one immediate cost saving would be cancelling overseas consultants being paid hefty fees to build the privatisation case.

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New report shows major downsides to Ports of Auckland privatisation scheme

Source: Maritime Union of New Zealand

A new report commissioned by the Maritime Union of New Zealand shows major downsides to any privatisation of operations at the Ports of Auckland.

The report entitled “The costs and risks of privatising Ports of Auckland operations” draws on international research including the experience of Australian ports in recent years.

Auckland Council is reviewing options to sell an operating lease for the Ports to a global network terminal operator, and has commissioned consultants to seek expressions of interest.

Maritime Union of New Zealand National Secretary Craig Harrison says a key concern coming out of the report is the potential for price hikes hitting port users – then being passed on to local industry and consumers.

Mr Harrison says privatisation of operations at Ports of Auckland is estimated to hit local port users with NZ$70 million in extra costs annually.

“Any private operator in Auckland would be in a monopoly position and would seek returns on its investment, on top of the lease cost – the profit has to come from somewhere.”

He says privatised port operations in Australia have seen surcharges of over AU$100 per container imposed on port users, who have no other options.

“The failed automation experiment at Ports of Auckland shows there is no fat to be cut at the Port, and private profit through privatization would be extracted from port users and the local economy.”

Mr Harrison says the primary value of the Ports of Auckland is how it facilitates trade.

He says there is growing concern there is no clear strategy for the Ports and decision making is being driven on a short term, ad hoc basis.

“The Ports of Auckland is going through the a period of growth and stability under new leadership with improving returns, and should be left to get on with the job and not meddled with.”