Ports of Auckland scraps $65m automation project

10:56 am on 9 June 2022

The Ports of Auckland will not rule out automating its ports in the future, despite the decision to abandon a failed $65m automation project.

AUCKLAND - JULY 12 2018:Freight ship in Ports of Auckland. its New Zealands largest commercial port handling more than NZ$20 billion of goods per year

Ports of Auckland. File photo Photo: 123RF

Ports of Auckland has scrapped its long-awaited container automation project after years of delays and $65 million spent.

It was supposed to lift productivity and profitability but the company says automation is not performing to expectations and it cannot say how long and how much it would cost to get it up to scratch.

The move has pleased unions concerned about safety and job losses, but frustrated the port's owner Auckland Council, which has ordered a review.

On Wednesday, Auckland Mayor Phil Goff said it was the right decision to abandon the project but called for an independent review to determine who was culpable for the port's former board's decision to fund the project.

Goff said the project decision was made about seven years ago and it had failed to deliver what was promised, and it was a decision he had serious doubts about.

Ports of Auckland chief executive Roger Gray told Morning Report the company supported the Mayor's call for an independent review.

"We absolutely support the Mayor's call and we'll be launching an independent review which will report back to the board and also to the mayor and the CEO of the council," he said.

Phil Goff speaks to media following cabinet's decision to extend the level 3 lockdown in Auckland

Auckland Mayor Phil Goff says he is "pretty brassed off" with the port's former board's decision to fund the project. Photo: RNZ / Dan Cook

The project had aimed to integrate various systems into a single automated model, but software complications had led to questions around its feasibility, he said.

"This was a really bold and innovative step when it was launched seven or eight years ago ... it was a world first in that it was attempting to automate a brownfield site with quite a complex model.

"People have worked really hard and we just haven't been able to make it work and in order to allow us to start to move forward and service the customers and people of Auckland the board decided it was best to abandon it," Gray said.

However, he said some automation was not completely off the table.

"We haven't said no to automation per say, what we've said no to is this project.

"In a couple of years when things are stable here and we're performing, we'll have another look at automation and maybe we'll look at the different types of automation going forward," Gray said.

Gray said the project had not been a complete failure as Auckland's ports had still received new cranes, a new wharf and other infrastructure boosts.

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