The vexed question of port ownership, control and productivity ha again been raised in a wide-ranging transport sector discussion paper released by the Productivity Commission yesterday.
While it questioned a multitude of areas in transport affecting imports and exports, including logistics, aircraft. shipping and legislation, it said port operations were significant in their impact on exports and imports.
In recent years alliances had been considered between the ports of Auckland and Tauranga, then Port Otago and Lyttelton Port of Christchurch, but neither had got beyond initial talks before abandoning the concept, although Port Otago has retained a 15.48% blocking stake in listed-LPC.
The Productivity Commission's international freight transport services "issues paper" outlines wide-ranging questions on all facets of the transport sector. Submissions are due by August 31.
The paper's port chapters echo a report in August last year by the New Zealand Institute of Economic Research for Local Government Forum, in which local authority ownership of ports such as Port Otago, 100% regional council owned, and LPC, 78.78% city council owned, were criticised as parochial.
It was suggested in the 60-page port performance and ownership report the port's shareholdings should be scrapped to encourage operational efficiencies and more beneficial port-to-port relationships.
The Productivity Commission notes that New Zealand is the most remote advanced economy, in terms of average distances from other economic activity, and faces a "long, thin [trade] routes" problem.
The commission poses the question of port ownership, and whether local authority-appointed directors are making decisions based on "successful business" operations as required under the Port Companies Act 1988, or being influenced by local politicians and issues.
