Therainjustfellandfellandfell. OnJanuary27alone,245mm ofrainfellacrosstheAuckland region.
AucklandCitywashithardest duringtheprovince’sAnniversary holidayweekendasanatmospheric rivercausedwidespreadfloodingand landslipsresultinginsome650homes nowbeingred-stickeredafterCyclone Gabriellelateraddeditsowndamage.
Areport’syettoemergeonhow Aucklandhandledtheemergency.
Butlessonsarealreadybeing learntasourProjectAucklandreport disclosestodayininterviewswith leadingAucklandCitycouncillors. Alsoinfrastructurespecialistswith insightsintowhat’snecessarytobuild moreresilience,sothatwhenfuture majorweathereventsoccur —asthey will —thecityisbetterpreparedto withstanddamage.That’spartofthe FutureProofingAucklandstory.
Ofevengreatersignificanceishow
ourpoliticalandbusinessleaders makethenecessaryinvestmentsto futureproofAucklandbyunderwritingitsgrowthandensuringthe cityhasadequatecost-effectiveand efficientinfrastructure,particularly withourtransportnetworks.
Alongoverduesecondharbour crossingwillbeannouncedmid-year; theCityRailLinkismakinggood progressandtheGovernmentis determinedtheAucklandLightRail projectwillsucceed.
MinisterforAucklandMichael WoodhasalsosuggestedPortsof Aucklandoperationsmaymove. Already,KiwiRailisfiguringoutthe necessarynextstepstoensurenew railcorridorsandinlandportsare scopedsothatmorecontainerswill betakendirectlyfromthedowntown portviarailmeantimeratherthan cloggingupthemotorway.
MayorWayneBrownhasputhis
“FixAuckland”campaign
sloganeeringtoonesideandis seekingtogetbetteruseoutofthe city’sexistingtransportsystembefore startingonthenextmega-project.
Inhis LettertoAucklanders includedintoday’s Herald report, Browndisclosesheisseeking legislativechangeonkeyprioritiesfor Aucklandincludinganoverhaulofthe CCO(council-controlledorganisation) modelto“ensuredemocratic oversightandeffectivedeliveryof services”.
Expecttohearmoreonthisinthe Herald’s newspagesinthecoming days.
ConfidenceinAuckland’sfutureis alsowritlargeinthedecisionby AucklandAirporttostartworkona $2.2billionnewdomesticterminal whichwithassociatedprojectscould reach$3.9billion,makingitoneof NewZealand’slargestinfrastructure projects.
EkePanukuandKa¯ingaOrahave
sharedmoredetailsoftheirplacemakingandhousingplans.
Thesearejustsomeoftheprojects includedinour2023report.
TheCommitteeforAucklandalso reveals aplantolaunchanannual benchmarkingprojectcalled The StateoftheCity in apartnershipwith DeloitteandTa¯takiAuckland Unlimited.
At anationalleveltherearemajor challenges. AGovernmentreport publishedin2020identified675,500 NewZealandersaslivinginareas alreadypronetoflooding.
Itprojected afurther72,065were atriskifsomeofthemostdramatic effectsofsealevelrisehit.
Theconceptof amanagedretreat wassocialisedatinfrastructure specialistgatheringsbyFinance MinisterGrantRobertson.Threeareas weresaidtofacethemostrisk:South Dunedin,WestportandTairawhiti Gisborne.
ButJanuary27followedbythe impactofCycloneGabrielleon NorthlandandHawke’sBaywillhave changedthatassessment.
Thereis amassiveclean-upjob aheadandlessonstobelearnt.
We’lltakeanin-depthlookatsome ofthesecrunchyissuesinthe Herald’s upcomingInfrastructureReport whichwillbepublishedonJune7 coincidingwiththeBuildingNations summitwhichthisyeartakesplacein Christchurch.
Therewillbemuchdebateabout theinfrastructureoptionsinfrontof thecountry,fuelledbytheusual politickinginanelectionyear.But plentyofsubstance,too. Enjoytoday’sreport.
ExecutiveEditor ProjectAuckland
ExecutiveEditor: Fran
O’Sullivan
Writers: BillBennett,Anne Gibson,TimMcCready,Bernard Orsman,GrahamSkellern
Layouts: IsobelMarriner
Graphics: IsobelMarriner
Cover: RichardDale
Proofs: TimMcCready,Graham
Skellern
Online: TennessyWeir
Advertising: NeilJackson
ProjectAucklandluncheon: NataliaRimell
nzherald.co.nz/business
TheProjectAucklandreportis supportedbyadvertising sponsorshipfromAuckland Airport,AucklandBusiness Chamber,AucklandCouncil, AucklandLightRailLimited, AucklandTransport,CityRail Link,EkePanuku,GHD,Heartof theCity,PortsofAucklandand
Tosay alothashappenedinmy firstsixmonthsinoffice,would beanunderstatement.It’sbeen extraordinaryandunrelenting, andattimesutterlydevastating.
Whilewecontinuetosupportthose communitieshardesthitbytheAuckland Anniversary floodsandCyclone Gabrielle, Imade apromisetofix Auckland,and Iammoredetermined thanevertodeliveronmyfivepriorities.
FixAuckland’sinfrastructure FixingAuckland’sinfrastructuredoes notbeginwithlargescaleinvestmentin newprojects.First,weneedtodoabetter jobofmanagingtheinfrastructureassets andpublictransportserviceswealready have.
Like mostGovernmenttransport projects,Auckland’sCityRailLink(CRL) iswelloverbudgetandbehindschedule. Untilrecently,itwasjust aholeinthe ground,butwehavetoswallowourshare ofthebillion-dollarbudgetblowoutand finishwhatwestarted.
Giventhecurrenteconomicclimate, wehavetoseewhetherthisnetworkcan doublerailcapacityand reduceroad congestionbeforepushingaheadwith anyplansforlight railor asecond harbourcrossingintheabsence ofan agreedintegratedtransportplan written byAucklanders.
Auckland’saginginfrastructureis fallingintodisrepair,andit’sobvious thatwe mustbebetterpreparedforsevere weatherevents. Iproposedanadditional $20million ayearforstormresponse, focusingonimprovedpreventionand mitigationmeasures,including stormwatermaintenance.
As partofour regionalcycloneand flood recovery,theBigAucklandFix-Up,
Iaskedcouncilstafftoinitiate arapid assessmentoffloodriskareastoidentify simplefixesandcarryoutthenecessary programmeofworkinconsultationwith WatercareandAucklandTransport(AT).
GetAucklandmoving Weneed togetmoreoutofAuckland’s existingtransportsystem,beforestarting onthenextmega-project.
Thisinvolvesharnessingtechnology, completingbuswaysintheeastern suburbsandmuch-needednorthwest, addingdynamiclanestomovebuses fasterwithoutlosingretailparking,and optimisingtransportnetworkstoget Aucklandersmovingfaster,and more conveniently.
Fromlate-April,newtechnologyusing GPStrackingwillgolive,giving buses priorityatkey intersectionsandkeeping themtoplannedtimetablesalongsome ofAuckland’smajorroadcorridors, includingManukauRdandPahRd. This isoneof myoriginalcampaignpromises andthelocaltrialshavebeenpositiveso far,showinga reductioninbuswaittimes of10–35percent.
Constructiononthefinal phaseofthe billion-dollarEasternBuswayhas started.Auckland’seasternsuburbs, whichhasone of thehighestlevelsof privatevehicleuseforworktravel,will benefitfromanimprovedandreliablebus servicetothecity.
IhavealsocalledforATtoworkwith WakaKotahiandutilitycompaniesto explorehowTemporaryTraffic Management(TTM)canbeimproved quicklytoreducethedurationand frequencyofroadworksandlane closures,andthecostofdisruptionto roadusers.
ImaintainthatAucklandersneed moresay overourregion’stransport system.
Auckland’sfirstintegratedtransport planforpeopleandgoodswillincorporate thefutureportmoveandimpactof dynamicbuslanesbeforecommittingto mega-projects.
Stopwastingmoney
AucklandCouncilistop-heavy,withtoo manyseniormanagers,andwasteful spendingofratepayers’money mustbe reinedin.
The$295milliongapintheAnnual Budget2023/24,ontopofdebtfast approaching$11.5billion,wassomething IinheritedfromthepreviousGoverning Body,mayorincluded –muchlikethe mayoralchainsandrobe,onlyfarless appealing.
AucklandCouncilandCouncilControlledOrganisations(CCOs)are mostlyontracktoachievetheircostsavingstargets,andthedraftannual budgetprocessisongoing.
TheExpenditureControland ProcurementCommitteeisdemanding increasinglygranulardetailoncouncil financestoidentifywastefulspending.
TTMisestimatedtocostthecouncil groupanastonishing$145 millioneach year,whichwillbeaddressedaspartof thebeforementionedAT-ledinitiative.
Takebackcontrolofcouncilorganisations Ihavemade myexpectationsabundantly cleartoAuckland Transport,EkePanuku Development,PortsofAuckland,Ta¯taki AucklandUnlimitedandWatercare.
ThisbeganwithmyLettersof Expectation,detailingtheneedfor greatertransparency,increased efficiencies,andbettervalueandreturns forratepayers’ money.
I’malsoseekinglegislativechangeon keyprioritiesforAuckland,includingan overhauloftheCCOmodeltoensure democraticoversightandeffective deliveryofservices.
Despitesomeresistanceearlyon,it appearsthatwe’veturned acorner.
In mostcases, CCOboardsare listeningandmakingchanges.
I’mpleasedtoseethey’rebecoming moreresponsivetotheneedsof Aucklanders,ratherthanputting themselvesatthecentre.
ATischargingaheadwiththecyclone andfloodrecovery,dynamicbuslanes, andimprovementstoTTM.Portsof Aucklanddelivered astronger half-year resultandinterimdividendtoAuckland Councilandisseriouslyconsidering consolidationtoreleasehighlyvalued landforbetteruse.
Makethemostofourharbourand environment Aucklandisagreatplacetolive, weneed to makethemostofourbeautifulharbour andtheenvironmentwelivein.
Intheshort-term, Iexpectimmediate stepstobetakentoachieve amore efficientuseofportlandand,indoingso, makesomeofitsspaceavailableforthe public.
The goodnewsisthatwe’renotfar fromseeinga planforthereturnofsome ofAuckland’sprizedwaterfront.
SimonBridges
Oneofthemanythingsthat therecentcatastrophic weathereventshavelaid bareisthevulnerabilityof NewZealand’sinfrastructure.
Manyofourtransport,water, communicationsandothernetworks weredealt ablowtheysimply couldn’twithstand,andit’sbecome clearthat amassiveinfrastructure resiliencecatch-upeffortisrequired.
Butresilienceisjustonechapter in abiggerstoryofaninfrastructure systemthatisnotfitforpurpose. Sustainedunder-investmenthas generatedanenormous infrastructuredeficit,andaddressing itisoneofthemostimportant challengesournationwillfaceover comingdecades.
Weneedourleaderstorespond withrealurgency,andweneed robust,informeddecision-making.
Therearemultipleonce-in-a-generationdecisionstobemade,and thoseatthehelmneedtogetthem right.
Whatwe’veseentodategivesus littleconfidencethatthiswillhappen. All-too-oftenweseeinfrastructure decisionsmadeonthebasisof politicsandpetprojects,ratherthan evidence-basedanalysisand afocus ontheoutcomesthatourcitiesand regionsneed.
Fewvoicesarebeingheardthat challengetheorthodoxywith compellingalternativearguments. Thisisdeeplyconcerningtothe businesscommunity,andshouldbe ofconcerntoallNewZealanders.
TheNorthernInfrastructure Forumhasbeenformedtohelp addressthisvacuuminleadership.It bringstogether arangeofbusinesses
andindustrygroupswhodesign, build,ownandutiliseNewZealand’s infrastructure.Theyknowwhathighqualityinfrastructurecancontribute toourproductivityandliveability, andtheywanttoseethepotential realised.Ourrolewillbetoprovide high-quality,independentanalysis, shapedbyinternationalbestpractice.
Theobjectiveistohelpliftthe standardofinfrastructurepolicymakinginNewZealand,anddrivea world-classinfrastructure programme.
TheUpperNorthIslandisthe logicalfocalpoint,giventhe concentrationofpeopleand economicactivity,andtheincreasing interdependencyandopportunity acrosscitiesandregions.
Wewillfocuspredominantly,but notexclusively,ontransport infrastructure,andherearefive burningissueswewilllooktotackle:
Thestatehighwaynetwork
It’snocoincidencethatthefully
upgradedsectionofStateHighway1 North(Auckland-Puhoi)stoodup welltorecordrainfalls,whilethelikes ofDomeValleyandtheBrynderwyns (whereupgradesarestill alongway off)wereseverelycompromised.Nor isit acoincidencethatthenumber ofdeathsandseriousinjurieshas tumbledsincethenewroadwasbuilt, asithasontheWaikatoExpressway.
Whatwouldthewiderbenefitsbe totheeconomyandsociety— throughincreasedproductivity,road safety,andresilience —ifpopulation centresandsupplychainsacrossthe UpperNorthIslandwerejoinedup byhighwaysofthesamequality?The benefitsneedtobequantified,and usedtoguide acomprehensivestate highwayupgradeprogramme.
Congestion
CongestioniscripplingAuckland,and centreslikeTaurangaarefast followingsuit.Howarethe internationalcitieswecompare ourselveswithdealingwiththe
TheNorthernInfrastructureForum membersare: AucklandBusinessChamber (convenor),EMA,Portsof Auckland,WilsonParking, CivilContractorsNZ,Stantec,AA, NationalRoadCarriers(Inc)and Maven.
problem?Howdotheybalancethe needforroadcapacity,public transportandwalkingandcycling,to ensurethey’reabletoattractand retaintalentedpeopleinan increasinglycompetitiveglobal market?Congestionchargingisa verydifficultsellduring acost-oflivingcrisis,butsoonerorlaterithas tobepartofthemix.How,whenand whereshouldwebeintroducingit?
Additionalharbourcrossing
Ourforumwilltypicallyfocuson principlesratherthanprojects,but thestrategicimportanceofthenext WaitemataHarbourCrossingmeans thatitneedsspecialtreatment.The Governmentisholdingupitscurrent setofoptionsas“congestion-busting”, buteverythingwe’veseenpreviously suggeststhatthede-congestion benefitswillbeminimal,atbest.Is that agoodenoughreturnonwhat’s likelytobethebiggestsingle transportinfrastructurespendinNew Zealand’shistory? Whatwouldthecostbeofan optionthatcouldtrulyshiftthedial oncongestion,andarewewillingto gothere?Thesequestionsneedtobe askedaspartofanapproachthathas bipartisansupport.
Theapproachtoreducingtransport emissionsneedstobemuchsmarter —itcan’tjustbeaboutgettingpeople outofcars.Howareothercountries grapplingwiththeproblem,andwhat canwelearnfromthem?In particular,whatdoweneedtobe doingnowtoprepareformassive growthintheelectricvehiclefleet (whichissurelywherethegreatest opportunityliestomakeprogresson emissionsreduction)?
Fundingandfinancing
Whetherit’sroads,raillines,or cyclingfacilities,thescaleofwhatis neededmeansweneedtofindnew waystopay.Inparticular,weneed tomoveawayfrompay-as-you-go funding(whichislikemaking extensionsto ahouseoneroomat atime)to ascenariowherewe borrowsignificantlymorefortruly transformationalsolutions,andpay debtbackinter-generationally.
Wealsoneedtobemuchmore opentotheopportunitiesprivate capitalcanprovidefordelivering high-qualityinfrastructurethatwe otherwisecouldn’tafford.Nowisthe timetoletgoofideologicalopposition topublic-privatepartnerships,and lookathowthey’vebeenusedwell aroundtheworld,bygovernmentsof allpersuasions.
Ifyou’rereadingthesepages,it meansyoucareaboutinfrastructure asmuchaswedo.Welookforward tobeingpartofthedebatewithyou.
● SimonBridgesischairofthe NorthernInfrastructureForumand CEOoftheAucklandBusiness Chamber.
TheAucklandBusinessChamberisan advertisingsponsoroftheHerald’s ProjectAucklandreport
Spark Business Groupisacollectiveofexperienced digitalspecialists designed to streamline solutionsfor NZ businesses.Fromconnectivity,digitalinfrastructure andthelatest in business hardware, to cloud computing, customer experience optimisation,datascienceand artificialintelligencemodelsbuilttoyourneeds, we canhelpyourorganisationthrivebytappingintotomorrow,today.
“Andsothat’sanexampleofthe kindofrolethatI’llbeplayingover time.”
WhenMichaelWoodwas madeMinisterforAuckland,WayneBrownwas amongthefirsttocongratulatehim.
ButtheMayorofAucklandwas adamanthewasn’tgoingtobetrekkingdowntotheBeehive.TheGovernmentwouldhavetocometohim.
Tenweekson,thedecisionby PrimeMinisterChrisHipkinstoput aCabinetMinisterintoAuckland is bearingfruit.
TheMayorisfirmthatGovernmentshouldstumpup abiggershare oftheAuckland’scosts.Costoverruns withtheCityRailLink(CRL)which currentlysit50:50betweenAuckland CouncilandGovernmenthavebeen anissue.
ButWoodindicatesthepairhave formed agoodrelationship.
“Clearly,thereareparticular prioritiesthathe’scomeintooffice withandtheyarestrongprioritiesfor theGovernmentthatare apartofour programmeaswell,”saysWood.
“Therelationshipisverypragmatic atthepoliticallevelandthelevelof officersandofficials.We’rejusttrying toworkthingsthroughin aconstructiveandadultway.”
Woodwascatapultedtoseventh placeintheCabinetrankingsand awardedthenewAucklandportfolio inHipkins’January31reshuffle.
AsMPforMtRoskill,he’shighly connectedinAuckland.Hisspouse JulieFaireyisanAucklandcouncillor.Histransportandimmigration portfoliosputhimatthesharpend ofbusinessconcerns.
Hipkinshadbeenclear:“When Aucklandsucceeds,thecountry succeeds.”Infact,thereare alotof sharedinterests.
BrowncampaignedforthemayoraltystatinghewantedPortsofAucklandtovacateitscurrentpositionto makespacefordevelopment.
SaysWood:“Whereverwegetto withthisquestionoftimingaround thePortsofAuckland —whereverwe gettowithit —there’s ashared interestinmakingsurethatmore freightshiftsontorail.Partoftheway weworktogetheristotrytofind thosethingswherethereisshared interest.Andit’s awin-win,whatever youmightthinkofotherthings.It allowsyoutomovethingsforward.”
Wearinghistransporthat,hesays theGovernmentexpectstoreleasea
draftfreightandsupplychainstrategy“very,verysoon.”
“Itdoesn’tanswerspecificquestionsaboutPortsofAuckland.Butit setsup abroaderframeworkforhow wedeliveranefficient,effective,low carbonfreightnetwork.”
TheGovernmentisalsomoving forwardwith atechnicalstudyinto thefeasibilityofusingManukau harbouras aport.Ifit’snottechnically viable,theoptionwillcomeoffthe table.
“It’senormouslysignificant,not justforAucklandbutforthewhole supplychain.Itneedstobeworked throughvery,verycarefully,”says
Woodwhostressestheimportance ofmakingsurethatbroadereconomicandsocialinterestsinAucklandare involved.
“Everyoneisoftheviewthatit’s likelythePortsofAuckland transitionsawayfromitscurrent location.“[Weneedto]makesurethat wedothatwell,andthatwedoitin acareful,carefulway.”
TheGovernmentisalsostarting discussionsonthefutureofthe Avondale-Southdowncorridor whichwillenablemorefreighttobe shiftedfromtheportsbyrail.“It’salso aboutthefactthatoncetheCRL comesonline,thecommuterrailnetworkisgoingtogetsignificantly busier,particularlyontheisthmus. Andatthemomentitisverymixed withfreightwhichstartstocreate somecompromisesinthenetwork.
“AvondaletoSouthdownpotentiallyprovides apathwayforeffectivelyseparatingoutmoreofthe freightandcommuternetworksto thebenefitofboth.”
AsMinisterforAuckland,Wood’s corefunctionistoco-ordinatewhat theGovernmentisdoingsuchas deliveringoninfrastructure.“We havetoworkcloselywithAuckland Council.Andasmuchaspossible,we wantandneedtobepullinginthe samedirection.
“Myjobdoesn’treplacethejobof theMinisterofHousing,ortheMinisterofHealthortheMinisterof Transport,”hesays.“AucklandCouncilstillhasitsfunctions.Butmyjob istogetbothpartiesaroundthetable.”
ArecentexampleistheroleWood playedinconveningthevariouspartiestoworkthroughsolutionsto issuesofreliabilityaroundAuckland’sferries.
“I’min apositiontobeabletoget thepartiesaroundthetable,identify particularproblemsandconstraints, andgetthingsmoving.
Rightnow amajorissueWood facesishowAucklandrecoversfrom theAucklandAnniversaryweekend floodsandCycloneGabrielle.
Astheleadco-ordinationMinister ontheEmergencyWeatherRecovery Committee,heisworkingthrough issuesthataresignificanttoAuckland suchastherebuildofphysicalinfrastructure.
Someofthecomplexissuesaroundmanagedretreatarealsobeing workedthroughwithAuckland Council.
“Nowwestillhaveabout650 homeswhicharered-stickeredand thosehomeownershaveuncertainty.
“So,I’llplay aparticularrolethere.”
Finally,andperhapsmostimportantlyfor aGovernmentwhichwill soonfaceanelectioncampaign, Woodhasbeentaskedwithsupportingthecitytorebuildconfidence.
“We’vehad acoupleofdifficult yearsaswe’vedealtwithCovid;the lockdownsandalltheeconomicand socialimpactsthere.
“I thinkoversummer,thecitywas feelinggood.We’vethenbeenreally hitforsixbythefloodsandCyclone Gabrielleagain,andsomyroleisto bringpeopletogethertoinjectsome positivityintothingsandtodealwith someofthoseproblemsandissues thatmightbeholdingusback,”he says.“Whetherit’stransportinfrastructure,whetherit’ssomeofthe concernsaroundcrimeandcommunitysafety.
“Orwhetherit’sgettingsomeof thosebasicserviceslikepublictransporttoworkreallywell.
“And Ithinkthosestepswillhelp ustobuildtheconfidencethatwe needtoprotectpositivelyandconfidentlyexternally.We’reNewZealand’sonlyinternationalcity.
“Weneedtalentandinvestmentto comehereandweneed apositive messageforthecityandsoI’llbe workingwithothersonthat.”
FormerAucklandDeputyMayor
PennyHulsehasbeenco-optedby MichaelWoodtochair aTa¯maki Makaurauadvisorygroupwhichwill informallyadvisehimonissues affectingthecity.
“PennyHulseisanexceptionally skilledandexperiencedoperatorand leaderwithAuckland,”Woodtoldthe Herald,explaininghewantsthegroup togivehimreallygoodadviceand presentideasonhowtodealwith burningissues.
WhileWoodhasministerial responsibilityforAucklandandholds theMtRoskillseat,muchofhis CabinetworkisbasedinWellington.
Theupshotishisadvisorygroup willeffectivelyserveashis“eyesand ears”inAuckland.
“Ideliberatelyconvenedthatwith areallywiderangeofdifferentviews andpeopleonthere,”Wood explained.
“It’snot asuper-formalgroupand it’snotgoingtohaveagendasof
hundredsofpagesandofficials reporting.Itwillreallyfocusonsome ofthethingswecando.”
After27yearsinlocalpolitics,Hulse retiredasanAucklandCouncillorin September2019,havingearlier servedtwotermsasformermayor LenBrown’sdeputy.
FormerWaitakereMayorSirBob Harvey(a“greatvisionaryover successivedecadesinAuckland”)is alsoonboard.
“Ifyouwantexcitementandideas,
hehashisheadandheartinit,”Wood enthused.
Amongothersshoulder-tappedare formerAllBlackSirMichaelJoneswho Woodsaidhasanincredible connectiontoPacificcommunities andthegrassroots.
“Heis adoerwhojustgetsthings doneatthecommunitylevel.”
DrJinRussell, aconsultant developmentalpaediatricianat StarshipChildren’sHealthwillbringa perspectivearoundpublichealth,
childrenandyoungpeople.
Thebusinesssectorisrepresented byEMACEOBrettO’Rileyand AucklandBusinessChamberCEO SimonBridges.
“Ihavebeenclearwiththegroup that Iwanttofind asmallnumberof thingstodowell,intheremainderof thisparliamentaryterm,ratherthan abiglaundrylistofmany,manyitems.
“And Iwillbeshapingitupwith morespecificityinthecomingweeks.”
—FranO’Sullivan
Everyoneisof theviewthat it’slikelythe Portsof Auckland transitions awayfromits current location.Make surethatwe dothatwell, andthatwe doitina careful, carefulway.
MichaelWoodB20:TheAuckland harbourbridgeturns64 thisyear.Optionsfora secondharbourcrossing arebeingconsidered. PennyHulse SirBobHarvey SirMichaelJones JinRussell BrettO’Riley SimonBridges Project Auckland FranO’Sullivan
Aucklanderswantedchange andtheygotchange.On October 9lastyear,Wayne KelvinForrestBrown,aged 76,waselectedthethirdMayorof AucklandCouncil.
“Iamthemayorforthreeyears. Youcan’tdoanythingaboutthat.No oneelseinNewZealandisgoingto changethat,”Browntold Herald journalistDavidFisherin acall followingtheJanuary27floods.
Afterabout30minutes,Browntold thejournalist:“Don’tf**kmeover.”
Thefrankdiscussionwasovera leakedmessagebyBrowntohis tennisgroup.Hecouldn’tshowupto playthenextdaybecausehehad“to dealwithmediadrongosoverthe flooding”.
WelcometotheworldofWayne Brown,whosefirstsixmonthsatthe helmoftheSuperCityhaspolarised thecityintotwocamps —thosewho thinkhe’s acantankerousoldfooland mustgoandthosewhothinkhe’sa doer,not arockstar,andwillFix Auckland.
Takeyourpick,butthere’sone undeniablefact.Brownisnotyour normalpolitician;he’s adisruptorand populistwhoplaysbyhisownrules. He’salsoachievedsomethinghis predecessorPhilGoffneverdid.He’s gotAucklandersengagedwithCity Hall.
Atthe Herald,there’snowa “WayneBrown”tagonstoriesbearing hisname.Thatputshiminthetop trendingtagsacrossonlineandsocial mediaplatforms.
Torecap.WayneBrownisan engineerandsuccessfulbusinessmanfondofrattlingoffthebigpublic sectorinfrastructurejobshandedto himbyLabourandNationalgovernments,includingTVNZ,Ma¯oriTV, Transpower,Vectorandchairingthe AucklandDistrictHealthBoardto completethecity’snewhospitalat Graftonwhenthebuildwentofftrack. “Iknowthisstuff”,heboastedatthe launchofhismayoralcampaign.
Despite adislikeforthenormsof localgovernment,Brownisno strangertoit.In2007,hebecame mayoroftheFarNorthDistrictina landslidevictoryoverYvonneSharp.
Hewaselectedagainin2010,but facedcriticisminaninquirybythe AuditorGeneralforblurringrolesand wasadvised“toseparatehispersonal andofficialrolesmorecarefullyin future”.
PeoplewhoknowBrownsayhe’s anutsandboltskindofguy.Problems tohimaretheretobefixedandthat ishowhepitchedhis2022campaign slogan:“FixAuckland”.
Hismessagetovoterswastofix theinfrastructure,stopwasting money,takebackcontrolofCCOs,get Aucklandmoving,andopenup accesstotheharbour.
Politicsismorenuancedthanthat anditwasn’tlongbeforeBrown’s engineeringeyefordetailanddeaf eartopeople,particularlythemedia, landedhimintrouble.
Nowherewasthatmoreillustrated thanBrown’sresponsetothe unprecedentedstormeventsthis year.Themayorsofothertownsand citiesstoodupwhentheweather eventswreckedtheircommunities.
NotBrown.Hetook abackseatand leftdeputymayorDesleySimpsonto becometheshiningfaceofleadership intheaftermath.
Simpsonhasstronglydefended themayor’sactions,sayingshewas askedtodo ajobandshedidit.
“Peoplesay‘wherewasheinthe floods?’Youdidn’tseehimbecause heblendedinwitheveryoneelsein ahigh-visvestandworkboots,”that is,hewasoutlookingatdrainsand talkingwithexperts.
Taking abackseathaskeptBrown awayfromthemedia —thegateway tothepublicandwhosejobitisto holdpoliticianstoaccount.Since settlingintothe27thfloorof AucklandHouse,themayorhas turneddownmorethan100requests formediainterviewsandgrantedjust ahandfulofone-on-oneinterviews.
Recently,hehasdonemoremedia.
“Iamnevergoingtobe asmooth-
talkingpolitician,”hetoldthe Herald in arareinterview.
Browncanbeengaging,funny,and goodcompany,buthecanalsobe abrasive,andunpredictableand makespeoplefeelillateaseinthe workplace.Havingpoliticalstrategist MatthewHootonathissideforthe firstfewmonthscertainlyledto tensionbetweenthemandarinsand themayoraloffice.
BrownandHootonwerenotthe leastbitimpressedat afinancial briefingpresentedbychiefexecutive JimStabbackandfinancestaffonthe firstdayatAucklandHouse,which setthetonethatcarriesontothisday.
Hootonhasmovedon.Inlate FebruaryStabbackgavesixmonths’ noticehalfwayinto afive-yearterm thathewasleavingthejobfor “personalreasons”.
Themayoralofficenowincludes MaxHardy, aformerlawpartnerat MeredithConnellwithstronglinksto theLabourPartyinthekeyjobas ChiefofStaff.Thecouncil’sformer headofriskandactinggeneral counsel,JazzSingh,hassignedonas headoffinanceandbudget,former NationalPartycampaignmanager StuMullinisheadofgovernanceand operations,andKateGourdie,a formerTVjournalistwhoworkedon LeoMolloy’smayoralcampaign,is headofcommunicationsand governmentrelations. Despitetheirdifferences,Simpson
companytarnishedbyseveraldeaths and afailedautomationproject.
What’suncleariswhatwould happeniftheportcompanylostone ofitsprofitablebusinessesinfreeing uplandforpublicuse,suchasthe vehicle-importoperation.Where wouldthebusinessgo,whatwould bethecost,andwhowouldpay?
Onthehustings,Brownsaidthe portoccupied$6billionofthebest landinNewZealandandpromised todeliver$200millionofratesand $200mofdividendsifhebecame mayor.Nowthathe’smayor,hehas walkedbackandsettledfora dividendof$30mthisyear.Theport hascommittedtodeliver anetprofit aftertaxof$54mnextyear.
Forsomecouncillors,Brown’s infatuationwiththeportisproving adistractionfromthebiggestand mostimmediatechallenge—dealing withtheimmensefinancialpressures inheritedfrompreviouscouncilsnot equippedtodealwithdecadesof under-investmentininfrastructure andrampantgrowth,paperingover thecracksandkickingthecandown theroad.
It’sreachedthepointwherethe councilandCCOsaretryingtodotoo much.AddintheimpactofCovid19andtheUkrainewarfuellinga sharpriseincostsandplummeting incomeand,heypresto,there’sa $300mholeinthebudget.
Butwait,there’smore. A50:50 partnershipwiththeGovernment meansthecouncilisupfor$500m from a$1bblowoutintheCityRail Linkand a$1bbillfromtheweather catastrophes.
Despitetheheadlinefigures,the councilremainsin astrongfinancial position —itmaintains astrongAA creditratingwithS&P —butthat doesn’tresolvetheimmediate challengetobalancethebudgetby June.
Thosechallengesstartallover againlaterthisyearwhenworkstarts onnextyear’srefreshofthe10-year budget.Toughchoiceswillbe requiredtoresolve ableakmediumtermoutlookwithmoreprojects beingtorchedordeferred,further assetssalesandservicecuts, increasedborrowing,andhigher rates.
Butfirstthingsfirst.Brownmust gethisfirstbudgetovertheline,and thepoliticsareintriguing.Themayor hasproposed amixofsellingthe council’sairportshares,cutting communityandartgrants,raising fees,andholdinghouseholdrates belowinflationtoplugthe$300m hole.
saysthemoreshehasgottoknow Brown,themoreshe’sgottolikehim. Assomeonewhoworkedclosely withGofflasttermaschairofthe financeandvalueformoney committees,Simpsonwelcomesa freshsetofeyes.Sheis,afterall,a memberoftheNationalPartywho sharesBrown’sdesiretogetfarbetter valueforratepayers’money.
“He’ssmart.He’sverysmart.He’s astuteandhe’scommitted.He’shere becausehepassionatelyhas afew thingshewantstodeliverandwants tofix,”Simpsontoldthe Herald
OneissueBrownplanstodeliver, almosttothepointofobsession,is freeingupportlandforpublicuse.
ItwasBrownwhochairedanUpper NorthIslandSupplyStrategyfour yearsagothatproposedgradually relocatingportoperationstoNorthportandthePortofTaurangaand building anewinlandportin Auckland’snorthwest.
Shortlyafterassumingoffice, BrownwrotetoPortsofAuckland boardchairJanDawsoninstructing theboardtoworkwithNga¯tiWha¯tua Ora¯keitocreate aplanforpublicuse oftheportlandfromQueensWharf toBledisloeWharf.
ThisandcommentsbyBrownthat heisworkingonreplacingtheport board,havesparked astandoff betweentheshareholderandthe newboardandmanagement,taking positivestepstoturnrounda
Theproposedbudgetdocument easilypassedtogooutforpublic consultation,butithasbeenmetwith horrorbycommunitygroups,climate activists,theGreen’sAuckland CentralMPChloeSwarbrick,and someelectedrepresentativescalling forhigherratesanddebt.
Themostsensitiveissueiscutsto communityservicesandthearts, which,accordingtoBrown,arepart ofthewiderprogrammetoreduce costs.
WhenapproachedatanArt Galleryeventbya Spinoff writerover proposedcutstothearts,Brownsaid “Don’tf***ingcomeandtalktome… write asubmissionandmakeitclear youvalueit(artsfunding)”.
AgalleryadviserclaimedBrown wasprovokedbythewriter,buteven soitshowedwhat ashortfusethe mayorhaswhenitcomestodealing withpeople.Simpson,whowasatthe event,saidBrown’schoiceof languagewasinappropriate.
Withanevenlybalancedcouncil alongpoliticallinesandmembersof theMaoriStatutoryBoardatthe decision-makingtable,Brownwill needallhiswitsandskillstocrunch thenumbersandpassthetoughest budgetsincetheoutsetoftheSuper City.
Ifheweathersthefinancialstorm clouds,Brownwillbewellonthepath toFixingAuckland.
Brownisnotyour normalpolitician; he’s adisruptorand populistwhoplays byhisownrules. He’salsoachieved somethinghis predecessor Phil Goffneverdid. He’sgot Aucklanders engagedwith CityHall.Project Auckland BernardOrsman
KiwiRailchiefexecutive PeterReidyisenthusiastic aboutthenewmomentum WayneBrownhasinjected intoliftingAuckland’stempo.
There’sbeen alotofmedianoise sinceBrowntookoutthemayoral chainsatlastOctober’slocal elections.Muchofitnegative.
ButReidy —whohasgotdowninto theweedswiththemayoronsome complexAucklandtransportissues— has adifferenttaketotheprevailing medianarrative.
“Youknow, Iactuallyliketheman,” saysReidy.“He’sgoingtogetsome stuffdone.He’sactually alotofsense.
“Wehad areallygooddiscussion foranhourand ahalfonwhatneeds tobedone,and, Iquitelikedthe argumentandthedebateandthe discussion.
“Buthe’spractical. Iquitelikethat.”
Reidyisreferringtothetalksthe pairhadafterfirst,theAuckland AnniversaryWeekendfloods,and thenCycloneGabrielle,wreaked havocacrossthecity.
TheAucklandrailnetworkheldup “remarkablywell”,hesays.“Wehad numerousslipsinAuckland.Within aweek,wehad alotofthosecleared.”
WhereReidyandthemayorare inaccord —andthisis asentiment sharedby anumberofother Auckland-basedinfrastructureand transportCEOs —isontheneedto getmorecapacityoutofexisting assetsasopposedtojust“building newstuff.”
‘We’regoingthrough abigpro-
grammetoget amorefitforpurpose railnetworkbecauseeffectivelythe railnetworkinAucklandwasbuiltfor freight.Passengertransportis ahuge uplift.
“We’recurrentlyupgrading58per centofAuckland’snetwork.Andas Isaidtothemayor,‘we’renot maintainingthis,we’reactuallybuilding afitforpurposerailnetworkfor CRL(CityRailLink).
“So,whenwewillclosedownthe SouthernandtheEasternlines —like wearenow —we’reactuallyripping outthenetwork.We’reputtingdrainagein,foundationsin,newballast, absolutelymakingitfitforpurpose forpassengertransportforthenext 10to15years.
“Ifyouhave athinkaboutthe growthinAucklandtransport,we’re reallydesigningforthefuturenow.”
Anotherpriorityistogetseparationbetweenpassengertrainsand freighttrains.“Wecan’thavefreight comingthroughBritomart,that’snot goingtowork.Sohowdowebuild networksoutWest?
“Thereisprobably ademandfor aninlandportoutWest.Therefore howdowetakefreightoffAuckland portandmoveitouttoaninland port?’
ReidysaysBrownisveryaligned withwhatKiwiRailistalkingabout. “It’sreallystrengtheningthenetwork forgrowth.
“Separatingfreightandpassenger asmuchasyoucanforgrowth. Thirdly,tryingtogetmoreoutofyour existinginfrastructure.
Investingininlandportswillenablemorefreighttocomeintoand outofAuckland,saysReidy,noting itwillbe afunctionofGDP.
OneofKiwiRail’sgoalsistoelectrifyrailfromBritomarttotheStrand inHamiltontogivepeopledifferent optionstoliveandworkaspartof aregionalfocus.
Butfreightisthekeyissue.“We currentlymove160,000containers fromAucklandport,whichisonlya fractionoftheir800,000.Sowe’re tryingtoput aplantogethertotake 400,000containers.
“Wearealreadypartneringwith Aucklandportonexactlythis. “Andthemayor’schampioningit. “Sowesaid‘right,wedoittogether’. Andthere’strade-offs.”
“Youstarttogetallthosecontainersoff,youdon’thavethetrucks cominginandrumblingdownParnell.Whatitmeansislesscongestion onthemotorways.”
BeforebecomingMayorofAuckland,Brownchaired aworkinggroup whichrecommendedmovingmuch ofthePortsofAuckland’soperations to adeep-watercommercialportsituatedatMarsdenPointnearWhangarei.Improvedrailinvestmentwould thenbringcargobackdowntothe city.
ReidysaystheGovernmenthas alreadylookedattheMarsdenoption. “We’redoingtheworkonit.You’d needtoinvestintheinfrastructure. “It’sallabouttheportforme. “AllroadsleadtoMarsden.”
Overthepasteightyears
PortsofAuckland’sfinancialperformancehasdeclinedrapidly,and anew reportindicatesitwouldbebetteroff withmixedownership.
Wellington-basedconsultancy TDBAdvisory,specialisingincorporatefinance,economicsandtreasury riskmanagement,plottedthefinancialpathof11NewZealandportssince 2015 —andfoundPortsofAuckland wasoneoftheworstperformers,at leastrecently.
PortsofAuckland’sreturnon assetsimprovedfrom10.1percentto 12percentbetween2015and2016 (foryearsendingJune30),andreturn onequitywentfrom12.5percentto 14.4percent —butthendeteriorated.
By2017thereturnonassetswas 7.9percentandreturnonequity9.1 percent,onlytoseeanimprovement in2018with8.3percentand10.7per centrespectivelybeforetheratios camecrashingdown.
Thereturnonassetsfellfrom5.9 percentin2019to anegative0.1per centin2022andreturnonequity wentfrom6.9percenttominus 1per centinthesameperiod.
Thedividendyield(forthe100per centownerAucklandCouncil)was steadyin2015and2016at 8percent beforeslippingto 7percentin2017 and2018and 6percentin2019,and thenfallingtozeroin2020, 1percent in2021andsimilarlastyear.
PhilBarry,TDBAdvisorycofounderanddirector,said“ifyoulook atPortsofAuckland’sreturnsover thelastthreeyears,theyaremediocreatbest.Thedividendyieldhas been 1percentorless.So,what’s goingon?”
Sevenofthe11portsanalysedby TDBare100percentcouncilowned —Auckland,Taranaki,Wellington, Nelson,Marlborough,Lytteltonand Otago.Theotherfour —Tauranga, Napier,Timaru,SouthPortinBluff— have amixedownershipstructure.
Taurangahas46percent,Napier 45percentandSouthPort34percent oftheirshareslistedontheNew ZealandStockExchangewhiletheir regionalcouncilsstillmaintainmajorityownership.
PrimePortTimaruisjointlyowned byPortofTaurangaandTimaru DistrictCouncil.Taurangaalsohas50 percentofNorthportnearWhangarei
alongsidepublicly-listedMarsden MaritimeHoldings,withNorthland RegionalCouncilholding53.6per centandPortsofAuckland19.9per cent.
TheTDBreportfoundthatoverthe lasteightyearsthemixed-ownership portcompaniesachievedgreater profitabilityandyieldedhigherdividendsthanthe100percentcouncilownedports —butthelatteron averagehadstrongersolvency(lower gearing)andliquidity.
Theaveragereturnsonassetsand equityfromthemixed-ownership portswerehigherineveryoneofthe eightyears.Themixedownership portsreturned 9percent ayearon assetscomparedwith6.4percent fromthecouncil-ownedports.
Barrysays“thenearthreepercentagepointsdifferencematterswhen youhavemillionsofdollarsinassets. Millionsarebeingforegoneinreturns. It’sthecouncilsandratepayerswho aremissingoutonlargecapital investmentswhenthedividendsare notgood.”
Overthepasteightyearsthe mixed-ownershipportshavemana-
gedsteadydividendyields.Portof Taurangarangedfrom11.7percent (in2017)to4.6percentlastyear.
NapierPortaveragedaround 4per centthoughtheyieldjumpedto16.1 percentwhenitlistedin2019and fellto1.4percentin2020(theyear ofCovid-19).
SouthPorthasconsistentlybeen indoubledigitsfrom18.3percentin 2017to12.8percentlastyear.
Barrysaystheevidenceiscompelling —“notjustourstudybutin hundredsofpeer-reviewedpublishedreports(aroundtheworld)”— thatbusinesseswhichhavesome degreeofprivateownershipperform better.
“Companiesthatarelistedhavea sharepriceandit’seasiertomonitor theperformancethan100percent governmentowned.Therearethe inevitablemultipleobjectivesthat comewithgovernment-ownedsuch asemploymentandsocialandthey arelessabletofocusoncommercial performance.”
Barrysayswhenthethreeelectricitygentailers —Meridian,Mercury andGenesis —partiallylisted between2011-2014,thegovernment beganreceivingmoredividendswith 51percentcontrolthanunder100 percentownership.
“Talkabout awin,winsituation. Theelectricityboardswereshaken upandpeoplebroughtinwithcommercialexpertise.
“Thestrategieschangedtoimprovingperformanceandgettingridof peripheralnon-performinglinesof business.”
Barrysays“youhavetoaskthe questionofwhetheritmakessense formajorportstohavesuch a(high) leveloflocalgovernmentownership. PortofTaurangais agreatsuccess story.Itisstill54percentownedby theregionalcouncilandit’sreturnon shareholders’fundshasbeenconsistentlystrongoverthelast20years.
“NapierPorthasn’tyetseen asignificantimprovementinprofitability sincelisting.
“ThisresultmayreflectthetemporaryimpactsofCovidandCyclone Gabriellewhichadverselyaffected theport’searnings.Thecompanywas abletousethefundsraisedinthe initialpublicoffertopaydowndebt whichdecreaseditsgearingratio.”
Inthebigdebateoverwhether PortsofAucklandshouldmoveor stayatitspresentdowntownlocation, littlehasbeensaidaboutitsown financialperformance.
Barrysays“clearlyAuckland Councilisdissatisfiedwiththeperformanceoftheportcompany(with itsstandaloneboard).Itpuzzlesme whytheydon’taskthequestion aboutownership.It’sallveryfine havinganarm’slengthbutisthe councilrequiringperformancethata privateshareholderwoulddemand. Obviouslynot.”
Hesaysthecouncilislookingat sellingsomeofitsAucklandInternationalAirportshares,andthesame couldapplytoPortsofAuckland.
“Undermixedownershipthe councilcankeepcontroloftheport company,getbackmillionsofdollars forinvestmentinroadsandcore infrastructure,andpaybackdebt. Thecouncilwouldbenoworseoff withthedividend.”
2005whenAucklandRegional Holdingsboughttheremaining sharesandsubsequentlyAuckland Councilbecamethe100percent owner.
Itwasdownhillafterthedelisting. Forthefouryearsprior(2001-02004) PortsofAuckland’sreturnonassets rangedfrom19.3percentto14.9per cent,andfouryearsafter(20062009)slumpedfrom12.3percentto 3.7percent.
Likewise,thereturnonequitypredelistingwashealthyrangingfrom 16.7percentto13.5percentandpostdelistingfellfrom14.6percentto1.5 percent.
Thedividendyieldvaried:4.1per cent,47.8percent(specialdividend 2002),9.6percentand9.2percent inthefouryearsbeforedelisting;and 25.9percent(specialdividend2006), 6percent,5.7percentand2.1per centinthefouryearsafter.
BarrysaidPortsofAuckland’sprofitabilitydeterioratedafterdelisting. Thecompany’sreturnswereinflated in2005duetorevaluationsofitsland, wharvesandinvestmentproperties.
Forthatreason,theTDBstudy removed2005(returnonassets47.8 percentandreturnonequity57.8per cent)fromtheearningscalculations astherevaluationsdidnotreflectthe port’sunderlyingprofitability.
Therefore,theaveragepre-delistingreturnonassetsandequitywere 16.7percentand15percentrespectivelyanddecreasingto6.2percent and8.8percentpost-delisting.
PortsofAuckland’sgearingratio increasedfrom23percentto42per centafterdelisting.Andonaverage thedividendyieldfellfrom14per centto10percent.
Barrysaysthedeteriorationin financialperformancesincedelisting ismaterial.“It’sbigenoughthatit matters alot.Theratepayersare missingout.Mixedownershipdid betterintermsofprofitabilityand dividends.
PhilBarry,directorofTDBAdvisoryPortsofAucklandactuallylisted onthestockexchangein1993with AucklandRegionalHoldings,the commercialarmofAucklandRegionalCouncilatthetime,owning80 percentoftheshares.
TheportcompanydelistedinJuly
“Theresults(ofthestudy)are totallyconsistentwiththemixed ownershipmodelintheelectricity sectorandwithinternationalexperience,”hesays.
“Onaverageandovertime,companieswithprivateownership achievehigherreturnsfortheirshareholdersthanwhollygovernmentownedones.”
Boostedbythenew Regaining ourMana strategy,Portsof Auckland’sturnaroundis wellunderway,bothoperationallyandfinancially.
“Wehadtorebuildthetrustand respectofcustomers,shareholders, iwi,community,unionsandour people,andthatmeantgoingbackto thebasics,”saysRogerGray,whotook overaschiefexecutiveofPortsof AucklandinMarchlastyear,after leadingPortofLyttelton.
Therebuildwasmountedonall fronts.PortsofAucklandtrimmedthe staffintheheadofficeby30and employedmorestevedoresand craneoperatorsintheoperations area.
Theportcompanyexecutivesat downandestablished apartnership withtheMaritimeUniononsalaries, rosteringandcareeropportunities.
“Mymessagetothebusinesscommunityisthatthedaysoffighting withtheunionsarewaybehindus,” saysGray.
“Theadversarialapproachtowardstheuniondidn’tservetheport well,andthereis adifferentattitude fromtheunionleadershipandboard andmanagement.
“Weunderstandeachother’s needsandithasimprovedthewhole morale.”
Inanindustryfirst,thestevedores movedto a40-hoursalaryinsteadof hourlywagesandextendedthecurrentcollectiveagreementtonext yearwithanincreaseinpayinline withtheconsumerpriceindex.
“Wefoundthatstevedores couldn’tcommunicatetotheirbanks whattheyactuallyearned,”says Gray.
“Asalariedincomeprovidedstabilityofincomeforfamiliesat atime whenthecostoflivingispinching.”
Dynamicrosteringwasintroduced tomanagefatigueandcreate abetter worklifebalance.
“Wearegivingourpeoplecareers ratherthanjobsandtheabilityto participateincareerprogressionprogrammesalongtheway.”
PortsofAucklandre-introduced berthwindows,givingshippinglines fixedtimeslotsforvesselcalls.The companyhasalsoworkedwiththe portsofTauranga,NapierandLytteltontoprovide aregularshipping servicearoundthecoast.
“Thenewfocusoncorebusiness hasseenusmove16,000TEUs (20-footequivalentcontainers)ina week.Wecouldnothavedonethat withoutthesupportoftheunion,” saysGray.
“That’svolumewehaven’tseenin threeyearsandwearegettingback topre-Covidthroughput.”
Financially,theportcompany liftednetprofit40percentto$20.8 millionforthesixmonthsending December,comparedwith$14.8mfor thepreviouscorrespondingperiod and a$10.275mlossforthe2022 financialyearwhichincluded a$63m write-offforthecancellationofthe FergussonContainerTerminalautomationproject.
PortsofAucklandhasforecastfullyearnetprofitto$42m-$45m,similar tothe2021financialyearand a20-28 percentincreaseonthe2023budget of$35m.Thecompanyhascommittedtodelivering a2024netprofitof $52minlinewiththeAucklandCouncil’sbudgetrequest.
PortsofAucklandispayingan interimdividendof$15mtothecouncilcomparedwith$2.1mlastyear,and expectstodeliver afull-yeardividend of$30m,anincreaseof111percent onthepreviousyear’s$14.2m,while alsoreducingdebt.
InanotherRegainingourMana move,PortsofAucklandlinkedup withenvironmentalgroupProtect Aotea(GreatBarrierIsland)toestablishtheTeMoananui oToiRestorationTrustwiththeobjectiveof maintainingthehealthoftheHauraki Gulf.
Thetrustispartofthesettlement withProtectAoteawhichchallenged
Port companyisdeterminedtorightthewrongsofthepastby concentrating onits corebusiness,writes GrahamSkellern
cludingvehicles(Aucklandhas66 percentshareoftheseimports)is veryimportanttothecityandretainingthattradeiscritical.Overthelast 25yearstheportcompanyhas handedback125haoflandandwe arenowoperatingon77ha.
“Wearerelaxedaboutworkingin partnershipwiththegoverningbody overthefutureofportland.The processneedstobedonein aplanned andmeasuredway.Myconcernisto workthefootprintwehavemore efficientlyandeffectively,”Graysays.
InhisLetterofExpectationfor PortsofAuckland,MayorWayne Brownnotedtheportcompany’sdecliningfinancialperformance,particularlysince2014 —withthereturns onassetsandequityatthebottom endoftheNewZealandportsector.
Brownsaiddividendspaidtothe councilinrecentyearshavebeen muchlowerthanhistoriclevels,and byinternationalmeasuresPortsof Aucklandisalsoseriouslyunderperforming.
Theportcompany’sdebtrelative toearningsisthehighestintheNew Zealandportsector —anunenviably indebtedpositiondrivenbydeclining earningsandarguablecapitaloverspendonthefailedautomationprojectandconstructionofthemutistoreycarhandlingbuildingonBledisloeWharf.
BrownpointedtotheWorldBank ContainerPortPerformanceindex (CPPI),reflectingproductivityand congestion,andin2021PortsofAucklandachievedthelowestrankingof 18portsinOceania.“Thatis,thePorts ofAucklandistheleastefficient containerportinOceania.”
Browncalledfor areturnonassets ofatleast10percentintheshortterm —itispresentlyaround 3percent— andtodeliverfreecashflowsand dividendtocouncilasshareholder.
theconsentsgrantedtoPortsofAucklandtodeepentheshippingchannel.
Theportcompanyisproviding $100,000annuallyover15years(a totalof$1.5m)tothetrusttosupport projectsthatenhanceandrestorethe maurioftheharbour.Thisincludes twopost-graduatescholarships.
Thetrustwillalsobeinvolvedwith monitoringthedisposalofmaterials, sometwomillioncubicmetres,atthe Cuviersite,50kmouttosea,during thedredgingprogrammewhichis expectedtostartwithinthenext12 months.
Theshippingchannelandberth pocketswillbedredged afurtherone metreto adepthof13.5mtocaterfor thebigger8000TEUcontainerships
expectedtocallattheportoverthe nextthreetofouryears.
Despiteallthenoiseaboutmoving orgivingupmoreofitsland,Gray isadamantthattheporthas acritical roletoplayatitspresentsiteinthe mediumterm(to2035)andthat’s whatitsnewbusinessplanisbased on.
Forthelongterm,NewZealand needs aportstrategythatincludes investingintheroadandrailnetwork, coastalshipping(thebluehighway) andnewinfrastructure.
Grayasks:“Whatisthepriorityfor fundingandalternateinfrastructure? Wherewillthevolumesgo?When willcentralgovernmentdual-lanethe highwaynorthandputin arailspur toMarsdenPoint?
“Ithinkeventually,withinthenext 50years,therewillbeanalternate useanddemandforland(atthe presentsite).AucklandandHamilton willbeeffectivelyjoinedandthere willbe asignificantdemographic change,”Graysays.
“Butrightnow,thereis acompellingargumentfortheporttocontinue operatingwhereweare.Sixtyper centofourtradeisconsumedwithin 40kmoftheport.Once acontainer
boxhitsthewharf,itisintheshed fortwodaysandthenintoWiri (inlandport)withinhours.
“That’sthepoweroftheportand whyitissoresilient.Ifyouare running ajust-in-timesupplychain model —itiscomingbackvery quickly —thenthereliabilityand consistencyisreallyimportantfor industry.”
Graysaystheportwasclosedfor threedaysduringCycloneGabrielle, notbecauseoftheseaswellbutthe wind.
“Therewasnophysicaldamage andifitwasn’tforthewindwewould haveworkedrightthrough.Theport isprotectedbytheislands(inthe HaurakiGulf),evenfrom atsunami,” hesays.
“Wewerepleasantlysurprised howtheportstoodupinthecyclone. Itreinforcedhowresilienttheplace isandthisisimportantforthenation. Weareabletokeeptradingandmove goodseveninextremeweather.”
Graysaysthereis amyththatthe portisfullandithasnoroomtogrow. “Thatisnottrueandwehaveenough spacetoserviceAucklandthroughto 2035.”
PortsofAucklandistransitioning tostackingcontainersfourhighinsteadofthree,andthusfreeingupa thirdmorespaceandcapacity.The stackingwillbecompletedbymanual ratherthanautomatedstraddle carriers.
The27automatedstraddles broughtintostackfour-highwillbe convertedtomanualoverthenext twoyearsbyplacing acabineach ofthem.Theporthasboughtfivenew onesandwillfinishupwitha straddlesfleetof35-40.
“Wewanttoincreaseourrollonrolloffandbulkcargooperations,” saysGray.
“Webringinsteel,heavyequipment,windturbines,andcommoditiessuchasgypsumandwheat.
“Therollon-rolloffoperationin-
PortsofAucklandchairJan Dawsonrespondedbysayingthe boardandmanagementarevery awaretheperformanceoftheport from asafetyandfinancialperspectiveoverthepastfouryearshasnot beensatisfactory.“Wehavecommittedto atransformationalstrategyto reversethistrend.”
Shesaidoverthepastsevenyears, theportcompany’sreturnonequity haddroppedfrom13.29percentto 2.5percent.“Theaverageunderlying returnonequityoverthelastfour yearshasbeen3.16percentandwe recognisethisisanunacceptable performance.
“Theboardandmanagementare nowfocusedonreturningthisto5-6 percentoverthenextthreeyears, andthenwithfurtherincreasesbeyondthistimeframe.”
GraysaysPortsofAucklandcan quicklyproduceanannualdividend of$52m.“That’s$1m aweektothe ratepayersandwecandoitinthe nexttwotothreeyears.Wecangrow netprofitto$70m —that’sabout7 percentonequityor alittleover.
“I’mconfident Iwillclosethegap anddeliversignificantimprovement inprofitabilityandcontributetothe council’s$295mfiscalhole.”
Askediftheportcompanywould bebetteroffundermixedownership, Graysays“that’s aquestionyouwill havetoasktheowners.Itmakesno differenceforme.
“Ihave aboardthatisindependent andtheychallengemethesameas ifitwas alistedcompany.Theboard hasclearobjectivesand Iliveanddie bythem.
“I’mdoing ashareholderbriefing tocouncilasifit’s alistedentity,and Idon’tthinktheownershipmodel hamperstheabilitytoperform.
“BothatLytteltonandAuckland, therehavebeensignificantturnaroundsintheports’performanceand returnoncapitalwhenyoustartto focuscommerciallyandconcentrate onthecorebusiness,”Graysays.
● PortsofAucklandisanadvertising sponsoroftheHerald’sProject Aucklandreport
Myconcernisto workthefootprint wehavemore efficientlyand effectively.
RogerGray,PortsofAucklandchief executive
Wehave committedtoa transformational strategytoreverse thistrend. JanDawson
calleddaylightingthatrejuvenates buriedurbanstreams.
RichardHillssaystherecent Aucklandfloodsandcyclonehavebeen abigwakeupcallforpoliticiansand communitiestoreduceemissions andadapttoclimatechange.
Hillsdiscountsthosewhosayclimatechangeisalreadyhereandwe shouldsolelyfocusonadaptation.
“Thisis aone-degreeworld.Ifwe addtwoorthreedegreesontothis, wewillfacecatastrophe.”
Thethirdtermcouncillorchairs AucklandCouncil’splanning,environmentandparkscommittee.
Heputanextraordinaryitemon thecommittee’sagendainearlyFebruarytocommissionworkintothe implicationsofthefloodingonAuckland’slanduseplanning,regulatory, infrastructureandotherpolicysettings.
“Whilewe’retalkingabout aone in200-or250-yearfloodingevent— or ahalf apercentchanceofthis happeninginanygivenyear —we knowfrom TeTa¯ruke-a¯-Ta¯whiri:Auck-
land’sClimatePlan thatweneedto adaptandbemoreresilientbecause thisisgoingtohappenmoreoften,” saysHills.
“When Iledthatplanin2020,it wasconsidered10-20yearsawaybut unfortunatelyitisherenow.Wehad atwo-yeardroughtfollowedbythe wettestwinter,wettestsummer, wettestJanuary,wettestday.Aswell asthat,thelasteightyearshavebeen eightofourhottestever.”
Theplanningreviewwillconsider whatmeasureswereeffectivein preventingandmitigatingtheimpact ofthefloods.
Hillssaysthisisimportanttoavoid knee-jerkdecisionswhichtarall formsofintensification.
HepointstotheTeAraAwataha greenwayinNorthcoteasanexemplarydevelopmentwhereundergroundpipeswereresurfacedtofollowthepathoftheoriginalAwataha Stream.Sectionsofthestreamwere openedandreplantedin aprocess
Wehad atwo-year droughtfollowedbythe wettestwinter,wettest summer,wettest January,wettestday.As wellasthat,thelasteight yearshavebeeneightof ourhottestever.
RichardHills
“Wecouldonlydothatbecause EkePanuku,HealthyWatersand Ka¯ingaOraallworkedtogether,”says Hills.“Theydemolishedthehomesin thatareaofNorthcotesowecould re-channeleverything —anditdidn’t flood.Wedon’thavethatluxuryin everycommunitybutitshowswhat happenswhenwedointensification wellwiththerightinfrastructure alongsideit.”
HobsonvilleandStonefieldsfared wellduringthefloodcomparedto someoftheworsthitmoreestablishedsuburbsofMtEdenandMt Albert.
“Ourbiggestemissionscomefrom transport,soitwillbeimportantto actthere.Butthefloodinghasraised questionsaboutwhereanyfuturerail orlightrailtotheNorthShorewould go,”saysHills.”DuringtheJanuary27 event,majorsectionsofAuckland’s motorwayswerefloodedorclosed. OntheNorthernMotorway,people weretrappedincarsthatwerefloatingalongrisingfloodwaters.
“Isthebuswaythebestplacetoput rail?Orisitbettertobehigher?,”he questions.“Weneedtothinkabout everything —notjustbecausethe infrastructuremightflood,butalso willpeoplebelivinginlowlyingareas inthefuture?
“Ifwethinkthatpeoplewillultimatelymoveawayfromthoseareas, thenweneedtoplanaheadforthat.”
Crisisresponse Hillswasinthethickofitduringthe January27flooding.Heusedhis socialmediachannelstoimplore residentstostayoutoffloodwaters andcheckontheirneighbours,share informationaboutevacuation
centres,andremindpeopletostay preparedbyfillingwaterbottlesand chargingtheirphones.
Hillsisoneofthemost-followed councillorsonsocialmedia.Hespoke withTa¯takiAucklandUnlimitedearly aboutcancellingtheEltonJohnconcertwhenitwasobviousAuckland wasfacing asevereweatherevent. Thepromotersdidn’tcanceltheconcertuntilshortlybeforethesuperstar wasduetotaketothestageat7pm, strandingthousandsofpeopleat MountSmartStadium.Hills’focus thenturnedtoAucklandTransport, requestingtheymobiliseallavailable busestogetpeoplehome.
“Itwasallprettychaoticandupsetting,”hesays.“Peoplewerecontactingme,ringingme,andsending socialmediamessages.Inthatkind ofchaos,peoplejustneedanyinformationsoif Icouldhelpthatis what Iwastryingtodo.”
Overtheweekendthatfollowed, itwasobvioustoHillsthatflooddamagedpropertyneededtobe urgentlydealtwith.
“Council’sadvicewasthatinsuranceneededtodealwithrubbish,but ifwewaitedonthatthenwewould have amajorhealthcrisis.Insome roadsinMilfordandSunnynook, therewereentirehouseholdsworth ofwastepiledupontheberm.We wereworriedaboutmorerainevents cominganddebrisfloatingaway.”
Hillsorganisedthefirstpublicrubbishskipsinconcertwiththelocal board.
Inthedaysthatfollowed,hetook MayorWayneBrowntotheNorth Shoretoseedamagedhousesbefore latermeetingwithPrimeMinister ChrisHipkins,AucklandMinister MichaelWoodandAucklandCentral MPChlo¨e Swarbrick.
Tim McCready askedthree Aucklandcouncillorswho stepped up as leaders duringthe recent floodswhat theyhavelearnt,andwhatmorethecityshouldbedoingtoenhanceitspreparednessforfutureevents
DesleySimpson —DeputyMayor andOra¯keicouncillorDesleySimpsonbecamethepublic faceofthecrisiswhenshestepped forwardtosupportMayorWayne Brownbyprovidingemergency updatesandrespondingtomedia queries.
TheOra¯keicouncillor,whoisa clearcommunicator,reassured Aucklandersthat aco-ordinatedresponsewasinplace —althoughshe acknowledgesgettingtheinformationtogetherintimeforbriefings wasn’talwayseasy.
“Iwastryingtobringmultiple piecesofinformationtogether,” Simpsonsays.“What Ifoundthemost challengingwasthat Ibecamethe publicfaceofwhatwasgoingon,and therewasn’tonesourceoftruth.
“ItwasAucklandTransport,Watercare,planningstaff. Ihadtogoto multiplesourcestofindoutbitsof information.Thatshouldn’thappen, weneedtobebetterpreparedforall eventualities.”
Simpsonsaysweneedtorethink howweunderstandandmanagerisk inNewZealand.“Itisveryeasytobe reactivewithshort-termthinking.We havegottolookatdealingwith investmentintoresiliencemuchbetter.
“Itisgoingtobeexpensive,andit isoftendifficulttodo.”
MeteorologicalserviceswereforecastingheavyraininAucklandin advanceoftheflood.Buttheysaid therecordrainfallcouldn’thavebeen predicted.
Simpsonsaysthoughthisisthe case,managingriskandresilience canhelpNewZealanderspreparefor arangeofpossibleconsequences.“If wecanpreparethatsomethingwill gowrongatsomestage,thenwecan prepareforthateventuality.
“Ifas asocietywehadbeenthinkingthisway,thenperhapsourinfrastructuredeficitwouldn’tbewhatit is,andwemighthavebetterconsideredthecostofinfillhousingonour stormwaterinfrastructure,”sheobserves.“Weprobablywouldhavehad asecondharbourcrossing alongtime agoandplansforclimatechangeand managedretreatwouldbewelladvanced.”
Simpsonsaysthereare alotof LIMs(landinformationmanagement reports)inAucklandthatshow arisk offlooding.Butplannershavenot beeninhibitedfromincreasinghousingdensity,eventhoughtherisk showsthedensitysometimesexceedsinfrastructurecapacity.
“Ithinkthereis arealriskaround that,andfrommypersonalperspective,I’dliketoput astakeinthe groundandsay‘holdon —let’sstop’.”
Shesuggests a“digitaltwincity” modelcouldbe apossiblesolutionto helpwithfutureplanning.Thisis where adigitalcomputermodelofa citysimulateshowurbanupgrades wouldimpactwaterflows,trafficand provideotherintelligentfeedback.
Becauseeveryonesharesthesame data, adigitaltwincitywouldalso allowserviceproviderstosharedata andensurethatworkisco-ordinated.
JosephineBartleyCouncillorfor
Duringthedevastatingfloods, JosephineBartleyrealisedtheseveritywhenshewasinundatedbymessagesonsocialmediafromcommunitymemberswhosehomeswerebeingfilledwithwater,andwhohadno ideawhattodoorwheretogo.
“Iwasbeingsentvideosofpeople swimminginthestreet,andeven thoughtheyonlyknowmethrough Facebook,theythought Imightbe someonewhocouldhelpthem.
“Theywerescared,and Iwas scared.But Iwastryingtobestrong forthem,togivethemdirectiontoget
outoftheirhomes.”
Thesecondtermcouncillorfor Maungakiekie-Tamakiquickly emergedas apowerfulvoice —not justforherownward,butforother partsofAuckland —particularly thosewith ahighproportionof Pasifikaresidents.
ShesaysthatwhileSouthAucklandresidentswerepoorlysupported byofficialchannelsandinsomecases couldn’tbereachedbyemergency services,communitiescametogether tohelponeanother.
BartleywenttotheMa¯ngereevacuationcentre,setupunderthelead-
ershipofManukauCouncillorAlf Filipainaandthelocalboard.
“Weworkedwithwhatwehad. Thecommunitycametogetherto helpeachotherandthatiswhat madeallthedifference. Ishareda videofromthevenueonsocialmedia andthecommunitycontactedme andcamethrough.Eventhelocal psychologistjoinedustospendtime withthetraumatisedfamilies.”
Tobebetterpreparedforfuture events,Bartleyemphasisestheneed toimprovelocalplansandmake themmoreaccessibletothecommunity.
“Peopleneedtohaveintheback oftheirheads:‘ifthishappens,wego here’.Wehavetogettothestage wherepeopledon’trelyonemergencyservicesbutwillbereadyto helptheirownfamilyimmediately.”
ShepointsoutthatCivilDefence andbureaucraciesoftenfailtounderstandtheuniqueneedsofspecific communities.Providinganempty buildingasanevacuationcentreis notenoughanddoesn’taccountfor
Acomprehensiveemergency recoveryplantohelprebuildthe regionandbetterprepare Aucklandersforfutureweather eventsisunderway.
“It’sbeenmorethan amonthsince ourregionwashitby ahorribleonetwopunch –theAuckland AnniversaryfloodsandthenCyclone Gabrielleandwestillhave alottodo tohelpourhardest-hitcommunities,” saidMayorofAucklandWayne Brown,whohaslabelledtheplanthe BigAucklandFixUp. BrownhasaskedAucklandCouncil CEOJimStabbacktoinitiate arapid assessmentoffloodriskareasto identifysimplefixesandthencarry outthenecessaryprogrammeof workinconsultationwithWatercare andAucklandTransport.
He’salsotaskedlocalboardsto
identifyfivemaintroublespotsand fixesintheirarea.
Brownthenplanstovisitthese siteswithrelevantengineersto progresswork.Themayorhas identifiedseveralsimplefixesto reducefloodingrisks:
1.Clearstreamsandopendrain channelsonpublicandprivateland.
2.Lowernon-arterialroadsover constricteddrainsandwaterways.
3.Buildandimproveturn-offsto utilisepublicstormwaterstoragein publicparksandotherareas.
4.“Daylight”streamsinplaces wheretheyareenclosedinpipesor narrowpathstocreatefloodplains andreducefloodingofresidential areas.
Brownsaysit’sobviousthat Aucklandmustgetbetterprepared forsevereweathereventsandneeds
thedifferentculturalandsocial requirementsthatareneededinthe community.
Bartley’sleadershipcaughttheattentionofinternationalmedia.While stillbasedatevacuationcentres, Bartleyspokewithinternational outletsFoxNews,BBCWorldNews, PacificMediaNetworkandothers, sharingupdatesontheemergency situationinAucklandandinsights intotheongoingcommunityefforts. JulieFaireyCouncillorforAlbertEden-Puketa¯papa Duringthefloods,JulieFaireywas unabletoleaveherhouse —shehad threechildrenathomeand abroken armwhichmadedrivingandlifting thingsimpossible.
ButasoneofthetworepresentativesforAlbert-Eden-Puketa¯papa, Faireystillhadanactiveroleinflood responsework.
“Iwascompletelyuselessoutside,” shesays.“So Iworkedtogetbetter communicationouttothecommunity,becauseparticularlyinthefirst week,councilunfortunatelydidn’tdo agreatjob.”
HerrolebecamekeepingAucklandersinformedoftheevolving situationthroughhersocialmedia channels,answeringfrequently askedquestionsandloggingjobsthat cameinfromresidentsintotherelevantsystemsotheycouldbeaddressed.
“Iendeduptriagingbutalso directingwelfarerequeststothelocal MPs’teams. Alotofthemhadpeople outdoor-knockingontheground— it’ssomethingthey’regoodat.They turnedthataroundintocheckingon peopleandgoingthroughtheareas wherepeoplehadbeenworsthit.”
TheAlbert-Eden-Puketa¯papaward isoneofthemostdiverseinAuckland,coveringanareathatincludes MtEden,GreenlaneandEpsom acrosstoWaterview,MtRoskilland Lynfield.Shesaystherewas abig differencebetweenpartsofthecommunitywherepeopledidn’thavea lotofaccesstoresourcesandthe partswherepeoplewerequitecapabletogetonthephonetotheir insuranceandescalatethings throughcounciltogetthehelpthey needed.
“Alotofourresponsewasabout howwedirectresources.Councillors JosephineBartleyandAngelaDalton gotintouchseveraltimestosaythey hadsomeresourcestheycouldshare, ortoconnectpeopleupwithrelevant communitygroupsontheground thatcouldcheckonpeopleorprovidesuppliesoremergencyaccommodation.”
Toimprovethecouncil’spreparednessforfutureevents,Fairey stressestheimportanceofimproving itsemergencymanagementcommunications.“Thatwasapparenton thedayoftheevent,butalsoafter.”
torebuildlocalcapabilitiesand responseplansthathavefalleninto disrepairoverthelastsixyearsand lookathowweforecastandmodel floodingsowecanprovidebetter intelligencetothepublic.
“Weneedtorestoreandrebuild ourbrokenroads,bridges,water systemandbuildingsin awaythat willmakecommunitiesstrongerand moreresilient,andweneedto addresslanduseplanningand buildingregulations.
“Recenteventsexposedproblems inwhereandhowsomehouseshave beenbuiltinAuckland.Insomecases, thegovernmentorcourtshaveconstrainedcouncil’sabilitytoregulate, andthiswillneedtobeaddressed.
Thecouncilmustbeabletosayno andplanforinfrastructure,asmanagedretreatis alastresortoption.”
Shesaysthecouncil’scommunicationsystemwithelectedmembers duringtheCovidpandemicwasa goodexampleofeffectivecommunication.Thisprovidedregularupdates withcriticalinformation,ensuring everyonewaskeptinformedandthat communicationswerealigned.
“Afterthefloodsittooktoolong forthatsystemtoreactivate,”Fairey says.“Itiswidelyacknowledgedthat weshouldhavethatreadytogo— maybenotrightawaywhenwedon’t knowhowseverethingsare —but withinthefirst24hours.”
Faireysaysthefloodingdemonstratedelectedmemberscanbea greatassettogetinformationoutto residents.“Butwecanonlytellpeople whatweknow.
“After acoupleofdaystherewas anacknowledgementthatwewere notintheway,butwewere avery usefulcommunicationschannel.”
AsSparkupdatesitsTakaninidatacentre,ithaslearnedlessonsfromadverseweatherevents,writes
Sparkchiefoperatingofficer MarkBederisexcitedabout thepotentialofthecompany’sTakaninidatacentre.
“Laterthisyearwewillcomplete amajorupgrade.Itwilljointhe recentlyupdatedMayoralDrivedata centre,”saysBeder.“Bothwillgiveus considerableextracapacityin abusinessweconsidertobe agrowth opportunity.
“Wehavelotsofcustomerswho areeitherusingourcloudservices fromthesecentresorwhohave tenanciesinthem.It’s agoodextensionforthemandit’sgoodfroma NewZealandperspectivetohavethis capacityonshore.”
SoonSparkwillfacecompetition inthedatacentremarketfromthe likesofAmazon’sAWSunitand Microsoft’sAzurebusiness.Beder saysthesecompanies,knowninthe industryashyperscalersbecauseof theirsheersizeandreach,were alwaysdestinedtoshowupinNew Zealand.“Itwasalwaysthecasefor usandpartofourplanning.”
Aswellasconventionaldata centresandcloud,Sparknowoffers edgecomputeandco-locationspace initsoldtelephoneexchanges.
WhenSparkandChorusdemerged,Sparkkept35oftheexchanges upanddownthecountryincluding sixinAuckland.Thebuildingsare nowmainlyusedtohouseSpark’s coretechnology:theopticaltransport network,accessnetworksandthe coremobilenetwork.
BederdescribestheopticaltransportnetworkasSpark’s“StateHighway1”.Fromthereyougotobackhaul networksthatmovedatabetween areasorregionsandthemorelocal accessnetworks.
“Edgeiswhenyoustartmoving thatcoremobilecapabilityouttothe edgeofthenetwork,”heexplains. “With,say,5Gstandalone,youmight put aswitchclosertocustomers.That wayyougetlowerlatencyandhigher speeds.We’redoingthiswithour partnersSamsungandNokiaand investingheavilyinitthroughout NewZealandandthereis abigfootprintinAuckland.”
Inpracticethisenablesprojects liketheAI-poweredcomputervision pilotSparkanditsQriousbusiness unitdevelopedforEnviroWasteto workwithAWS.Theprojectuses computervisionandAItotrack peoplein abusywastedisposalarea watchingoverthemandchecking thatpeoplearesafe.Itneedstomove fasttotriggeralertsifsomeonegets tooclosetodangerousequipment.
“Itcomesdowntolatency.When yougetlatencythatlow,just afew milliseconds,thingshappeninreal time.Ifsomeonegetsclosetothe machineryitwillshutdown.”
Atpresentmost5GinNewZealand isnon-standalone.Thatmeansthere is a5Gradioaccessnetworkbuiltover theexisting4Gcorenetwork.Standalone5Gusesitsowncorenetwork.
BedersaysSparkisworkingon trialsasitmovestowards5Gstandalone.Oneinvolvesworkingwith Manevir, atechnologyprovider,AWS andNokia.Thetriallooksattesting latencywithvideoanalytics.“Wegot thelatencydowntotwosingledigit milliseconds,whichisimpressive.It’s thekindofperformanceyoumight expectfrom afibreconnection.”
AnothertrialinvolvedEricsson andRedHat.Again,itshowedthat 5Gstandalonetechnologycanhandle thelowlatency,highbandwidthand reliabilitythathigh-performanceuse casesneed.“Wewantedtolookatthe lowerlatencyyoucangeton afixed wirelessbroadbandnetwork.The speedswegotwereimpressive, over 700megabitspersecond.That’sfibre speed,butthemoreinterestingthing isthelowlatency.”
Hesaysit’sgoingtomake ahuge differenceforanyapplicationthat
needstoworkinrealtime.
“Intheconsumerworld,gaming wouldbethebestexample.Inthe businessworld,itwouldbecritical appsthatusevideoanalyticsorcomputervision.”
Lowlatencytechnologycanalso beimportantformoreadvanced InternetofThings(IoT)applications.
Sparkrecentlyhit amilestonewith onemillionconnectedIoTdevices. Thenumberofconnectionswasup 39percentinthefirsthalfofthis financialyearandrevenuefromIoT wasup21percentyearonyear.
SparkbuiltthreeIoTnetworksthat sitoverthetopofthecompany’s4G mobilenetwork.“Weknewitwould beimportantforusfrom agrowth perspective.Welookedattheareas whereweandourcustomerscould getthemostvaluefromthetechnology.Onebigmarketforushasbeen
smartmetering —bothwaterand electricity.Alsointelematics, switchesandlogistics.Withwater meteringwe’vefounditisgoodfor findingleakagesearlieranditalso meansourcustomersmakefewer truckrolls.
Hesaysitwon’tbelongbeforethe numberofmachine-to-machine connectionsonSpark’snetworkwill outnumbermobileconnections.He seeshugepotentialforthetechnologyinapplicationslikethesmartcity andsayswe’reonlyscratchingthe surfaceofwhatitcandeliver.
ThesevereweatherthathitAucklandandotherNorthIslandareas earlierthisyearwasthebiggesttest ofresiliencySparkoranyoftheother telecomscompanieshaveeverfaced.
Bedersays:“We’vehadnetwork impactsbefore.We’veseensevere regionalisedimpacts,butwe’venever
seenanimpactthat’stakendown152 mobilesites.”
Sparkpreparedasthecyclone approached.Cellsiteshavebattery powerbackup,butthisonlyworksfor awhile,ifthepowerisoutforlonger Sparkusesgenerators.“Wemade certaingeneratorsweredeployed in thelocationswherewethoughtthe cyclonewouldhit.Wedid alotof networkpreparationandwehad helicoptersonstandbyknowingthey couldgetintoareaswhereroad vehiclesmightnot.”
Hesaysthatwhensomethinglike thishappens,Spark’simmediatefocusistogetcustomersbackupand runningasquicklyaspossible.“We wereabletogetgeneratorstosites thathaspoweroutages,butwhere therewasstillbackhaul(thefibre networksusedtomovetraffic betweenareasandregions).Where
therewasn’tfibre,wewereableto lookforothersolutions,including microwavesandsatellites.”TheCoromandelwasbackonlinein12to14 hours;ittooklongerinotherareas.
Nowhesaysthejobistoprocess thelessonslearnedfromtheseevents andunderstandhowtoworkbetter withthegovernment,partnersand othertelecomcompanieswhen facingfuturesevereweather.
“Withtheamountofgeneratorswe hadoutthere,refuellingbecame abig issueforus.Andmakingsurepeople weresafewhentheyvisiteddangeroussites.
“Weknowweneedtohavemore generatorsineachregionandmore helicopterstoreachsites.
“Wealsoaimtoworkwithgovernmentonbatterystorageandtolook atbuildinginredundancyandmore fibreroutes.”
Wemadecertain generatorswere deployedinthe locationswherewe thoughtthecyclone wouldhit.Wedida lotofnetwork preparationandwe hadhelicopterson standbyknowing theycouldgetinto areaswhereroad vehicles mightnot.
MarkBeder
TheCommitteeforAuckland hasinitiatedanannual benchmarkingproject called“theStateoftheCity”. Itis apartnershipwithDeloitteand Ta¯takiAucklandUnlimited,supportedbytheGovernment’sAuckland PolicyOfficeandKoiTu¯: TheCentre forInformedFuturesatAuckland University.
In2021,the Economist surprised manybydeclaringAucklandthe mostliveablecityonearth.
BeforeCovid,theMercerstudy regularlyrankedAucklandinthetop 10ofthehighestqualityoflifecities. ButlastyearDemographiareported Aucklandwastheeighthmost unaffordablehousingmarketinthe worldand,despiteanyworking-fromhomebenefits,thelatest AAAuckland CongestionReport saidtheregion’s alreadybadtrafficcongestionwas gettingworse.
Sincethesestudies,Auckland’s liveabilityhasbeenimpactedandthe to-dolisthasgrownas aresultofthe AucklandfloodsandofCyclone Gabrielle.
SowhatstateisAucklandinnow?
Theregionretainsmanyofthe attributesthatmakeit adesirable placetolive,workandrecreatebut ithas aseriesoflegacyandmore contemporarychallenges.What shouldAucklandersbemostproud ofaboutthecityandhowshouldthe regionprioritisefixingthegrowinglist ofthingsmakinglifeharder?
GivenAucklandwillneedhelpto addressitsissues,whatdootherkey partnersthink?Differencesbetween centralgovernmentandAuckland overprioritiesandresponsibilities
TheCommitteeforAucklandhas initiatedanannualbenchmarking projectcalled“theStateoftheCity”. Itis apartnershipwithDeloitteand Ta¯takiAucklandUnlimited, supportedbytheGovernment’s AucklandPolicyOfficeandKoiTu¯: TheCentreforInformedFuturesat AucklandUniversity.
hashad abigimpact.Contemporary citiessuchasCopenhagen,Perthand Vancouverfacesimilarissues.
TobetterunderstandhowAucklandisfaringtheCommitteeforAucklandhasinitiatedanannualbenchmarkingproject.TheStateoftheCity willbeanannualassessmentofhow
wellAucklandisfaringagainsta seriesofpillars.Itwillbeanopportunitytoacknowledgetheleading qualitiesAucklandpossesses among itsinternationalpeersandlookfor opportunitiesfortheregiontodeal withtheareasholdingitbackmore effectively.
DeloittePartnerAnthonyRuakere saystheinsightsgainedfromthe benchmarkingwillhavefourkey benefits.Itwill:
1.HelpenhanceAuckland'sperformance
2.Attractgreaterinvestment
3.Increasecitizenengagementand satisfaction
4.BoostAuckland’sinternationalvisibilityandprofileandshine alighton itsuniqueculturalbackdrop.
Theapproachisbasedonaninternationalbenchmarking practice developedbytheLondon-basedBusi-
nessofCitieswhichwillundertake thestudy.Theirco-founder,Professor GregClark,hashad alongassociation withAuckland.
BusinessofCitieschiefexecutive TimMoonenspokeatthe Auckland’s Future,Now eventonactionsother internationalcitiesaretakingtorespondtochallengessuchasclimate change,housing,andtransport.The BusinessofCitieshas15years’experiencemonitoringinternationalcity trendsandstartedtheirbenchmarkingtool10yearsago.Melbourne andSydneyuseit —asdocitiesmore comparabletoAucklandsuchas HelsinkiandOslo.Thefindingshelp thempromotepositivefeatures abouttheirregionsbutalsogain insightsandfocusonareasneeding greateraction.
Ascitiesplay agreaterroleina country’seconomicgrowthandin
respondingtonationalchallenges suchasclimatechange,reportingon thestateof acitycanpositively contributetogreateradvancement.
Ta¯takiAucklandUnlimited’sHead ofeconomictransformationJohn Laverysaidthatunderstandinghow Aucklandperformsagainstpeercities,acrosskeydomains,iskeyto identifyingsolutionsforhowwecompetefortalent,tradeandinvestment.
Theprojectlinkstothe Reimaging Ta¯makiMakaurauAuckland reportbu AucklandUniversity’sKoiTu¯researchcentre.
ThishighlightedthevitalimportanceAucklandhastoNewZealand withnearly40percentofthe country’sGDPproducedintheregion andacknowledgedthegatewayrole itplaysfortourism.
Itoutlinedtheneedformorefocus onimprovedhousingandtransport infrastructure,beingmoresustainable,resilient,andinnovative.
Butitalsosaidsubstantialchange wasneededtogetmuchgreater alignmentonthelong-termvision andprioritiesforAucklandtoensure consistentprogress.
TheStateoftheCityreportcan helpaddressthis.InternationalsurveysaboutAucklanddonotcapture acompletepicture.
Otherstocktakescanhighlight Auckland’schallengesandnot measuretheheadwaybeingmade. Theannualbenchmarkingwill addressthis.Itwillmaketheregion’s strengthsclearer,andtheareasto collaboratemoreeffectivelyonmore compelling.
Auckland’sfirstStateoftheCity reportwillbedeliveredinJuly.
In2015,Chinaimplementeda conceptknownas“spongecities”in16urbanareastocombat floodingcausedbystormwater. Theinitiativewasinresponseto thedevastatingBeijingfloodin2012, whichclaimed79livesandprompted authoritiestomakespongecitiesa nationwidepolicy.
TheideawaspromotedbyChineselandscapearchitect,YuKongjian, whoadvocatedfortheintegrationof nature’sabilitytoabsorb,storeand filterwaterintocityinfrastructureto mitigateagainstrunoff.
Thisapproachinvolvesusing greeninfrastructuretoallowwaterto followitsnaturalchannels,with streamsandcreeksuncovered,parks andgrasslands restored,andplanting usedtoslowdowntheflowofwater andenablenaturalabsorption,infiltrationandpurification.Thisisin starkcontrasttotheconventional greyinfrastructuresolutionthat speedsuptheflowofwaterusing pipesanddrains.
Qunlistormwaterpark,inthe northernChinesecityofHarbin,isan exampleoftheconcept.Thepark collects,filtersandstoresstormwater, andhasbecome apopularurban amenityforrecreationaluse.Capable ofretainingandfilteringupto 500,000cubicmetresofstormwater, theparkhassolvedthestormwater inundationissueforanarea10times itssize,spanningoverthreekilometres.
Thesuccessoftheinitialpilothas seen afurther14citiesinChinaadopt theideaofspongecities,including Shanghai,ShenzhenandBeijingand hasseentheconceptgrowininterest inotherinternationalcities.
InAuckland,theconceptof spongecitieshasalsobeenputinto practice.OneexampleisStonefields, withitslargetieredfloodablepark, createdbypreservingsomeofthe existingwetlandsandpreventing floodwatersfromflowingintopropertiesduringheavyrainfall.
AnotherexampleisTeAuaunga OakleyCreek, aHealthyWatersprojectinMtRoskill.
TeAuaungaisoneofAuckland’s longesturbanstreams,windingits wayfromHillsboroughthroughMt Roskill,OwairakaandWaterviewto theWaitemata¯Harbour.Thecreek hasbreacheditsbanksduringheavy rainfall,butthatispartofitsdesign —theconnectedparkscollectexcess stormwaterandslowlyreleasesit backintothecreek,preventingfloodingfromnearly200homes.
On asmallerscale,NewYorkCityhas implementedpocketraingardensto helpmanageitsstormwater.These tinygardenshelpwiththenatural absorptionofrainwaterintothe groundinsteadofallowingittoflow intothesewersystem.Strategically located,thepocketraingardensare installedinareaswheretheirimpact onthehealthofthecity’swaterways willbemostsignificant.
Thoroughsoiltestingisconducted
Floodingisbecominganincreasinglypressingissueforcitiesworldwide. TimMcCready looksatinitiativestobuildresilienceandprotectcommunities.
EngineeringconsultancyArup releaseditsGlobalSpongeCities
Snapshotin2022,whichexamined theamountofgreenspaceand permeablesoilinmajorcities. Aucklandwasrankedthespongiest city,givenitslowerurbandensity andhighlevelofgreenspaceareas.
beforeinstallationtoensurethe pocketgardenscanefficientlyabsorb stormwater.Theareaisthenexcavatedto adepthofaroundfivefeet andbackfilledwithstoneandsoil,
withthecurbreplacedwithonethat allowswatertoflowinandout. Appropriateplants,flowersandtrees arethenselectedandplantedinthe area. Thebenefitsgobeyondstormwatermanagement.Theyhelpto combattheurbanheatislandeffect, cleantheair,promotebiodiversity andbeautifyneighbourhoods.
Tokyo’sundergroundcathedral Tokyo, acitybuilton afloodplain andcrossedbyfiveriversystemsand dozensofindividualrivers,hastaken auniqueapproachtoriskmitigation. In1992,constructionoftheTokyo MetropolitanAreaOuterUndergroundDischargeChannelbeganin
thenorthernSaitamaPrefectureon theoutskirtsofthecity.
Over14years,theworld’slargest undergroundfloodwaterdiversion facilitywasbuilttocounteractthe overflowingofcityriversduringintenserainandtyphoonseasons.The system’stunnelsandchambersrun for6.3kilometreseasttowest, featuring18m-highconcretepillars thatcreate acathedral-likespace underground.
Beforeitwasconstructed,the waterlevelfromriversusedtoflood alargearea.
Thefacilityisactivatedaround seventimes ayear,andallowsTokyo todivertandstorewaterinthe undergroundchannel,andpumpit
intothelargerEdoRiverat arateof upto200metrictonnesofwaterper second.
Itproveditseffectivenessduring TyphoonHagibisin2019.Theartificialcavernswereabletotakein over12millioncubicmetresofwater, savingGreaterTokyofromanestimated26.4billionyen(NZ$330million) indamage.
Rotterdam’sgreenrooftops
TheNetherlands’secondlargestcity, Rotterdam,ishometotheDakAkker, afarmontopof aroofcoveringa massive1000squaremetres.
Theroofholds athrivinggarden filledwithfruittrees,vegetables, flowersandherbs.
Beesarekeptandevenchickens wanderaround.Itisoneofthelargest rooftopfarmsinEurope,capableof collecting60litresofrainwaterper squaremetre.
Aportionofthefarm’sroofhas beentransformedinto asmartroof thatcanrespondtoheavyrainfall predictions.
Thesystemcanmakeextrawater storagecapacityinadvanceofa rainfalleventbyreleasingwater slowlyupto24hoursaheadofthe rain,givingitthecapacitytohandle heavydownpoursmoreeffectively.
Overthelastdecade,Rotterdam hastransformedrooftopsacrossthe city,withgreenroofsinstalledon thousandsofbuildings,covering approximately330,000sq mor around 2percentofthecity’sflatroof space.Thesegreenroofsareplaying acrucialroleinkeepingwateroutof thecity’sageingstormwatersystem andpreventingflooding.
Rotterdamresidentscanapplyfor subsidiestocreatethesegreenroofs andinstallwaterretentionsystems. Thesmarttechnologybeingtrialled onDakakker’ssmartroofcould ultimatelybeexpandedacrossthe city,sothatwaterlevelsonrooftop storagetankscouldbecoordinated toemptywhenrainisforecast, allowingthemtobefullyoperational duringheavyrainevents.
In2013,Rotterdambuiltthe Benthemplein“waterplaza”witha similargoal.Theplazaissunkeninto theground,with asportsareainthe centreaccessedbysteps.During heavyrain,theplazacollectsrunoff andstoreswatertodissipatesafely.
“Insteadofmakingbiggersewer pipes,wemade achoicetoinvestin redesigningpublicspacein awaythat contributesto anicer,better,more attractivedistrict,”saysArnoud Molenaar,Rotterdam’schiefresilienceofficer.
Ittooknearlythreeyearsbutit workedtoplanwhenthe heavensopenedaboveAucklandinJanuary.
WhilemanypartsofAuckland wereoverwhelmed,onemassive newstormwaterinfrastructureprojectdealtwiththewaterin away whichhasearnedhighpraise.
Theloweredgroundwithitssubterraneannetworkofengineering marvelsatNorthcote’s1.5haGreensladeReservedidpreciselywhatit wasplannedtodo,says adeveloper whospentnearly$100millionona siteoppositethatreserve.
Whilepeoplelosttheirlivesatthe nearbyWairauPark,floodinginthis partofNorthcotewasnotfatal.
“Thisisnewstormwaterinfrastructureworkingasitshould,”said adelightedNZLivingchiefShane Brealey,showingphotostakenonthe NorthShoresportsfieldoppositethe town’smainshoppingcentre.
ThatfieldbetweenGreenslade CresandLakeRdoftenflooded.Like manyreservesandsportsfieldsinthe city,waterwasnotdealtwithinan efficient,effectiveway.
YetNorthcoteisgetting amultibillion-dollarurbanregeneration, statehousingbeingrippeddownand replacedbyapartmentblocksto makebetteruseofthelandandhelp resolvelongwaitinglists.
Morehousesandlesspermeable areasmeanmorepressureonthe stormwatersystem.Morepeoplearrivingalsomeansmoreuseofgreen reserveareas.
So anumberofCrownandterritorialagenciescollaboratedtoclean upthemessthatusedtobethenotso-fit-for-purposemuddyoldGreensladeReserve.
BrealeysaidduringtheJanuary floods,waterfilledthereserve oppositehisnew$90millionnineapartmentblockdevelopment,makingitresemble agiantswimming pool.
Yetaftertherainstopped,almost allthewaterhaddisappeareddown enormousundergroundpipesand channels,fedbyscruffydomesand otherutilities,designedtodealwith deluges.
Thefirstimagesshowthereserve engulfedinfloodwaters,butimages takenshortlyafterwardsshowed mostofthewaterhaddisappeared intothosevastnewnetworksystems createdbeneaththegroundtodeal withonein100-yearfloods.
TheupgradewaspartofTeAra Awataha, anewgreenwayforthe areaalongthepathofthehistoric AwatahaStream.Theworkisbeing ledbyEkePanukuDevelopment AucklandandKa¯ingaOra.
Thatworkalsocreated anew urbanwetlandtoconnectthecommunitywithitsnaturalenvironment.
Italsoreducedtheriskofflooding inthetowncentre,andbroughtthe community ahigh-performance sportsfield,publictoiletsandan outdoorgym.Itwas amassivejob withtheentirereservesurfacebeing reducedinheighttoallowwaterto becaughtuntilitcouldbedrained fromthefields.
That’scrucialforBrealeybecause NZLivingdemolished13oldwooden statehomestoreplacethemwith129 apartmentswhicharebrick-clad.
Thoseapartmentssoldoutinthree minutesinearly2021becausethey werepricedfromonly$500,000to $600,000in acitywithanaverage housepriceofover$1m.
Peoplestartedmovingintothem
inNovemberand ablessingwasheld onthesiteinMarch.
SonofloodingmeansBrealey’s unitsbetweenMatakitiStandKoSt arefarbetteroff,althoughthe1ha apartmentlandis aslopingsitesitting abovethereserve. Thesportsfieldwasshutfrom 2020andthelevelofthefields droppedabout1mtore-direct
stormwaterflowsintothenewwetland.
CraigMcIlroy,AucklandCouncil HealthyWaters’generalmanager, saidthefieldactedastheperfect catchmentduringheavyrainfall.
“Ratherthanheavyrainfallfloodingthetowncentre,asithasindays goneby,stormwaterwillflow throughthenewgreenway,which
startsatJessieTonarScoutReserve —sourceoftheAwatahaStream,”Eke Panukusaidofthework.
RichardHills, aNorthShorecouncillor,saidtheupgradewastheresult of acollaborationbetweenmany differentparties.TeAraAwatahais byPanuku,Ka¯ingaOra,thecouncil’s HealthyWatersteam,Kaipa¯tikiLocal Boardandmanawhenua.
Plansforthenewdomesticterminalhave beenrevisitedandsustainabilityis nowfrontofmind,writes
AucklandAirporthasstarted workon a$2.2billionnew domesticterminalthatwill beunderthesameroofas theinternationalterminal.
Withassociatedprojectsthetotal costcouldreach$3.9billion,making itoneofNewZealand’slargestever infrastructureprojects.
Thenewbuildingwillsitatthe easternendoftheinternationalterminalandcuttransfertimesbetween internationalanddomesticflightsto afive-minutewalk.
AucklandAirportchiefexecutive CarrieHurihanganuisays,“theworst keptsecretinNewZealandisthatwe neededtoreplacetheolddomestic terminal.
“It’salmost60yearsoldandclose tocapacity.We’vebeentalkingabout replacingitfor12years.”
Indeed,ifitwerenotfortheCovid19pandemic,constructionwork wouldalreadybewellunderway.
Theairportpreviouslyannounced itwasreadytostartworkonthe terminalinearly2020.
Hurihanganuisays:“Itwasall-goin February2020,butbytheendof Marchweneededtopausewhich wastheprudentthingtodo.”
Athree-yearpausegavetheairportanopportunitytorevisitassumptions.Theunderlyingargumentin
BillBennettfavouroftheprojecthasn’tchanged.
“Itallowedustoreconfirmthatan integratedterminalistherightthing todobothfromanefficiencyand customerexperienceorproposition perspective.Andthattheeasternend oftheinternationalterminalwasthe rightplacetodothat.”
ThemainchangebetweenFebruary2020’splanandtoday’sisthe accelerationofsustainability.
“It’snot anewtopic.Sustainability hasbeentherefor alongtime,”says Hurihanganui.“Butithasaccelerated maybetenfoldovertheCovidperiod. Thereistheconsiderationofhowwe facilitatethatforourselvesandhow wehelptheindustryfasttrackits emissionreductionpathway.
“Forusitisscopeoneandtwo emissions;weneedtobeclearwhat wearedoinginourowncontrollable elements.Thenwehave aroleto enableairlineswithscopethree.We havetoprovide afacilitythatwill helpthemmeettheiraspirationsand servethelowemissionsaircraftwhen theyarrive.”
Amongothersustainability-focusedchanges,theairportisbuilding morerenewableenergyincluding solarpanelsontheroofofthenew transporthubandshoppingcentre. Therehasalsobeenworkonlooking attheconstructionmaterialsbeing
Havinganintegrated buildinggivescustomers abetterexperience.It alsoimprovesefficiency andmakesformore effectiverunningcosts. It’snotjustcost-effective fortheairport,wemust thinkabouttheairlines, aboutborderagencies, foodandbeverage outletsandretailers.
CarrieHurihanganuiusedfrom awholeoflifeperspective.
Theairportalsohas atargetofreducingwastetolandfillto2019levelsby 2030;andtoreducepotablewater useby20percent.
Airlines,cargoandbaggagehandlersaremovingtoelectricpower groundservicevehicles,whichrequirechargingfacilitiesacrossthe airport.
Likewise,aircraftnowuseelectricitywhiletheyareonthegroundto keepthelightsonandpowerair conditioningwithoutburningfuel. Theairportitselfisswitchingfrom usingfossilfuel-basedheatingand cooling.
Hurihanganuisaysclimatehas been apriorityforyearsnow.
“Asmoreinformationcomesto
lightithasbecomemoreurgent.
“Wesettargetstobenetzero carbonby2030.AucklandAirport has aclearpathwaytoscopeoneand two.I’mconfident we’lldeliver,but thebigquestionisscopethree.
“Howdowesupportairlinesso thatourcollectiveambitiontoreduce emissionsareaddressed.Wehear airlinestalkingaboutlowcarbonaircrafttechnology,whichcanbeelectricaircraft,hydrogenorhybrid.They talkofsustainableaviationfuel;we wouldbeaninfrastructuresupplier ofthat.”
Theairportisbuildingoptionsto supportthesefutureaviationtechnologiesintoitsinfrastructuredesign.
Thatmeansquestionsaboutthe electricitygridandotherelements thatwillneedengagementwithgovernmentandotherauthoritiesalong withbroaderecosystemchanges.
Movingfromtwoterminalstoa singlebuildinghelpswithsustainability.
Hurihanganuisaysthatthemain considerationaboutwhethertoopt forseparateorintegratedterminals isalwaysgoingtobecustomerdemandandthendesigningthingsto IATA(InternationalAirTransport Association)standards.
“Thenyougetintothingslikethe efficientuseofresources.Havingtwo differentbuildingsisfundamentally differenttoanintegratedarea.There areefficiencyandproductivitybenefitsbutwhatstartstoreallydrivethat isutilities:airconditioningsystems, digitalsystemsandsoon.
“Whenyouhavetwoseparate buildings,youcan’tsharethose. You’vegottwoseparatesystems.
“Whilehavinganintegratedbuildinggivescustomers abetterexperience,italsoimprovesefficiencyand makesformoreeffectiverunning costs.It’snotjustcost-effectiveforthe airport,wemustthinkaboutthe airlines,abouttheborderagencies, thefoodandbeverageoutletsandthe retailers.”
Hurihanganuisaystravelpatterns haven’tchangedfundamentallysince Covid.“Theysloweddownatfirst, thentherewasaninitialbounceback beforeAuckland’sborderswere closedagain.
“Nowitisrampingbackup.The mixbetweenbusinesstravellersand leisuretravellersismuchthesame asitwas.Domestictravelisnow sittingatabout89to90percentof pre-Covidlevels.
“AirNewZealandislargelyback towhereitwas,andJetstarcontinues togrow.Historicallyabout20percent ofdomesticairtravelwasfrominternationalvisitors.Wethinkitwilltake alittlelongertogetthatlast10per centback,thereturnofflightsfrom Chinawillbepartofthat.”
Theairportforecaststhatwhenits financialyearendsinJune,internationalpassengernumberswillbeat 90to92percentofpre-Covidlevels. Itwillbe2025beforedomestictravel getsbackto2019numbers.
Theintentoftravellerspassing throughtheairportisnowheading backtopre-Covidpatternsaftera periodwheretherewas ahugepentupdemandofpeoplewantingtovisit familymembersimmediatelyafter theborderreopened.
Manyairlineshavereturnedto AucklandAirportalthoughthereare fewerflightsfrommainlandChina thaninthepastthankstothatcountry beinglockeddownlongerthanmany others.
Hurihanganuisaysdemandis rampingupagain.Someoftheaircraft thatwereparkedduringthepeak monthsofthepandemicareback,but possiblywith adifferentmixofspecificplanemodels.“Weareseeing airlineschoosetherightaircraftfor eachroute,that’sbothforpassengers andcargodemand.Weareseeingthe A380sreturnandthe777s,particularlyforlong-haulflights.”
Anotherchangefromtheairport’s pre-Covidexpansionplansistheway projectsarebeingsequencedaftera three-yearpauseonthemajorterminalinvestment.
In2020,theairportexpectedto startworkontheterminalintegration projectbeforebeginningthetransporthubproject.
Theairporttooktheopportunity toworkonitsroadingnetworkwhile passenger numbers were low to minimisethedisruption.
“It’s aloteasiertodotheroading workwhentherearen’tmanycarsor passengersaround.Itmeans alot
fewerorangeconesforpeopleto navigate.
“Wetriedtogetthemostdisruptive elementsoftheworkdonewhile therewaslessactivity,althoughwe hadtobalancethisfor awhilewith thefactthatwedidn’tknowwhen borderswouldreopen.
“Thetransporthubiswelladvanced.Thepick-upanddrop-off areawillbeopenbytheendofthis yearandthehubwillbecompleted bytheendofnextyear.
“Theprogressonsustainabilityhas changedsomeoftheprojects.Wewill
incorporatemoreofthisintothe integratedterminalandwearenow includingrenewableenergy.There willbesolarpanelsontheroofofthe transporthubandshoppingcentre”.
In2019AucklandAirportcommissioned aclimate change study to understanditsrisks,includingtherisk offlooding,andbeingonlowlying landnexttothesea,theriskof inundation.Theindicatorsatthat timewerethattheairportwouldbe largelyfineuntilthenmid-2040s. ThenonJanuary27thecitywas significantlyaffectedby astormthat
sawwidespreadflooding,including theairport’sinternationalterminal.
Hurihanganuisaystheairport startedtoincorporatestormwater andseawallupgradesaspartofthe maintenanceprogrammeduringthe pandemic.
Theaimwastohavethe stormwaterpreparedbytheendof the2020s,wellintimeforthe2040s. “Westartedactionbeforetherecent events.Thoseeventsreinforcedour understandingthatwewereonthe rightpathandthatweneedtogeton anddoit.Weneedtoensurethatwe havethesafeandresilientairportwe want.”
Thereis aplanfor asecondrunwayatAucklandAirport.Ithas moveddowntheprioritylistsincethe Covidpandemic,becauseaninvestmentlikethatwoulddependon demand.Thedesignconceptforthat runwayistobuilditbetween9.5and 15metresabovesealevel,that’sconsiderablyhigherthantheexisting runway.
OnechallengeforHurihanganuiis fortheprojectworktotakeplace whiletheairportcontinuestofunctionasnormal.
Shelikensthattochanging acar’s tyrewhileitisstillmoving.Shesays theairportusedthepandemicslowdowntogetaheadofsomeofthe mostdisruptiveworkandmuchof theenablingwork,butsheisaware thatpeoplewereoftenanxiousabout travellingbeforeCovid,andwiththe effectsofthatandthedevelopment, itmeanstheairporthas ahugecommunicationstaskinfrontofit.
● AucklandAirportisanadvertising sponsoroftheHerald'sProject Aucklandreport
TommyParker
Despitethesoggysummer, thepaceofworktoget Auckland LightRailbuilt hasbeenphenomenalin thefiveshortmonthsorsosincea crownentitywasestablishedand ArupandAureconjoinedusina planninganddesignalliance.
ThatcrownentityisAuckland LightRailLimited. Ourprogrammeofbelowground investigationstotestsoilandwater conditionsalongourindicativeroute iswellunderway.Expertsinurban development,publictransport,the environmentandinfrastructure fundingareaddingvaluetoour expandedboard.
Wecontinuetogathervaluable feedbackfromAucklandersregardingourrouteandstationlocations, and atsunamiofideasfromourteam ofNewZealandandinternational designersandplannersonwhata completedALRcouldlooklike.
ThePrimeMinister’scommentsin ParliamentlastmonththatAuckland LightRail(ALR)is aonce-in-a-generationinvestmentinthecityunderscoresthevigorousandcommitted workmyteamcontinuestomake.
For aprojectofALR’sscaleand complexitytheprogressisextraordinary.Wewillsoonconfirmthe routeandstationlocations,lodge noticesofrequirementtoprotectthe routeandgettheconsentingprocess underway.
Ourtightdeadlinesarestrategic. Wewanttobereadyforconstruction intimetotakeadvantageofan opportunitytogetskilledcontractors fromAustraliaasprojectsoverthere likeoursstarttotailoffinthenext coupleofyears.
Wearebuilding aworldclasslight railsystem -onethatwilladdmore strengthandresiliencetoAuckland’s widertransportnetwork,reducecongestiononstreetsandmakethecity environmentallycleaner,andbea catalystforsustainable,wellplanned populationgrowthandaffordable housing.
Twodisruptiveeventsoversummer –thecatastrophicrainfallanda SouthwesternMotorwaycrashthat blockedaccesstotheairport -are timelyremindersofthecriticalimportanceof aresilientcity,onethat canprovideaccesstovitalservices, homesandjobsineventhemost testingoftimes. Atransportnetwork thatprovides achoiceofreliable, efficienttransportacrossthecityis keytothat.
Whileit’s achallengetobuildanythingthat’sabsolutelybulletproof againstthedynamicforcesofMother Nature,theweatheriscertainlylifting thefocusatAucklandLightRail aroundwhat aresilient,fitforpurposeinfrastructurelikeoursshould looklike.
HobsonvilleinwestAucklandmay be alongwayfromthepathofthe firststageoftheproject,butit’sa communitywe’regiving alotofattentionto.Ithasvaluablelessonsto sharewithusaboutdeliveringinfrastructurethatisbothresilientand protectiveofthepeopleitserves.
Hobsonville’sbeendevelopedby Ka¯ingaOraanditsdevelopmentpartnersonanoldairforcebaseandbuilt withresilienceandnatured-based infrastructuresolutionsinmind.Traditionalundergroundstormwater pipeswerereinforcedwiththeuse ofabovegroundmeasures –green spaces,wetlandsandswales –toslow orcaptureexcessiverainfall.
Thesuburbsoutwestcopped someofAuckland’sheaviestdownpoursbutanecdotalevidencesuggeststheimpactoffloodinginHobsonvillewasrelativelylow.
Seeinghowthelessonsdeveloped
● AucklandLightRailwill dramaticallyexpandthepublic transportnetworktobetterserve Ta¯makiMakauraunowandinthe future.
● Lightrail’sfirstphaseisa 24-kilometreconnectionbetween thecitycentre,centralsuburbs,Mt Roskill,OnehungaandMangere— 22percentofAuckland’s populationgrowthand37percent ofjobgrowthoverthenext30 yearswilltakeplacealongthe route.
● Aucklandersspendnearly80 hoursstuckincongestioneach year —withpeoplelessrelianton theircars,there’llbe14,500fewer vehiclesonourroadsatthebusiest timeseachday.
● Easingcongestionwillhelpall roadusers,willhelpbusinessesbe moreefficient,reduceour emissionsandmakeitsaferand easiertowalkandbike.
● LightRailwillbetunnelled betweenthecitycentreandMt Roskillandrunabovegroundto Ma¯ngere.
Fromtop:PlanstotunnelhalfofAucklandLightRail’s 24-kilometreroutewillprovidemoreresiliencetothecity’s widertransportnetwork. Adrillingprogrammetotestsoiland waterconditionsalongtheALRrouteiswellunderway. CommunityengagementisanimportantpartofALR’splanning designphaseastheprojectsettleson apreferredroute.
suburbsmarkedforhousingre-developmentlikeWesleyandMa¯ngere andthosemoreestablishedacross thecentralisthmus.Bothpresent differentchallenges:withthenewer oneswecanalmoststartfromscratch –likeHobsonville -andwiththose thatareolderwearethinkinghow ourworkfitssuccessfullywithexistinginfrastructuretomakeitmore resilient.
Thisisnotworkwecandoonour own.Aswenaildownfinalplansand designs,Ka¯ingaOra,AucklandCouncilandmanawhenuawithalltheir skillsandknowledgearecriticalpartnerstohelpusbettermanagethe environment.
Theframeworkwesettleonwill be alayeredone.Fundingwillbea bigpartofit,forsure,butso,too,will urbanplanningandtheenvironment –adoptingstrategiesfor acleanerand strongerAucklandthatencourages carbonreductionandprovidesprotectionagainstclimatechange –and thebeststagestogettheproject deliveredinlinewithGovernment objectives.Ourambitionsarebroad –solutionsthatwillnotonlybebest practisefortheproject,butcanbe appliedrightacrossAucklandandto widerNewZealandaswell.
Itisn’tjusttheweather,however, thatcanputAuckland’stransport networkatrisk.There’sthehuman factor,too.ThatcrashontheSouthwesternMotorwayimpactedon travellers,andonthosemanypeople whoworkattheairportanditsneighbouringcommercialprecinct.
Wewanttobereadyfor constructionintimeto takeadvantageofan opportunitytogetskilled contractorsfrom Australiaasprojectsover therelikeoursstarttotail offinthenextcoupleof years.
TommyParkertherecanbeappliedbyALRhave neverbeenmoreimportant.
Duringthepandemic,Auckland’s populationdropped0.5percentafter 20yearsofgrowththataveraged1.8 percent.Asthingsreturntonormal, weexpectthenumberofpeople
callingAucklandtheirhometogrow again.Overthenext30years,22per centofAuckland’spopulationgrowth and37percentofjobgrowthwilltake placealongour24-kilometre-long route. Ourindicativerouteincludesboth
TheairportandthecentralbusinessdistrictareAuckland’stwo biggestemploymenthubslocatedat eitherendofALR. Alightrailconnectionthatisreliable,frequentand safeisessentialforthemanythousandswhowilldependonit.
Beclear.Wearenotbuildinga shuttletotheairportfortravellers.We aredeveloping abrandnewtravel choicetomakethecity’stransport networkmorerobust.Itwillgive Aucklandersanotheroptiontocars, buses,heavyrail,ferriesandwalking andcyclingfortheirtravelaroundthe city.
We’renotdesigninganythinglike Auckland’soldtramlinesnorthe modern-daytramsyoufindacross theTasmanincentralSydneyand Melbourne.
Tramssharethesameroadas others –drivers,cyclistsandwalkers. TheaddedprotectionALRwillprovidecomesfromanimportantdifference:asmuchaspossible,itwillbe separatedfromthoseotherfactors.
● Byseparatingthetrainsfrom othertraffic,theywillbemore reliableandfrequent,making traveltimesquicker.Lightrailwill alsobeabletomovemorepeople inthefuturebecausewecanuse longertrainscarryingmore passengers.
● Theproject’sindicativebusiness caseestimates acostof$14.6billion forthetunnelledlightrailoption —anestimatebenchmarked againstinternationalbestpractice andincludingsignificant contingency.
● 18stationswillcreateor improvetowncentres,attracting newhousing,business,shopping andservices —allwithinwalking distanceandhelpingensure Aucklandgrowsin asustainable way.
● LightRailwillenable66,000 newhomestobebuiltby2051.New qualityhousingwillallowmore peopletoaffordtoliveinexisting neighbourhoodstheyknowand love.
● LightRail’stransport,socialand environmentbenefitswilldelivera worldclasstransportsystem neededfor acitywhosepopulation isexpectedtobe2.3millionby 2048.
Thatmakesitlessvulnerabletocongestionandmoreresilienttoother riskfactors,includingtheweather andcrashes.
For astart,we’replanningtotunnel abouthalfoflightrail –thesection fromtheCBD,theuniversitiesdown toWesleyandtheSouthwestern Motorway.Thatwillhelpreducedisruptionandriskbut,importantly,it alsogivesusthecapacityinthefuture toexpand alightrailsystemtothe city’snorthshoreandnorthwest.
ALRisquitedifferentfromother projects.Whatwe’redeliveringis benefitsled.Alongside abrandnew transportchoice,therewillbehuge improvementsinhowweuseour landinexistingandnewcommunities –saferspacesforpeople,less trafficontheirroadsandmorecommercialandresidentialdevelopment. Withothertransportinfrastructure projectsthosebenefitsusuallycome afterconstructionisdone.
Makenomistake.Lightrail’svalue toAucklandwillbehugeandcritical –onethatwilladdtothecity’s prosperityandgrowth.Aucklanders willbenefitfromaddedprotection–moreclouttoallowthecity’swider transportnetworkforaninternationalcitylikeourstocontinueto functionshouldtherebe amotorway crashinonepartoftownorflooding andslipsinanother.
● TommyParkerischiefexecutiveof AucklandLightRailLimited ALRLtdisanadvertisingsponsorof theHerald’sProjectAucklandreport
Building aresilientAuckland forfuturegenerationshas neverbeenmorefrontof mind.And,with amillion morepeoplesettocallAuckland homeoverthenext30years,itis imperativewehavethesystemsin placethatenableNewZealand’slargestcitytoadaptandthrivenomatter what.
WeoftenrefertotheCityRailLink as agamechangerforAuckland,a city-shapingprojectthatwilltransformthewaywework,live,andplay here.Butwhatdoesthatlooklikein reality?
Aresilient,thrivingcityneeds worldclasspublictransportsystems thatconnectscommunitiesand enticespeopleoutoftheircars.
Asystemthatprovidesmore travelchoicestohelpeasepressure ontheroadsforthosewhoneedto usethem.Goodpublictransportsystemskeepourcityconnected,and they’rebetterforourenvironment.
IoftenheartheCityRailLink referredtoas aloop.Let’sbeclear, itis alink, amissinglink,thatwill open-uptheentirerailnetwork.
Removingthe“deadend”at Waitemata¯Station(Britomart)and joiningthenewundergroundline withtheWesternLineatMountEden willdoubleourrailcapacityand create amassrapidurbantransit system —muchlikehowtheWaterviewTunnelhasopenedupthecity’s motorwaynetwork.
Itwillprovidedirectlinksbetween theWestandtheSouthandtheWest andtheEastanditwilldoublethe numberofpeoplewholivewithin30 minutesofthecitycentre —New Zealand’seconomichub.
Thisisparticularlyimportant giventhesignificantexpansion happeninginouroutersuburbsto accommodateourgrowingpopulation.
Directservicesbetweenthese hubsmeanslesstimetravellingand moretimewherepeoplewanttobe. Inaddition,TeWaihorotiuStationis beingfuture-proofedfor aconnection totheNorthShore —addingtothe resilienceofAuckland’sentiretransportsystem.
Cateringforfuturegrowthis exactlywhyourprojectscopewas expandedin2019 —atadditionalcost towhatwasoriginallyfunded —to allowforlongernine-carcarriage trains.
ThatmeansthatatitspeakoperationtheCityRailLinkwillbeable tocarry54,000peopleperhour. That’stheequivalentcapacityof threeAucklandHarbourBridges or16extratrafficlanesintothe citycentreatpeaktimes.
Becausefuture-proofing nowmeanswe’rereadyto accommodatetheneedinthe future.
ButtheCityRailLinkis aboutmorethanjustimprovingpublictransport.It’s atransformativeprojectthatwilllead thewayinintegratedtransport andurbandevelopment.
Threebrandnewstations willencouragesignificantresidentialandcommercialdevelopmentthatwillcreatenewurban precincts,supportourhousing needs,enhanceourenvironment andmakeAuckland amoreattractiveplacetoliveanddobusiness. Itwilldrivebusinessinvestment andincreaseemploymentdensity withinthecitycentre.
Thiswillincreaseourproductivity andeconomicoutputandliftAuckland’soverallGDP.
Recently,CityRailLinkandits numbershavebeengetting afairbit ofcoverage.
Thisfollowsthefundingrequest wesubmittedtooursponsorsthat reflectedincreasedcost(now$5.49 billion)andtime(anadditionalyear) fortheprojecttobecompleted. Therealityofbuildinglarge,complexprojectsisthatwearealways subjecttotheunknown.
Amajorunknownofcoursewas aglobalpandemicthathasaffected projectstheworldover. Covidconditionsaffectedevery
aspectofCityRailLink’sconstruction. Overthelastthreeyearswehave enduredsixmonthsoflockdowns, restrictedworkingfor280days(traf-
ficsystem),3.2millionhourslostto illnessand800-plusworkers infected.Thecostofmaterialssoared —buildingsuppliesincreasednearly 20percentinthe18monthstoQ2 2022 —whileshipping,materialsand labourconstraintsalsoimposed delaysandextracostsontheproject.
Andourprojectisnotuniquein this.Increasedcostsandtime overrunsformajorinfrastructure projectsare aglobalissueandunder Covidconditionsandinternational inflationarypressurestheseproblemshavemetastasised.
Despitetheseheadwinds,wedid welltocontainthecostandcontinue toprogresstheprojectatpace —while alsosecuringopportunitiestohelp realisethefullbenefitsofCityRail Link.Andweareveryconfidentthat haditnotbeenforCovidwewould nothavebeeninthepositionof needingtosubmit arequestforfurtherfunds.
Inevitably,when acostincreaseis announcedquestionswillbeasked aboutthevaluetheprojectwilldeliverwithinthenewfundingenvelope.
Forinfrastructure,weoftenusea benefit-costratio(BCR)asanindicatortodeterminetheratioofbenefits aprojectwillbringinmonetary termsrelativetoitscost —anything over1.0isconsideredanexcellent result.
ArecentlyupdatedPwCeconomic assessmentfoundthatevenwiththe increasedcosttheCityRailLinkhas aBCRof2.0,creating$11.93binbenefitsfromtheprojectover60years (seeadjacentinfo-graphic).
Ifyouincreasedtheassessment periodfrom60yearsto80years(City RailLinkhasbeendesignedto achieve a100-yearlifetime)theprojectdelivers$14.4binbenefitsandan evenlargerBCR.
Thereisnodoubtthat$5.49bisa largenumbertoswallow,particularly in acountrywhereprojectsofthis sizeandscalehavenotbeenundertakenuntilnow.
Butifyoucomparethatglobally, thecostofCityRailLinkissimilarto MelbourneMetro,SydneyMetroand theUKCrossrailon adollars-per-km basis.
Becausebuildingrailtunnels undergroundandlargenewstations doesnotcomecheap.
Butthecostofdoingnothingis greater.ThepressureonAuckland’s roadingsystemisalready aconstanttalkingpointatbarbecues.
Anyonewhohasdrivenhome atpeakhourintherainhas experiencedthestand-stilleffect ofcongestion.Ourbusesare runningoutofbustransitcapacity,andweneedviable alternativesthatrapidlymove largeamountsofpeople.Aucklandis acitythatmustkeep moving.
Wearegoingtodeliverthe project ayearlaterthanwe hadsetouttoachievebefore Covidhit.Butthereislightat theendofthetunnelandwe aregettingevercloser.
Wehavecompletedabout95 percentofourcivilworks,we’ve finishedboringthetunnelsand theconstructionofourstation buildingsarewellunderway.
Wearealreadystartingurban realmworksinthecitycentreand whenthatiscompletetheprojectwill belessimpactfulonthesurface,with moreworktakingplaceunderneath andbehindthestations’walls.
Wearecrackingontogetthis projectdeliveredasquicklyaswecan becauselikeAuckland,wewantto seeitdeliveringitsfullpotentialas soonaspossible.
Moving asold-outEdenPark crowdintodowntownAucklandin15 minutes?Nowthat’s agamechanger.
● SeanSweeneyischiefexecutiveof CityRailLink(CRL)
CRLisanadvertisingsponsorofthe Herald’sProjectAucklandreport
The City RailLink is about morethan just improving public transport;it’s atransformativeproject,writes SeanSweeney
Buildingrailtunnelsundergroundandlargenewstationsdoes notcomecheap.Butthecostofdoingnothingisgreater.SeanSweeney
TransportMinisterMichael
WoodhastalkedupthescaleoftheLabourGovernment’sinvestmentand commitmenttoAuckland’sinfrastructure.TheGovernmentreckons ithasspent$11,872,082,335onAucklandduringitsfiveyearsinoffice (2017-2023).Thiscomparesto $10,511,786,879itreckonsNational spentduringitsnineyearsinoffice.
It’snowplanningtoearmarka further$15-26billion(NZTAestimates) —dependingonwhichoffive scenariositchoosesfor asecond crossingoftheWaitemata¯harbour.
“Thatinvestmentfromnorthto south,easttowestisverysignificant atthemoment,”saysWood.“Andit’s goingtoincrease.Weneedtodoit tocaterforthegrowth.”
Nearlyone-thirdofNewZealand’s fivemillionpeopleliveinAuckland.
Butextensive peak-hourcongestion hasmadetravelacrossthecitysubjecttodelaysaffectingbusiness efficiency.WoodsaystheGovernment isthinkingabout a20-25yearprogrammestagedin alogicalwayto arriveat aproperlinked-upnetwork:
“Obviouslythereis alotoffocus ontheWaitemata¯crossingandAucklandlightrail.Butwearethinking aboutthoseprojectsalongsideNorthwesternrapidtransit —thedesignation,workisunderway —andthe EasternBusway.”
Woodisplayingdownpolitical scepticismovertheproposaltobring forwardworkonthesecondharbour crossing.Publicfeedbackonfive scenariosfor asecondcrossingis beingsought,withCabinetexpected tomake acallonthepreferredoption inJuneorJulyattheoutside.
ThiswillenablePrimeMinister
ChrisHipkinstocampaignontheplan attheOctoberelection.
Thescenariosincludebridgeand tunneloptions(seeabove).
WakaKotahi(NZTransport Agency)estimatesthecostwillbe $15b-25b,withthemostexpensive scenariotwotunnels,oneforroad andoneforlightrail.Thecheapest istheconstructionof abridgeadjacenttotheexistingHarbourBridge, whichwouldcarrylightrailand accommodatewalkingandcycling.
ButtheGovernment’sopponents haveciteddelaystotheAuckland LightRail(ARL)projectasreasonto doubt asecondharbourcrossingwill getunderwaybefore2030.
“FortheOppositiontomakeout thatthesearethingsthatyoucanturn aroundon adime,everyonewho’s seriousknowsthat’snottrue,”says Wood.“There’s abitofpoliticsthere.
We’renotpayingthemtoomuch attention.”
Hesayspublicconfidenceinprojectdeliverycanbestrengthenedby indicating“theprogressweare tangiblyandvisiblymakingnowwith majorAucklandinfrastructure.”
Hepointstothecompletion ofa massofNorthernCorridorimprovementswhichcompletethewestern route.ThenextstageofEastern Buswayisalsounderway.
“We’recurrentlybuildingthe SouthernMotorwayimprovements betweenPapakuraandDrury,and themassiverailimprovementsthere. We’veopenedthePuhinuiinterchangetogetpublictransportto AucklandAirport.Sothenarrative thatyou’rehearingfromtheOpposition,isjustopposition.”
WoodisconfidenttheARLproject ismeetingitsmainmarkerswith
geotechnicalinvestigationsontime. “Bythemiddleoftheyear,we’llbe confirmingtherouteandstationlocations,”hesays.Propertyacquisitions willfollowandmainconstruction worksareduetostartin2025.
“Theydohave alongleadtime buteffectivelyfromrecommencing thisprojectatthebeginningof2021, itisverymuchontrack.”
MakingsuretheCityRailLink (CRL),AucklandLightRailandthe secondharbourcrossingjoinupisa challenge.Therecentfloodinghas raisedanissueabouttunnelsafety.
AreporttoAucklandTransport’s boardnoted:“Tunnelsalsoareknown tobesignificantlymoreexpensiveto buildandmaintain.”Itnotedtunnels mayinvolvesignificantlymorecomplexityrelatingtosafetyandoperations.Thereportsaidtheoptionof asecondbridgewasbeing“revisited”.
AtthetimeofwritingDean Kimptonwasofficiallyin hisnewjobasAuckland Transportchiefexecutive foroneday.Hehasnotimetowaste oncreating anewlevelofoperating efficiencyfortheunder-siegecouncilcontrolledorganisation.
Hisinitialarrangementis afixedtermemploymentagreementfor18 months.“Theboardreflectedonthis anddecidedchangeneededtooccur in afocusedperiodoftime.
“It’stherightthingtodoandit’s therightamountoftimefor achief executivetocarryoutchange,both internallyandexternally,”says Kimpton.
“While Iamhere,everything Ido willbefocusedonAucklandTransport’slong-term,fit-for-futurestate. Theattentionwillbe10to15years out.”
So,whathappensafter18months?
Kimpton,theformerchiefoperating officerforAucklandCounciland managingdirectorofinfrastructure consultingfirmAECOMNZ,says:“In 18months Iwillfinishthejobgiven tomeandcreated arolefor apermanentchiefexecutive.Do Iwant thatrole? Ihaven’tansweredthat questionyet.”
Kimpton,whohas aMasterof EngineeringdegreefromAuckland University,joinedAucklandTransportfromhisownTuhuraConsulting firmspecialisingingovernanceand advisoryconsultancytothegovernment,infrastructureandconstruction sectors.
HeispastpresidentofEngineering NewZealandandboardmemberof InfrastructureNZ,chairoftheNZ ConstructionSectorAccord’stransformationgroup,andindependent chairoftheEasternBuswayAlliance andConnectedCommunities.
Hewasalsoindependentchairof theWesternBayofPlentytransport investmentprogramme;independentboardmemberoftheWaka KotahiNewZealandupgradeprogramme;completed areviewofLet’s GetWellingtonMovingtransportnetwork; amemberoftheResourceManagementReformPanel,andindependentchairofAmerica’sCupjoint chiefexecutivegroupwithanoversightofinfrastructureandeventdelivery.
KimptonfirstjoinedAECOMin 1992andmovedfromgroupmanager andoperationsdirectorandregional managerNorthIslandtomanaging directorNewZealandandSouthPacificfrom2008toJuly2013.
HethenbecameAucklandCouncil’schiefoperatingofficerfrom August2013toMay2019beforesettinguphisownbusiness.
DuringMarchKimptondidspend twodays aweekatAucklandTransportmeetingstaff,boardmembers andotherpeople —andlistening.
“Fromthetopdown alotofpeople arecommittedtodeliveringtransport outcomesforAucklandbutthereis frustrationaroundwherethingsare at —theimpactofCovidhasmade itchallengingfortransportservices overthelastthreeyears.
“Therearechallengeswith decarbonisingthefleet,andtotopit offthere’s asignificantbudgetchallenge.Theorganisationhaswrestled withthebudgetwithouthavinga chiefexecutiveinplacetohelpthem withit.”
AucklandTransporthasfoundthe required$32.5millioncostsavingsas requiredbyMayorWayneBrownfor thecouncil’slatestannualbudget.
Reducingthestaffnumbersaccountsfor athirdofthecostreductions.Theothertwo-thirdsaremade upbysub-leasing afloorinitsViaduct headofficeandrevisingcontracted servicesforbusesandferriesand otherefficiencies.
Kimptonwouldn’trevealthenumberofjoblosses.ButAucklandTransporthas astaffofnearly2000and thenumbercouldbeinthevicinity of200. Hesays“aswefindfurthercost
savings,theywillbereinvestedto supportthepublictransportservices suchastakingonmorebusdrivers.”
Kimptonwillbedelivering a“centralroadmap”totheboardbythe endofAprilwithactionsonpriorities andtheorderinwhichtheyare undertaken.“There’sbeenenough reviews,wedon’tneedanotherone. The18monthsimplies asenseofpace andurgencyaroundreshapingthe operation.”
Bymid-Aprilhewillhavemetall dozenpublictransport(busandferry) servicesproviderstogettheirfeedback.Hesaystheroadmapwillfocus ongettingclosertocustomersand givingthem abetterexperience.
AucklandTransportwillbemore accessibleandthereforebetterunderstood.
“ThepeopleofAucklandhavetold ustheyhaven’tbeenlistenedtoand Idon’tthinkwehavedoneaswell aswecouldhavefrom acommunity pointofview.
“Oneofthethings Iimplemented atAucklandCouncilwaslocalboard focusplans,andwecandothiswith transportservices.
“Wecanworkcloselywithlocal boardsandunderstandthecommunityneeds —whatsortofinfrastructure andconnectionstheyrequireand incorporatethisfeedbackintermsof
technologyandinnovation.
“Weneedtogetbacktobasicsand have agreaterfocusoncoreservices suchasroadconesandmaintaining theexistingnetwork,”Kimptonsays.
Oneofhismainprioritiesisacceleratingthereturnoffullpublictransport(busandferry)servicesthathad beenhitbytheCovidpandemic.The servicesarenowrunningat80per centofthepre-Covidlevels,and currentlytherearesome1235(bus) tripsperdaysuspended,whichis fluiddependingonbusoperator availabilitymainlyinCentralAucklandandNorthShore.
ThepresentAucklandTransport budgetisbasedondelivering79 million(busandferry)passenger journeys ayear;pre-Coviditwas 100-104millionjourneys.
“Weareclosetohittingthe79 millionnumber,”Kimptonsays.
“Thereis areductioninfunded servicesandwewilllooktoshift capitalaround.Someaspectsoflarge projectsthataffectthebudgetmay needtoslowdown.Howwehandle thecapitalprogrammegoingforward willbethesubjectof alotofdebate withintheboardandwithcouncil.”
Kimptonsayscurrentprojects suchasthePtChevalierandGlen Innescycleways,CityRailLink,the EasternBusway,andNorthwestern
BuswayinconjunctionwithWaka Kotahiwillcontinue.ThePtChevalier constructionisabouttostartand GlennInneswillfollowsoonafter.
“Wearemaking asignificant cyclewayinvestmentandthefocus forthefutureishowwedeliverthat investmentin amoreagileandconnectedway.Wehave agot acycling networkinAucklandtocompleteand howbestdowedothatin amore cost-effectiveway?”
AucklandTransportneeds2233 busdriverstooperatefullservices anditpresentlyhas ashortfallof369 drivers,animprovementfrom550in December,andcreatingthe80per centoperationalrun-rate.
Almost200crewareneededfor AucklandTransport-contractedferry servicesandthereis ashortageof35.
Theorganisationhasanunderstandingwithimmigrationtorecruit busdriversoffshoreandallowtheir familiestoliveandworkinAuckland. About300oftherequirednumberof driverswillcomefromoverseas.
“Weshouldbebackto afullcomplementofbusdriversbymid-year,” saysKimpton.
“Ittakesthreemonthstofullytrain themandbytheendofthisyearwe areexpectingtobringallofthem onboardandresolvemostofthe suspendedorcancelledservices.It
willtakelongertoreturntheferries tofullservice,say12to18months. Wearecompetingoffshorefor skippersespeciallywithBrisbaneand Sydney,andwehavetosatisfythem thattheirpayissufficientandthey canimmigratetoAuckland.”
Ofcourse,returningpublictransporttofullserviceswillcostmoney, andKimptonsayswearehavinga liveconversationwithcouncilon fundingfullservices —whichcurrentlyexceedswhat’sbudgetedfor.
“Operating afullserviceisanissue Aucklanderscareabout.Transport toucheseveryoneandhowwemove aroundthecityeverysingleday.It isfundamentaltohow acityoperates.
“Iseethefrustrationwiththe lengthof(traffic)queuesandbuses notturningup.Mysonringsupand sayshecan’tgettoschoolbecause thebusinfull.Andso, Igoanddrive himtoschool.
“As afather, Iunderstandwhata publictransportsystemshouldlook like. Icouldsitonthesideline,butI tookthisjobtounderstandhowthe systemworksandtoleaninandbe partofthesolution.”
Kimptonsaystheonlywayto addressmassrapidtransportisto givepeoplechoicesofhowthey movearound,notjustincars,andhe’s lookingforwardtoprogressinthe nationally-significantprojectssuchas theEasternandNorthwesternBusways,CityRailLink,AucklandLight RailandtheadditionalWaitemata Harbourcrossing.“Theywillhelp solvecongestion,absolutely.Bringit on.Let’sgofarandimplementthese transformativeprojects. Iwaspleased thattheoptionsforthesecond harbourcrossingwereputinthe publicdomainforconsultation.”
Theoptionsincludetunnelsand bridgesor acombinationofboth,light railandcyclingandwalkinglinks.
PrimeMinisterChrisHipkinssaid constructionwouldbeginin2029and themassiveinfrastructuremission wouldbecomethebackboneofa modern,integratedtransportsystem thatcancomparewiththebestcity networksanywhereintheworld.
KimptonsaysAucklandTransport willplayitspartinthebigprojects. “Weneedtoprioritiseinthelong-term plan —that’s asignificantpieceof work —theserviceswewillprovide tointegratewiththoseprojects.
AmongallofAucklandTransport’s challenges,Kimpton’sleadership philosophyisprettysimple:“Success iswhenanorganisation,itspurpose andgovernancealignanditdelivers outstandingresultsforall.Achieve thisandwehave alicencetooperate, trustandconfidencegrows.”
● AucklandTransportisan advertisingsponsoroftheProject Aucklandreport
AT’snew chief executive DeanKimptonisdetermined to provide easychoices for
Icouldsiton thesideline, butItook thisjobto understand how the system worksandto leaninand bepartofthe solution.
DeanKimpton
Therecentweatherevents thatbatteredAucklandhave leftthecitywithsignificant damagetopublicandprivateassets,includinginfrastructure, land,housesandbusinesseswhich willtake alotofworktoputright.
AucklandCouncilchiefeconomist GaryBlicksaysthecityisworseoff andwhiletherewillbe abumpin activitytoputthedamageright,itwill notnecessarilymeanAucklandis furtherahead,withfundingandcapacityconstraintsleadingtootherprojects –andtheirbenefits –being deferred.
“Economiststhinkabouttheopportunitycost,”hesays.“Whatarewe forgoingbyhavingtoturnourlimited resources —labour,capital,equipment —intoputtingthingsback.”
Aschiefeconomist,Blickisfocusedonthemediumtolong-term implicationsofdecisionsthatare madebycouncil.Hisapproachto economicsisbroad,considering trade-offsinresourceuseaswellas thewellbeingofthecommunity.
Recenteventshaverevealedthe needforthecitytoconsiderits policiesformanagingfuturenatural disastersandclimatechangeand havefocusedpolicydebateonAuckland’sresilience.
Blicksaysitisimportanttobequite consideredandhave agoodevidencebasearoundcausalityand impacts.“Ifwearegoingtotakea policyaction,wehavegottoconsider alloftheimpactsonourresources andtheassociatedtrade-offs,”he says.“Asanexample,adaptingtothe changingclimateandnaturalhazard riskin awaythatdoesn’tundermine ourotherobjectivessuchasaccommodatinggrowth,enablingmore
housing,andreducingtransport emissions.Andwewanttorespond in awaythatisconsistentwithfinancialsustainabilityandtheprudent useofpublicfunds.”
Givenevidenceofhownatural disasterscanimpactonthemental health,Blickhasbeenreflectingon thepotentialimpactoftheweather damageonthewellbeingof Aucklanders.“Particularlyfor youngerpeople,andthedisruption itcanhaveontheirhomelifeand theirengagementwitheducation, trainingandemploymentpathways. Wearetryingtoget agoodevidence basearoundthatintermsofcharacteristicsofaffectedhouseholdsand theirpotentialvulnerabilities.”
Blickisparticularlyinterestedin Auckland’sabilitytoaccommodate growth,anditslong-term competitivenessandattractiveness tocurrentandprospectiveresidents. Withthisinmind,heisclosely watchingPlanChange78 —thecoun-
cil’sresponsetotheGovernment’s NationalPolicyStatementonUrban Development —nowbeforeanindependenthearingspanel.Theinitiative wascreatedfrom across-partylaw inlate2021whenNationaland Labourcollaboratedtobringabout significantmodificationstotheexistingplansformajorurbanareas, leadingtosignificantchangestothe AucklandUnitaryPlan.
Someoftheseincluderequiring thecounciltoenablebuildingsofsix storeysormorewithinwalkingdistanceofthecitycentre,largemetropolitancentresandaroundrapid transitstops.Italsoenablesthreestoreyhousingtobebuiltonmost residentialsitesinurbanAuckland.
IntheaftermathoftheJanuary floods,somecouncillorshaveexpressedconcernsabouttheimpactof newhousingdensitylaws,fearing multi-storeyresidentialbuildings couldfurtherstrainthealready overburdenedinfrastructure.
Blickacknowledgestheweather eventshavehighlightedchallenges thatwillneedtobeaddressedin policysettingsonlanduseandinfrastructureinvestments.Henotesthese arediscussionsmanyinternational citiesaregrapplingwith,particularly incoastalorflood-proneareas.
Suchdecisionscanhavesignificantandfar-reaching consequences forAuckland’sgrowthpatterns.Itis Blick’sresponsibilityasthecity’schief economisttoconsiderandadviseon thefullrangeofconsequences.
Landusepolicyandtransport infrastructureinvestmentarebig, powerfulleversfor acity’sattractiveness,Blickobserves.Theyinfluence wherehouseholdscanlocate,the accessibilityofdifferentlocations, andthedecision-makingofpeoplein NewZealandandoverseaswhoare consideringrelocating.
“Moreflexiblelandusegives householdsmorechoice,andthe optiontolocateinlocationsthatare
inrelativelyhighdemandduetotheir proximitytojobs,transportlinksand otherurbanamenities.”
Enablingmorepeopletolocate closertothethingstheyvalueis positiveforwellbeingandproductivityandimprovesAuckland’s competitivenessincomparisonto othercitiesandregions.
TheAucklandUnitaryPlanshows thepowerofchangesinlanduse policy.Uponitsimplementationin 2016,itincreasedAuckland’scapacity toaccommodategrowthandallowed landinsomelocationstobeused moreintensively.
ResearchconductedbytheUniversityofAucklandhasanalysedthe impactoftheUnitaryPlanbymodellingthecounterfactualifithadn’t beenintroduced.Thestudyfound thatoverthefirstfiveyears,the UnitaryPlanledtotheconstruction ofanadditional26,900dwellings,50 percentmorethanotherwise.
“Thisreallyshowshowpowerful landusepolicycanbe,andsopotentialchangesneedtobecarefully considered,”Blicksays.“Peoplemay noticechangesinsomeneighbourhoodsandsomepeoplemaynotfeel entirelycomfortableaboutit.
“Butwealsoneedtoconsider wherewe’dbewithoutthoseextra homesandwherethosehouseholds wouldotherwiselocate.Enablingthe markettodelivermorehomesin responsetodemandhasbeen apositivestepforimprovinghousing affordabilityoverthemediumterm.”
Lookingahead,thiswillhelpAucklandretainitscompetitiveadvantages.“Aucklandstilloffers adiverse rangeofemploymentopportunities, specialisedroles,higherincome prospects,urbanamenitiesandconsumptionpossibilitiesnotavailablein otherregions,”Blicksays.
AucklandcontinuestodominatetheNewZealandtechnologysector,contributing morethanhalfofits revenueandemploying71,000 people.Thecityisnowlookingtoadd climatechangetoitsinnovationoffering.
Ta¯takiAucklandUnlimited(formerlyAucklandTourism,Eventsand EconomicDevelopment),isoperating avirtualinnovationhubClimateConnectAotearoaandislookingtoestablish aphysicalpresence.
Therecentfloodsandcyclone highlightedtheneedforadaptation andtotackletheclimatechallenges head-onwithnewtechnologies,says AucklandUnlimiteddirectorofinvestmentandindustryPamFord.
“ThereishugepotentialforAucklandaswegrowmorecleantech companiesandaddressclimate changeinbuiltenvironments,energy, foodsupplyandtransport.Wehave madeanembryonicstarttohow Aucklandcanbecomeinternationallyregardedforitsclimate innovationcompaniesand ecosystem,”Fordsays.
AucklandUnlimitedhasformeda partnershipwithNewZealand’sfutureenergycentreAraAke,basedin NewPlymouth.AraAkewasestablishedin2020tofacilitatethedevelopmentandcommercialisationof low-emissionsenergyinnovation.
Atpresent,ClimateConnectAotearoaisconcentratingondevelopinga knowledgehubandconnecting peopletobuildcapacityandcapabilityinaddressingclimatechange.
ClimateConnect’spurposeis:“Our kaupapaistoacceleratetheuptake ofinnovationtosupportTeTa¯rukea¯-Ta¯whiri:Auckland’sClimatePlan, anditsgoalstoreduceemissions50 percentby2030,buildresilienceand deliver aresilient,low-carbonand regenerativeeconomy.
Aphysicalhub,basedonthesuccessfulWynyardQuarterinnovation model,willcreatevisibilityandprogress.
“Wewanttobringpeopletogether toworkonclimatechallengesand producesolutions —a placewhere entrepreneurscanleanoneachother toshareideas,issuesandresources andtobringinexpertstoprovide experienceandknowledge,”says Ford.
TheWynyardmodel,withitscosharingofficespace,hasworkedwell forotherareasofthetechnology sectorsuchassoftwaredevelopment, ICTanddigitalmedia,biotechnology, cybersecurityandlatelyartificial intelligence.
GridAKL,whichhasspread throughAuckland,nowhasnearly 1200peopleand140businesses workingintheWynyardQuarter innovationcampus;110inthe EstblshdonlinecommunityandGlen Inneshub;64peopleworkingatthe
AvondaleClickCreativeTech Studios,andmorethan80 entrepreneurssignedupforthe GridMNK(Tukua)developmentprogrammeinManukau.
Fordsaystheexpansionmeans moreentrepreneurs,includingMa¯ori andPasifikabusinesses,canshare workingspacesandnetworkingopportunities.“Itprovidestheabilityfor themtoworkoffeachother.”
LiketheWynyardinnovationprecinct,AucklandUnlimitedinitiated
theKumeuFilmStudios,andinsix yearsthecity’sscreensectorhas nearlydoubledto$1.5billionin revenuewhichincludesdirectspendingonfilmproductionandwider economicbenefitsofjobcreationand tourism.
Since2017Aucklandhashosted majorfilmproductionssuchas The Meg, Mulan, Avatar:TheWayofWater and Thor:Ragnarok; SweetTooth and seasononeof TheLordoftheRings: TheRingsofPower televisionseries.
AucklandFilmStudiosatHendersonexpandedwiththecompletionof twonewstudiosattheendofthe year,takingthenumberofsound stagestofive.Soundstagespacein thecityhasgrowntonearly32,000 sq masdemandfromHollywoodand regionalproductionhasgrown.
Theexpansioncost$37.5mwith $30mfromCrownInfrastructure Partnersand$7.5mfromAuckland Council.
Asalesprocessisnowtakingplace forAucklandFilmStudios,andFord says“privatesectorinvestmentinthe studioshasallowedustoexitthat function.”
ButAucklandUnlimitedisnow lookingatfacilitating acreativepre-
cinctinHendersonwithscreenrelatedbusinesses.“Mostpeople traveloutofWestAucklandtowork andwewanttocreatetheopportunityofprovidingqualityjobsinthe creativesector,”saysFord.“More peopleworkingclosertohome improvesliveability.”
AucklandUnlimitedhasdevelopedthesamethinkingforthenew Drurytowncentreandsoutherncorridor.
“Thedevelopmentwillhouseup to60,000residents(25,000homes) andaccommodate12,000jobs,”says Ford.“Differentgovernmentagencies aredoingtheirbitandwearelooking atwhatindustriesaresuitedtothe area.Drurywillbeintheheartofthe GoldenTrianglebetweenAuckland, WaikatoandBayofPlenty.”
Thekeysectorsalreadyidentified areadvancedmanufacturinggiven theinfrastructurethatneedstobe built;value-addedfoodandbeverage beingnearthegrowingareaofPukekohe;healthcareandwellbeing wrappedaround anewhospital;and greeneconomy.
Fordsaysthecityis acatalystfor economicdevelopmentandthrough commitmentstoplaceslikeWynyard
QuarterInnovationPrecinctandfilm studios,Aucklandisabletoleverage governmentfundingandprivatesectorinvestment.
“Asaneconomicdevelopment team,weworkwiththeUniversityof Auckland —inaerospace,advanced manufacturingandmedtech,asexamples —andlooktoplaceslikethe Newmarketinnovationcampusasa potentialgame-changingopportunity thatwillmakethisplacemoreattractiveforouryoungpeople,andgrow talentandinvestment.”
FordcitesglobalcitiesadviserProfessorGregClarkwhotoldAuckland’s Future,NowworkingsessionlastMay that:“Aucklandhas agrowingreputationas acityforfuturetalent,both homegrownandnewmigrants.The focusneedstobeonliveabilityand innovation.Tobe aliveablecity wherefuturetalentcanwork,you needvibrantarts,cultureandevents, and afocusonplacesandpeople.”
Fordsayseconomicdevelopment isaboutthewellbeingofthecitythat requiresanecosystemofuniversities, communities,multinationalsand smallbusinesses,andcentraland localgovernment.
“When Ihearorreadopinionsthat centralgovernmentcandothe economicdevelopmentworkoflocal government, Iampuzzled.
“NewZealandTradeandEnterprise,forinstance,helpsgrowcompaniesoncetheyhavereachedthe internationally-competitivelevel. Theroleofthelocalareaistoprovide theenvironment,insomeinstances physicalplaces,foruniversities, innovatorsandinvestorstodevelop andgrowtheirbusinessestothe internationallevel,”Fordsays.
“Centralgovernmentagencies workinspecificareas;ourroleisto lookatthewholepictureandpullall theeconomicdevelopmentthreads together.
“ThisisvitalforAucklandwhen leadingandprogressivecitiesaround theworldhaveexcellenteconomic developmentagenciesin averycompetitivemarketfortalent,investment andstart-upsupport.”
FordsaysAucklandisthebusiness hubforthecountry,generating38per centofgrossdomesticproductand providing adiversificationofsectors fromhorticulturetotechnology, screentohealth; avarietyofjobs;and theentrypointformostvisitors.
“Itisimportanttocontinuehaving aninternationalreputationforhigher education,cultureandtourism,and attractfuturetalenttoliveandwork inthecity.Todothis,weneedto focusonliveabilityandinnovation,” shesays.
GregClark
Covid-19hasbeen ashort-termshock, withlonger-termconsequences.It hasledtodebateaboutthefutureof citiesandtheinfrastructuresneeded toservethemEachnationbringsa differentnarrativetotheseissues. Whatistherestoftheworldthinking, andwhatcanNewZealandglean?
TheMagicofCities
Whatmakes acityispeopleconcentration.Proximitybetweenpeople inducesdeepinteractionsthatcreate “networkeffects”.Thus,citiesaccelerateideas,fosterparticipation,and drivefusions.
Thescaleofpopulation.,activities, andrevenuesalsosupportscommon servicesandinfrastructures,and drivesspecialisationinmedicine, science,art,sport,media,leisure,and
business.Thus,citiescanenhance socialmobility,increaseproductivity, deepenciviccapital,andspur creativity.
Themagicofcitiesisthatthey magnifyandmultiplythose interactionswiththis“concentration super-power”.
ThePlanetofCities
Citiesplay aspecialroleinthefuture ofourplanet.By2080almost10 billionpeoplewillbelivingin10,000 cities. Astheconcentrationofpeople, jobs,infrastructure,systems,andconsumptionintensifytheyemitcarbon. Atthesametime,citiesarethemost obviousvictimsofrising temperaturesandsealevelsthat makethempronetopoorairquality, flooding,extremeheatandweather, andnaturaldisastersthatthreaten
humanhealth,bio-diversity,fixed assets,andecosystems.
Citiesarealsotheplaceswhere urbaninnovationsshapechoices, nudgebehaviourchanges,andfoster newmodelsofinvestment,consumption,andcircularity,astheypursue thepathtonetzero.Citiesarethe pioneersofclimatereform.
TheCenturyofCities Inthe5thdecadeofoururbancenturynewresourceshavearrived.
Thetool-boxofcitymanagement, publicgovernance,andprogressive policyisnowjoinedbythreenew resourcesinthequestforgood urbanisation.
Thefirstis anewsuiteof exponentialandenablingtechnologiesthatdrivenewurbansectors, enhancecitysystems,andmakecity management acommontask
betweenbusiness,government,and citizens.
Thesecondisprivateinvestment whichhaswokenuptoscaleofthe urbanopportunityandtheexistential imperativetomakecitieswork.
Thethirdisthenewartofplaceleadership,thatintegratesotherwise separatedandfragmentedinputsinto “virtualgovernance”premisedonthe imperativesof aplaceratherthan sectors,institutions,orpoliticalparties.Placeleadershipbuildsnew formsofsocialcapitalandidentity throughdeepparticipation.
Takentogether,thesethreenew toolscanaugmentoururbanleadership,anddriveconnectedplacesthat increaseboththeinvestmentrate andtheleveloftrustinourcities. ● GregClarkis aworldexpertoncities, urbaninvestment,andthesustainable urbantransition.
Therecentfloods andcyclone highlightedthe needforadaptation andtotacklethe climatechallenges head-onwithnew technologies.
PamFord,AucklandUnlimiteddirector ofinvestmentandindustryProfessorGregClark
Midtown,theareathatwill soonbeservedbythe newTeWaihorotiuCity RailLinkStation,isAuckland’snextsignificantregeneration project.
JennyLarking,whoheadsAucklandCouncil’sCityCentreProgrammes,sayswhenthestation opens,thousandsofpeoplefromall overtheregionwillpouroutonto thelocalstreetseachday.
They’llenteranareathatoffersa uniquemixofculture,artsandentertainmentvenues.
TeWaihorotiuStationwillbe undergroundwithentrancesonboth VictoriaStandWellesleySt.
“Itwillbe acatalyst.Itwillchange midtown;theareawillimmediately bemuchmoreaccessible,”says Larking.
“Midtownis aspecialareawithits ownparticularcharacterandprivate sectordevelopmentisalreadyunder wayanticipatingthegrowththatthe stationwillbring.Therewillbemore officebuildingsandmorehomes. Morepeoplewillliveandworkinthe areaandthatmeansgrowthinthis partoftownwillintensify.”
AucklandCouncil’sroleistoprovidethespaceandpreparetheinfrastructureneededtosupportthebusinessesandresidentsthatwilllocate inthearea.
Larkingsaysthatmeanscreating anattractiveplacethatpeoplewill wanttovisitandspendtimein. “Businesseswanttobelocatedwhere it'seasytogetto,wherethereisa lotoffoottraffic.Peoplewanttolive wheretheyareclosetowork.They liketobenearentertainment,cafes anddiningopportunities.Students wanttobeclosetowheretheystudy. Midtownwillhaveallthat.
“We’reseeingencouragingearly signsthatretailersarechoosingto locatethemselvesmidtown.Theyare excitedaboutwhattheCityRailLink couldmeanforthem.We’vealready seenRealGroovymoveintothearea. I’mpersonallylookingforwardtothe neweatery.”
TeHa¯Noasitsatthecoreofthe regeneration.Thisisthenameforthe linearparkthatwillturnVictoriaSt into atree-linedavenuewith asingle roadtrafficlaneineachdirection alongside aprotectedcycleway.
Thefootpathswillbecomemuch widerandtherewillbeplacesfor peopletositandrelax,insomecases underthetrees.
Larkingsaysthecouncilhopes cafesandrestaurantswillspillouton tothepavedareasandbringlifeto thearea:“We'vedesigneditsothat therearemanyopportunitiesforoutdoordining.We’veallocatedspace thatcanbeactivated,soyoumight imaginethelikesofRealGroovy havingsomeoftheirmusicflowing outintothestreet.
“We’vebeenworkingwithbusinessassociationsandbusinessesto bringtheirinternalexperiencesoutside.TeHa¯Noaisstillgoingto functionas atrafficcorridor,butitwill alsobe apublicspaceforpeopleto enjoy.”
Thespacewillbeasymmetric:It hasbeendesignedsothereis awider spaceonthesunnysideofthestreet wherepeoplecanenjoylunchsitting outdoorsinanareathathasnothad muchamenityofthisnatureinthe past. TeHa¯Noaisn’tanisolatedproject, itformspartof abiggerpicture. Larkingsaysthecouncilisdevelopingorhaspreviouslydevelopeda seriesofprojectsinFederalSt,Myers ParkandQueenSt.
“We’regraduallystitchingtogether allofthosecirculationroutes.So whetheryougetaroundbywalking,
cyclingorpublictransport,thereare nowchoicesforwhichevermodeyou findcomfortable.”
AucklandCouncil’smasterplan visionisfor atree-linedwalkingroute fromAlbertParktoVictoriaPark.
“TeHa¯Noa’streesandplantingare aninherentpartofthatvision.We’ve
gotmorethan20newnativetrees goingintothespace.Weenvisagethat astheygetmature,itwillbecomea placewherepeopledon’tjustwalk around,theywillgather,havelunch andenjoythemselves.Itcreatesa greenoasisinthecentreoftown,right inthehuboftheQueenStvalley
“We’llbeconstructingthisinparallel withtheworkontheCityRailnetwork.We’llworkalongonesideof thestreetwiththem,thenflipover toworkontheotherside.Thatcomponentwillbeclosetoitsfinished stateearlynextyear.Wemayhave towaittoplantthetrees,thathasto bedoneintherightseason.
“Fromtherewewillmovetothe othersideofQueenSt.Workonthat willstartattheKitchenerStendwhile Watercarecompletestheworkit needstodobetweenQueenStand HighSt.Thenwe’llmoveontothe areabetweenQueenStandHighSt. Thatshouldtakeusthroughtomid tolate2025.”
givingpeople apark-likefeel.”
Shesaysthecouncilhasdesigned theprojectinthreepartstominimise disruption.“Weplantofinishone sectionbeforestartinganother.”
SteponerunsalongVictoriaSt fromQueenSttoElliotSt.Work beginsonthisatthestartofApril.
PlanningandsequencingtheconstructionprojectwasoneofLarking’s team’sbiggestfocuses.
“Weneededtominimisetheimpactonneighbouringbusinessesand residents.TheCityRailLinkconstructionhasbeentherefor anumberof yearsnow.Wehaveotherconstructionprojectsbyourcouncilfamilyin placeaswellasprivatesectorwork. Itwasclearfromelectedcouncil membersandotherstherewereconcernsaboutthework.
“WeworkedwithCityRailLink, AucklandTransport,Watercareand otherstoensurewedidn’tclosethe roadanymorethanweneededto. Thenwechunkedourconstruction stagingsothatwearenotimpacting thesamestakeholderover acertain duration.Thisiswhywechosenot todothewholestreetatonce.
“Bydoingitinsmallchunkswe couldgeteachpartoverquicklyand getout,returningthestreettobusinessesandotherusers.”
Larkingsaysherteamlearned fromtheexperienceoftheCityRail Linkconstruction,theworkdonein theDowntownareaandinKarangahapeRdaboutthestrategiesthat workedandwhathasn’tworked,then lookedatthepainpointsandfactored allthatintoplanningtheMidtown work.
● AucklandCouncilis asponsorofthe Herald’sProjectAucklandreport
Businesseswantto belocatedwhereit's easytogetto,where thereis alotoffoot traffic.People want tolivewherethey arecloseto work. Theyliketobenear entertainment, cafesanddining opportunities. Studentswanttobe closetowherethey study.Midtownwill haveallthat.
JennyLarkingProject Auckland BillBennett
TheblackCovid cloudliftsandwe seethefruitofmore thanadecadeof transformation emerging,writes
VivBeck
Ifyoucastyourmindout afew moreyears,accesstothecentral citywillfundamentallychange. You’llbeabletocomeundergroundbytrainthroughthecentral city,getoffbySkyCityandwalkto ashowatTheCivic, aconcertatthe TownHallandanexhibitionatthe AucklandArtGallery.We’llsee peopleflockingherefor auniqueKiwi experienceattheNewZealandInternationalConventionCentre.
Wearewellonthewayto avibrant 24/7placewithhighlevelsofmixeduseinvestmentoozingconfidencein thepotentialofthishard-woninfrastructure.TheopeningoftheHaymanKronfeldbuildingsinBritomart andHBCentralinQueen Saremasterfulexamplesofmarryingheritage restorationwithstate-of-the-artinteriors.Therearemanymoreshining lights,includingbeautifullydesigned hotelsandapartments.
Thisillustratesthechangeinwhat 30yearsagowas aplaceyoumostly cametoworkandshop;toonethat ismorelike acentralexperience district.Somewhereyoucando thingsthataren’tonofferelsewhere, allwithincloserange.
Inrecentweeks,ourpedestrian
countershavehit200,000peopleper day,whichisheadingbacktothe numbersweusedtoseeallthetime. Macrodataispositiveforthelast year,withGDP,productivityandthe numberofbusinessesallup,although thisbeliestherealitythatthe economicpainofCovidwaslargely feltbythemorevisiblebusinesses andattractions—hospitality,retail, arts,cultureandevents.
Formanyofthese,businessisstill toughandweneedmoreofthegreen shootsthatareemergingtoattract morepeople,includinganexciting mixoflate-nightactivitythatisgood forshiftworkersandnightowls.
Touristsandstudentsarebringing
muchneededvibrancysincetheborderreopened.Eventscontinuetobe adrawcard,largeandsmall,anda healthypipelineaheadisimportant.
TheFIFAWomen’sWorldCupthis yearwillseeteamslocatedinthe centralcity,nottomentionaninflux ofspectatorswhowillalsobekeen toexploreourwiderregion.
Pleasingly,weareseeingofficelifts withmorepeopleinthemagain. Demandforhighqualitypropertyis strongasemployersrecognisethe benefitsofhavingtheirpeopleback togetherandcreateextraordinary spacestheyarehappytocometo.
Workononebuildingevenstarted withoutcommittedtenants,whichis
virtuallyunheardofandillustrates confidenceinthefutureand adesire tobeclosetotransportlinksandgreat placesforstaffandclientstomeet. It’supliftingtoseethemuch-anticipatedtechcompaniescominghere, somethingwearelikelytoseemore ofasoururbanofferinggetsbetter andbetter.
As aresidentofthecentralcityfor manyyears,I’vealwayslovedwalkingeverywhere Ineedtogo.When Ifirstarrivedherewith a9-year-old, Iwasonthewrongsideoftownfor anefficientschoolrun,andthat’s whatwewillneedtoattractmore familiestothemagicofcentralcity living —schooling.
Forthosenotcloseenoughtowalk, ourcitycentreneedstobeaccessible foreveryone.Publictransportneeds toemulatethesuccessoftheNorthernBuswayinalldirections,andwe mustseesupportforefficientservice delivery,cabandrideshare,andfor thosewithmobilitydisabilities.Transportamenityneedstobewell-litand reliabletosupportournight-time economy,whichwasworthnearly half abilliondollars ayearpre-Covid. Aco-ordinatedeffortbetweenthe public,privateandsocialsectorto support asafecityisinplace.Weneed morepolice, astrongerpresenceon thestreet,andcross-agencysolutions todealproperlywithsocialissues.
Overthenextfewyears,ourcity centremustkeepadapting,attracting newbusinessesandencouraginginvestmentasitreshapesas aplaceto connect —forbusiness,entertainment,learningandliving —with activatedspacesandanofferingthat attractsdiversegroupsofpeople,day andnight. Avibrant24/7international cityisinthemaking.
● VivBeckischiefexecutiveofHeart oftheCity
InfrastructureinNewZealandisinurgentneedofleadership,nowheremoresothanintheUpperNorthIsland.WiththesupportofAucklandBusinessChamber,theNorthern InfrastructureForumhasbeenformed.Itwillprovide avoicefortheNorthoninfrastructureissues,andhelpdrivetheworld-classinfrastructureprogrammeNewZealandneeds.
Addyourvoice: aucklandchamber.co.nz/northerninfrastructureforum
Employers recognisethe benefitsofhaving theirpeopleback togetherandcreate extraordinary spacestheyare happytocometo.
VivBeck
Whenplanningforresiliency
Aucklandhasharddecisions tomakeaboutresiliency, saysStephenDouglass.
TheFutureCommunities economicleadatGHDsaysthat,as anationuntilnow,NewZealand climatechangethinkinghasfocused ondecarbonisationwhilemissing muchoftheresiliencyquestion.
Thathasleftusunprepared.
“Everyonewastakenbysurprise attheintensityofthefloodingevents inAucklandearlierthisyear,”says Douglass.“Thatsurprisecouldbe seenintheinitialresponsesofthe emergencyteamsandthemayor’s officetothefirstflooding.
“They’veadmittedtheycould havedonethingsdifferently;they didn’tunderstandtheintensityofthe event.Itwasunprecedented.”
Thefloodsexposedthevulnerabilityofthecitytoextremenatural events.Italsounderlinedourlackof readinesstorespondto alarge-scale event.
Tomakemattersworse,thedamagedidn’tstopat asingleflooding.
Douglasssaysthishasbeenthe experienceelsewhereintheworld. Severeweathereventsoftendouble upor,inthecaseofAuckland,there are aseriesofeventsover ashort periodoftime:“Normallyyougeta chanceforthesystemtoequaliseout again.Thenyouarereadyforthenext one.Butwhentheydoubleupor arriveback-to-back,thecapacityfor thenaturalsystemsandtheinfrastructuretorecoverisstretchedand insomecasestheyultimatelyfail.”
Oneofthehardestaspectsofplanningforresiliencyisthatitneedsa highlylocalisedapproach.Thereare fewnationwideorcitywide solutions. Whatisneededinonevalleywill differfromwhatisneededinthenext.
Douglasssays:“Thepeoplewho liveinSwansonandRanuiwillhave aviewofwhatresiliencemeansto themthatwillbequitedifferentto peoplewhowerenotimpactedwhen thoseareaswerefloodedearlierthis year.
“Having abetterunderstandingof whatresiliencemeansforpeopleon thegroundisimportant.Thenonce yougetthere,youneedtohave anotherdiscussionbecause,asa society,wecan’taffordtodoeverythingforeveryonetoensuretheir propertyandthelocalinfrastructure isprotectedforallevents.Thereare someharddecisionstomake.
“We’renotgoingtomakethe hardestdecisionsyet.We’restillin recoverymode.Thereisclearingup todo.
“Yetevenaswerespondtothe recentfloodsthere’s aneedforsome immediateinterimdecisions.Dowe needtopullbackfromsomeareas? Shouldthegovernmentstepinand buyoutland?
Thisdiscussionhasalreadystarted inthevalleyaroundSwansonand Ranui.In asenseearlierdecisions abouthousingdevelopmentsinthat areahavecomehometoroost.It turnsouthouseswerebuiltinwhat wenowknowarefloodflowchannels.
Douglasssays:“It’spartof abig catchmentthatfunnelswaterdown into asmalldischargearea.
“Theproblemisthehousingwas alreadyestablishedthereandthere havebeennewdevelopmentswith hardstandareasfurtherupthecatchmentwhichcontributedtotherunoffincreasingtheriskandvulnerabilityoftheexistinghouses.”
Theoptiontoretreatfromareas likethisisnowonthetable,but Douglasssaystherehastobe afair andequitablesolution.
Wehave aprecedentformaking adecisiontobuyoutprivateresidencesgivingpeoplemoneytobuy elsewhere,wedidsomethingsimilar inChristchurchaftertheearthquake.
“Ifwedon’tgetourducksin arow,
we’llbehavingthesameconversationsagainintheverynearfuture whenthenexteventcomesthrough andhitsin aslightlydifferentcatchment.”
There’s adangerwesimplyfallinto acycleofreactingtoevents.
Overtimewemaylearnbetter waysofrespondingtoeventsand planningourresponses,butwe’vea longwaytogotowardsadaptingto andplanningforthenewnormal.
Anotherissueisthatsolvingenvironmentalproblemsinonedepartmentcancauseproblemsinanother. Inordertoreduceemissionsand promotesustainability,therehas been amovetopromoteandenable theintensificationofAuckland’s suburbanhousing.
Douglasssaysineffectthismeant theoldplanningruleshavecomeoff anddevelopmentcannowhappen almostanywhereacrossthecity.
toprovidefortheincreaseinrun-off. We’regoingtoseemoreofthatas intensificationcontinuestobethe focus.”
Whenyougetintensification,youget intensificationofthehardstand.
Thestormwaterthatmighthave beenabsorbedbygrassandplants nowrunsdirectlyintostormwater drainswhichinturnisdischarged intolocalcreeks.
“Becausetheinfillhousingisnot well-planned;it’seffectivelysporadic andadhoc,itleavesthecouncilwith ahardjobdecidingwhereto prioritise,wheretoupgradesystems
Ourpreviouslow-densityurban environmentwasoperatingas intendedand,intermsofresiliency towater,hasbeenworkingsuccessfullyformorethan50years.
Aswe’vemovedtodenserurban living,wearecreatingmore stormwaterrunoffintosystemsthat arenotabletocaterfortheextraload.
Douglasssaysweareretrofitting solutionsintoexistingwaternetworksthatare acombinationofpipe tonaturalandthatcreatesissues. Wherethereisanabilitytohavea wellthoughtoutandplanned greenfielddevelopmentwith awelldesignedstormwaterretentionsystemthathelpsdetainandbleedoff waterovertime,thesystemworks verywell.
Urbanplanning,development, climateriskandgreenspacesallform partofthebigfloodresiliencypicture. Douglasstalksintermsofintegrated planningthatlooksbeyondinfrastructureitemssuchaspumpsand pipesintoblue-greensolutionssuch asusingwetlandsassponges.
Thisapproachbringsotherbenefitssuchasbiodiversityandmore greenspacesforpeopletoaccess. “Weneedtoensurethesetypesof systemsarehealthyandcanthrive. Takemangroves,theyhave abig benefitintermsoffilteringoutthe sedimentasitrunsoffoururban areas.”
Naturalsystems,likemangroves, needtobevaluedforthebenefits theybringbeyondjustbeingthere. Theyplayanimportantfunction.
“Therearesomerealopportunities inthatspacenaturalisingstreams,not onlyfrom amaintenanceperspective,butalsoas ahabitatorbiodiversityimprovementandthenthere arethewell-beingeffectsofpeople havingaccess,”hesays.
ForDouglassthekeyistolearn, notjustfromthelessonsoftherecent floods,butthelessonsofthelast20 to30years.
“We’reseeingfloodingandother hazardsimpactingourcommunities butthere’s adangerwe’llgettoa comfortlevelwherewethinkother peoplecansorttheproblemforus. Theywon’t.
“I’moptimisticwewillgetthere. Wewilllearnthelessonsandfocus onworkingwithourcommunitiesto buildbetterinfrastructure,notonly fornow,butforthekidsandforfuture generations.
“Thatwaywewon’thavetokeep goingthroughthisprocess.It’snot goingtobedoneanddustedintwo orthreeyears.It’snot apoliticalcycle solution.We’relookingatlongterm generationalchange.”
BillBennett
I’moptimistic we willgetthere.We willlearnthe lessonsandfocus onworkingwithour communitiesto buildbetter infrastructure,not onlyfornow,butfor thekidsandfor futuregenerations.
StephenDouglassUrbanplanning, development, climateriskand greenspacesall formpartofthe bigflood resiliency picture. ● GHDisanadvertisingsponsorofthe Herald’sProjectAucklandreport
Auckland’sgrowthstrategy revolvesaroundmaximisingthedensityat aseries ofurbancentresandvillagesacrossthecity.
Peoplealreadynaturallygravitate totheseplaces.It’swheretheygoto findservices,amenitiesandconnect withpublictransport.Inthefuture morepeoplewillliveclosetothese centres.
EkePanukugeneralmanagerof designandplaceGylesBendallsays inthepastthere’sbeenlittleemphasis ondensityandnotmuchpopular demandfordenserliving.
Nowthatisshifting.Aucklandis growingup,inbothsensesofthe term.
“TheUnitaryPlanallowsdensity intheseareas,”saysBendall.“People’s appetitefordensityischangingfast: 15or20yearsagomostAucklanders foundtheideaofterracedhousesor apartmentsfrightening.
“Peopleweren’tusedtotheidea. Todaytherearemanymorepeople livinginthecitycentre.Theyunderstandthebenefitsandthatalters perceptions.
“Thenextstageisnowunderway withmanymoreapartmentsand denserdevelopmentsbeingbuilt aroundthecity’sotherurban centres.”
BendallleadstheAucklanddevelopmentagency’surbanplanning teamchargedwiththejobofdesigningandregeneratingthosecentres. EkePanukudoesn’tdothebuilding itself;thatislefttodevelopers.
Theagency’s roleistopreparethe landandtohandlethebigpicture planning.Wherenecessary,the agencywillworktoimproveinfrastructure.Itaimstomakesurethe rightinfrastructureisthere,making themostofexistinginfrastructure andcouncilassets.Then,itsellsthe landtodeveloperswhobuyintothe visionandvalueEkePanukucreates.
SaysBendall:“Wemasterplanthe towncentres.Itdependsonthescale ofhowmanypropertieswehave.But wewillhave aplanthatsays:‘This isthelandwe’vegot;thesearethe propertiesthatwe’regoingtoputto market;andthesearetheprojects we’reinvestingin.’Itcouldbe agreen way, acyclewayor asquare.
“Thenwesitdownwiththe developersandsay:‘Thisproperty we’regoingtoputonthemarket;this iswhatwewantoutofit’.Weprovide themwithguidance.Someofitissoft, alongthelinesof‘thisiswhatwe’d like,butwe’dliketohearyourproposition’,andsomeofitismore directiveintermsofsustainabilityor Homestarratings.Thejobistofind therightpartnerswhobindtothe vision”.
EkePanukudoesn’tdictatethe buildingdesigns,that’salsolefttothe developers’architects.Butthereis collaborationwiththeagency’sin-
ternaldesignteam.Bendallpointsout there’salsoanindependentdesign panelwhichisallaboutliftingthe gameandtestingthings.Butforthe mostpartthefinalshapeofthe denserurbancentredevelopmentsis downtofindingpartnerswhocan deliverqualityprojects.
TherearetimeswhenPanuku needstobeprescriptive.Itsgoalisto increasethepopulationinthecentres whichmeansthereneedstobea balancebetweenresidentialand commercialproperties.
Creatingdenserurbanareasisone waytomanageAuckland’sgrowth anddealwiththecity’shousingshort-
age.Fillinginbrownfieldsitesthis wayispreferabletoextendingthe urbansprawlintowhatisoftenprime agriculturalland.
Itmeanspeopledon’tfacelong commutesfromareaswherethere arelessfacilitiesandfewpublictransportoptions. Atthesametime,havingmore peopleclosetourbancentrescreates demandforcafes,retailersandcommercialproperty:it’stheessenceof regeneration.Itmeansplacesdon’t emptyoutat5pm.
Anexampleofthisisthe WaiwhararikiAnzacSquareinTakapuna,nowunderconstruction.Itwas
acarparkinthecentreofTakapuna. Soonitwillbe aplacewherepeople canlive,meet,gotothemarketand have abeer,or,goto arestaurantand thelibrary.Thecityendsupwitha nicerplace,butalsoonewherethere iscommercialactivityandjobsright wherepeopleareliving.
ThebiggestchallengeAuckland’s plannersfaceisthecomplexityof liningeverythingup.
“Urbanregenerationisinherently challengingbecauseittakes alotof time,”explainsBendall.“Ittakes alot ofpartnershipand alotofcollaboration.Sometimesthetimingisnotright forcertainthings.
“Rightnow,we’regoingintoa toughermarketcycle.Thatwillslow thingsdown.There’snothingwecan control.Wejusthavetoworkwithin that.Themarketcyclemightbeslow for acoupleofyearsandthenbuild upagain.Wehavetobeagileabout alteringprogrammesandadjustingto that.”
ManukauisEkePanuku’slargest developmentopportunity.Ineffect theagencyisdeveloping Auckland’s secondcitycentrewhereitsinvestmentininfrastructureandproviding accessisopeningthewayforprivate investmentinthecity’sSouthern gateway.
“Weareleveragingoff ahuge amountofinvestmentintothetransportnetworkwiththerailstation that’sbeenthereforseveralyears now,”explainsBendall.”Butalso, AucklandTransporthasits AtoB project.That’stheAucklandAirport toBotanyhighfrequencypublic transportnetworkthatgoesthrough Manukau.”
Thethinkingisthattheprivate sectorwillseethepotentialofanarea that’sclosetotheairport,with ahuge catchmentareaforcustomersand workersandthatisconnectedbythe newhighfrequencyconnectionas wellastheexistingrailwaylinksand theadjacentmotorway.Atthesame time,theresidentialdevelopments meanpeoplewillbeabletoliveand workinthesamelocation.
AclassicexampleofhowEke PanukucanunlocklandfordevelopmentistheBarrowcliffeBridge connectingWiritocentralManukau. “Itwasthebridgetonowhere.It wasbuiltwhenStateHighway18was developed,buttherewasjust apaddockontheotherside.
“Thatpieceoflandwascouncil owned.We’veupgradedthebridge forwalkingandcyclingandput anew connectionthroughthere.It’spartof abiggerplantoconnectdownand regeneratethePuhinuistream.
“Beforethebridgeyoucouldn’tget intoManukaufromWiriorthesouthernsuburbs.Itwas alongdrive.Now there’s adirectconnection.”
● EkePanukuisanadvertising sponsoroftheHerald'sProject Aucklandreport
Todaythereare manymorepeople livinginthecity centre.They understandthe benefitsandthat altersperceptions.Top:TheBarrowcliffeBridge.Above:Anartist’simpressionofWaiwhararikiAnzacSquare.
Ka¯ingaOra —Homesand Communitiesisforging aheadwithitsboldplanof providing40,000new homes,ofalltypes,overthenexttwo decadesinAuckland.
Atthesametime,itismakingsure thereinvigoratedstatehousingareas areresilientandflood-protected againstadverseweatherevents.
TheAucklandAnniversaryWeekenddownpourdidn’tsendthe engineersscuttlingbacktothedrawingboardtoredesigntheirlandinfrastructuresystems.
“Whatitdiddoisgiveus ahuge amountofup-to-date,real-worlddata, andwearegoingtogetmoreaccurate withourplanning,”saysMarkFraser, generalmanagerurbandevelopment anddeliveryforKaingaOra.
“Often,ourinfrastructureisbased ontheoreticalengineeringmodels butnowwehaveactualdatafora significantrainevent.Wecanbe morecertainaboutwhathappensin theareaifitrainshard,”hesays.
“WhatwesawinNorthcote,Roskill South,OwairakaandTa¯makiwasthat thestormwaterinfrastructurewe builtcopedverywellandbeyondthe designstandard.”
FrasersaystheAucklandAnniversaryrainfallwas aonein250-year event.“Youcanplanforanything,and wearemakingsuretheinfrastructure iscapableofdealingwithmorefrequenteventsin anon-disruptiveway.
“Wearedesigningforonein 100-yeareventsandmore.Ma¯ngere, forinstance,wasbuiltinthe1960s anddesignedfor aonein10-year event.”
Aswellasfuture-proofedinfrastructure,Ka¯ingaOraconsidersthe placementofhomes.“Weset aminimumlevelthehousecansitatto managethecollectionandflowof water,”sayFraser.“Theheightofthe groundfloorisdesignedtobeabove thelevelofflooding.”
FrasersaysduringtheJanuary downpour,residentsinNorthcote watchedastherecently-completed GreensladeReservefilleduplikea giantbasin,completelysubmerging thehigh-performancesportsfieldand surroundingparkamenitieswith12 millionlitresofwaterinjusthours.
Beforetheupgradeofthereserve lastyear alesssignificantdownpour wouldhavefloodedtheneighbouring towncentreandsurroundinghomes
Ka¯ingaOraistransformingold statehousingareasinAuckland intomodern,well-connected neighbourhoodsandincreasing thesupplyofaffordablehousing.
Currentprojectsare:
● Northcote: Startedin2016 demolishing314existingstate housesandreplacingthemwith 1700newhomesincluding480 newstatehomes,townhouses/ duplexes/terracedhousing,and apartments.Landdevelopment workwithimprovedinfrastructure (roadsandpipes)finishedmid-year andhouseconstructionwill continueforanothertwotothree years.
● MtRoskillencompassingRoskill South,Owairaka,Waikowhaiand
Wesleyneighbourhoods:
MarkFraser
andstreets.Inlessthan15hoursafter the(recent)flood,thewaterfillingthe reservehaddrainedaway,theretail storeshadreopenedforbusinessand thefieldswereinuseagain,says Fraser.
ThedaylightingofthenearbyAwatahastream(ithadbeenundergroundandunseenfor70years)also ensuredwaterthatwouldhavepreviouslyputpressureonstormwater pipeswasredirectedthroughthe streamchannels.Thismeanthomes onnearbyTonarStreportednodamageduringthefloodingeventwhen previouslywaterflowedbeneaththe housesduringheavyrainfall.
FrasersaysinRoskillSouththe newly-completedFreelandReserve providesstormwatertreatmentand mitigationforabouttwo-thirdsofthe neighbourhood.Thereserveis bolsteredbythreenewfloodwalls andtheTeAuaungaAwacreekhas beenbroughtintotheopenor daylightedtoallowgreaterlevelof stormwatermanagement.
“FreelandReservedidn’tjustdoits jobtoholdbackanextraordinary amountofstormwater.Additional designmeasuressuchas aspillway allowedwateroverflowingfromthe brimofthereservetobechannelled
viaanoverlandflowpathontoroads ratherthanbackyards.”
AcrossthemotorwayinOwairaka, there’s a$32millionshovel-ready projecttoseparatetheoldstormwaterandwastewaternetworkand increasecapacity.
Frasersayswhilerainwatercould stillbeseenflowingdownthestreets onJanuary27,theplannedoverland flowpathsensureditdrainedquickly withverylittledamageinthepreviouslyflood-proneareaandnoneto homes.
“TheAucklandAnniversaryrainfallwaswellbeyondmostfloodmodellingstandardssettowithstand currentonein100-yearevents.But thisshouldn’tbe areasontostopwhat wearedoing,”hesays.
“Thecatastrophicfloodingshowed therealityofbrownfieldurbandevelopmentinlow-lyingareasof Ma¯ngere,MtRoskillandNorthcoteis muchmorecomplexthan asimple tobuildornottobuild.”
Frasersaysclimatechange, ahousingcrisisandoutdated,brokeninfrastructureburiedinchallengingland conditionslikevolcanicrockor boggypeatallpresentsignificantand oftencompetingconsiderationsfor Ka¯ingaOra’sdevelopmentteamsto respondto.
“Wecannotturnourbackson thosecommunities.Currentclimate changemodelsindicateextreme floodingeventswillcontinuetohit thesecommunitiesmoreintensely, morefrequentlyandmoreunpredictablyintheyearstocome.
“Everyyeartheseneighbourhoods sitonoutdatedinfrastructure,they becomemoreatrisk.Wecannot allownaturetotakeitscourseand simplywalkaway.Wemustimprove theresilienceofourinfrastructureto
notonlymeetthecurrentneedsbut alsoprotectthosecommunitiesinthe future.”
Frasersaysthekindofdensityand scaleKa¯ingaOraisplanningin Ma¯ngere —10,000newhomesdeliveredoverthenext20years —justifies theinvestmentoffuture-proofed infrastructure.
“Wearenotjustallowingforthe infrastructurecapacityofourKa¯inga Orahomes,wearelookingatthe entiresuburb,deliveringbetterfloodriskprotectiontobenefitallresidents inthecommunity.Wearelookingat renovatingsuburbsthatarewelllocatedwithproximitytoemployment,amenitiesandtransport.We arebuildingmodern,fit-for-purpose homesandensuringasupplyof affordablehousingforthemarket.”
FrasersaystheNewZealandhousingmarkethasbeenpooratbuilding themostexpensivehouseitcansell. Ithasgonetotheupperendofthe marketandcreated agapbetween statehousingandmoreexpensive.
“Wehavenotbeengoodatbuildingmoderatelypricedhomesforthe marketandthathascontributedto therecenthousingaffordabilityproblem.Weareusingscaletodrivea greaterrangeofhousingintype,size andprice,”saysFraser.
“Somepeoplemayaskwhywe keepbuildingthousandsmorehomes onlandthatispronetoflooding. Muchofthe(initial)developmentwas doneat atimewherefloodingrisk wasnotnearlyasunderstoodasitis today.Wenowhaverealdatathat wedidn’thavepreviously.
“Whereplacesareatrisk,wenow have asolutionavailable,andwejust needtogetonwithit.Whenyoubuild atscaleanddothejobproperly,it workswell.”
RoskillSouth: 290statehouses replacedby330newonesanda totalof1000homeswillbebuilt overnextfiveyears.Land developmentnearlyfinished.
Owairaka: 1200newhomes including280statehouses replacing225oldones.Land developmentwillbefinishednext year.
Oranga(Onehunga): Mostofthe statehousesbuiltinthe1940son asuburbancul-de-sacmasterplan. 1100newhomeswillbebuiltover nexteightyearswith400oldstate housesreplacedby500newones.
● Some20,000statehouseswere builtinMa¯ngereinthe1960sand
Ka¯inga Ora owns more than one in fivehomes.Developmentcurrently involvesMa¯ngereWestandAorere, withfivetosevenyearscompletion timeline.
Ma¯ngereWest: 950newhomes including340statehouses replacing230oldones. Aorere: 500newhomesincluding160state housesreplacing137oldones.
● Ka¯ingaOraisworkingwith Ta¯makiRegenerationCompanyto completethecountry’sbiggest inner-cityurbandevelopment projecton900hainthesuburbs ofGlenInnes,PointEnglandand Panmure.Streets,parksandtown centreswillbeupgradedandupto 11,000newhomes —athirdwillbe statehouses —builtoverthenext twodecades.
Ka¯ingaOraiscompletingtheland developmentworkandbuilding somehouses.Constructionis currentlytakingplaceinsix neighhourhoods —Line-Epping, Hinaki,Overlea,WestTa¯maki, DernaTobrukandDunkirk.
Wearebuilding modern,fit-forpurposehomesand ensuring asupplyof affordablehousing forthe market
AsNewZealandconsiders howtobetterpreparefora futureaffectedbyclimate change,theinsurancesectorneedstobepartofthediscussion onwhereandhowwebuildour homes.
Thisinvolvementshouldinclude inputintofuturebuildingstandards. Insurersshouldalsoplay akeyrole indecidingwhichareasofNewZealandareremovedfromresidential use —akared-zoned —andwhenthis red-zoningshouldoccur.Ifinsurers arenotinvolvedinthediscussions onhowthecountryadaptstoclimate change,weriskwholesectionsofthe countrybecominguninsurable.
Frequentdisastersmakehomes uninsurable
Itiscleartheriskofdamagefrom climatechangehasincreasedinrecentyears.InlateJanuaryandearly February,largeswathesoftheNorth Islandwerehitbydamagingweather systemsthatleft750homesred stickered —meaningentrytothe propertywasprohibited.Thousands moreneedsignificantrepair.
Overthepastfewyears,insurers haverespondedtotheincreasing risksbyraisingpremiumsingeneral orsuggestingthatclientsatmorerisk increasetheirexcesses.Insurershave alsobeguntochargepremiumsbased onindividualpropertyrisk.
Asthethreatofnaturaldisaster increases,insurerswillhaveno choicebuttoraisesomeclients’ premiumstounaffordablelevelsor withdrewtheofferofinsuranceall together.
Thegeneralruleofthumbisthat anyeventwhichoccursonceevery 30yearswillmake aproperty uninsurable.SomeareasofNewZealand,liketheEastCoastorEdgecumbe,arewellpastthatintermsof thefrequencyofnaturaldisasters. Coverintheseareasisonlyprovided as apublicrelationsgesture.
Butastheriskof asignificantevent increases,thecompaniesthatguaranteeretailinsurersforthemost extremeevents —knowninthebusinessasreinsurers —couldforcethe withdrawalofallcoverinsomeareas. Thesereinsurerscoulddecidethat somepartsofNewZealandaresimply toorisky.
Threattohomeownership
Thisdecisiontopulloutofcertain areaswillhave anegativeeffecton homeownership.Banksroutinelyrequire ahousetobeinsurablebefore consideringa mortgage.Banksalso
considerwhether ahousewillbe insuredfortheentirelengthofthe homeloan.
Thedifficultyhereisthatareas whicharecurrentlylowriskcould becomehighriskinthefuturethanks toclimatechange.Thisrisingriskis likelytoleadto asituationwhere insurerswillbeforcedtowithdraw coverfromclientswhostillhave decadesleftontheirmortgages.
Alternatively,if apropertyiscurrentlyinsuredbutislikelytobecome uninsurableduringthelifetimeofa mortgage,banksmaybecomevery conservativeinissuinghomeloans toareastheyconsiderrisky.Anadditionalproblemisthatcouncil consentsforhousinghavebeen basedonstatisticsofpastclimate events —setat aone-in-a-hundredor one-in-two-hundredyearlevel.Aswe haverecentlyseen,climatechange makesthesestatisticsdubious.
Instead,consentsneedtobebased
onmultiplescenarios,giventhevariouspotentialclimatefutures.New Zealandneedstodetermineclearly whichareasarelikelytobeaffected andplanahead.
Aroleforinsurers Thebestpathforwardwouldbeto establish amulti-disciplinaryexpert groupthatincludesmembersofthe insuranceindustryandreinsurers,to create asetofcriteriaandscenarios forhousingdevelopment.
Thisgroupcouldsettheguidelines councilsusetodetermineif arural areashouldbeopenedtonewhousingdevelopment,forexample,orif anexistinghousingareashouldbe red-zoned,withhousesremovedat adefinitefuturedate.
Byincludinginsurers,newbuildingstandardscouldbesetsothat homesbetterwithstandclimate change,improvingthelikelihoodof thembeinginsured.
Insurerscouldthenberequiredto usethemutuallyagreedcriteriatoset risk-basedpremiums.Ifallinsurers usethesamecriteria,thencompetitionwouldbebasedonpriceand service,andnothiddenriskmodels.
Theriskmodelswhichinsurers create,basedonthosecriteriaandthe climatescenarios,couldbeopento publicdebate.Thepricingattached totheriskfactorscouldbeflexible asclimatechangemakessomeareas higherrisk.
Dynamicunderstandingofrisk Intheend,red-zoningneedstobe seenasdynamicratherthanstatic. Thereneedstobetheoptionto withdrawinsurancecoverageinthe future,basedonevolvingmodelsof climatechangerisk.Allpotentialrisks needtobeclearlycommunicatedto potentialbuyersthroughlandinformationmemorandumreports.
Takingthiscollaborativeand transparentapproachwouldmean insurerscouldberequiredtoguaranteeanofferofinsurancerenewalfor afixednumberofyears,allowing buyerstomatchthelengthoftheir insurancetotheirmortgageterm.
TheroleofEQCorthereinsurers wouldbetobackthesefixed-term insurancepoliciesinthecaseofsignificantdisasters.
Workingwiththeinsuranceindustrywouldoffer alevelofcertaintyas wefaceanuncertainfuture —helping NewZealandersprotecttheirhomes inthefaceofchangingrisks.
● MichaelNayloris aseniorlecturer ineconomicsatMasseyUniversity Copyright:TheConversation
InAugust2021, aseriesofsevere stormshitthemiddleofTennessee,shatteringlocalrainfall records.InthetownofWaverly, flashfloodstorehomesofftheir foundationsandkilled20people, including7-month-oldtwinsswept outoftheirfather’sarms.
“It’sjustdevastating,towatchyour livesgoawayindumpsters,”resident ChristyBrewertold areporter.
Weekslater,theremnantsofHurricaneIdasweptoverthesamearea, completing aone-twopunchofwind andrainfallthathelpedturnTennesseeintooneof2021’scostliestUS statesforweatherdisasters.
Thedamagecouldbe asignof weathertocome. WorseningWinds areportreleasedonFebruary26, 2023bythenonprofitFirstStreet Foundation,pointstofast-evolving impactsfromhurricanesdueto stormsthataremorepowerful,more likelytohitnorthernlatitudes,andset tolingerlonger,dumpingrainfallfurtherinland.
Hurricanedamagewillmenacean additional13.4millionproperties withinthenext30years,according totheanalysisbyFirstStreet,which focusesonsharingclimateriskdata. EvenEdKearns,thefoundation’s chiefdataofficer,wassurprisedby theextentofnewriskfrominland floodingthemodelseesinplaceslike centralTennessee.
Bymid-century,thereportpredicts,theannuallossfromstorms acrosstheUSwillincreasebyUS$1.4 billion —withUS$900millionofthat concentratedinFloridaalone.Category 5stormsinnortherncitieslike Jacksonvillewillbecomemore prevalent,withanadditional1.6 millionpropertiesexposedtothe mostseverestorms.IntheNortheast, stormdamageisanticipatedtorise 87percent.Thisshifting,strengtheningdangerzonewillhave asubstantialimpactoninsurancemarketsand propertyvalues.
Doneinpartnership withArup,the report’spredictionof awindier, wetterfuturehighlightstheneedfor citiestoadapt,aslocalgovernments inplacesthathavebeenunfamiliar withsuchstormrisksmustswiftly updatebuildingcodesandimprove stormwaterinfrastructure.
“Howmucheffortdoyouputinto physicalself-protectionandphysical adaptation?”saidKearns.“Theseare thedecisionsthatpeoplecanmake iftheyunderstandwherethewinds aregoingtobe.”
TheFirstStreetanalysisusesa methodcreatedbyMITatmospheric scientistKerryEmanuelthatrelies notjustonhistoricaldata —which
doesn’tfactorinthefullimpactof futureclimatechangescenarios —but oncreatingartificialhurricanesto predictfuturestormpaths.These newdamageestimatescomefroman analysisofroughly50,000synthetic storms,saidKearns.Datasetslikethat doexist;theNationalOceanicand AtmosphericAdministrationhas created adocumentcalledthePrecipitationFrequencyAtlasthat providessomerainfallestimates,and wasawardedfundingtoupdatethe documentthispastwinter.Butseeing thatitmighttakeyearsfortheagency tocompileandreleasethisinformation,FirstStreetdecidedtogetthis informationoutsooner.
Theslowpaceofpreparations shouldindeedbecauseforconcern, accordingtoRobMoore,directorof thewaterandclimateteamwiththe NaturalResourcesDefenseCouncil.
“Thesechangesarenothappening nearlyfastenough,norarethey happeninginenoughplaces,”Moore said.“Theproblemisalreadyhere.It’s notnecessarily afutureproblem.It’s atodayproblemaswell.”
AccurateriskmodelsareparticularlyimportantintheUS:Thefocus
onprivatemarketsandindividual riskmeansthatcities“place aloton makinginsurancework,”saidZac Taylor, aprofessorofurbanclimate financeattheDelftUniversityof TechnologyintheNetherlands, especiallysinceitcanbeverydifficult tomaintainpoliticalconsensus aroundlarge-scalepublicinfrastructure,growthmanagementand managedretreat.
SincetheNationalFloodInsurance Program, akeyfederalbackstopfor propertiesandcommunitiesfacing floodrisk,reliesonoutdatedrisk mapsfromFEMAandoftenlaxlocal enforcementofinsurancerequirements,andthefederalgovernment lackssubstantialauthorityoverlocal zoning,planning,andlanduse decisions,MoorearguestheUSis “entirelydependentonindependent actionbylocalgovernments.”
“Thesefloodmapsareusedfor localbuildingcodeandzoningordinanceenforcement,andtheyarea primarycontributortobaddevelopmenthappeningindangerous places,”saidMoore.
TheBidenadministrationdidreinstatetheObama-eraFederalFlood
These reports arepremier,business-to-business publicationsprovidingcriticalsector insightsalongside robustinformed contentand commentaryaboutissues thatmatter to NZbusinesses. The reports canvastheviews of CabinetMinisters,business leaders,and business organisationchiefs.
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RiskManagementStandard,rescindedbyformerPresidentDonald Trump,whichmandatesfederally fundedinfrastructurebebuilttoa higherfloodsafetystandard.Butthe new-oldrulesdon’tcoverthemoney beingdoledoutbytheDepartments ofEnergyandTransportation,Moore says.Insteadofputtingtheonusfor stormrecoveryoninsurance,he advocatesformoreinvestmentsin resiliencyandlanduse,aswellas effortstoplacecriticalinfrastructure likeschoolsandsewagetreatment plantsinsafeplaces.
Somemunicipalities,suchas NashvilleandDallas,utilise afreeboardscheme,whichrequirespropertiestobeelevatedorfloodproofedanadditionaldistanceabove the100-yearfloodlevel.Othershave focusedonchangingdisclosurerules tomakehomebuyersmoreawareof therisk,orbudgetingforstormwater infrastructureinvestments.
Butthedemandforfundingisfar frombeingmet.Thatmakesitcritical tohaveprojectionsnow,saidKearns, becausethespendingunleashedby theBipartisanInfrastructureLawand InflationReductionActwillhavean
enduringimpactonoverallresiliency.Withbetterpredictionsaround futurestorms,thoseinvestments“can bedirectedtowardthoseareasthat havequantifiablyanddemonstrably thehighestrisk,insteadofhow,as manystudieshaveshown,federal moneyoftengoestothosecitiesand countiesthataremostadeptatfilling outgovernmentforms.”
Asextremestormdamage —traditionallythoughtofintermsofwind andstormsurgetargetingwaterfront communitiesinhigh-riskareaslike theGulfCoast —migratesinlandand deeperintothedenselysettled Northeast,manycommunitiesaren’t prepared,intermsofplanning,resiliency,infrastructureandinsurance investments.
“Insuranceisanimportantthing forpeopletohave,andit’ssomething thatgivesyouresourcestohelpget yourlifebackinorder,”saidMoore. “But Ihaveyettosee afloodthat retreatswhenshownsomebody’sinsurancepolicy.”
Ananalysisofrecentstormsfrom Moody’sRMS,theclimaterisk analysisdivisionofthefinancialdata firm,confirmsthatinlandflooding fromrecenthurricaneshasalready causedenormousdamage,saidFiras Saleh, adirectorofproductmanagementatthecompany.Inlandflooding drove90percentoftotalprivate marketinsurancelossesafterHurricaneHarveyin2017,forexample,and aquarteroftheinsurancelossfrom 2021’sHurricaneIda.Florida’s costliest-evernaturaldisaster,2022’s HurricaneIan,broughtrecordbreakinginlandfloodingthatdidn’t recedeformonths.
Climatechangeisn’ttheonlyfactor fuelingsuchfloodingriskintheUS, saidSaleh.
Landusechanges,increased urbanisationanddevelopmentin inland-flood-proneareashaveput moreresidentsinharm’sway,while aginginfrastructureandstormwater systemsareoftennotdesignedto handlesuchrainfallintensities.
Already,Kearnssaid,communities aremorefrequentlyseeingcatastrophicflashfloodinginsomeplaces wherelongtimeresidentshavenever experiencedsuchdestruction.“That isthestoryofclimatechange,”hesaid. “That’swhyit’ssoinsidious.Your personalexperienceisnot agood indicatorforfuturerisk.”
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Peoplelivingontheriskybeachmightnot havefartoretreatbeforetheywind up livingin arisky floodorwildfirezone, writes
MarkGlongloff
Likeitornot,adaptingtoclimatechangewillinvolve humanbeingsretreating fromplacestheweatherhas madetoodangerousforhabitation.
Thiswillbeeasiertoaccomplish insomeplacesthanothers.Onthe mostdifficultendofthescalesits California.
In amatterofweeks,thestatehas gonefrombeingperilouslydryto drowningin“atmosphericrivers”of waterfallingfromthesky,in aseries ofstormslikelytocontinueforanotherweek.Mudandrocksarepouringdownhillsidesthatrecentwildfiressweptcleanofprotectivevegetation.Stormsurgesfloodthecoast.
InplaceslikeNewJersey,where themostobviousclimateriskisthe shore,themostobviousresponseis tomoveinland.
InCalifornia,peoplelivingonthe riskybeachmightnothavefarto retreatbeforetheywinduplivingin ariskyfloodorwildfirezone.
Climatologistswarnthecurrent disasterisn’tevenallthatremarkable. Californiahas alonghistoryofflooding,includingtheGreatFloodof1862, alsocausedbyanatmosphericriver. Itusedtobeseenas aonce-in1000-yearsevent,butclimatechange
hastaughtusthoseintervalsare shrinking.
Despitedecadesofdroughtand flood,Californiastilllackstheinfrastructuretohandleeither.Farmers whospentthesummerclearingaway treesandplantsthatdiedofthirst nowcomplainabout adearthoftools tocaptureandusetheabundant rainfall.
ThestruggletomanageCalifornia’s watershortages,madeworsebyclimatechange,illustratesjusthowdifficultitistoimplementlong-term solutions. Aproposedreservoirin NorthernCaliforniathatwouldcollectfloodwaterandfunnelittofarms andelsewherehasbeenintheplanningstagesfordecades.Butit’scontroversialandwouldn’tcomecloseto solvingallthestate’swaterproblems.
KeepingCalifornia’scitizenssafe fromdisasterasenvironmental pressuresbuildwillbejustascomplicated.Peoplelovetolivenear beaches,riversandunspoiledforests, andtheyhaveusuallypaiddearlyfor theprivilege.Morethan40million Americansliveinfloodzones,includingmillionsofCalifornians.Whenthe inevitabledisastersstrike,theylook forwaystoclingtotheirpropertyand lifestyles.Sotheytrytomakehouses
moreflood-andfire-resistantand erectwallsandbarrierstokeepthe disastersatbay.Butthisisexpensive, andeventuallytheonlypeoplewho canaffordtoliveinsuchplacesare thewealthy.
FloodingchasedOprahWinfrey, PrinceHarry,EllenDeGeneresand manyothersfromtheirhomesin
Montecito,inSantaBarbaraCounty.
Thecoastaltownwasthesiteof deadlymudslideslessthanfiveyears ago,inanepisodeofthealltoo familiardrought-wildfire-floodcycle.
BuyingoutresidentsofMontecito andmanyothervulnerableareaswill bepoliticallydifficultandexpensive. Butitmaybetheonlyviablelong-
PrinceHarry’sMontecitohomeis notimmunetothevagariesofthe Californianclimate.Floodingfrom anatmosphericriverhitthestate lastmonth. Photos/AP
termsolution.Thenextobviousquestioniswherethosepeopleshouldgo, givenCalifornia’slongmenuofpossibledisasters.RobertFreudenberg, vice-presidentofenergyandenvironmentalprogrammesatRegionalPlan Association, anon-profitpromoting climateresiliencyintheNewYork area,suggestsmanywillsimplyleave Californiaaltogether.
Thatwouldbeanunacceptable outcomefortheworld’sfifth-largest economy.
Itwon’tbeeasy,butCaliforniawill havetofindinnovativewaystomanage aplannedretreat,includingfrom somedenselypopulatedplaces.If there’s asilverliningtothesedisasters,Freudenbergsays,it’sthatCaliforniamighteventuallycomeupwith amanaged-retreatmodelforthe wholecountrytofollow.Itreallyhas nootherchoice.
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HeartoftheCitychiefexecutiveVivBecksaysAucklandcitycentreisshaking offtheeffectsoftheCovid pandemic.
“Wewereintheeyeofthestorm forthreeyears,”saysBeck.“Before CovidwewereaffectedbyCityRail Linkconstruction,sowehavebeen through atoughfiveyears.”
LastDecemberretailsalesaround thecitycentrewereatabout91per centoftheDecember2019(preCovid)levels.
ThebroaderDecemberquarter wasaround85percentofthecomparable2019quarter.Becksaysthe citycentrehasbeentrackingupsince restrictionswereliftedandtheborder reopened.Thepedestriancountis gettingbacktopreviousnumbers.
Ontopofthat,20percentofthe retailspendinrecenttimeshascome frominternationalvisitors,whichis areturntopre-Covidlevels.
HeartoftheCityusesvacancy ratesasanothergaugeofhowthecity centreistracking. Becksaysthereisnowgooddemandforpremiumofficespace.
“Qualityofficespacehelpsattract workersbacktothecitycentre.,”she adds.“Werecentlysaw areportby CBRE(thecommercialrealestate firm)thatsaysAuckland’sprime vacancyratesaredeclining.
“Astimegoesby,businessesare recognisingagainthevalueofhaving peopleworkingtogether,having themgenerateideasbytalkingpersontoperson,havingtheamenities andtransportlinks,allthismatters.
“AndsomeoftheofficespaceI’ve seenrecentlyisspectacular:firmsare usingstunningcommercialbuildings toattractworkersbacktotheoffice.”
QueenStremains astrength.It accountsforabout athirdofallsales inthecitycentre.Becksaysthetotal numberofsalesmayriseandfall,but thestreethasmaintaineditsshare throughoutthelastthreeyears.She saysthere’ssubstantialinvestment goingintothewaterfrontthatsignals confidenceinthecitycentre’sfuture.
Becksinglesouttheareaaround thewaterfrontandBritomartas placesthatareingreatshapeand showthewayforwardfortherestof thecitycentre.
Progresshasbeensloweraround theInternationalConventionCentre (NZICC)andtheareawheretheTe WaihorotiuCityRailLinkstationis underconstruction.
ThefirethatdamagedtheNZICC
ConfidenceisreturningtocentralAucklandalongwithtourists, pedestriancountsanddemandforofficespace,writes
BillBennett
notlongbeforeitwasinitiallydueto openhasturnedouttobedevastating.
“Weweretakingpeopleupthere tohave alookatthebuilding.
“Everyonewasveryexcitedbecauseitissodifferentfromother conventioncentreselsewhereinthe world.
“Whenitfinallyopensitwillbea majordrawcardforthecity.”
Despitethesetback,investment stillpoursintotheareasurrounding theNZICCsite.
At100HobsonSt,thenewHorizon Hotelisdelayed,butstillgoingahead. Itwillsoonjoinotherhotelseither recentlyfinishedorunderway.
PrecinctPropertiesisbuildingthe prestigious139-roomIntercontinental HotelatNumberOneQueenStreet atCommercialBay.TheVocoand HolidayInnExpressrecentlyopened onWyndhamSt.
ForBeckthesehotelinvestments representconfidenceinthecentral cityanditsfuture.
Themidtownareawhichruns alongVictoriaStfromthejunction withKitchenerStacrossQueenStand uptotheTeWaihorotiuStationis abouttoget amajorrefreshwhich willbereadywhenthenewraillink deliversthousandsofpassengersto theareaeveryday.
ForBeck,peopleareanimportant partofthepicture.
Wewereintheeyeofthestormforthreeyears. BeforeCovidwewereaffectedbyCityRailLink construction,sowehavebeenthrough atoughfive years.
VivBeckTherearenearly40,000residents now.Alongwiththeworkerswho commuteineveryday,moreinternationaltouristsand areturninginternationalstudentpopulation,the cityhasrecovereditsvibrancyand diversity.
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