Port on mayor’s agenda

Mayor Wayne Brown has reiterated his desire to sell the operating business at Port of Auckland (POAL) by way of a long-term lease.

The proposal is part of Brown’s 10-year budget. He’s suggesting two options – keeping the port business with the gradual release of some land for public use or selling a 35-year lease to operate it.

The mayor’s preference is to sell the operating lease and put the proceeds into an Auckland Future Fund for investment in diversified assets along the lines of the NZ Super Fund, reports the NZ Herald. 

The fund would be managed by a trust and include the council’s remaining $1.3 billion share portfolio in Auckland Airport and possibly $833 million in proceeds from the partial sale of council shares in the airport this year.

Brown says the fund would help address and mitigate the council’s long-term financial and physical risks posed by climate change, protect the value of assets for future generations, and achieve strong and sustainable financial returns.

It’s an open secret that DP World, based in Dubai, tabled an offer in early 2021 to buy POAL outright or adopt an “opco/propco” model for a long-term lease to operate the business with the land remaining in public ownership.

At the time, the council hired Melbourne-based consultancy Flagstaff Partners to look at options for a possible sale. It hired the same company to provide advice on this year’s sale of airport shares.

The sale of the port business is opposed by the Maritime Union. It is unclear if Brown currently has the numbers around the council table to sell the business.