Statement of Evidence in Chief of Anthony (Tony) Boyle on behalf … · 2019-04-06 · 16100872_1...

Before a Board of Inquiry Ruakura Development Plan Change Request

IN THE MATTER of the Resource Management Act 1991

AND

IN THE MATTER of a Board of Inquiry appointed under section 149J of the Resource Management Act 1991 to consider a Plan Change requested by Tainui Group Holdings Limited and Chedworth Properties Limited

Statement of Evidence in Chief of Anthony (Tony) Boyle on behalf of Tainui Group Holdings Ltd and Chedworth Properties Ltd

26 February 2014

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Statement of Evidence in Chief of Anthony (Tony) Boyle on behalf of Tainui Group Holdings Ltd and Chedworth

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Summary

1. Inland Ports, their presence and purpose, are a relatively recent

development and therefore take some understanding. An Inland Port

serves a number of purposes but is primarily designed to be attractive to

a range of tenants including: retail warehouses, distribution centres,

freight forwarders and other logistics organisations.

2. Although logistics and the supply chain affect everyday life they are

almost invisible and therefore the detailed process and procedures that

are in place are difficult to understand and can lead to incorrect

assumptions.

3. This evidence also addresses points raised in submissions on the

operational aspects of the inland port provided for by the Plan Change.

4. For an Inland Port to operate successfully the location is paramount. This

includes unencumbered access to efficient road and rail modes.

Ownership, size and shape are also critical. There are examples outside

New Zealand (e.g. Australia’s Albury Wodonga) where the establishment

of an Inland Port was seen by the local authority as a catalyst to creating

employment. However, after the investment of not insignificant sums of

public money, the project failed because the location was not right, multi-

party ownership and a lack of understanding of the controlled staging

required for such a development. This evidence addresses these issues

as they have been raised by submitters.

Introduction

5. My name is Tony Boyle. I am an independent expert on ship, port,

container terminal, operations and freight logistics.

6. I hold the qualifications of Master Mariner with additional studies in

transport and I am a Fellow of the Chartered Institute of Transport and

Logistics. Between 1980 and 1995 I was regional director of operations

for Hamburg-Sudamerikanische Dampfschifffahrts-Gesellschaft

(Hamburg Sud), the largest German privately owned shipping line.

Hamburg Sud is headquartered in Hamburg and my role covered many

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facets of the ship operating business as well as being a member of the

global strategic planning team.

7. Seventeen years ago I established AmZ Limited, a consultancy and

project management company specialising in “strategy and optimisation

management for container terminals, ports, international shipping and

transport.” I also provide advice on requirements for risk management,

environmental and security protocols pertaining to shipping, port

operations and landside logistics.

8. In 1997 AmZ was contracted by the Port of Tauranga Limited to develop,

from a Greenfield start, the Tauranga Container Terminal including the

inland MetroPort operation in Onehunga, Auckland. This was achieved

over a three year period.

9. AmZ has been involved to a greater or lesser extent in the development

of most of the marine and rail serviced container terminals in New

Zealand and draws upon significant off shore experience in Australia,

Pacific Islands, PNG, Indonesia, South Korea, Dubai, Abu Dhabi, Oman,

Jordan, Croatia, Bahamas and Greece.

10. While, compared to marine terminals, Inland Ports are a comparative

recent development; I have been involved in their establishment since

the late 1990’s. As part of a larger project for Port of Brisbane

Corporation I developed a strategy that involved the establishment of a

network of small Inland Ports in South East Queensland and North West

New South Wales. More recently I have completed an assignment on

behalf of the Australian publicly listed Stockland Corporation that

involved operational improvements for what is described as the largest

warehousing and distribution centre in the southern hemisphere together

with the development of a “greenfield” Inland Port south west of Sydney.

Additionally I completed an 18 month project on behalf of the Australian

Commonwealth Government to establish an Inland Port on surplus

Defence land in Moorebank Avenue, 32 kilometres inland from Port

Botany.

11. Tainui Group Holdings Limited (TGH) engaged AmZ in 2009 to advise

on the business of establishing and operating an Inland Port at Ruakura.

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In particular, I have been involved in the master planning for the inland

port and logistics hub, developed a business case model for Ruakura,

and now I am preparing a development programme to take the Ruakura

Inland Port and warehousing and distribution centre to the market. This

is consistent with my experience where, at varying levels, I have

managed or organised and undertaken physical review of the

establishment and operation of inland port operations in Jordan, United

States, New Zealand (MetroPort) and Australia. Additionally, and

specifically relative to the Ruakura development, is my involvement with

rail operators, especially Kiwi Rail, in planning for the future and a project

recently completed for the Ministry of Transport analysing container

terminal capacity across all New Zealand ports up to 2042.

12. In preparing this evidence I have considered and addressed comments

and concerns raised by submitters that are within the area of my

expertise.

Code of Conduct

13. I confirm that I have read the ‘Code of Conduct for Expert Witnesses’ as

contained in the Environment Court Practice Note 2011. I agree to

comply with this Code of Conduct. In particular, unless I state otherwise,

this evidence is within my sphere of expertise and I have not omitted to

consider material facts known to me that might alter or detract from the

opinions I express.

Scope of Evidence

14. This statement of evidence is specific to the design and operation of the

Inland Port and surrounds which are all areas within my area of

expertise. In addition to the Ruakura site other sites in the area that

potentially are able to replicate the Ruakura Inland port are reviewed on

a comparable basis. The workings of the marine terminals at Ports of

Auckland and Tauranga are addressed including the impact of

increasing freight volume. I also include comment within my area of

expertise on hinterland or satellite logistical aspects of the Ruakura

Inland Port.

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15. Development of Containerisation in New Zealand

Containerisation commenced in this country with the arrival of the ship

Columbus New Zealand in June 1971 as shown at Port Chalmers on

her maiden voyage.

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Containerisation was as important to New Zealand’s trade development as the

first shipment of frozen meat in 1882. The arrival of the ship in Wellington

created considerable interest as depicted in this article on the front page of the

Dominion newspaper

.

It is estimated that in the first twelve months of containerisation in New Zealand

all container ports combined handled approximately 10,000 twenty foot

equivalent containers (TEUS). Now 42 years after this event the total is breaking

through 2.5 million teus.

To accommodate this growth has required significant capital expenditure in port

facilities and this continues as ships get larger and volume increases.

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Port of Auckland Development

Above: Auckland container terminal 1971

Below: Auckland container terminal 2011, note second terminal in

middle of the port.

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Port of Tauranga Development

Above Tauranga Terminal 2003

Below: Tauranga Terminal 2033

16. The Demand

The majority of trades around the globe are now fully containerised with

few, bulk excluded, non-containerised services operating. Globally it is

estimated by Drewry Shipping, a leading shipping researcher and

commentator, that this year 700 million teus will be transported by sea.

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Because the base line is so large a small increase in volume places

significant strain on existing facilities.

Drewry Shipping states that the global container port industry is now so

large that even with modest growth; absolute throughputs will still

increase dramatically.

Drewry concluded that by 2017, ports will have to accommodate

another 190 million teu. To put this into context, that is more than the

entire 2012 throughput of North American, European and Middle

Eastern ports combined.

Although in comparison New Zealand volumes are small the impact on

port facilities and hinterland is proportionately similar to the overall

global forecasts.

Using the Drewry assumptions the increase in volume that ports of

Auckland and Tauranga are expected to handle are depicted in the

following graphs

http://ciw.drewry.co.uk/wp-content/uploads/2013/08/Fig11.jpg

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0

500000

1000000

1500000

2000000

2500000

3000000

1 2 3 4 5 6 7

2013 - 2043

Auckland

0

500000

1000000

1500000

2000000

2500000

1 2 3 4 5 6 7

2013 -2043

Tauranga

0

1000000

2000000

3000000

4000000

5000000

6000000

1 2 3 4 5 6 7

2013 - 2043

Upper North Island

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Ruakura is seen as being an integral part of the solution for the Upper

North Island to accommodate the increasing volume.

The concept of an Inland Port such as is planned for Ruakura is not

unique as European, U.S., Asian and Australian ports are increasingly

looking towards or planning for similar facilities that will enable marine

terminals to accommodate volume increases.

Key Findings from Report

17. The proposed development of Ruakura as an Inland Port is a unique

opportunity. It is unusual to find a site that offers so many benefits.

Timing is also a critical factor and the proposed timing of Ruakura

strongly supports the proposal. Ports of Auckland and Tauranga are

forecasting capacity issues. The traditional warehousing areas in South

Auckland and Bay of Plenty are limited in having access to suitably

valued land, while traffic congestion in and around existing warehousing

and distribution locations is increasing.

18. As containerisation developed in New Zealand (with the first container

vessel arriving in 1971), it was initially thought that Palmerston North, as

the geographic centre of the country, would be the ideal location for

warehousing and distribution centres to be located. Several have been

established there, Toyota, Postie Plus and others. However current

thinking is that geography is not as critical as the location of consumers.

As a rule of thumb, consumers are located 25% between Invercargill and

a line between Palmerston North and Wellington with the remaining 75%

north of this line. Results of the census undertaken in 2013 show that 2

million people live within a 145km radius of Ruakura. Considering the

population spread within this 75% zone is an inverted pear shape with

Palmerston North at the top, then Ruakura is perfectly located right in

the middle of the bulge of the pear and has the potential to become the

fulcrum for warehousing and distribution in the

Auckland/Hamilton/Tauranga triangle.

Ruakura has a number of unique features that underline its “fit for

purpose” status. Apart from location, topographical and access strengths

the single ownership aspect is also extremely important. Typically

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developers are highly geared with a diverse number of interests and their

developments are subdivided and sold off in parcelled lots. Infrastructure

developments such as Ruakura are long term and require the developer

or sponsor to be committed. Globally long term investments are favoured

by endowment and pension funds rather than the highly geared mixed

ownership developer.

19. In addition to single ownership, Ruakura is able to accommodate

significant growth in a carefully staged manner. While there are other

smaller sites in the Waikato/Bay of Plenty that are potential options to

establish an Inland Port the Ruakura site is future proofed in that it has

the ability to aggregate warehousing and distribution operations in a

single site over many decades. When warehousing and distribution

operations are centralised or clustered in one location there are

significant economies of scale as duplication of infrastructure is not

required. Centralisation creates downstream benefits as compatible

operators of warehousing and distribution facilities are able to

interchange goods and services without leaving the single secure site. In

such an environment specialised skills evolve that further enhance the

attractiveness of the site to potential users. Downstream clustering

benefits coupled with a single owner setting and maintain overarching

“Precinct Rules” results in a quality development. The proposed Inland

Port at Ruakura will be fully certified and compliant with all border

security requirements. This means, for example, that a container of

export cargo can be received thorough the gate at Ruakura and have the

same status as though it has been received for shipment at a marine

terminal. A Received for Shipment bill of lading can be issued and the

exporter is then able to commence the final stages of the financial

transaction involved in the shipment. Similarly with import containers the

contents are considered still in transit and not subject to GST or customs

duty until they pass though the outward gate at the Ruakura Inland Port.

The significant point of differentiation planned for Ruakura is that the

border security boundary will include the warehousing and distribution

area. The intention is that containers of imported goods be moved

unencumbered from the storage yard area to the designated warehouse.

At the warehouse goods can be assembled, packaged, sorted, graded,

stored, tested, re-packed or processed in a variety of ways and held for

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distribution in a totally secure and customs bonded environment. This

enables importers to prepare goods for consumption prior to distribution

and prior to duties and/or taxes being applied. Similarly there is the

potential to value add local content to goods imported and re-exported

without requiring bank guarantees or other financial obligations to be met

as is required for temporary importation of goods.

20. At a high level, the operation of an Inland Port such as Ruakura is simple;

imported containerised goods arrive primarily by rail. Containers are

removed from the train and held in a pre-planned location in a holding

yard. Owners of the goods or their agents operating warehousing and

distribution facilities adjacent to and within the same secure zone as the

rail interchange area arrange with the operator of the holding yard for the

delivery of the intact containers to a nominated location where the

container is unpacked and the empty container returned to the holding

yard. The empty container may be refilled with export cargo from a site

within the secure area of the Inland Port or transferred, most likely by

truck, to an export packing facility outside the secure Inland Port.

Alternatively the empty container will be placed back on rail for transport

from the Inland Port to some other location which could be a marine

terminal or an export packing facility such as the Fonterra site in

Crawford Street.

21. The start-up phase is likely to be a low volume, truck only operation

handling up to 1,000 containers per month. Trains will be introduced

when the volume becomes sustainable, currently estimated to be in the

vicinity of 12,000 teus (twenty foot equivalent units) per annum. Initially

trains will be loaded and unloaded using reach stackers. As volume

increases, the container handling system will change from reach stacker

to overhead gantry and the storage yard will be reconfigured to a high

density gantry operation. From start-up containers will be transported to

and from warehousing and distribution areas on purpose built tractor

trailer units which are specially designed to handle loads that are in

excess of the axle loadings permitted on the national highway system.

Processes rely on sophisticated support systems specifically developed

for terminal operations. These systems interface with all parties involved

in the venture including security, border control agencies, freight

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forwarders, cargo owners, road and rail operators, marine terminals,

shipping companies and any other party who has a genuine interest in

the venture. This visibility insures total compliance with all relevant

protocols.

22. To be successful, Inland Ports require significant areas of land. The site

is required to be able to accommodate trains that arrive from the marine

terminals. Rail sidings need to be the same length as those at the marine

terminals so that trains can operate at full capacity. To provide flexibility

of operation at Ruakura and to interface with traffic on the East Coast

Main Trunk line a rail grid with four tracks each 900 metres in length is

considered optimal. The area around the rail track requires heavy duty

pavement so that container handling machinery with high axle loadings

can operate safely. Road vehicle access is also necessary requiring an

area that will allow trucks to arrive, be processed, queue during peaks

and be loaded/unloaded in a safe and efficient environment.

23. Container storage areas are designed to accommodate the volume of

containers that move in and out of the facility while at the same time

having sufficient space to allow containers to be held for short periods of

time, dwell time, awaiting change of status, packing/unpacking.

24. Efficient Warehousing requires large foot prints. Road ways are also an

integral part of the warehouse operation as access is needed to truck

docks at each warehouse thereby allowing goods to arrive or depart. The

alternative sites in the Waikato being suggested as suitable for an Inland

Port do not have the area of land in single ownership that Ruakura has

in such close proximity to rail and road connections. Specifically,

Ruakura has immediate access to the Waikato Expressway and Ruakura

is able to accommodate 900 metre rail sidings considered necessary to

accommodate future growth.

25. The initial business concept for Ruakura is based on existing facilities

and capturing some of the growth identified in the National Freight

Demand Study, a major study undertaken for the Ministries of Transport

and Economic Development and Land Transport New Zealand in 2008

and updated at the end of 2013.

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26. The Ruakura Inland Port operations will not conflict with the growth of

airfreight at Hamilton Airport. On a global basis there is a clear

delineation between products that can absorb the cost of airfreight

versus the lower cost per kilometre of moving goods by sea.

27. In the long term Ruakura is seen as a support and service provider for

the economic linkage between the Auckland, Hamilton and Tauranga

(AHT) city-regions. The scale of Ruakura provides for a staged

development that will accommodate the peaks expected at the marine

terminals through the introduction of larger vessels into the New Zealand

supply chain. The planning also provides for organic growth associated

with increasing population while the ownership status of the land enables

the site to be developed and managed so that the operation will grow as

demand requires.

28. For this reason the Ruakura site has been planned to enable

development to take place based on organic or, should circumstances

require, stepped growth. This requires careful planning as the two

options have quite different levers when it comes to staging. The first

stage is planned to be a simple operation with no rail connection onto

the site. The logistics industry is very conservative, and tentative market

testing indicates a slow start up requirement for stage one. Again, based

on market soundings, the industry recognises that Ruakura is at the

beginning of the consent process. However, once Ruakura is consented

the logistics industry will include it in their future plans. It is at this stage

that step changes in growth and demand will occur and the planning

undertaken for Ruakura has made provision for this.

29. Modelling indicates that the Logistics Area shown will handle close to

400,000 containers per year when fully built. The majority of these

containers will arrive loaded and be back loaded as exports or be

relocated empty, adding up to 800,000 container movements per annum.

There is also a requirement for the rail grid to unload and load containers

for the domestic market; a figure of 100,000 container movements is

considered realistic based on current volumes handled by KiwiRail on

behalf of Auckland domestic freight operators. The capacity of the

Ruakura Inland Port will be determined by the rail interface. Present

practice is to schedule a turn time of two hours for a train carrying 120

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containers. For Ruakura the planned four tracks provide for continuous

work on trains; one is a working track, one is an arrival track; one is a

departure track and one is a locomotive release track. This means that

during each two hour period a train will have 120 containers unloaded

and 120 loaded. Assuming a 22 hour working day each day of the year,

a total of 964,000 containers could be handled. As this is based on

current handling systems it is a conservative figure, hence the indicative

capacity of 1 million containers per annum.

30. One million containers per annum equates to potentially twelve million

freight tonnes. To put this in context, Port of Tauranga presently receives

for export and loads on ships between six and seven million freight

tonnes of bulk logs per annum. These arrive by road and rail. Studies by

Ports of Auckland, Port of Tauranga and Ministry of Transport agree that

container volume will increase by 5% year on year. Ports of Auckland

are forecasting an increase in volume from 0.9 million to 4.1 million

containers over the next 28 years. Similar increases, but from a lower

base, are being forecast by Port of Tauranga. It is therefore considered

prudent to design Ruakura to have a capacity of 1 million containers in

forty to fifty years’ time.

Response to Issues in Submissions

31. Some submitters, specifically Halsey (submitter 105982), The Centre for

Redefining Progress (submitter 106528), Smith (submitter 106858)

Wisnesky (submitter 106888), have questioned the location of the inland

port in relation to existing land uses including residential dwellings, the

University and schools.

32. In my experience it is not unusual for logistics operations to be located

next to other activities such as residential homes and schools. The

modern warehouse used for storing goods and as a distribution base has

minimal impact on neighbouring activities. In Auckland the rail grid that

services the port of Auckland container terminal is in close proximity to

high density residential developments, and at Auckland Airport

warehousing complexes are immediately next door to hotels.

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33. The Freightlines and Fonterra sites referred to by The Centre for

Redefining Progress, (submitter 106528), have been developed for a

single customer specific purpose. At the time Ruakura was not available

as an option and in my opinion it is doubtful if Ruakura would have been

considered an option because there was no commitment by government

to construct the Waikato Expressway. The East Coast Main Trunk rail

line that runs through the Ruakura site is more suited to accommodating

container trains than the North Island Main Trunk running through

Hamilton as this has to accommodate all of the North Island Main Trunk

traffic plus the East Coast Main Trunk traffic.

34. Smith (submitter 106858) submits that the activities to be undertaken at

Ruakura can be absorbed into storage space at the ports of Auckland

and Tauranga. To avoid doubt, the storage or yard segment of the

proposed Ruakura operation is an ancillary service supporting the main

activity of warehousing and distribution. Warehousing and distribution as

envisaged at Ruakura are not core activities of either Ports of Auckland

or Port of Tauranga. These are marine ports servicing ocean going

vessels; Ruakura is an Inland Port supporting warehousing and

distribution activities.

35. Ports of Auckland does have a non-marine terminal at Wiri that is on a

far smaller scale than Ruakura while Port of Tauranga has a

comparatively small scale warehousing and distribution centre as part of

the Tapper Transport subsidiary next door to MetroPort Auckland. At

Port of Tauranga’s Sulphur Point terminal there are three warehousing

and packing facilities; one is a total Fonterra operation while the other

two are primarily used by the forestry industry for assembling processed

products and packing containers for export. The container storage area

at Sulphur Point is under space pressure and Port of Tauranga is

considering options including removing at least one of these packing

facilities.

36. Port of Tauranga has recognised the move to the Inland Port concept

now developing overseas. This is evidenced by the Port of Tauranga

submission, (submitter 106668), where it states “The aggregation of

cargo at inland ports, such as that proposed for Ruakura is viewed

favourably by the Port.” Additionally Port of Tauranga has entered into

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an agreement in principle with the Selwyn District Council to establish a

low volume Inland Port at Rolleston.

37. Sites such as Te Rapa and Hopuhopu referred to by submitters do not

have the same attributes as Ruakura in respect of: single ownership,

location relative to road and rail, scalability, shape, (enabling 900 metre

rail grid) and access to labour. Ruakura has been master planned so that

volume driven staged development will happen. Single ownership is a

crucial factor in such long term developments. For rail services Ruakura

is dependent upon the East Coast Main Trunk rail line. The East Coast

Main Trunk is a profitable part of KiwiRail’s business. While representing

five per cent of the total network it generates twenty eight per cent of the

revenue. The operation at Ruakura will further increase the volumes of

freight transported by rail and the profitability of the rail network. There

are presently seven passing loops between Tauranga and Hamilton and

funds have been provided to increase the number of passing loops to

nine. An increase in passing loops means an increase in capacity and

clearly demonstrates the commitment of KiwiRail to the East Coast Main

Trunk. Ruakura will be using primarily new capacity by way of the

upgraded East Coast Main Trunk line for rail and the yet to be built

Waikato Expressway whereas most other sites would be dependent

upon existing transport corridors.

38. Lauren (submitter 106864) comments about noise and perceived

pollution from the site especially the requirement to operate 24 hours per

day. This requirement mirrors the working hours of rail operations at the

marine terminals.

39. The Ruakura Inland Port has been carefully designed to be a fit-for-

purpose, fully integrated transportation and distribution centre

constructed close to residential and educational zones and activities.

There is no heavy industry included. Being a Greenfield site allows for

incorporation of latest technology and handling systems including

construction of a rail grid and container storage yard that dove tail into

future growth of the marine terminals at Tauranga and Auckland. Existing

facilities in Hamilton West are limited in what they can offer by way of

expansion to handle additional volume. In particular road vehicles

serving the Ruakura site will be able to access the Waikato Expressway

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directly from the Inland Port with only local Hamilton traffic using the local

roads.

40. To be compatible with the working hours of the marine terminals and to

fully utilise the rail network it is necessary for a facility such as planned

at Ruakura to operate 24/7.

41. In addition to expressing concerns about location for the siting of an

Inland Port Fairview Downs Residents & Owners Association (submitter

106923) submits that there is already adequate capacity at facilities

owned and operated by Fonterra and Mainfreight. It is also submitted

that locating an Inland Port at Ruakura will see “dead heading” of

containers where they are transported to Ruakura for unpacking and the

contents returned to Auckland by truck.

42. KiwiRail is already operating a freight hub in Hamilton which is integrated

into the Fonterra Crawford Street facility whereas Mainfreight is

developing a new facility to replace the existing one which it has out

grown. This is consistent with Mainfreight’s on-going expansion with new

larger facilities established in a number of New Zealand cities over the

past eighteen months. The Mainfreight model is totally different to the

Ruakura model with Mainfreight’s core business being that of a transport

operator which Ruakura is not.

43. Ruakura will reduce the amount of “dead heading” of containers.

Today, containers of import cargo are discharged from a ship in

Tauranga, railed through Ruakura to MetroPort Auckland, trucked to an

unpack facility, returned to MetroPort by truck empty then railed empty

to Fonterra’s Crawford Street Hamilton site for packing before railing to

Port of Tauranga for loading. Fonterra Crawford Street receives 38,000

empty containers per year for packing. When commissioned and

operational Ruakura will receive these import containers by rail from Port

of Tauranga. Goods will be unpacked within the Ruakura logistics zone

and the empty container will travel eleven kilometres to Crawford Street

for export packing.

44. The location of Ruakura is port neutral. In other words one of the key

strengths of Ruakura is that it is equidistant to the marine terminals of

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Auckland and Tauranga. This enables containers to be discharged at

either port and be transferred to Ruakura with neither port having an

inherent advantage in terms of distance. Fonterra recognised this when

it set up its container packing facility at Crawford Street. Fonterra is able

to use either Auckland or Tauranga because of their being equidistant.

45. Fairview Downs Residents & Owners Association (submitter 106923)

questions the efficiency of such an operation and refers to a report

prepared by Aurecon which was commissioned by the Waikato Regional

Council and specifically refers to Hamilton and the Waikato. The Aurecon

report “question whether the inland port development has an available

catchment/demand in Hamilton that will enable them to create an

efficient and cost effective operation” seems to overlook the fact that

Ruakura is designed to support, as a minimum, the entire upper North

Island. Ruakura has never been considered as just supplying services to

the Hamilton catchment/demand.

46. My previous experience includes the setting up and initial management

of the Tauranga Container Terminal and establishment of MetroPort. At

the time a number of experienced and well informed industry operators

and observers expressed concern about the viability of railing containers

between Tauranga and MetroPort South Auckland when surely it made

more sense for the ship to call directly at Port of Auckland. Today there

are over 100,000 containers transported annually by rail between the two

locations. The enabling triangulation of freight that Ruakura will provide

is similar to the Tauranga/MetroPort concept.

47. Lauren (submitter 106864) also submits that the Inland Port and by

association warehouse and distribution operation represent old-industry

low paid jobs rather than high wealth Silicon Valley type jobs which all

economies aspire to.

48. In my experience, because freight movements and the logistics of a

supply chain are so integrated into the world’s economy, there is a level

of misunderstanding around the leading edge technology that supports

the industry. It is modern technology that renders logistics almost

invisible in our everyday lives. Recently the highly respected Drewry

Shipping commented that the rapidly developing software and systems

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in the port and logistics industry enable containers to be handled with

levels of efficiency significantly beyond what was available twenty years

ago. Ruakura Inland Port will be the most modern logistics facility in New

Zealand and probably the Pacific, including Australia. Being next to

Waikato University creates an environment whereby students and

graduates will be able to study a working complex thereby enhancing the

opportunity for Waikato University to expand its transport and logistics

campus.

49. Throughout the initial design process operational activities are linked to

the constantly evolving systems development aimed at automation.

Automation of container operations is well-developed and it is anticipated

that most of the marine terminals in Australia will be automated by the

end of next year, 2015. The driver for automation is safety as it removes

the operator from the container handling equipment to an upskilled

indoors location where the container handling equipment is monitored

and managed remotely. Automation only applies to the container

handling operation and therefore does not represent a significant number

of jobs when the operation changes from manual to auto.

50. A similar concern is expressed by Cooper (submitter 106740) that a

recent land purchase by Port of Tauranga adjacent to the existing

MetroPort operation signals an intention by Port of Tauranga to add to

the MetroPort operation.

51. At the date of this evidence Port of Tauranga has not divulged what

specific activities will take place on the land recently acquired adjacent

to MetroPort. However the site is a total of 6.8 hectares, which is

significantly smaller than the Ruakura site, and has growth limitations.

52. The Silverdale Residents Group, (submitter 107062) in their submission

express concern about the height of the container stacks. Container

stacks within the nominated area are shown on the “the plan change

(TGHL/CPL submission version)” page 22 “Special Controls Ruakura

Logistics Area” in the zone shaded blue.

53. Containers held in these blocks are separated from the rest of the

stacking area as being containers “awaiting inspection”. This is an area

where containers are held in a section of the terminal that is marked as

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an area that people are likely to move around within and therefore

subject to strict safety rules. In practical terms it is unlikely that

(exceptional unforeseen circumstance excluded) containers will be

stacked beyond two high during normal operations. Full or loaded

containers are built and certified to be safely stacked nine high which is

necessary on board ships. Ruakura will stack a maximum of four full

containers on top of each other up to a maximum of 12 metres high.

Empty containers at Ruakura that will be held in the area adjacent to the

Expressway ramp leading up to the East Coast Main Trunk over bridge

will be stacked up to nine high which will not exceed 25 metres in height.

54. The Silverdale Residents Group, (submitter 107062) also raises concern

about noise generated by container repairs being undertaken on the site

that will specifically affect parties close to the Spine Road.

55. Container maintenance, including repairs, is an integral part of any

facility where containers are received and delivered. It is not anticipated

that major repairs will be undertaken at the Ruakura Inland Port as this

requires specialised equipment such as frame straightening jigs. The

presses and hydraulic equipment are permanently set into the ground

and this limits site flexibility. Normal practice across New Zealand is for

containers requiring major repairs to be moved to overseas locations that

are set up especially to handle these repairs.

56. Referring to “the plan change (TGHL/CPL submission version)” page 22

“Special Controls Ruakura Logistics Area” attention is drawn to the high

density container stacks and building on the eastern boundary against

the Waikato Expressway. This area is designated as empty stacking and

repair area. The building will be for repairs and the majority of, if not all,

repair work will be undertaken in this facility. It is considered to be the

most suitable location as the Expressway over the East Coast Main

Trunk ramp builds up at this location thereby creating a wall. The location

is over one kilometre from the Spine Road.

57. Auckland Transport (submitter 106498) has raised the question of

potential conflict between the increasing numbers of commuter trains

running on the Auckland network and freight trains running between

Auckland Port and Ruakura.

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58. The developers of Ruakura are very aware that the increase of commuter

trains on the Auckland network has the potential to cause congestion.

Simply put; slow freight trains and fast light rail commuter trains on the

same network are incompatible. It is understood that stake holders, in

particular KiwiRail and Auckland Transport are working towards a

solution known as the third main which will enable freight trains to run on

a freight only line. Modelling around Ruakura indicates that when fully

complete the network will be required to accommodate four additional

trains per 24 hour period in each direction between Ports of Auckland

and Ruakura. These trains will be longer and heavier than at present and

will require splitting and shunting at the Ports of Auckland.

59. Ruakura is equidistant from the ports of Auckland and Tauranga. It is

therefore port neutral and should the main trunk between the Port of

Auckland and Pukekohe experience congestion then containers can be

handled via the Port of Tauranga.

NZ Transport Agency (submitter 107091), also raises the question of

possible conflict with the Auckland passenger network and, on a local

basis, additional road traffic generated by Ruakura. The number of trains

will increase and the transfer of container traffic from road to rail will be

a direct benefit of the Ruakura development.

In a development such as Ruakura a key element is Risk Management.

Shang, (submitter 106595), questions the Ruakura risk management

plan and lists specific questions pertaining to buffer zone management

such as what form of emergency plan will be in place, who is responsible

and then asks about compensation in the event there is a breach.

60. The owner of the Ruakura development is also the developer and

landlord. Tight protocols will be in place for each phase of the project.

For example when Expressions of Interest are sought to appoint a

terminal operator a pre-qualification requirement will be that interested

parties submit a detailed risk management profile. This process is one

component of the process to ensure the designated party delivers a ‘best

practice’ operation.

61. Similarly van Beek, (submitter 106623), and Fairview Downs Residents

& Owners Association, (submitter 106923), identify the handling of

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hazardous products at Ruakura and ask what measures will be in place

to insure these are handled safely.

62. Today, significant quantities of hazardous materials are routinely

handled at sites around Hamilton. Ruakura will be no different. Ruakura

is being developed to handle containerised cargo and there will be no

bulk storage of hazardous products. Handling and storage of hazardous

materials in New Zealand is governed by the Hazardous Substances and

New Organisms Act 1996 (HSNO Act), its regulations, and other laws

that manage risks from hazardous substances. This is also part of the

Risk Management plan. (Handling includes transportation). Storage is

strictly governed by the Act and amongst other things this includes

employee training, product separation, provision of first response

equipment and especially constructed/designated locations within a

complex such as is planned for Ruakura for the placement of damaged

or leaking hazardous containers.

63. Some submitters have recognised the benefits that will be generated by

the Ruakura Inland Port.

64. Property Council NZ, (submitter 106882), underlines the national

significance of the project while Port of Tauranga (submitter 10668)

understands the long term benefits of having an aggregation facility

where by a centralised packing and unpacking facility improve the

logistics supply chain. Port of Tauranga is the leading New Zealand port

listed on the New Zealand stock exchange. As a major port with a

responsibility to shareholders it is required, amongst other things, to

have in place a long term strategy that includes acknowledgement of

overseas trends. Port of Tauranga support for cargo aggregation at

inland ports recognises the trend in Europe and North America to move

containers out of marine terminals as waterfront land constraints start to

impact on operational efficiencies as volumes increase at the marine

terminals and introduction of larger ships requires the marine terminal to

receive and hold higher numbers of containers as peaks increase.

AgResearch (submitter 106821) commissioned the international

consulting company AECOM to submit on behalf of AgResearch.

AECOM, taking an international approach, considers the development

envisaged is of significant benefit to Hamilton City in terms of attracting

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investment, creating employment and further developing the research

hub.

Conclusions

65. At the end of 2013 there were eleven marine ports in New Zealand

equipped with container handling facilities. These handled an annualised

combined 2.6 million teus across their berths. Two ports, Tauranga and

Auckland, handled 65% of this volume. A simple but accepted rule is that

container volume grows at 1.5% of GDP.

66. Ruakura Inland Port is a long term staged development that is in line with

overseas trends where Inland Ports are now accepted as being an

adjunct to marine terminals.

67. There are no other sites in the Upper North Island that have the

characteristics and scale necessary to enable a long term staged

development such as Ruakura.

68. By industry standards the Ruakura Inland Port is a carefully planned

facility that enables controlled, demand-driven development. Operational

planning is highly sensitive to the location relative to other activities in

the area. Being a Greenfield start up enables latest technological

developments to be employed as a major part of any necessary

mitigation requirements.

___________________________

Tony Boyle

26 February 2014

Statement of Evidence in Chief of Anthony (Tony) Boyle on behalf … · 2019-04-06 · 16100872_1...

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