Auckland Council demand on ports unrealistic

Labour’s Transport spokesperson Phil Twyford says Auckland Council is dreaming if it thinks it can squeeze a 12 per cent return out of the Ports of Auckland.

Responding to comments from Auckland Council Investment Company (ACIL) defending Auckland Council’s controversial demand that POA deliver a 12 per cent return on capital, Phil Twyford said: “No other port in New Zealand is delivering a return like that.

“Very few companies at all are returning 12 per cent, and even fewer --- if any --- in the transport and logistics industry.

“Doubling Auckland’s return to 12 per cent is completely unrealistic and has sparked a costly and damaging industrial dispute on Auckland wharves as the port company tries to increase its profits by cutting labour costs,” Phil Twyford said.

“The Ports of Auckland return on capital is only marginally behind the Ports of Tauranga, which is often touted as a great success story.

“Auckland Council should rethink its demand, and instead work to try to end the current dispute,” Phil Twyford said.