Source: New Zealand Government
[Address to media at Marsden Point to mark the announcement of plans for new rail link, as well as discussing the development of a dry dock, and the potential for ‘special economic zones’. ]
Good morning.
Welcome to Northland.
The Honourable Shane Jones has put in considerable effort with local leaders, like those from Channel Infrastructure today, to boost this region’s economic relevance to New Zealand.
Here, in Northland, we are closest to the rest of the world.
That matters because New Zealand is an exporting nation.
We rely on exports to create wealth right here in God’s own country, and imports to bring modernity to our homes and communities.
Trade is the lifeblood of a thriving economy.
This port has the deepest seaport and the largest landholdings of any port.
Its footprint, proximity to our largest domestic market Auckland, and position at the top of our country where shipping lines visit mean it is a logical place for investment.
We have heard from various operators that while the Port of Tauranga is currently, and will remain, a key port for the future, even an expanded Port of Tauranga will reach capacity within a decade or two, and a second major port is needed.
The Port of Auckland is not well positioned for expansion, given the demand by Aucklanders for other modern uses for its land.
Fanciful thoughts about a port in silt-laden Thames, Hunua-blocked Ōrere Point, and the dredge-prone and uninsurable Manukau Harbour are exactly that: fanciful.
Here in Northland is where our future lies as an exporting nation.
Unlike small ports that offer wharves and a loading zone to shift containers, large ports like this one offer industry.
That is because their landholdings can be developed for wider purposes.
Cast your eyes towards Marsden Point and you will see silos, responsible for fuelling every plane at Air New Zealand.
That is industry.
Fuel stocks
So, how is it possible that the previous Government could be so myopic, so economically short-sighted as to close the refinery here.
Ending our ability to process crude oil in New Zealand.
That means no ability to secure our energy sources in moments of crisis.
That is the residue of the previous Government, and they should be ashamed.
We make no apologies for defending New Zealand’s energy and fuel security.
This is why we have increased the minimum fuel holdings in New Zealand.
That is also why we are encouraged by the proposals by parties like Channel Infrastructure, who are with us today, with their energy precinct.
120 hectares of unutilised land which can support high-quality tenants.
Projects like the jet fuel tank which you will see shortly.
We also must move forward for Sustainable Aircraft Fuel.
Other countries are far advanced in developing regional industries for fuel security, connectivity, and long-term competitiveness.
Investors are looking to secure feedstock as competition intensifies, and locations like Marsden Point have one thing that matters most: strategic relevance.
Investing in regional industries like this secures jobs on both sides of the Tasman and keeps New Zealand aviation in the game for the long-term.
Ask yourselves, is New Zealand – an island nation reliant on international flights – in a better or worse position when we have our own jet fuel supply?
The answer is obvious to every New Zealander.
Dry dock
Our Coalition Agreement includes a commitment to progressing the dry dock here in Northport.
In the 2010s, KiwiRail spent $74 million on off-shore drydocks. That includes the costs of travelling – crewing vessels for the week-long one way trip, covering the fuel costs, and forgoing the revenue from running those ferries on the Cook Strait.
A commercial drydock here in New Zealand would cut that travel time down to days, back the Interislander and Bluebridge ferries, the two largest navy vessels, and attract international shipping lines for maintenance right here in Northland.
And this isn’t just scraping the barnacles off the hull.
Dry dock work is specialist work – that means specialist skill development and career opportunities right here in New Zealand.
Marsden Point Rail Link
We have also received the final detailed business case from KiwiRail for the Marsden Point Rail Link.
Connecting this port to the national rail network is a no-brainer.
The land has been purchased, the corridor is designated, the broad designs are in place, partial funding of $410 million has been allocated, fast-track consenting tools are available, and this project is in the Coalition Agreement.
Today, we are pleased to announce that KiwiRail will be making its detailed designs available to builders and investor to assess and consider putting forward market-led proposals.
We have a good design from KiwiRail, but we want to see whether other builders have a better proposal to build rail within KiwiRail’s designated corridor.
In the coming weeks, KiwiRail will open this process and our message to interested parties is: if you want to be involved in building the first new rail line in decades, then participate and put your best foot forward.
Special Economic Zones
The strategic opportunities outlined in this statement – a commercial drydock, fuel security, an expanded Northport, and the rail link to connect it – can all be brought together as a single economic proposition.
This is an energy precinct – underpinning local specialist fuel and drydock expertise, connecting New Zealand to the world through long-term export operations, and connecting heavy industry with rail.
It could easily become New Zealand’s first Special Economic Zone.
The Honourable Shane Jones has spoken previously about the need for Special Economic Zones.
These are designated areas designed for long-term wealth creation – for New Zealand and New Zealanders.
These zones go a step beyond Fast-Track Legislation.
These zones enable consents to be granted as a matter of law for strategically important economic outcomes: energy security and export growth.
The zones will also have tax regimes that appeal to investors – local and international alike.
If you invest here in jobs and wealth creation in New Zealand, then you will see a return faster because of tax concessions.
New Zealand still wins because the job creation and export growth that sits behind it benefits New Zealand.
We are developing legislation for Special Economic Zones, for which Northport’s expansion, the commercial drydock, and the entire Marsden Point Rail Link will be included.
We look forward to detailing this in the future.
But today, let’s show you the jet fuel tank to see just a small part of what this site can deliver for New Zealand.
