Critical Success Factors

Fixed Assets

Name

Institution

Fixed Assets

Critical Success Factors

Benefits and Changes

According to the proposal by the Upper Island Supply Chain Strategy Working Group, Ports of Auckland’s CBD Freight Operations is no longer economically or environmentally viable (‘Final Report on the Upper North Island Supply Chain Strategy Working Group’ 2019). It is constrained by a landslide infrastructure failure. It is in the interests of taxpayers and ratepayers that it be progressively closed, and the land it currently occupies be progressively rezoned for higher and better uses. A more in-depth assessment of the proposal alongside their reasoning behind their recommendation is valid for various reasons, as discussed below.

Over the years, the state of the CBD freight has been on the debate, but the investors or any relevant parties have done nothing. The possibility of growth and development is faced with a period of at least 30 years with a much higher financial investment and much more tough times in the future. Opting for the maintenance and development of the freight will not only be costly but also waling into a much hard and tough future since the Auckland port will be struggling to maintain the services as well as a social license (‘Final Report on the Upper North Island Supply Chain Strategy Working Group’ 2019). The financial support needed may be as much as what is needed for alternative projects or perhaps less, but the outcome is a risk that is bent on the negative.

Control

The primary disadvantage to be possibly faced in doing away with the CBD port is a possibility of increased imports for the remaining ones as well as an increased carbon emission since freight will be majorly moved through the road. The proposal seeks to give a solution to these concerns. The CBD port should be done away with since it is no longer economically and environmentally viable. Its location can be put to much more efficient use, and important investments can be made in place of the services it provided (‘The Treasury’ 2019).

According to the proposal, the Northport should be developed to take over much or all of Auckland’s existing and projected freight businesses (‘Final Report on the Upper North Island Supply Chain Strategy Working Group’ 2019). The Northport is proposed in place of the CBD freight operations with various strategic principles that will not only fill the void left if CBD port is closed down but also address a number of issues that were likely to emerge in presence or absence of CBD port.

Since CBD is the port that is majorly relied on for moving freight, it is expected that the cost will be efficient despite its absence if and when the Northport id developed to take over. The development will, however, not make it an essential means of transport but leave room for competition among various ports and transport providers.

Quality

The new two-port configuration should be supported by a rejuvenated North Auckland rail line and spur to Northport (‘Final Report on the Upper North Island Supply Chain Strategy Working Group’ 2019). A new inland freight hub in north-west Auckland to complement and be connected to Metroport in the South according to the recommendations. Having the Northport well connected to these ports will not only make it a significant freight transport in Auckland but also allow for the effectiveness of the port since it will be easy to access from the major ports (‘Transport’ 2020). The two-port design is well advantaged, and its use at the North port with a complement from the locations as mentioned above will ensure efficiency.

It is expected that the ultimate design of the Northport will allow for a rail-to-ship and ship-to-rail delivery of containers thanks to the two-port idea. The idea will reduce the freight costs since the well known double-handling will have been done away with. Having the design will not only result in economic development but also give a solution to the known cases of difficulties caused by natural disasters (‘Economic Development’ 2019). Above the main advantages, further complementing the design will be a connection to new inland freight hub in north-west Auckland and Metroport in the South will result in an availed chain, thus the efficiency of the port. A chain being part of the development is a premonition of a better economic state of Auckland and New Zealand at large, not to mention the possibility of a lined job opportunities that will be presented although and after actualization of the project.

It is recommended that Auckland’s cruise ship terminal should be modernized, and the Waitemata become a commuter tourism and recreation harbour (‘Final Report on the Upper North Island Supply Chain Strategy Working Group’ 2019). A modernized cruise ship terminal at Northport will ensure a secondary flow in adequate service provision at the ports. It will result in a general expansion in service provision into sectors such as health, education, among other industries.

Having a modernized terminal will avail a platform for a connection of the North Port with other possible ports thus economic expansion. The modernized terminal is a suggestion after the group gave a detailed look and analysis of the land and came up with a plan that will ensure success and efficiency (Economic Analysis of Upper North Island Supply Chain Scenarios’ 2019). The shaping of Auckland and has thus be used as a major strategy in the planning to ensure economic value is gained. The planning and the strategies employed in the proposal will avail a chain for the freight transportation, which was not entirely planned since the existence of CBD (‘NZ Regional Development and Transport’2019). Having a chain according to the strategic plan as presented in the proposal will guarantee economic development after implementation.

Commercial and Financial

The proposal is thus strategically aimed at developing the ports and economic growth of Auckland in general (‘Provincial Growth Fund’ 2020). It is not only aimed at developing a port or perhaps replacing CBD with Northport. It is a proposal that is strategic and efficient if and when put in place. Generally, it is aimed at closing CBD port but developing Northport and in the process availing a chain through which freight transportation can be made more accessible and more cost-effective thus a viable status quo balance. It is a proposal that looks at the bigger picture and has considered al the possible risks and clearly shows that the risks can be curbed. The proposal has a strategic plan and has undergone the required official steps. It has proved to meet government, stakeholders, and investors needs and expectations of any particular proposal or project.

Tools and Technologies

As part of the recommendations, the Port of Tauranga’s existing expansion plans should proceed to accommodate the growth of the Northport (‘Final Report on the Upper North Island Supply Chain Strategy Working Group’ 2019). Tauranga’s development will not only increase the chances of competition between several ports but will also help achieve the status quo, which is a significant concern in the proposal.

It is vital for the port of Tauranga as well as infrastructure to be further developed to ensure the maintenance of the status quo as well as competition. It is evident that the development of the Northport will give room for the improvement and developments of other ports such as the Tauranga port. It can self develop as it has over the years or use investments to ensure that Northport is not the only port for freight growth; it is expected to be the major port for freight growth but not the single one.

The development of Tauranga is a recommendation that has found its way through the Northport proposal and the doing away of CBD port both as to its idea and for the general economic growth of New Zealand (Auckland Ports). It is a strategy by the Northport development proposal to ensure the presence of competition and a viable balanced status quo (‘Economic Development’ 2019). Similarly, the idea is from initial plans for Tauranga port has had over the years, which is a positive investment in weighing the possible outcomes.

Functional Standard

As part of the strategic plan in the proposal, the risk of an existing ‘friction’ between freight and passenger movements will be addressed by the proposed alternatives for freight movements such as rail and coastal shipping where possible and policy to ensure optimal land use. The intercity highways will be meant for people and the railways for freight. As part of the proposal, it is expected that the developments made include the presence of a two-way port that will ensure freight movement is not disrupted due to natural disasters. The proposal is valid due to the fact that New Zealand generally depends on imports and freight movements economically.

Control Framework

From the strategies set by the group, it is evident that the developments of the Northport to take over much of the CBD port will not only result in stability in the freight transportation but will also conform to the overall government objectives. Its proposal includes a focus on road safety and reduction of carbon emissions and general economic development. The outcome that is expected can be attained through the strategies set such as modernized terminals, use of a two-way design, the development of other ports to ensure presence of a chain, and further development of the North port with emphasis made in a plan that caters for the location of Auckland as well as its shape. The strategies made fine tune the plan and cater for possible depressions in the plan.

Governance

The proposal identifies the sponsors and investors as the governance that serves a liaison between the board, the project manager, and the stakeholders. Doing so is aimed at ensuring that there is responsibility and accountability all through the project as proposed.

References

EY. (2019). Economic Analysis of Upper North Island Supply Chain Scenarios.

Redacted Cabinet Paper. (2019). Economic Development.

Redacted Cabinet Paper (2019). NZ Regional Development and Transport.

Redacted Cabinet Paper (2019). The Treasury.

Redacted Minute of Decision (2020). Transport.

Redacted Paper. (2020). Provincial Growth Fund.

Working Group. (2019)Final Report on the Upper North Island Supply Chain Strategy Working Group.