Economic impact

Ports of Auckland is New Zealand’s largest and most important seaport, handling 37% of the country’s total seaport trade, and 31% of trade across all ports, including airports.

Ports of Auckland handles approximately $23 billion worth of New Zealand imports and exports each year.

Ports of Auckland handles approximately $26.4 billion worth of New Zealand imports and exports each year.

Ports of Auckland is also the country’s dominant cruise exchange port, vehicle import hub and container port, handling 36% of the entire New Zealand container market and 60% of the upper North Island market.

In October 2011 the company commissioned Market Economics to complete reports on Ports of Auckland’s economic role and economic impact. As well as estimating the role and impact of the port in 2010, the reports give projections for 2021 and 2031, based on the economic growth targets in the draft Auckland Plan, and explored the impact on Auckland in a ‘no port’ future.

The key points from the reports are:

  • Approximately $26.4 billion of trade passes through Ports of Auckland (POAL) each year, roughly 31% of New Zealand’s total trade, and more than 90% more than the next largest by value (Port of Tauranga).
  • The $26.4 billion is made up of $9.6 billion of exports and $16.8 billion of imports. By value, POAL is New Zealand’s largest port for both imports and exports.
  • Of the $16.8 billion of imports, $12.1 billion (72%) are intermediate inputs which are further processed or manufactured elsewhere in Auckland or New Zealand, sometimes for re-export.
  • POAL is the largest export port in the country in value terms. Trade handled by POAL represents 25% of sea exports and 22% of total New Zealand merchandise exports by value, and 30 percent of sea exports by volume.
  • The total role of POAL in the Auckland economy in 2010 is $12.5 billion of value added (equivalent to GDP) or 22% of the Auckland economy. This is equivalent to more than 187,000 jobs.
  • In 2031, under the economic growth targets in the Auckland Plan, the total role of POAL in the Auckland economy will increase to $42 billion of value added, or nearly 26% of the Auckland economy, equivalent to 628,000 jobs
  • The total role of POAL in the New Zealand economy in 2010 is $21.5 billion of value added (equivalent to GDP). This is equivalent to 336,000 jobs.
  • In 2031, under the economic growth targets in the Auckland Plan, the total role of POAL in the New Zealand economy will be $54 billion of value added. This is equivalent to 835,000 jobs.
  • If POAL was closed down, then the Auckland economy would currently be $742 million per annum smaller than it is, equivalent to 9,600 jobs.
  • In 2031, under the economic growth targets in the Auckland Plan, if POAL was closed down, the economy will be $2.9 billion per annum smaller than if POAL continued to operate and grow. This is equivalent to 38,000 jobs.
  • The upper North Island handles a large proportion of the country’s entire trade – with some 68% of total New Zealand trade by value in 2010 being handled by Ports of Auckland (31%), the Port of Tauranga (16%), Auckland International Airport (15%) and Northport (6%). Between them, Ports of Auckland and Port of Tauranga handle 59.7% of the country’s entire container market.
Auckland’s growing cruise industry provides valuable tourism revenue to the region.

Auckland’s growing cruise industry provides valuable tourism revenue to the region.

Market Economics also found that the cruise industry in New Zealand was highly dependent on Ports of Auckland. Market Economics drew on the estimates of regional impacts from a 2010 study completed for the Ministry of Tourism and Cruise New Zealand to summarise the spend which occurs in Auckland as a result of the Port. In that report the Auckland area was estimated to receive $50.3m of cruise industry direct expenditure as a result of the Port’s presence (excluding airfares and bunkering). The total effect of this injection into Auckland economy generated $50.4m of value added (GDP) and 791 jobs in Auckland, and added value of around $153 million to New Zealand.