1 00:00:00,040 --> 00:00:01,720 Speaker 1: Access to the ports of Auckland's about to get more 2 00:00:01,720 --> 00:00:04,440 Speaker 1: expensive for truckie seventy seven percent price hike. This is 3 00:00:04,480 --> 00:00:07,080 Speaker 1: on peak access, means you're paying about two hundred and 4 00:00:07,120 --> 00:00:10,239 Speaker 1: thirty dollars. The theory is it encourages off peak use. 5 00:00:10,240 --> 00:00:12,200 Speaker 1: They're trying to manipulate the traffic. Here Roger grows the 6 00:00:12,240 --> 00:00:14,360 Speaker 1: Port of Auckland as CEO and is back with us. 7 00:00:14,400 --> 00:00:16,400 Speaker 2: Roger, good morning, Good morning mane. 8 00:00:16,440 --> 00:00:19,200 Speaker 1: Now my understanding is you messaged this then you said 9 00:00:19,239 --> 00:00:21,560 Speaker 1: to people, you know, shuffle your entry to the port 10 00:00:21,600 --> 00:00:23,400 Speaker 1: around and that hasn't worked as well as you would 11 00:00:23,440 --> 00:00:23,759 Speaker 1: have thought. 12 00:00:23,840 --> 00:00:26,800 Speaker 2: Is that fear that is fair? We gave the advice 13 00:00:26,840 --> 00:00:28,600 Speaker 2: of these price rises over a year ago. 14 00:00:28,840 --> 00:00:30,920 Speaker 1: Okay, so people are going to freak out. 15 00:00:32,120 --> 00:00:35,120 Speaker 2: I think there's certain concern from the transfer sective. We 16 00:00:35,200 --> 00:00:40,160 Speaker 2: have bought one of the increases forward by six months, 17 00:00:40,200 --> 00:00:43,320 Speaker 2: and you're exactly right. We're trying to influence the time 18 00:00:43,320 --> 00:00:46,519 Speaker 2: of use within the city to assist in reducing congestion. 19 00:00:46,840 --> 00:00:48,760 Speaker 1: Is that easily done? Can you just go to a 20 00:00:48,760 --> 00:00:50,600 Speaker 1: trucking firm and so, by the way, we want you 21 00:00:50,640 --> 00:00:52,360 Speaker 1: in at five point fifteen in the morning instead of 22 00:00:52,360 --> 00:00:53,239 Speaker 1: two in the afternoon. 23 00:00:54,080 --> 00:00:56,640 Speaker 2: Well, what we do is we do have booking slots. 24 00:00:56,840 --> 00:00:59,440 Speaker 2: But you know, it's the behavior both of the trucking 25 00:00:59,480 --> 00:01:02,600 Speaker 2: companies but also the cargo owners opening up their distribution 26 00:01:02,680 --> 00:01:05,760 Speaker 2: centers that will allow us to achieve this goal. And 27 00:01:05,800 --> 00:01:07,880 Speaker 2: it's certainly a goal that the mayor is keen for 28 00:01:07,959 --> 00:01:09,120 Speaker 2: us to keep working towards. 29 00:01:09,200 --> 00:01:11,640 Speaker 1: I'm not surprised. Is there good will amongst all of 30 00:01:11,680 --> 00:01:13,480 Speaker 1: this and to people get it? Or are you the 31 00:01:13,480 --> 00:01:13,960 Speaker 1: bad guy? 32 00:01:14,000 --> 00:01:18,280 Speaker 2: Now? I think the National Road Carriers have perhaps portrayed 33 00:01:18,319 --> 00:01:20,280 Speaker 2: us as the bad guys. You know, we've given them 34 00:01:20,840 --> 00:01:25,080 Speaker 2: these price rises. To put in context, are fifty dollars 35 00:01:25,120 --> 00:01:28,119 Speaker 2: per container. One of them happens in seven months time 36 00:01:28,160 --> 00:01:30,600 Speaker 2: and one of them happens in thirteen months time. So 37 00:01:31,120 --> 00:01:33,399 Speaker 2: we've given them a long lead time and we think 38 00:01:33,440 --> 00:01:35,720 Speaker 2: that we're taking the right direction to the port. 39 00:01:36,040 --> 00:01:39,560 Speaker 1: Is it about revenue or do you genuinely think you 40 00:01:39,600 --> 00:01:41,920 Speaker 1: can move traffic? And if it doesn't move traffic, what 41 00:01:41,920 --> 00:01:42,440 Speaker 1: are you going to do? 42 00:01:42,480 --> 00:01:46,040 Speaker 2: Then? Well, Mike, we're going to continue to lift prices, 43 00:01:46,040 --> 00:01:49,080 Speaker 2: and we've signaled that in order to do two things. 44 00:01:49,160 --> 00:01:53,200 Speaker 2: One move the congestion peek off to assist the city 45 00:01:53,320 --> 00:01:57,360 Speaker 2: and secondly, we want to continue on our commitment to 46 00:01:57,440 --> 00:02:01,160 Speaker 2: deliver a fair return to the city. And you know, 47 00:02:01,240 --> 00:02:04,440 Speaker 2: the interesting point about this is these charges and profit 48 00:02:04,520 --> 00:02:07,200 Speaker 2: support might go back to rate pays all put down 49 00:02:07,280 --> 00:02:08,200 Speaker 2: at pressure on rates. 50 00:02:08,520 --> 00:02:10,119 Speaker 1: Yeah, but that's only because you happen to be owned 51 00:02:10,120 --> 00:02:11,600 Speaker 1: by the council. If you won't owned by the council, 52 00:02:11,680 --> 00:02:13,280 Speaker 1: to be owned by a shareholder and the shareholder be 53 00:02:13,320 --> 00:02:15,720 Speaker 1: getting bigger dibdends. So at the end, it's at the 54 00:02:15,800 --> 00:02:18,560 Speaker 1: end of the day, this is a big bottom line move. 55 00:02:18,600 --> 00:02:22,760 Speaker 2: Do you think or not it contributes towards our commitment 56 00:02:22,840 --> 00:02:25,919 Speaker 2: to deliver thee hundred million dollars profit that we've told 57 00:02:25,919 --> 00:02:26,960 Speaker 2: the city we would deliver. 58 00:02:27,320 --> 00:02:29,959 Speaker 1: Do you think they'll pass it on? So you charge 59 00:02:29,960 --> 00:02:32,280 Speaker 1: more than somebody else passes on, therefore it's inflationary. 60 00:02:33,200 --> 00:02:35,200 Speaker 2: I think what it does is that it does get 61 00:02:35,240 --> 00:02:38,040 Speaker 2: passed on, There's no doubt about that. But as I said, 62 00:02:38,080 --> 00:02:41,079 Speaker 2: you contributing to downward pressure on rates helps. But secondly, 63 00:02:41,160 --> 00:02:45,440 Speaker 2: my fist was on hand length and power ten power 64 00:02:45,760 --> 00:02:47,600 Speaker 2: site just material amount of money. 65 00:02:47,680 --> 00:02:49,840 Speaker 1: Yeah, but that's always the argument. Isn't a little bit here, 66 00:02:49,880 --> 00:02:51,360 Speaker 1: a little bit there, And by the time everyone does 67 00:02:51,360 --> 00:02:52,720 Speaker 1: a little bit here and a little bit there. It's 68 00:02:52,720 --> 00:02:55,079 Speaker 1: inflationery and that's what we're trying to beat down, isn't it. 69 00:02:56,000 --> 00:02:58,960 Speaker 2: Well, we'll do our bit by contributing back to the 70 00:02:59,000 --> 00:03:00,800 Speaker 2: city and the city. You'll do that by keeping our 71 00:03:00,880 --> 00:03:02,639 Speaker 2: AIGs lower than they would have been otherwise. 72 00:03:02,880 --> 00:03:04,919 Speaker 1: The fact you're a monopoly. This has got a touch 73 00:03:04,919 --> 00:03:06,800 Speaker 1: of the old Auckland airports about it, doesn't it. 74 00:03:07,919 --> 00:03:11,040 Speaker 2: Well, we're not a monopoly. Like many cargo owners choose 75 00:03:11,080 --> 00:03:13,280 Speaker 2: to take their cargo in and out through the Port 76 00:03:13,280 --> 00:03:16,680 Speaker 2: of tone Iron or Northport, so a little different than 77 00:03:16,680 --> 00:03:17,120 Speaker 2: the airports. 78 00:03:17,320 --> 00:03:17,919 Speaker 1: Is that real? 79 00:03:18,000 --> 00:03:18,200 Speaker 2: Though? 80 00:03:18,280 --> 00:03:20,280 Speaker 1: If I'm suddenly coming into you guys, and I'm a 81 00:03:20,320 --> 00:03:22,040 Speaker 1: regular and suddenly you whack me with us, Am I 82 00:03:22,080 --> 00:03:24,880 Speaker 1: suddenly going down to Towerong or up to Northland because 83 00:03:24,919 --> 00:03:26,280 Speaker 1: of this or just suck it up? 84 00:03:27,080 --> 00:03:30,160 Speaker 2: Well, what we've noticed is actually a number of the 85 00:03:30,200 --> 00:03:33,239 Speaker 2: cargo owners have been coming to the port and we've 86 00:03:33,280 --> 00:03:36,040 Speaker 2: grown by seven percent year on year in our container 87 00:03:36,120 --> 00:03:39,400 Speaker 2: body because of our proximity to the market. 88 00:03:39,760 --> 00:03:43,280 Speaker 1: How does this sit with you, personally, hand on hard 89 00:03:44,080 --> 00:03:47,000 Speaker 1: boss of a port in an inflationary period, cost of 90 00:03:47,040 --> 00:03:50,680 Speaker 1: living crisis. Yeah, there's seventy seventy seventy seven percent. Suck 91 00:03:50,760 --> 00:03:50,960 Speaker 1: on that. 92 00:03:52,560 --> 00:03:54,320 Speaker 2: Well, I'll be honest with you. When I got to 93 00:03:54,360 --> 00:03:57,680 Speaker 2: the port, we were making a two point five percent 94 00:03:57,760 --> 00:04:01,280 Speaker 2: return on equity for the city. The container terminal was 95 00:04:01,360 --> 00:04:04,440 Speaker 2: losing twenty five million a year, and we're turning that 96 00:04:04,520 --> 00:04:07,240 Speaker 2: around and I feel pretty comfortable about doing that. Good stuff. 97 00:04:07,320 --> 00:04:09,120 Speaker 1: Nice to talk to you, appreciate it. Roger Gray, Ports 98 00:04:09,120 --> 00:04:14,280 Speaker 1: of Aukland CEO. And there is your classic problem with 99 00:04:14,320 --> 00:04:18,160 Speaker 1: the New Zealand economy. So he is answerable to the council, 100 00:04:18,279 --> 00:04:21,560 Speaker 1: his owner, and he's going to make more money and 101 00:04:21,560 --> 00:04:23,680 Speaker 1: he's going to make more money from you because he can. 102 00:04:24,680 --> 00:04:26,719 Speaker 1: And isn't that what we're trying to fix. 103 00:04:27,480 --> 00:04:30,359 Speaker 2: For more from the Mike Asking Breakfast, listen live to 104 00:04:30,480 --> 00:04:33,560 Speaker 2: news talks. It'd be from six am weekdays, or follow 105 00:04:33,600 --> 00:04:35,159 Speaker 2: the podcast on iHeartRadio.