1 00:00:00,360 --> 00:00:02,800 Speaker 1: This time yesterday transporting New Zealand. We're on the program 2 00:00:02,800 --> 00:00:05,480 Speaker 1: outlining their concerns around port access fees. So peak time 3 00:00:05,519 --> 00:00:08,400 Speaker 1: container fees, as we've told you, will rise to three 4 00:00:08,480 --> 00:00:11,119 Speaker 1: hundred and fifteen by twenty twenty seven. Other side of 5 00:00:11,160 --> 00:00:13,200 Speaker 1: the story is they claim turn times are down from 6 00:00:13,280 --> 00:00:16,440 Speaker 1: thirty minutes to seventeen, container volumes are up seven percent. 7 00:00:16,520 --> 00:00:18,639 Speaker 1: So is it working? Roger Gray is the Port of 8 00:00:18,640 --> 00:00:21,440 Speaker 1: Auckland CEO and is back with us. Roger, good morning, 9 00:00:22,079 --> 00:00:24,919 Speaker 1: Good morning, Mike. Now the container volumes being up, is 10 00:00:24,920 --> 00:00:27,560 Speaker 1: that a sign of the economy as much as it 11 00:00:27,640 --> 00:00:28,800 Speaker 1: is a more efficient system? 12 00:00:29,760 --> 00:00:32,480 Speaker 2: I think to sign of both, Mike. We've certainly seen 13 00:00:32,600 --> 00:00:36,800 Speaker 2: growth across the port, but I do feel that customers 14 00:00:36,800 --> 00:00:39,519 Speaker 2: are voting with defeat and they're prepared to pay for 15 00:00:39,560 --> 00:00:40,560 Speaker 2: the service a geint. 16 00:00:40,800 --> 00:00:44,479 Speaker 1: Now you can't, well do you? Their claim yesterday was 17 00:00:44,520 --> 00:00:46,479 Speaker 1: you put prices up, it's got to be passed on 18 00:00:46,720 --> 00:00:48,920 Speaker 1: and that's inflationary. I mean, that's true, isn't it. 19 00:00:50,320 --> 00:00:53,520 Speaker 2: There's no doubt that any price increase within the supply 20 00:00:53,640 --> 00:00:57,320 Speaker 2: chain increases the direct cost at that point, but the 21 00:00:57,360 --> 00:00:59,880 Speaker 2: total cost of delivery and the speed to market is 22 00:00:59,880 --> 00:01:02,880 Speaker 2: well what people are paying for, and they're prepared to 23 00:01:02,880 --> 00:01:04,039 Speaker 2: pay for quality service. 24 00:01:04,240 --> 00:01:06,760 Speaker 1: So if they pay more and get a better service, 25 00:01:06,800 --> 00:01:08,400 Speaker 1: you say, people can live with it. Why do you 26 00:01:08,520 --> 00:01:10,319 Speaker 1: charge more simply because you can? 27 00:01:11,120 --> 00:01:14,840 Speaker 2: No, we aren't in monopoly, which is the line a 28 00:01:14,840 --> 00:01:18,360 Speaker 2: lot of people like to say. We charge more for 29 00:01:18,560 --> 00:01:21,959 Speaker 2: two reasons. One, we think there's value for the service 30 00:01:22,000 --> 00:01:25,520 Speaker 2: we provide and therefore we charge for that. And the 31 00:01:25,560 --> 00:01:27,880 Speaker 2: second bit is, and I've spoken to you about this before, 32 00:01:28,000 --> 00:01:29,880 Speaker 2: is we want to make sure that the city and 33 00:01:29,920 --> 00:01:32,080 Speaker 2: the ratepayers get a fair return for the one point 34 00:01:32,120 --> 00:01:34,080 Speaker 2: six billion they've got tied up in the port. 35 00:01:34,400 --> 00:01:36,840 Speaker 1: When you say you're not a monopoly, you are, and 36 00:01:36,880 --> 00:01:39,119 Speaker 1: you aren't. I mean there's a difficulty around that, isn't there? 37 00:01:39,240 --> 00:01:40,959 Speaker 1: I mean the simple fact is that you're the main 38 00:01:41,000 --> 00:01:43,160 Speaker 1: play You're the player in Auckland. Yes, I can come 39 00:01:43,200 --> 00:01:45,200 Speaker 1: and through Taronga, but you know I may or may 40 00:01:45,200 --> 00:01:46,840 Speaker 1: not be able to or want to, or it may 41 00:01:46,880 --> 00:01:47,960 Speaker 1: be price prohibited. 42 00:01:49,000 --> 00:01:51,560 Speaker 2: Well, Mike, you know the Port of Tartang has been 43 00:01:52,240 --> 00:01:56,800 Speaker 2: a vicious competitor against us for over a decade, supported 44 00:01:56,800 --> 00:01:58,640 Speaker 2: by Kiri Out for a very long time, and we 45 00:01:58,640 --> 00:02:03,360 Speaker 2: saw hundreds of thousands containers, particularly going in through Troong, 46 00:02:03,560 --> 00:02:06,200 Speaker 2: and what we've started to do is claw back what was, 47 00:02:06,920 --> 00:02:09,760 Speaker 2: in my view the market share that the Port of 48 00:02:09,760 --> 00:02:10,560 Speaker 2: Hawkings should have had. 49 00:02:10,800 --> 00:02:13,959 Speaker 1: Okay, so you're more competitive, you're more cost competitive, you're 50 00:02:13,960 --> 00:02:16,359 Speaker 1: a better business and people are happy with that. When 51 00:02:16,400 --> 00:02:18,720 Speaker 1: you listen to the transporting New Zealand people though, and 52 00:02:18,760 --> 00:02:20,760 Speaker 1: they want some sort of intervention and they've got a 53 00:02:20,800 --> 00:02:22,440 Speaker 1: genuine problem. What do you say to them? 54 00:02:23,240 --> 00:02:25,600 Speaker 2: Well, first off, I've never met mister Calicy. He's never 55 00:02:25,639 --> 00:02:28,079 Speaker 2: bothered to visit the port, even though we've invited him. 56 00:02:28,080 --> 00:02:30,320 Speaker 2: He sits in Wellington and likes to make commentary on 57 00:02:30,360 --> 00:02:32,760 Speaker 2: our business. But what I'd say to him is, come 58 00:02:32,760 --> 00:02:35,840 Speaker 2: and understand the fact that productivity is improving. Come and 59 00:02:35,919 --> 00:02:40,239 Speaker 2: understand why the customers want to use us. We've held 60 00:02:41,080 --> 00:02:44,280 Speaker 2: customer talent hall meetings for all of this week and 61 00:02:45,080 --> 00:02:48,280 Speaker 2: the resounding feedback on getting from our direct customers is 62 00:02:48,440 --> 00:02:50,720 Speaker 2: they're happy with the service and they're prepared to pay 63 00:02:50,760 --> 00:02:52,000 Speaker 2: for what they get. Okay. 64 00:02:52,040 --> 00:02:54,840 Speaker 1: Fun text Mike when talking to the Auckland Ports boss, 65 00:02:54,919 --> 00:02:57,799 Speaker 1: ask them why they charge the highest port charges in 66 00:02:57,880 --> 00:03:00,600 Speaker 1: the world for cruise ships. That's why Aukland thirty five 67 00:03:00,639 --> 00:03:02,320 Speaker 1: percent down on cruise ship arrivals. 68 00:03:02,360 --> 00:03:07,000 Speaker 2: True or not not true. Port of Sydney has just 69 00:03:07,040 --> 00:03:11,600 Speaker 2: announced the visitor levy of forty eight dollars. We're much 70 00:03:11,639 --> 00:03:14,560 Speaker 2: lower than that at twenty and there are a whole 71 00:03:14,600 --> 00:03:18,000 Speaker 2: myriad of reasons why cruise ships dropped off, ranging from 72 00:03:18,120 --> 00:03:21,720 Speaker 2: government support through to buy fouling, all issues that we've addressed, 73 00:03:21,720 --> 00:03:25,400 Speaker 2: and we've already announced cruises coming back. We've got winter 74 00:03:25,480 --> 00:03:28,200 Speaker 2: cruising in twenty twenty seven and I think that we're 75 00:03:28,240 --> 00:03:29,880 Speaker 2: certainly at the bottom of the cycle. 76 00:03:30,200 --> 00:03:31,960 Speaker 1: Nice to talk to you, appreciate it. Roger Gray, who's 77 00:03:32,000 --> 00:03:36,760 Speaker 1: the Port of Auckland CEO, with us this morning. For 78 00:03:36,880 --> 00:03:40,240 Speaker 1: more from the Mic Asking Breakfast, listen live to news talks. 79 00:03:40,280 --> 00:03:43,480 Speaker 1: It'd be from six am weekdays, or follow the podcast 80 00:03:43,480 --> 00:03:44,320 Speaker 1: on iHeartRadio.