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NZ Herald - Project Auckland Report March 2026

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PROJECT AUCKLAND

MayorWayne Brown’s 5-point plantofixAuckland

Exclusive RogerGray shows offplansforanew cruiseterminal

erminal

CarrieHurihanganui: Globalconnections shapeAuckland’s future

SimeonBrown talksup Auckland’sreset

Midtown’s rebirth excites VivBeck PamFord chartsworld-class innovationthatwill putAuckland onthemap

Globally ambitious

Photo / JasonOxenham

Afive-pointplan tofixAuckland

Lastterm,wefocusedon buildingresilienceintoour infrastructureandfinances throughamassiveprogramme ofchange:theLocalWaterDoneWell deal,theMakingSpaceforWater programme,andtheAucklandFuture Fund.We’vepluggeddebt,found savings,andimplementedmycapital spendrules.

ThereformofCouncilControlled Organisations(CCOs),transport reform,andanewplanchangefor Auckland(PC120)areallunderway. Wehavebeenbusy.There’smoreto do.

Thereisahugeshiftonthehorizon locally—themostsignificantchange sincetheSuperCitywasformed. Severalmajorplansareonthetable thatwillshapewherewelive,whatsort ofhomesweliveinandhowwemove aboutthisgreatcityofours.

Forthefirsttime,weareworking withtheGovernmentonajoint RegionalSpatialPlantoalignlanduse withinfrastructure.Landuseisthe mostpowerfuleconomicleverthe councilhas;ifwespeedupconsenting, weunlockgrowth.Ifwecangetland useright,itcouldbethebiggest opportunityofall.

Alongsidethat,thewaterservices strategies,andthe30-yearIntegrated TransportPlanwilltakecareofour pipes,roadsandthenetworksthat keepourcityrunning.Thetransport planwillbecreatedbyanewAuckland RegionalTransportCommitteewith equalrepresentationfromcounciland government,andajointlyappointed chairperson.TheLong-termPlan(LTP) isthe10-yearbudgetthatwilldeliver ontheseplans.

Thisglobalandlocalchangemeans wemustcontinuallybecriticalofwhat ourrolesaretoprepareforthe incominggrowth,butwealsoneedto makethemostoftheopportunities ahead.Wemustcontinuetobuildback better,faster,andcheaper.

Mychallengetoeveryone consideringourcity’sfutureissimple:

ProjectAuckland

ExecutiveEditor: Fran O’Sullivan

Writers: CameronBagrie,Bill Bennett,GrantBradley,Andrea Fox,AnneGibson,Richard Harman,TimMcCreadyand GrahamSkellern.

Subeditorandlayouts: Isobel Marriner

Subeditor(online): Sue Baxalle

Cover: RichardDale

Graphics: RichardDale

Advertising: NeilJackson

GloballyAmbitiousAuckland MinisterforAucklandSimeon BrownandAucklandDeputy MayorDesleySimpsonwillfront theannualProjectAuckland luncheonattheNorthernClub today.Theiraddresseswillbegin liveonnzherald.co.nz/business at12.30pm.Theywillbe introducedby Herald Editor-inChiefMurrayKirkness.CEOs CarrieHurihanganuiandRoger GraywilllaterjoinFran O’Sullivantochartanupbeat future.

Whatistheproblemyouaretryingto fix?Therearetoomanypeople pushingsolutionsthatdon’taddress theactualproblem.Thisisawasteof moneythatmuststop.Myagendafor thistermisdefinedbyfivekeypillars:

1.Stopthewasteandmakethemost ofwhatwehave. Coremaintenanceandinfrastructure matter.Ratesaffordabilitymatters. Everydollarwespendisadollar Aucklandershaveearned;wemust treatitwithrespect.Ifaprojectcan’t bedonebetter,faster,orcheaper,we shouldseriouslyquestionwhetherit shouldbedoneatall.

2.Operateasonecouncilgroup. “Takingbackcontrol”wasthetheme ofmyfirstterm.Itmeansactingasa singleorganisation—aligningour CCOs,makingbetteruseofthe AucklandFutureFund,andfinally gettingourstadiaoperatingmodel right.TheGovernmentmustseeusas onejoined-upgrouprepresenting40% ofnationalGDP.Aucklandersexpect coherence,notsilos.

3.FixAuckland’stransportsystem. Anefficient,reliabletransportnetwork underpinsproductivityandqualityof life.WemustfreeupAuckland’sroads. Thatmeansreform,notjustmore “projects”.Nowthatthecouncilisthe road-controllingauthorityandwe

Severalmajorplans areonthetablethat willshapewherewe live,whatsortof homeswelivein andhowwemove aboutthisgreatcity ofours.

haveregainedcontrolofAuckland Transport(AT),wecandemandmore ambition.Wewillmoveawayfrom over-doneprojectswithlowreturn andtowardseasyfixesand technology-drivensolutionslike dynamiclanesandsmarter intersections.Long-termplanning mustbedonewithus,nottous.

4.Buildagreener,moreefficient city.

Pipesfirst,thenroads,thenbuildings. Thisisaboutchampioningurban developmentthatworksfor Aucklanders.Pittinggenerations againstoneanotherisn’tthewayto findsolutionshere.Aucklandneedsto growuptobecomeaglobalcity,not remaintheworld’sbiggestsuburb, stackedwithcongestion.Thismeans adaptingtoclimatechangepractically throughourMakingSpaceforWater programmeandfinallyopeningupour waterfront.OurnewAucklandUrban DevelopmentOfficewillserveasa frontdoorfordevelopers,treating themasthesinglecustomertheyare, aspartnerstakingtherisktobuildthe citywewant.

5.LiftAuckland’scontributionto theeconomy.

A“waitandsee”approachwillnot work.Aucklandmustbeopenfor business.Weneedjobs,investment,

andinnovation.Thatmeansaserious approachtoAucklandasa destination:ourcitycentre, technologyandinnovationand internationalrelationships.Italso meansaskingtheGovernmentfor legislativechangewherenecessary tounlockourpotential.Advocating forauser-paysbedlevyformajor eventsfunding,foundingthe AucklandInnovationand TechnologyAllianceandforgingcityto-cityfriendshipagreementsarejust thebeginning.

Takentogether,thisisaboutlifting theeconomytobuildamoreefficient globalcitywhilestoppingwasteand gettingAucklandmoving.

ThisiswhytheAucklandDeal matters.Whileitmaynotbeas aspirationalassomehoped,itsignals anewwayofworkingandisa foundationalelementofthis upcomingLong-termPlan.

Mymanifestolaterthisyearwill setoutexactlyhowIexpectany incominggovernmenttobuildonthis partnership.

ThecurrentGovernmentisstill overreachingintoAuckland’saffairs inwaystheydon’tfullygrasp.Their approachisoftenunprecedentedand isnotalwaysinthespiritof partnership.

RegardlessofwhoisinWellington attheendoftheyear,ourjobremains thesame:navigatinghalf-bakedideas —likeratescaps—whilestaying anchoredtowhatisbestfor Auckland.Inthiselectionyear,we mustremindeveryonethatelections arewonorlostinAuckland.

Insizeandscope,ourcityismore akintoanAustralianstate.The AucklandDealrecognisesthis,but themessagetoWellingtonmust remainclear:theGovernmentdoes people;wedoplaces.

TheGovernmentneedstostop tellinguswhattodo,focusonitsown knitting,andstepasidesothat Aucklandcanreachitsfullpotential asaglobalcity.

Keepingpacewith thecity’sambitions

Thestrengthofourglobalconnectionswillshapethiscountry’seconomicfuture,writes CarrieHurihanganui

Anyonewho’stackleda 5000-piecejigsawknows thedrill—sortingbycolour, huntingforedgepieces, constantlycheckingtheboxto remindyourselfwhatyou’reactually building.

There’softenalongstretchwhere progressfeelspainful.Then,almost withoutwarning,thepicturesnaps intofocus.

Aucklandhasfeltlikethatpuzzle forawhilenow.

Thepandemicleftthecityabit fragmented,withcountless individuals,businessesand communitygroupsworkingawayin theirownpatchtopieceitback together.

Butnowthepictureisemerging and2026isshapinguptobetheyear itallstartsfallingintoplace.

Bettertransportlinks,stronger connectionsforpeopleandfreight, newreasonstovisit,andimproved spacestoenjoy.There’slotstolook forwardto.

Visitorecosystem Tourismandeventsdon’thappenby accident.Theyrequireinvestment, infrastructure,andtherightvenues toattracttherighttalent.

That’swhyitwasgreattoseethe Governmentlaunchits$70million eventsfundlastyear,helpingmajor venuescompeteforworld-class events.

Thelong-awaitedopeningofthe NewZealandInternational ConventionCentregivesAucklanda seriousnewengineforeconomic growth.

Frommajormedicalassociation conferencestotheWorldDairy Summit,expertsaplentyareheaded ourway.They’rethekindsofevents thatbringhigh-valuevisitorswho staylonger,spendmore,andkeep comingback.

Equallyexcitingisthe transformationunderwayatEden Park.

Recentchangestoplanningrules haveunlockedthevenue’spotential tohostsignificantlymoreevents, includingmajorconcertsandnighttimesport.

TheannouncementofNew Zealand’sfirst-everStateofOrigin matchin2027isastandoutexample ofwhat’spossiblewhenweremove barrierstoworld-classevents.

Gettingaroundthecitywill becomemucheasier,too,whenthe CityRailLinklaunchesinthesecond halfoftheyear,boostingtrain capacitybymorethan50%and movingupto19,000peopleperhour acrossthenetwork.Infrastructureof thisscalechangeshowwealllive.

LinkingAucklandtotheworld AsAucklandgrowsitspresenceinthe globaleconomy,theinfrastructure linkingthecitytotheworldbecomes increasinglyvital.

Foranationatthefaredgeofthe Pacific,theseconnectionsaren’ta

Thepictureis

emergingand2026 isshapinguptobe theyearitallstarts fallingintoplace.

nice-to-have—they’rehowwe participateintheglobaleconomy.In aneraofglobaluncertainty,likethe onewefindourselvesin,building andmaintainingthoseconnections mattersmore,notless.

AucklandAirportsitsatthecentre ofthatconnectivity.

Wesupportmorethan$35billion ineconomicoutputthroughtravel andtourismeachyear,$26bintrade

and25,000jobs,thesecond-largest employmenthuboutsidetheCBD.

Ourinfrastructureprogrammeis aboutresilienceandcapacity, ensuringAucklandhasagatewayfit fordecadesahead.

Itisprudent,sensibleinvestment fromanairportthat,byaviation globalbenchmarking,isoneofthe moreaffordableintheworldtofly through.

PortofAucklandisinvestingtoo, makingrapidandexcitingsteps towardsmoreefficientutilisationof ourstunningwaterfront.

Atthesametime,it’sinvestingin newwharvesandfacilitiestohandle thecomingsandgoingsofthepeople andgoodssoessentialforNew Zealandtosucceed.

Majorinvestmentattractsscrutiny —andrightlyso.AtAucklandAirport, wewelcomethataccountability.But NewZealandcannotkeepwaitingfor theperfectmomenttobuild.

Thereisnosuchmoment.

Toomanysectorsarealready payingthepriceofchronic underinvestmentbykickingthecan downtheroad.

Thestrengthofourglobal connectionswillshapethiscountry’s economicfuture.AucklandAirport intendstobeequaltothattask.

Planningforgrowth

Noneofthisinfrastructure investmentdeliversitsfullpotential withoutframeworksthatarefitfor purpose.

Onthatfront,thereisprogress underway,withtheemerging“City Deal”betweenAucklandandcentral government.

Imaginewhatthepowerofaligned investmentandsharedpriorities, backedbyphasedinvestment,could meanforAuckland.

Suddenly,asecondharbour crossinginthefuturedoesn’tsound soimpossible.

CabinetministersChrisBishopand

Aninvestmentshapingthecity —B20 Innovationstorytotaketotheworld —B22

Thebonesofadeeptechforce —B24 Spendingon‘thepoorcousin’ —B26 Watercare:It’sallaboutdelivery —B27

SimonWattsaretalkingabouteasier accesstonewandexistingfunding andfinancingtools;andmore collaborationwithexpertsand officialstomoveusforward. Meaningfulprogressherewillrequire cross-partycommitment,andthe NationalInfrastructurePlanisagreat stepinthatdirection.

Meanwhile,Ithinkit’stime Aucklandchangedthestoryittells aboutitself.

Wehaveahabitofdwellingonthe city’sproblems.Notwithoutreason —Aucklandhassomegenuine challenges.

Butthereisadifferencebetween usefulreflectionandamindsetthat defaultstodifficulty.

TheCommitteeforAuckland’s “AucklandNarrative”initiativeisan attempttoshiftthat.

Bybringingtogetherprivate enterprise,publicinstitutions,iwi, academia,andtheNGOsector,itaims tobuildasharedaccountofwhat Aucklandactuallyis,itspotentialand whereitisgenuinelyheaded.

Ilovethismulticulturalcity.Ihave livedinNewZealandfor36yearsand 24yearsoftheminAuckland,arriving fromRockford,Illinois,aplaceabout asfarfromthePacificasitispossible tobe.

Ihavenevertakenforgranted whatthiscityoffers:theproximityto thesea,theopenness,thesheer breadthofculturesandperspectives livingalongsideeachother.

Economicallyandsocially speaking,there’snodoubtit’sbeen alongeconomicwinterbutAuckland hasdonethehard,unglamorous workoflayingimportant foundations.

Theyear2026iswhenwestartto buildonthem.

● CarrieHurihanganuiischief executive,AucklandAirport. AucklandAirportisasponsorofthe Herald’sProjectAucklandreport.

Therightmixforsuccess —B28

LearningfromSydney’sboom —B29 KiwiRail’s$1.5boverhaul —B31 Buildingforthenewgeneration —B32 HowAIwilltransformAuckland —B33

TheFinalWord:

Nextchapterwilldeliverconfidence

SimeonBrown whatNational’s Aucklandresetwill meanforthecity, transportandjobs

Auckland’sstoryhasalways beenoneofscalemeeting possibility.Whenwegetthe settingsright,ourcity unlocksgrowthnotjustforitself,but forthewholecountry.When Aucklandsucceeds,NewZealand succeeds,reflectingthecity’sscaleas hometoathirdofourpopulationand around38%ofourGDP.

National’sfocusnowisonturning thatmomentumintooutcomes peoplecanseeandfeel,through progressinthecentralcity,acrossthe transportnetwork,andinthesectors shapingAuckland’snextdecade.

Aclearexampleofthat momentumistheNewZealand InternationalConventionCentre, whichwasopenedbyPrimeMinister ChristopherLuxonearlierthisyear. ThisopeningiscriticaltoAuckland’s successandsignalsourcity’sreturn tothepremierleagueofglobal businesseventsandtourism.

TheNZICCwillbringasteadyflow ofhigh-valuevisitorstothecity, boostingtradeconnectionsand supportingjobsacrosshospitality, accommodation,logistics,and creativeservices.

That’sgoodnewsforavisitor economyalreadyontherise,anda foodanddiningscenerankedamong theworld’sbest.

GettingAucklandmoving Atthesametime,Auckland’sability tomovepeopleefficientlyis improving.Laterthisyear,theCity RailLinkwillopen,fundamentally reshapinghowAucklanderstravel. Bydoublingrailcapacity,reducing traveltimes,andunlockingnew homesandjobsaroundstation precincts,theCRLwillmakeitfaster andmorereliabletoreachthecity centre,universities,andmajor employmenthubs.

TheCRLsitswithinawiderrapid transitbackbone.TheEastern Buswayisprogressingfollowingthe early,under-budgetdeliveryofthe ReevesRoadFlyover,whilethe NorthwesternCorridorcontinuesto beupgradedwithnewstationsand improvedbuspriority.

Greatglobalcities succeedbecause theyfeelgoodat streetlevel,starting intheheartofthe city.

Tolockinthebenefitsofthese investments,transportgovernance hasbeenreformedsoAuckland Councilandcentralgovernmentcan deliveraunified30-yeartransport plan.AucklandTransportisbeing refocusedsolelyonoperatingthe

publictransportnetwork,ensuring buses,trains,andferriesrunontime, whichiscriticaltogiving Aucklandersconfidencetousepublic transport.

Allofthisreflectsaclearfocuson fixingthebasicswhilebuildingforthe future,supportingacitythatplaysa vitalroleinNewZealand’sprosperity.

ImprovingsafetyintheCBD Greatglobalcitiessucceedbecause theyfeelgoodatstreetlevel,starting intheheartofthecity.

InAuckland’scentralcity,the recoveryisreal.Foottrafficisrising andtheeventscalendarisgrowing. Buttheexperiencemustbe consistentlysafe,vibrant,and welcoming.

TheStateoftheCityreportisclear onwheremoreworkisneeded.While Aucklandperformsstronglyon quality-of-lifefundamentals, perceptionsofnightlife,latedining, andtheday-to-daycitycentre experiencelagbehindinternational peers,andconcernsaboutsafety persist.

Nationalisworkingalongside AucklandCounciltoimplementacity centreplanthatimprovessafetyfor peoplewholive,work,andvisitthe CBD.

Thisincludesgivingpolicegreater powerstomoveonthosedisplaying antisocialbehaviour,increasingthe policepresenceonthebeat,opening anewpolicestationintheCBD,and expandinghousingandsocial supportforthosewhoneedit.

Competingforinvestmentand talent Aucklandhasafast-growingtechand innovationecosystem,supportedby stronguniversities.Butlifting

productivityandstrengtheningthe pathfrominnovationto commercialisationremainscritical. Thatiswhywearebackinggrowth throughfasterconsentingforhighvalueprojects,anInvestmentBoost toencouragenewcapital,anda DigitalandAIadvisorypilottohelp smallandmedium-sizedbusinesses liftoutput.

WehavealsoestablishedtheNew ZealandInstituteforAdvanced Technology(NZIAT)—anew Auckland-basedinstitutetogrow NewZealand’sadvancedtechnology sectorandboosthigh-valueexports. Nationalhasalsodelivereda landmarkfreetradeagreementwith India.Together,theywillopennew doorsforeconomicgrowthinNew Zealand’slargestcityandwillhelp expandtradeopportunitiesfor Aucklandbusinesses. CombinedwithCRL-enabled precinctsandnewconvention capacity,thesesettingsmake Aucklandaneasierchoicefor investors,exporters,andevent organisers.

Workinginpartnership Nationalisbuildingastrongworking relationshipwithAucklandCouncil, withgoodprogressunderwayon deliveringaCityandRegionalDeal forAuckland.

Fifteenyearsonfrom amalgamation,thepromiseofone Auckland,withthescaletodeliver, stillstands.

Thefocusin2026isonconverting thatpotentialintolastingoutcomes thatsupportopportunity,restore confidence,anddrivegrowthacross thecity.

● SimeonBrownisMinisterfor Auckland.

BrownvNational:HowAuckland politicsnowdrivestheBeehive

WhyNational’s Aucklandstrategy maynotsurvive thecity’snext waveofchange

Twoyearsago,Auckland’s MayorWayneBrownwas onaplanetoWellington, planningtostayovernight andattendthePressGallery ChristmasParty.

Theplanecouldn’tlandandwas divertedbacktoAuckland.

Browndeclaredthatitwouldbe hislasttriptoWellingtonwhilehe wasmayor.

It’sanoddstanceforamanwho spentmuchofthe1990sandearly 2000sasafavouredtroubleshooter forboththeBolgerandClark governmentsandwhowasinandout ofthecapitallikeasuburban commuter.

ButBrownhasmadebeing“antiWellington”afundamentalplankof hispitchtoAucklanders.

Hismostrecentoutburstshave suggestedWellingtonpoliticiansstick topickinguptoiletpaperand, becausetheCabinetis“devoidof talent”,Nationalshouldformagrand coalitionwithLabour.

BackattheBeehive,theyare resignedtohisstance.

“Helikestothinkofhimselfasthe Premieroftheindependentstateof Auckland,”oneofficialsaid.

Nevertheless,theMinisterfor Auckland,theperpetuallycheerful SimeonBrown,maintainsthathehas agoodrelationshipwithBrown.

“IgetonwellwithWayne,butyou know,Idon’talwaysagreewith Wayneoneverythingandwon’t,”he said.

“Iwon’talwaysagreewithhimon everything,butIthinkit’sgoodto haveafreeandfrankrelationship withhim.

“Ultimatelythough,it’s Aucklanderswhowillmakethe decisionatthisyear’selectionaround whotheywillsupport.”

Thatisthekeytounderstanding theGovernment’srelationshipwith Auckland.

ItdependsontheAucklandvote; around57%ofthecoalitionparties’ supportatthelastelectioncamefrom Aucklandelectorates.

Evennow,accordingtoananalysis ofthelast12monthsofTaxpayers’ UnionCuriapolls,thecoalitionpolled at51.4%acrossAucklandcompared with49.6%nationwide.

Allparties,surprisinglyincluding NewZealandFirst,polledhigherin Aucklandthantheirnational averages. WellingtonandChristchurchare thecentre-left’sstrongholds.But Aucklandhasthepopulation.

Nottoputtoofineapointonit, thecoalition’schancesofretaining GovernmentdependonAuckland voters.Thatiswhatguidesthe Government’sapproachtoAuckland andthatironicallycanleaveitending upontheoppositesideofissuesto theMayor. Thathasbeenmostobviousinthe housingintensificationrow.

Backin2021,thethenLabour Governmentsomehowpersuaded NationalLeaderJudithCollinsand herHousingspokesperson,Nicola

Iftheintensification backdownwasa nodtotheolder, mostlywhitevilla ownersinthecity, thefutureofthecity isgoingtobe youngerandless white.Thereare questionsabout howintouchwith thechanging Aucklandthe NationalParty reallyis.

Willis,toagreetosupportMedium DensityResidentialStandards (MDRS),whichwouldallowthe constructionofuptothreedwellings threestoreyshighonanyproperty. NationalPartyloyalistsinthecity’s leafysuburbswereaghast.

TheAucklandCouncilchanged theUnitaryPlanin2022toimplement theMDRSand,intheprocess,allow foranextratwomilliondwellings. InGovernmentfrom2023, National’sHousingMinisterChris Bishopsupportedtheproposaland furtherantagonisedAuckland’svilla ownerswhenhesaidthatnotonly wouldtheyhavetoaccepttheir suburbswouldbeintensified,butthat

hewantedhousepricestofall.

Hisintentionwasclear;hewanted Nationaltotrytoincreaseitsmeagre votefromyoungervoters.

“Theflipsideofhousepricesfalling forpeoplewhoownhomesisthat theybecomemoreaffordablefor peoplewhodon’townhomes,and thereisawholegenerationofyoung NewZealanderswhohavebeen lockedoutofthehousingmarket becauseaveragehousepricesaretoo high,”hesaid.

However,Bishophadmisreadthe NationalParty.

Thevillaowners,particularly thoseover65whobelongtothe party’sSuperBluessub-group,were upinarmswiththeprospectoffalling housepricesandamulti-storey developmentrightuptotheir boundary.Theybegantopackout protestmeetings.

Oppositionwasintenseinthe easternsuburbs,particularlyin SimeonBrown’sPakuranga electorateandthenext-doorBotany electorateofPrimeMinister ChristopherLuxon.Sothepair,who aresaidtobecloseanyway,hada commoncause.

OtherAucklandministers,like SimonWatts,PaulGoldsmithand EricaStanford,cameinbehind SimeonBrown.

Ontheotherhand,Bishopinitially hadasurprisingallyinWayneBrown.

“Acitythatsprawlsforeverisn’ta city;it’sonebigsoullesssuburb,”the Mayorsaid.“Iwantgrowththatbrings peopletogetherratherthanpitting generationsofAucklandersagainst oneanother.

“Iwantgrowththatstopsthe eternalcommute.”

ButMayorBrownhadignoredthe electoraldamagethattheNational ministersbelievedtheproposalwas doingthem.

“Andwespendalotofourtime outthereengagingwiththebusiness community,withourethnic communitiesandwiththedifferent partsofAucklandasmuchaswedo makingsurewe’vegotthatpositive relationshipwiththecouncil.”

Iftheintensificationbackdown wasanodtotheolder,mostlywhite villaownersinthecity,thefutureof thecityisgoingtobeyoungerand lesswhite.

Therearequestionsabouthowin touchwiththechangingAuckland theNationalPartyreallyis.

TheBotanyandPakuranga electoratesareattheepicentreofthe bigchange.

By2043,thatpartofAucklandis projectedtobeover60%Asian, Indian,ChineseandFilipino.

StatsNZprojectsAucklandwillbe 44%Asianby2043.

NationalcurrentlyhasfourAsian MPs:PaoloGarcia(Filipino),Carlos Cheung(Chinese),MelissaLee (Korean),andNancyLu(Chinese). Garciaisretiringthiselection; CheungisstandinginthemarginalMt Roskillseat,whileLeeandLuareon thelist,butifNationalcontinuesto pollinthelow30s,theymaynot makeitback.

NationalhasnoIndianorPasifika MPs.

By2043,Aucklandwillbe demonstrablydifferenttothe southerncities,Wellingtonand Christchurch,wherePakehawillstill makeupmorethan70%oftheir population.

Therearealreadyvoiceswithin Nationalaskingwhetherits predominantlywhiteslateof candidatesinpotentiallywinning positionswillberightforthissortof future.

AllofthisculminatedinFebruary withtheGovernmentforcingBishop andthecounciltobackoffplanning fortwomilliondwellingsandinstead providefor1.6million.

SimeonBrownisemphaticthatthe Government’smovewasdrivenby grassrootsAucklandopinionandis unapologeticfortheneedtogetvotes.

“We’vebeenlisteningtoour constituents,listeningtovoters, listeningtopeoplewhoultimately liveinthecity,”hesaid.

“Whethertheyvoteincouncil electionsorcentralgovernment elections,they’retheoneswhovote.

“WehavetolistentoAucklanders andwhattheythink,and Aucklandershavetoldusveryloud andclearwhattheywanttosee.”

Bishophasemergedfromallthis bruised,butSimeonBrownhas definedhowNationalwillnowdeal withAucklandandtheMayor.

Ithasfundamentallychangedthe relationshipbetweentheBeehive andAucklandandNationalwillnow lookpasttheMayorandsimply measurethepotentialelectoral impactofanyAucklandissuebefore itsetsapolicy.

“Aucklandisabsolutelyakeypart ofNational’svotingbase,italwayshas been,”saidSimeonBrown.

“Manyofourseniorministers comefromAuckland,andweare veryfocusedonachievingand deliveringinourbiggestcity.

“WeknowthatforNewZealandto succeed,weneedAucklandto succeed.”

Thatmeansmanagingthe relationshipwithAuckland’soften cantankerousMayor.

“Thatrelationshipbetweenusand theMayor,usandcouncilisabigpart ofdoingthat,”saidSimeonBrown.

“Butmoreimportantly,it’sactually ourrelationshipwithAucklanders.

Thedangeristhatitcouldlose touchwithmulti-ethnicAuckland. Theironyisthatitisthecouncil —andtheMayor—whomuchmore acutelyunderstandthesechanges. IfNationalwantstostayinpower, itcannotaffordtoignorethem entirely.

Thatwillbeagrowingchallenge. Meanwhilethecityandthe Beehivearehappyaboutsomethings. TheLocalGovernment(Auckland Council)(TransportGovernance) AmendmentBillhasansweredoneof WayneBrown’smajorgripes,thatthe Councilhadnocontrolover AucklandTransport(AT).

ThereturnofATtothecouncil,the progressbeingmadeontime-of-use chargingonmotorways,andthegoaheadfortheNorthwesternbusway allpointtosomepositivecooperationbetweenWellingtonand Auckland.

Therewillbeongoingtensions overAuckland’sfinances, particularlywiththeneedtofinance theoperatingcostsoftheCentralRail Link.

Ithadbeenhoped(byWayne Brown)thattheGovernmentwould agreetoabedtaxtohelpeasethe city’sfinancialchallenges,butit seemsthatisunlikelytobeincluded intheupcoming“CityDeal”between theGovernmentandAuckland. Negotiationsonthathavemore lessconcludedanditisapparently nowdowntofindingadatewhenall theplayerscangettogetherinthe sameplaceforabigformal announcement.

SotheGovernmenthasbeenable tomanagetheAucklandrelationship withouttoomuchdramaoverits termsofar.

Itsbiggerchallengewillbewhether itisequippedtohandlethevery differentcitythatAucklandisabout tobecome.

● RichardHarmanisaseniorpolitical journalistandpublisherofthe influentialPolitiknewsletter.

ProjectAuckland RichardHarman

$1binsavingsjustthestart

Deputymayor

DesleySimpson saysAucklandis tighteningcouncil spendingtokeep ratesdown

Everyday,Aucklanderscome tomewithquestions.Topics differ,buttheunderlying concernisthesame—people wantconfidencethattheircouncilis deliveringrealvalueformoney.They shouldexpectthat,especiallywhen householdbudgetsaretight.

Financialdisciplineisthe cornerstoneofmywork.I’vewillingly stakedmyreputationonit.That’s whyIpushedtochairtheValuefor MoneyCommitteefromitsinception. Ensuringeverydollarisspentwisely isn’tjustaresponsibilityIhold,it’sa commitmentItakepersonally.

Thecouncilsharesthe Government’sgoalofkeepingthe costoflivingdownandensuring chargesremainaffordable.My committeehassetasignificantly highersavingstargetforthe 2026/2027AnnualPlan,aimingto find$106millioninefficiencies—a $20mincreaseonlastyear’sgoal.This sharperfocusonsavingsiscentralto ourstrategytokeepratesaslowas possiblewhilemanagingthe substantial$235mcostofowningand operatingtheCityRailLink.

Thecouncilusesasimpleruleto illustratetheimpactofthiswork— every$30msavedavoidsa1%rise ingeneralrates.Becauseofthe savingsachievedandwiderrevenue growth,wecanholdtheratesincreaseto7.9%toprovideuswithanamountofrevenueequaltoonlywhat isrequiredtocovertheCRLcost. Withoutthesesavings,the increaseneededfornextyearwould havebeensignificantlyhigher.Under myleadership,thecommitteehas deliveredmorethan$1billionin financialbenefitsoverthelastsix years—andwe’renotstopping.Not manypeopleknowthis,butonly around35%ofthecouncil’srevenue nowcomesfromrates.Thatsharehas beentrendingdownbecausewe’ve beenproactiveinlookingatother revenueopportunities.

That’svalueformoneyinaction —keepingcostsdownforhouseholds, reducingrelianceonrates,andbuildingthetrusttodeliverambitious projectsforacitywithglobalaspirations.It’snotaboutdoingless—it’s aboutdoingbetter,andprovingthe councilcandeliverwithoutplacing

anever-growingburdenonresidents. That’sthecommitmentwe’vemade, andtheworkwe’redelivering. LastweekIchairedthesecond ValueforMoneyCommitteemeeting of2026.Inthesecondquarteralone, thecouncilachieved$14.9minsavings—$5.1mfromnon-ratesrevenue and$9.8mfromoperationalefficiencies—muchthroughdeliveringservicesdifferently,moreintelligently. Halfwaythroughthefinancialyear, we’vealreadyreached79%ofour annualsavingstarget,delivering $67.9magainstthegoalof$86m. We’veapprovednewservice reviewsfor2025/26.LegalServicesis complete,thefinalreportfor ResourceConsentshasarrived,and

termsofreferencehavebeenapprovedforWasteServices,Healthy Waters,HeritageProperty,Sportsand Recreation,andArtsandCulture.

Thesereviewsmatter.Overthe pastfiveyears,theprogrammehas identifiedmorethan$60minfinancialopportunitiesthroughclearer governance,standardisedprocesses, andstrongercontractmanagement. Theseachievementssetthetone forthebroaderworkunderway.

Taketheresourceconsenting system—oneoftheissuesIhear aboutmost.Peoplesayit’sslow, confusing,unpredictable.They’re right.That’swhywe’vebackedan improvementprogrammeto standardiseprocesses,reduce

Aglobalcity cannotthrive withouta strongcultural heartand accessible recreation. Thesesectors aren’t‘niceto haves’... Athriving cultural ecosystem doesn’tjust enrichour identity,it strengthens oureconomy andpositions Aucklandasa confident, creativecity ontheworld stage.

Majorevents,culturalfestivals, exhibitions,andsportingactivity bringvisitorsintoAuckland,support localbusinesses,fillhotels, restaurants,taxis,andcreatejobs. Theyreflectourdiversity,whowe are.Athrivingculturalecosystem doesn’tjustenrichouridentity,it strengthensoureconomyand positionsAucklandasaconfident, creativecityontheworldstage. That’swhythecouncilisreviewingthesesectors,lookingat governance,funding,infrastructure, andsustainability.Aucklandis maturing,whichmeansbuildinga culturalecosystemthatisboth vibrantandfinanciallysustainable. Thesereviewsaren’tjustabout efficiencies—they’reabout protectingtheidentitythatmakes Aucklandunlikeanyothercityon Earth,andensuringitcontinuesto shineglobally.

Ourcommitmenttoaccess,inclusiveness,andfinancialdiscipline guidedourdecisiontorenewour digitallendingcontractforAuckland Libraries.Ourcityishometoamajor digitallendingservicewithmorethan sixmilliondigitalcheckoutslastyear. Onaglobalscale,wesitatnumber 11fore-lending,whichputsustogetherwithasmallgroupofthevery largestbigcityandregionallibrary systemsintheworld—thinkLos Angeles,NewYorkandToronto. Aucklandersarereadingin36languages,reflectingthecity’sdiversity andgrowingdemandforflexible,accessiblecontent.With90%customer satisfaction,renewingthecontract wasthemostcost-effectivewayto keepupwithdemandfore-content. Behindthescenes,workcontinues todeliverrealsavings.Toolslikethe AskAucklandAIassistant—launchingsoon—andstreamlinedconsentlodgementarereducingcosts andimprovingservice.Modernising ourbackofficestrengthensourfrontlineservices.

unnecessaryregulatoryburden,and rebuildthecapabilitythathasslipped. Thecouncilheardthefeedbackand we’reacting—theconsentingprocess needstobefasterandmoreintuitive.

I’moftenaskedwhythecouncil investsinarts,culture,sport,and recreationwhenbudgetsaretight. Theanswerissimple.Aglobalcity cannotthrivewithoutastrongculturalheartandaccessiblerecreation. Thesesectorsaren’t“nicetohaves”. Culture,socialinteraction,andspaces fororganisedandinformalplayare essentialforourhealthandwellbeing. Infact,I’verecentlysharedmyambitiontoseeAucklandbecomethe greatestculturalcityinthesouthern hemisphere.

Aucklanderswanttoknowthat theircouncilisdeliveringforthem— spendingwisely,planningcarefully, andkeepingtheircitymovinginthe rightdirection.That’sexactlywhat I’mfocusedon.Bystayingdisciplined aboutvalueformoney,we’re strengtheningtheservicespeople relyon,andlayingthefoundations forathriving,globallycompetitive Auckland,supportingtheliveswe wanttolead.

Aucklandiscompetingwiththe restoftheworld—andweare showingextraordinarypotentialto definewhatatrulyglobalcityfrom Aotearoalookslike.I’mproudofthe progresswe’remakingandeven moreoptimisticaboutwhat’sahead.

● DesleySimpsonistheDeputy MayorofAuckland.

EdenParkbossurgesAucklandtothinkbigger

TimMcCready

EdenParkchiefexecutiveNick Sautnerhasspentyearsmakingthe caseforAucklandtothinkbigger. Throughchangingpoliticalenvironments,ongoingdebateaboutthe stadium’sroleandplanningconstraintsthathaveshapedwhatEden Parkcanhost,hehasremaineda steadyadvocate—notjustforthe stadium,butforthecity’sglobalambition.

“IwouldliketoseeAuckland knowninternationallyasacitywhere peoplewanttolive,work,stayand play,”hesays.“Fewglobalcitiescan offerwhatAucklandhas—aharbour citylifestyle,astrongculturalidentity,improvingconnectivityanda scalethatallowsustomovequickly whenwechooseto.” ThoughhegrewupinAustralia, henowconsidershimselfalocal,with astrongsenseofinvestmentinthe

NickSautner

city’sfuture.Whatheseesisaplace withallthefundamentalsofglobal relevance—lifestyle,naturalbeauty, culturalidentity,talentandopportunity—butonethathas,attimes,been

tooquicktounderplayitsstrengths andcreatefrictionaroundopportunity.

“Idonotwantustotrytoreplicate othercities.Weneedtobeconfident inAuckland’sownidentityandambitiousinhowwebringthattolife.”

Thatconfidence,heargues,is closelytiedtotheroleofinstitutions likeEdenPark.

“DestinationslikeEdenParkhelp shapeacity’sidentityandconfidence becausetheyprovideaplacewhere peoplecometogethertoenjoyshared experiences,”hesays,pointingout thatindoingso,theygeneratereal economicvalue.“IoftenrefertoEden Parkasadestinationbecauseitis morethanastadium—itisaglobally recognisedvenuethathostsmajor momentsanddrawspeopleintothe city.”

Theimpactextendswellbeyond theturnstiles.“Peoplemayarriveas ticketholders,butmanyleaveas

tourists,”Sautnernotes.“Spending timeinlocalbars,restaurants,hotels andretailprecincts,andexperiencing moreofwhatAucklandhastooffer.”

Since2011,EdenParkhasdeliveredmorethan$1billionineconomic benefittothewiderregion—evidence,hesays,that“placeslikeEden Parkmatter...theydonotjustshape howacityfeels,theyshapehowit performs.”

Yetforallitsadvantages,Sautner believesAucklandstillhasamindset shifttocomplete.“Thechallengeis notwhetherwehavethepotential, itiswhetherwearepreparedtoback thatpotentialwithboldthinking,decisiveactionandthepacerequired tomovefromconcepttoexecution.”

Attimes,heargues,Aucklandhas thoughttoosmallandmovedtoo cautiously.Butthat,hesuggests,is beginningtochange.

“Thereisgrowingrecognitionthat Aucklandshouldnotjustparticipate

inglobalconversations—itshould leadinsomeofthem.”

Lookingahead,Sautner’sambition isforEdenParktoanchorabroader transformation.

“IfAucklandreallyleanedintobeingagloballyambitiouscity,Iwould liketoseeEdenParkandthewider precinctbecomeoneofthecity’s greatdestinationareas,”hesays. WiththeCityRailLinksettoimproveconnectivityandtheinner-city populationcontinuingtogrow,he believestheopportunityisclear. “Thereisarealopportunityto strengthenEdenPark’sroleasakey destinationforsport,entertainment, communityactivityandeconomic growth.Asacity,weneedtothink andactcollectively—aligninginfrastructure,transport,planningandinvestment,andmovingwithgreater pacewhenopportunitiestostrengthenplaceslikeEdenParkareinfront ofus.”

Thebattletobuildabettercity

RichardHills explainshisvision forahousing densityplanto TimMcCready

AschairofAucklandCouncil’sPolicy,Planningand DevelopmentCommittee, councillorRichardHillssits atthecentreofthedebateoverhow thecitywillgrow.

“Ireallyliketherolebecauseit’s complex,”Hillssays.“Ilikedetails.”

Thosedetailswillshapeoneofthe biggestquestionsfacingAuckland: wherethenextgenerationofhomes willbebuilt.

Earlierthismonthcouncillors agreedasetofprinciplestoguide howAucklandreducesitstheoretical housingcapacityfromaroundtwo millionhomestoabout1.6million, aftertheGovernmentsignalledit wouldlowerthetarget.

Thedecisionfollowsfiveyearsof nationalhousingreformsrequiring councilstoenablesignificantlymore housing,includingrulespermitting uptothreehomesofthreestoreys onmostresidentialsites.

InAuckland,thatmeantthecity’s planningruleshadtodemonstrate enoughzoningcapacityforroughly twomillionhomes.

Thefigurewasneveraconstructiontarget.Itsimplyrepresentedthe numberofhomesAuckland’szoning rulescouldtheoreticallyallowif everyeligiblesitewasdeveloped.But itquicklybecamealightningrodin

thedebateaboutAuckland’sfuture.

Undertheprinciplesagreedby councillors,anyreductionincapacity wouldlikelybeginfurtherfromthe citycentre,includingareasmorethan 10kmfromtheCBD,whileretaining higherdensitiesaroundrapidtransit, CityRailLinkstations,andwalkable catchmentsaroundbuscorridors, townandlocalcentres.

“Densitymakessensearound stations,centresandplaceswhere we’veinvestedbillionsininfrastructure.Inanymajorcityyou wouldexpectmorehomesinthose areas,”Hillssays.“Wewouldlookfirst atremovingdevelopmentcapacity ontheedgesofthecity,preventing six-storeybuildingsfarawayfrom jobsorgoodpublictransport.”

ForHills,thedebateislessabout forcingpeopleintoaparticulartype ofhousingthanaboutgivingAucklandersmorechoice.“It’saboutgiving peopleoptions,”hesays.

Theeconomicsofthecity,headds, arealreadypushinginthatdirection.

“Weexpectpeopletoliveonthe outskirts,commutelongdistances, andthenwe’resurprisedwhenthe costoflivinggoesup.”

Petrolpricesalonecanreshapea householdbudgetovernight.

“Youcouldbehundredsofdollars intheredjustbyachangeofpolitical conflictoverseas.”

Protectionsforhistoricneighbourhoodsalsoremain.“Wearestillallowedtousequalifyingmatters,includingspecialcharacter.”

ForHills,oneofthehardestparts ofthejobisnavigatingthepolitics.

“It’snoteasybecauseeveryone expectsyoutohelptheironeissue,” hesays.“You’reconstantlybalancing theareayouwereelectedtorepresentwiththewholecity.”

Densitymakes sensearound stations,centres andplaceswhere we’veinvested billionsin infrastructure.In anymajorcityyou wouldexpectmore homesinthose areas.

Thattensionhasonlybeenamplifiedbythestop-startnatureof nationalpolicy.

“Iwaslookingforwardtothisyear beingmoreproactive:morevision andmorefocusonwhatwecouldbe doingfromplanningdevelopmentto regeneration,”Hillssays.

“Butunfortunately,we’vegone straightbacktobeingreactive.”

HesaysAucklandneedsclarity.

“OthercouncilsinNewZealand havealreadyimplementedthe NationalPolicyStatementforUrban Developmentintheirplans.Auckland—thebiggestcitywith40%of NewZealand’sGDP—istheonlyplace thathasn’trolledthisout.”

Whatthecityneedsnow,hesays, iscertaintyforhomeowners,firsthomebuyers,developersandinvestors.“Nothingisevergoingtobe perfect,”headds.“Butwehavetodo something.”

Thecouncilisnowwaitingforthe Governmenttofinalisethelegislation thatwilldeterminethenextsteps.

Hillssaysthenextphasewillinvolvecouncillorsandlocalboards reviewingoptionsforredrawingthe city’szoningmaps.

“Weneedtoprotecttheintegrity ofthe10,500submissionsthathave alreadygonein,butalsomakesure peopleaffectedbychangeshavethe abilitytohavetheirsay.”

Afterthat,theindependenthearingspanelwillexaminethedetail.

“They’llbemeasuringitagainst accesstotrains,thecitycentre,jobs, parksandamenity,”Hillssays.

Beyondthepolicymechanics,he saysthedebateultimatelycomes downtothekindofcityAuckland wantstobe.

“Myvisionisacitycentrethatis fullofpeople,withhigher-density

housingnearstationswherepeople canwalktoworkandaccesspublic transporteasily.”

Thatincludeshomesforyoung peopleenteringthehousingmarket, anddownsizingoptionsforolder residentswhowanttostayintheir communities.

Insomeareas,hesays,thatis alreadyhappening—witholderresidentsmovingintosmallerhomes nearbyandfreeingupfamilyhouses foryoungerbuyers.

“Ifyou’rethinkingaboutyourparents,oryourkids,oryourgrandkids —wherearetheygoingtolive?”he says.

“Thecitycentreissaferwhenit’s fullofpeoplewalkingaround.When peoplepopoutofstationsandwalk intomarkets,theatresandrestaurants.”

Sprawlingdevelopmentmakes thatharder.

“Wehavetoenablegrowthwhere theinfrastructureinvestmentis alreadygoing,”hesays,pointingto projectssuchastheCityRailLinkand theCentralInterceptor.

Despitethecontroversyaround intensification,Hillsremainsoptimistic.

“I’msickofpeoplebeingnegative aboutAuckland,”hesays.“It’safantasticcity.

“Yearafteryearpeoplecomehere andwanttolivehere.Thenatural environment—ourbeachesandour forests—aresecondtonone.”

Ultimately,hesays,thechallenge isnotjustbuildingmorehomes,but buildingabettercity.

“Wehaven’tdoneinfrastructure wellforgenerations,”hesays.

“Butwe’regettingontopofit.We justneedtomakesurewebring everyonealongwithus.”

Thequietengineering giantshapingourfuture

For105yearsBecahasplayedaleadinghandindesigningandengineeringsomeofAuckland’smost distinctivebuildingsandinfrastructureprojects—andit’snotstoppingthere,writes GrahamSkellern

AsAucklandentersapivotal phaseofrenewal,thecity’s futurewillbeshapedby howwellambitionistranslatedintoco-ordinatedtangibledelivery,saysBecachiefexecutiveAmelia Linzey.

“Formorethanacentury,Becahas beenpartofthefabricofTa¯maki Makaurau,wearefoundedandheadquarteredhere,andwearepersonallyinvestedinAuckland’slong-term success,”shesays.

“Progresswillrequirecollaborative partnership—betweencentraland localgovernment,business,iwiand community—toconnectvisionwith executionforthebenefitoftheeconomy,infrastructureandtheenvironment.

“Wehaveanopportunitytostrengthenco-ordination,integrateprivate capitalandworkhardertosequence anddevelopprogrammeswith greaterclarityandconfidence,to tackletheconnectedchallengesof growth,infrastructureandclimate adaptation.”

Linzeysaysprojectssuchasthe developmentofWynyardQuarter showhowjoined-upplanningand deliverycanbuildconfidence,resilienceandeconomicmomentum.

“Withco-ordinatedsequencingof landremediation,publicspaces,commercialandresidentialbuildings,and accessibility—likethepedestrian bridgetotheViaduct—thedevelopmentshowshowworkingtogether candelivergreatspacestowork,live andplay.”

ShesaystheopeningoftheNew ZealandInternationalConvention CentreandtheCityRailLinkstations representthekindoflong-lifecivic infrastructurethatshapeshowthe cityfunctionsforgenerations.“Itfeels likethereisalotofopportunityahead ofus,andweneedtoseizethe ambition.”

LinzeysaysAucklandneedstobe moreassertiveinrepresentingthe countryontheglobalstage,andthat takessomecourage.

“Auckland’sstrengthisasasystem enablerforNewZealand,providing anengineroomtosupportinnovation,talentattractionandinvestment. Wehavesomeseriousassets.The Waitemata¯Harbourandouraccess tonaturalfeaturesisprettyimpressive.

“WehavesolidandtrusteddemocracyinNewZealandanditisasafe andeasyplacetodobusiness.Being physicallyremotehasbecomemore attractivethanithasforalongtime.

“WeneedAucklandtobeavibrant city,withitssocialandculturalconnections,toattracttalentandleverage thetechnologyopportunitiessuchas artificialintelligenceandautomation that,ifthoughtfullyapplied,willlift productivity,resilienceandeveninclusiontodriveprosperity.

“Lookhowquicklywemovedwith theaerospaceindustry.RocketLab hasbecomeagreatNewZealand successstoryandit’sagoodexample ofhowanewtechnologyindustry canencourageandfosterinnovation, createnewtypesofservicesand attracttalent.”

LinzeysaysBecastartedinAuckland105yearsagoand,“we’vebeen involvedwiththedevelopmentand maintenanceofmanythingsthat defineandconnectourcity.

“Thesizeofourteamgivesusthe abilitytodoavastarrayofprojects. Beca’scontributionspansboththe visiblelandmarksandtheessential, oftenunseenwatersystemsthatkeep thecityfunctioning.

Aucklandhasgood bones,andits successnow dependson partnershipand system-based thinkingthat translatesambition intoco-ordinated deliveryprogress.

“Forasenseofscope,thisranges fromworkingwithFonterraonindustrialoperationsandBlueScopeonthe electrificationoftheGlenbrooksteel milltotransportprojectssuchasCity RailLink,WaterviewTunneland NorthernBusway.Wearealsoworkingtoadvancetechnologysolutions, likesystemsandsimulation,forthe AirForceandNavy.

“Ofcourse,wearealsoveryproud ofthemorevisiblebuildingsour structuralengineershaveworkedon —historicallythatincludestheAucklandWarMemorialMuseum,and morerecentlytheSkyTower,NZ InternationalConventionCentre,and ourlong-termworkwithbothAucklandUniversityandAucklandHospital.

“Ourbusinesstakesrealpridein thelongevityoftheprojectswesup-

portourclientstodeliverandhow theyserveourcommunities,”Linzey says.

“Wecanbuildonthatlegacyand playaroleinhelpingTa¯makiMakaurauAucklandreachitspotentialover thenextcenturytoo,helpingshape aconfidentfuturethroughpublicand privatepartnership,continuityand longevity.”

Beca,oneofAsiaPacific’slargest independentadvisory,designand engineeringconsultancies,lastyear moveditsheadofficedowntown, fromPittSttotheWynyardQuarter.

“Itwasadeliberatemovetoconnectwiththeinnovationhub,”says Linzey.

Itsnewglobalheadquarters,Te PaeroaoteKawau,isahigh-performancesixGreenStarbuildingin HalseySt.Becawasinvolvedinthe planningandcreationofthe WynyardQuartersincethebeginning.

“Itwasourfocusonthefuturethat promptedourmove,”saysLinzey. “Wewantedtocreateaworkplace thatwouldencouragecreativityand collaboration,andhelpusreachour decarbonisationandsustainability goals.”

Linzey,whohasaMastersinGeographywithfirst-classhonoursfrom theUniversityofAuckland,became chiefexecutiveinNovember2023 andwillcelebrate30yearsworking withBecathisyear.Herprevious rolesincludedgroupdirector—advisoryandchiefplanner.

Sheleadsateamofmorethan 4300in24offices—including1300 inAuckland.Beca,foundedin1920 byArthurGray,hasdeliveredpro-

jectsinmorethan70countries.

Becaisanactivememberofthe CommitteeforAuckland,which encouragesstrongcivicleadership andtheopportunityforbusiness leaderstocontributetothecity’s developmentandgrowth.

Thecommitteeaimstoleadthe drivetofulfilAuckland’spotentialon theglobalstage,makingitachosen hometolive,workandplay.Linzey says:“It’sanopportunitytobring groupstogether,discussnewideas andmakeithappen.”

Shesaysthenextbigprojectoff therankshouldberevitalisation aroundtheCRLstations,including commercialandresidentialdevelopment,andcreatingpublicspaces.

“Ihadtheprivilegeofattendingthe openingoftheWaitemata¯Station22 yearsagoandIsawthechangethat occurredaroundtheBritomartarea asaresult.

“TheCRLwillbetransformational forAuckland.Itwillfurtherconnect withthebusesandferriesandbring thewholecityintodowntown.

“It’sallpartofAucklandgrowing upandwhatitneedstolooklikeas itgrows.World-classcitiessucceed whenpeoplearegivengenuine,wellintegratedtransportchoices.

“CRLprovidesachoice,andas someonewholivesintheruralfringe, Ithinktakingatrainintothecity centreisamoresensibleoptionthan drivinganhourandahalfinacar.”

Becaisalsoinvolvedwiththe electrificationoftheferries.Auckland Transporthasfourelectricferrieson thewater,andthefirstreceiving stationatHalfMoonBayhasbeen electrified.

“Weneedtoprotecttransportcorridorsandsupporturbandevelopment.Rightnow,weareworkingwith stakeholders,drivingdevelopmentin theCBDdowntownareaandmaking surethetransportsystemworks well,”Linzeysays.

TheDowntownCarparkissetto bedemolishedandreplacedwitha mixed-useprecinctofresidential, offices,retailandhospitality.

BecaiscollaboratingwithAucklandCouncil,AucklandTransport andiwitounlockatransformation opportunityintheQuayStcorridor, focusedonplace,connectionsand movementofpeopleinandaround theCBD.

Becahasateamworkingwith otherpartnersontheAucklandairportredevelopment,whichincludes thenewdomesticjetterminalthatis beingintegratedwiththeexisting internationalterminal.

Theconsultingfirmhasplayeda prominenthandintheAucklandUniversitycampusdevelopment.The consultingfirmprovidednearlyall engineeringservicestotheawardwinning,eight-storeyHiwarecreation centreonSymondsSt.

Therecreationcentre,openedin Februarylastyear,includesaswimmingpool,gymnasium,indoorathleticstrackandcourtsonaconstrainedsite,andwithinthefirstyear ofoperationrecordedaroundone millionvisits,puttingitinthesame leagueasTePapaMuseum.

TheBecateamhelpedrefurbish thecategory1heritage-listedOld ChoralHall,builtin1872,andmeet seismicrequirementstoextendits useablelifeforanother50years.

Becaprovidedtheengineering servicesfortheadaptivere-useofthe existingnine-storeyArtsandEducation(SocialSciences)Facultythat includedasoaringglassatrium,vaultedtimberroofandsolarphotovoltaicpanels.

ThesixGreenStarbuildinghas danceanddramastudios,lecture theatres,state-of-the-artteachingand studyspaces,andarchaeologywet labs,andwontheoverallBuilding PerformanceChampiontitleatthe globalCIBSE(CharteredInstitutionof BuildingServicesEngineers)awards inLondon.

NowtheBecaengineeringteamis deeplyinvolvedintheconstruction ofthe13-storeyLawFacultyand multi-purposeperformingartsfacility withretractableseatingtoreplacethe MaidmentTheatre,whichwasdemolishedin2016.Thisbuildingon WynyardStwillopenin2029.

Linzeysaystheuniversityisthrivingandaddssomuchtothecentral city.

Asanextstepshebelieves,“We havetolookatconnectingitwiththe citycentrebybringingstudentaccommodationthereandliftingthe vibrancy.

“ItookmychildrentotheArts Festivalthisyearandit’sfuntosee thecitywhenit’sfulloflifeandcolour andactivity.Buskersandliveshows onthestreet.Youseethatactivitylift whenthecruiseshipsarein,too.

“It’saboutensuringthecitycentre feelslikeaplaceyouwanttovisitand bepartoftheenergy.Aucklandisfull ofpotential.

“Ithasgoodbones,anditssuccess nowdependsonpartnership,continuityandsystem-basedthinking thattranslatesambitionintoco-ordinateddeliveryprogress,”shesays.

● BecaisasponsoroftheHerald’s ProjectAucklandreport.

Midtownpowerstherevival

A$10billion transformationis takingshape aroundthenew International ConventionCentre, writes VivBeck

Midtownisthenew Downtown.Notthe same,butanexciting propositionthatissetto go,withkeyingredientsalreadyin place.

That’satake-outfromJLL’slatest study,whichhighlights$10billionof publicandprivateinvestment drivingchangeinthisarea.

Thegreatthingis,youdon’thave tolookfartoseethisprogress manifesting.

TheopeninglastmonthoftheNZ InternationalConventionCentrewas atremendousmomentintime,six yearsafteritsplannedlaunch.

Theuniquewayittellsthestory ofourcityandcountry,with artworks,lightingandhospitality,is quitemoving.Itsmagnificentdesign setsitapartfromtheoftenmonolithic, grey-walledfacilitiesI’veseen offshore,withexpansiveviewsofour harbourandsurroundingareafrom within.Overall,it’sasignificant markerforthecriticalroleitwillplay intheregenerationofmidtown.

Iwaspleasedtoparticipateinthe firstofficialbusinessevent—apanel discussionfacilitatedbyJackTame withthetopic“Auckland’sNew EconomicEngine:WhatNZICC UnlocksfortheCityandNew Zealand”.

Itwillbringasignificantboost,with itsuniqueofferingandnewvenue sizeoptions,whichwillhelptogrow theeventsmarket—withbusiness eventsreadytobecomemore prominent.

Todate,120eventsareconfirmed for2026,musictotheearsof surroundingbusinesses.

Thevalueofeventsand conventionshasbeendemonstrated overagain—morethan20,000 peoplehereforaJehovah’sWitness conventioninJanuarywasaclassic example—peoplewithpinkvestsand lanyardsoneverycorner,shopping, eatingoutandaddingawarm, friendlyvibrancy.

Metallica’sone-offshowin Novemberevenoutstrippedthe spendingbenefitsofColdplayayear earlier,bearinginminditcoincided with3800peopleherefortheWorld IndigenousPeoples’Conferenceon Education,thelargestacademic conferenceeverheldinNewZealand.

Afteradecaderepresenting peopleattheheartofsomuch disruption,thisisthebestnews.And there’smuchmore.

Tourismnumbersareat95%of pre-Covidlevelsandtherehasbeen ongoinginvestmentinhotelsto supportgrowth.Inmidtown,wehave recentlyseentheadditionof RadissonRED—acreativejewelin theheartofourartsandcultural quarter,andatremendousexample ofsustainableredevelopment.

Itwasn’teasyandideallythere wouldbeincentivestomakesuch repurposingmorecost-effectivebut hatsofftoStonewoodGroupforwhat theyhaveachieved.

Notfaroff,DoubleTreebyHilton isunderdevelopment;arebrandof thePresidentHoteltoEditAuckland Centralandyougetthepictureofa placepoisedtowelcomemoreand moreguests.

Studentsareanothermajorgood newsstory.

Afewweeksago,wewelcomed 200first-timeinternationalstudents toourcityataneventinElliottSt,

Theopeninglast monthoftheNZ International ConventionCentre wasatremendous momentintime,six yearsafteritsplanned launch. Theuniquewayittells thestoryofourcity andcountry,with artworks,lightingand hospitality,isquite moving.

theheartofmidtown.Student numbersarebacktopre-Covidlevels andjustashortwalkaway,it’s inspiringtoseesomanylivingwithin astone’sthrowoftheirlectures. Hospitalityinthewidermidtownarea hasgrownorganicallytosuitdiverse studentneedsandweexpectmuch moreretailandotherconvenience offeringstojoin.

Workspaceshavechanged markedlytoo.TopmarkstoQuattro groupfortheirevolutionofthe modernoffice,withA-gradefacilities, communityandeventspaces. Alberts,theheritagebuildingat1 AlbertStandTheFormeryrightby themidtownCRLstation,Te Waihorotiu,arebothlargelyleased. JustdowntheroadinVictoriaSt,they areredevelopingfourinterconnected buildings,includingtheformer FinanceCentre,tocreateThe ExchangebyAlberts.PAG’sMosaic wasalsoaninsightfulchoicein WakefieldSt,with“plug-and-play” officeandcoworkingspaces, wellnessfacilitiesandapodcast studio.

Nearby,QueenSthasitsfairshare ofexcitingchangecomingtoo.

TheStJamesredevelopmentis underway—goodnewsforthose lookingforwardtoanewvenuefor livemusic.Cartierwillrevealits magnificentnewboutiqueinlower QueenStlaterintheyear,alongwith luxurydepartmentstoreFaradays andtheredevelopedQueen’sArcade. Finally,theCityRailLink.Much talkedaboutandlongawaited. Thereisstillnoconfirmedopening datebutitisgettingclose,makingit easierandfasterforpeopletoget here. Thereisalotstilltocomebutthe threadsarethere.

And,withAuckland’spopulation ontracktoreachtwomillionwithin thedecade,andadrivetointensify housinginthecorecitycentre,itwill beapleasuretowatchaspeopleget usedtojumpingonandoffthetrain, withdinnertotakehomeafterwork —orbetterstill,toeatout,watcha showandthenheadhome.

● VivBeckistheCEOofHeartofthe City.HeartoftheCityisasponsorof theHerald’s

Cruiseterminalthenew

HowAuckland’s newcruisehub couldreshapethe waterfrontand freightnetwork

FromMarchnextyear,arich bountyofvisitorsto Aucklandfromtheworld’s largestcruiseshipswillgeta welcomebefittingaglobal-classcity whentheportopensapurpose-built newinternationalcruiseprecinct.

PartofPortofAuckland’smission tostampthecitylargeontheglobal shipcallmap,thelargeterminal precinctisonepieceofa$200million “bigships”developmentprojectthat willalsoseeitabletoreceivecargo vesselscarrying10,000containersby theendofnextyear.

Theprojectincludesthenew BledisloeNorthwharf,enabling cruiseshipscarrying4500-plus passengerstotieupatthevisitor precinct,developmentofthe FergussonNorthwharftohandle biggercontainervesselsand associateddredgingworks.

PortofAucklandchiefexecutive RogerGraysaysAucklandcurrently welcomesmorethan300,000cruise

passengersayearwhobring$600m ofvaluetothecity’seconomy.

While4500-pluspassengerships havecalledatAuckland,they’vebeen reluctantvisitors.

Lackofdedicatedfacilitiesand berthingspacehasprovided“a terriblecustomerexperience”,Gray says,withcruisetouristshavingtobe shuttledaround,delayedoffshore,or berthedattheFergussoncontainer terminal.

Thenewprecinctwillallow visitorstowalkdirectlyintotheCBD. Aucklandisoneofaonlyhandfulof globalportsthatofferthisopportunity.Thefacilitywillbeabletoprocessupto1500passengersanhour.

ThepotentialisforAucklandto doubleitscruiseshipcallsto160a yearwiththesummercruiseseason andthereturn,fromnextyear,of wintercruising,Graysays.

“Nowwe’relookingtoseereal growthinthosebig4500ships,soI wouldthinkwehavearealpotential tobringin100,000morepassengers aswecontinuetoinvestandreattractpeople.”

WiththenewBledisloeNorth wharfabletotakeverylargecruise ships,theportcanstartitsoperational exitfromtheferrybasin,“whichis greatforthecity”,hesays.

“Itwillallowustodischargeorload abigcruiseshipwithinthreehours. Graysaysthecruiseindustryis hugelyimportanttothecity’s economy—andthisis“keyto unlockingthecentralwharves developmentandtheworkAuckland CouncilandAucklandUnlimited wanttodooncontinuingtorevitalise thewaterfront”.

PreparingAucklandasamajor shippinggatewayforthenext40

Photo/DeanPurcell
ProjectAuckland AndreaFox

gatewaytoaglobalcity

yearsandtobeseenasa“globalcity” alsorequirestheregion’sfreight,retail andbusinesscommunitiestostepup, saysGray.

24/7—seriousconversation needed IftheportisalensforAuckland’s globalgrowthambitions,thencargo receiptanddistributionneedsto becomea24/7operation,Graysays.

Auckland’spopulationwillgrowin thenext40years,alongwith consumption,sothecountry’smain importgatewayhasacriticalrolein ensuringthecity—andtheNew Zealandsupplychain—isready.

“Weseeourroleasbeingherefor thecity,growingwiththecityand howwegrowtogether.That’sabout gettingtrucksofftheroadforrailand gettingthemoutofpeaktraffichours, workingatnightandthroughthe weekends.

“That’sthe24/7focuswe’restill keentoseeothersadopt.”

Grayiscallingfora“seriousconversation”onthe24/7operational aimwithindustrygroups.Hesaysthe port’sowner,AucklandCouncil,and transportagenciessuchasNZTAare supportiveofthecallbutthereneeds tobeaholisticmindsetchangewithin thecity.

“WithNewZealandindustryand businesses...it’saboutmajorcargo receiversnotbeingopeninthe afternoononaFriday,oronSaturday orSunday,nothavingnightshifts, thesesortsofthings.”

Cargoreceiversincludethefood manufacturingandretailsectors, large-scaleimportersandfreight forwarders.

“Asthecitygrowssowillthe demandoncargoreceiverstostart receiving,sowe’reengagingdirectly withallofthem.”

“Weacknowledgeit’snoteasyand itdoesaddcostintheshortrun.But inoperationalperformance,the speedofgettingcargomovingwill outweighothercostsinthelongterm.

“Sothat’sadiscussionwe’re startingtohavewithindustry,with theFoodandGroceryCouncil,totalk tofoodmanufacturers,foodsellers, supermarkets.Wealsoneedthe supportofcounciltomakesurethey don’timposenoiselimitationsinand arounddeliverypoints.”

Thediscussionswiththesupply chainabouta24/7operation economyarestartingtopay dividends.

Graysaysthere’sbeenanincrease intheamountofcargotravellingby rail,witharound20%ofcustomers nowusingrailtoimportandexport theirgoods.

Sincetheporthasincreasedits peakandexcesscharges,transport companieshadstartedtoshiftcargo after6pmandonweekends.

AucklandInternationalCruiseTerminalwillhaveacanopypickup-dropoffareaonQuaySt,providingdirectaccessintothecity.

Askedtonametheworse constraintsoncargomovement,Gray responds:“Sitonthesouthern motorway,sitonthenorthern motorway,sitonthenorthwestern motorwayatMondaytoFridaypeaks andyou’llbeabletoanswerthat question.

“Ourroadnetworkneedstohave theloadshiftedtothebackofthe clockinordertostarttoseeabetter flowandareductionincongestion.”

WithgrowthinAuckland’s populationwillcomegrowthincargo andthatmeansgrowthinshipcalls andvesselsizes,Graysays.

“That’swhywe’rebuildingthe FergussonNorthwharf(container terminalwharf)anddoingthe dredgingtobe10,000TEU(20ft equivalentcontainer)capablegoing forwardinourroleasoneof,inmy view,thethreebluewaterportsin NewZealandintothefuture.”

Astowhatregulatoryorpolicy shiftsGraythinksareneededto achieve24/7freightlogistics,hesays themostimportantinfluencewillbe congestioncharginglegislation currentlygoingthroughParliament. “Thatwillallowthecounciltostart

Ourroadnetwork needstohavethe loadshiftedtothe backoftheclockin ordertostarttosee abetterflowanda reductionin congestion. RogerGray

toimplementtime-of-usecharging andmakingthatdynamicinfluence trafficflows.Itwillbeanotherprompt tolookatopportunitiestogo(travel) outsidethoseperiodsofchargingbut secondly,willassistinprobably reducingdemandonalready restrictiveinfrastructureroads.

“It’llenablethecounciltoget crackingandwillbethegreatunlock totheregulatorychangethathasto happen.”

Graysaystheinvestmentina purpose-builtinternationalcruise precinctfollowsdiscussionswith cruisecompaniesreluctanttobring thenewwaveofmega-linersto Aucklandbecauseoftheriskof havingtoanchorintheharbourand tenderinpassengersbecauseofa lackofdedicatedspace.

“That’saterriblecustomerexperience.Butbringthemalongside,be processedthroughapurpose-built facilityandbeallowedtowalkinto theCBDisreallynice,whatagood customerexperienceis.

“Itwillassistshippinglinesin furtherschedulingAucklandand NewZealand(forcalls)withthebigger

shipsandmeanwecancompete againstotherportswithamazing cruiseterminalsatthebaseoftheir cities.

“Wewanttobeoneofthosesort ofports,aglobalcitywherepeople haveaglobalexperience.Rightnow it’dbefairtosaywehaven’tbeen deliveringaglobalcompetitive experience.”

GraysaysNewZealandasa countryneedstogrowthecruise industry.Cruisetourismgenerated $1.23billionintotaleconomicoutput forNewZealandinthe2024-25 season.

“We’reseeingaveryinteresting changeintheshipscoming—very bigshipscarrying4500likeOvation ofTheSeasandsmallboutiqueships with600passengers.

“Afigurenotwell-knownisAucklandhasinexcessof300,000cruise passengersayear—that’s300,000 Americans,Europeans,Asians— we’veseengrowthinJapanese visitors—andAustralians.Theywant anamazingexperience.Theywanta seamlesstransferonandoff.

“That’swhatglobalcitiesdo.And

that’swhyweseethisasbeingan absolutelyfundamentalinvestment tofurtherthegrowthofAucklandon itsjourneytobeingaglobalcity.”

GraysaysAucklandshouldn’t underestimatethebeautyofits harbours,thelocationofitsportand theeconomicbenefitsofcruise tourism.

“Wearebuildingforthenext40 yearsattheport.We’reheretogrow withthecityandwewanttohelpthe citygrow.

“Peopleneedtorealiseaswellthat aswecontinuetogrow,we’llliftour contributiontoourowners.This financialyearwearebudgetingto deliver$95mnetprofitaftertaxand topayadividendofatleast$52m.

“Weareaverydifferentorganisationthanperhapswewereinthe past...wesaythe‘turnaround’is done;nowweareahighlyperformingassetforthecityandthepeople.

“And,webelieve,arealenablerfor thegrowthofAucklandasitgrows intotheglobalcityitdeservestobe.”

● PortofAucklandisasponsorofthe Herald’sProjectAucklandreport.

Playingthelonggame

Forgetgrandvisions,Auckland’srealproblemsareproductivityandpolitics,writes

Thecorrelationbetween growthinthenational economyandAuckland regionis75%.Isitthedog waggingthetailorthetailwagging thedog?

Thatcorrelationsimplysaysyou cannotdifferentiatethepathfor AucklandfromNewZealand.Afterall NewZealandishardlyalargenation, andwillonlyeverhaveonetruly scalablecity.Andat1.7million Auckland’spopulationlacksscale.A lackofscalelimitsoptions.

OnlyOtagoandCanterburyhave strongercorrelationswiththe nationalgrowthcycle,showingthat mightandsizearenottheonly influenceandtheimportanceof connectivityintotheruralsector.

Aucklandsitsunproudlywiththe highestunemploymentrateinthe country.Housepricesarestagnating. TheenginesbehindNewZealand’s economyrecoveryarecomingfrom income-generatingandrural-aligned regions,notAucklandfornow.

Hencethecallsforagrandvision. CanIforeseeagrandplanfor Auckland,mirroringOslo(100% electricvehicles),London/NewYork (finance),Dubai(futuristic),Singapore (urbanmobility),orRiyadh(future infrastructure)?No.Suchvisionstypicallyrequiredeepcentralandlocal governmentpockets,whichwedo nothave,andtheabilitytoexecute.

MaybeI’mjustasceptic.Butany countrythatcanmanagetospend/ investaround5.8%ofgrossdomestic product(GDP)annuallyon infrastructureoverthepast20years (oneofthetopspendingcountriesin theOrganisationforEconomicCooperationandDevelopment),yetwe ranktowardsthebottomfor efficiencywithcapitalproductivity typicallyanegativenumber,needsto getsomerunsontheboardfirst.

Therearetoomanybasicstofix first,includinginfrastructure— spendingandmanagementof projects,education,governmentand councilfinances,riskmanagement, productivity,andhousing—before youcouldeverembarkonsomething trulydifferentiating.Inrugby parlance,itwouldbesettingagame plantoscorelotsoftriesbutwithout atightfivetodelivertheball.

Startbybringinggreater independenceintothemanagement oflocalgovernmentassetsviaafully independentinvestmentcommittee. Thesameformanycentral governmentassets.Counciland centralgovernmentassetstotal$700 billion.Imaginea1%improvement (dothemaths).

TheentireAucklandstadium situationisanothercaseinpoint.The RequestforProposalnotedAuckland couldnotaffordfourstadiumsand thecurrentmix.WhatdoesAuckland stillhave?Thesamestadiummix. AucklandandNewZealandare notimpotentthoughwhenitcomes toofferingsomethingdifferent.We resideinafracturedworldthatis becomingincreasinglydividedwith dissatisfiedpopulations,populismon theriseandsecurityakeytheme.

NinecitieswerebenchmarkedascomparabletoAucklandin2024.Ayearlaterthesearetheirrankings:

lowscoresforEconomicsandQuality ofLife,withAucklandranked154th foreconomics,whichcoversacity’s size,growth,GDPperperson, employment,stability,andeconomic diversity.Thequality-of-liferanking was239th.Thiscoveredincome inequality,incomeperperson, housingexpenditure,lifeexpectancy andthecrimerate.Auckland commuterslose66hoursayearstuck intrafficanditsrising.Goodbye qualityoflife.Hello,CentralOtago. Aucklandwasbenchmarkedin 2024(TheStateoftheCity BenchmarkingTa¯makiMakaurau Auckland’sinternational performance),againstVancouver, Portland,Austin,Dublin, Copenhagen,Helsinki,TelAviv, BrisbaneandFukuokaascomparable cities.

backdrop?Youwouldfillyourboots withtalentandcapital,withtheright migrationsettings,whichwehave movedtowards.

Abrokenmodel Fordecades,Aucklandhasbeenat theforefrontofNewZealand’sbroken economicmodel.Wesoldmore expensivehousestoeachother,and Aucklandhousepricegrowthwould exceednationalgrowth.

Creditfacilitationhasbecometoo dominatedbyhousing.Thewealth effectfromhousingwasacontributor tospending.Wereliedonbumson seatstodrivegrowthviamigration andtourism.Migrationandtourism canaddvalue—ifdeliveredcorrectly.

Perhapsthegreatestadditionwe couldmaketoAuckland(andNew Zealand)wouldbeareturntothe politicalcentrethiselectionatatime whenothercountriesaremovingto theperiphery.Theperipheryis destabilisinganddrivesshort-term decision-making.Allcitieswithreal visionhavetakenalong-termview. Ifwewanttoembedthelonggame, thatrequiresashiftinthepolitical landscapetogivegreaterpolicy stabilityacrossthepoliticalcycle.

Theplaybookonthatisnoteasy andcoverseconomicandsocial facetswithrealleadership.But imaginetheallureofacountryorcity thatisdevoidoftheextremism percolatingagainstthecurrentglobal

Theendgameisahousing unaffordability,clashesbetween generationsandweakerproductivity (withthelatterinfluencedbylotsof otherfactors).Witheachmonthly stagnationinhouseprices,realityis settinginthatNewZealandand Auckland’sgrowthmodelneededto andischanging.Hooray.

Thestats

Aucklandisa$160billionregion, accountingfor38%ofNewZealand’s GDPin2024,butrepresents33%of thepopulation.Atfacevaluethe regionispunchingaboveitself,with GDPperperson$88,355,comparedto $78,233acrossthenation.

Wellingtonsupposedlyhasthe highestGDPpercapitafiguresacross

thecountry($92,776),withahuge governmentcentricityaboutit,which inmyviewmeansweshouldbewary ofwhatregionalGDPpercapita figuressay.Regionalbreakdownsof GDPcanbesomewhatarbitrary. Auckland’snominalgrowth

exceededthenationalaverage between2000and2024(288% versus266%).However,onaper capitabasisGDPinAucklandrose 160%between2000and2024 comparedto166%acrossNew Zealandasawhole.Aucklandhas underperformed. Citiesaresupposedtobenefitfrom agglomerationeconomics,orthe benefitofscale.Agglomeration occursthroughtheclosenessof physicalcapital,companies, consumers,andworkers.Thereisa flipside.Poorlyplanned agglomeration(infrastructure)can seecitieschokeasinfrastructurefails tokeepupwithspread.Yes,that meansmoreinner-citylivingcloseto existinginfrastructureandaworldclasstransportsystemfarbeyond whatAucklandhas,whichwillneed tobepaidforbysociety. Ariseinthetaxburdenoverthe nextdecadeisinevitable.Theonly questionisthemagnitude,whichwill beafunctionofgrowth,andthe spendingefficiencyofthetax/levies/ ratespaid.

Liveability Aucklandisslippingdownthe rankingsand“economics”isatthe core.Aucklandranked85thin Oxford’s GlobalCitiesIndex 2025. Wellingtoncameinat78th.For perspective,Australiahadthreecities inthetop20. Drivingthe(lower)rankingwere

Oxfordrankedeightofthe comparableshigher.Vancouver (37th),Portland(50th),Austin(47th), Dublin(13th),Copenhagen(18th), Helsinki(38th),TelAviv(36th), Brisbane(23rd)withFukuokathe exception,cominginat205th. Aucklandhaslostground. Commondenominatorsare Auckland’slowrankingsforthe economyandqualityofliving.This alsoappliestothewholeofNew ZealandwhenyoulookatGDPper capitaranking,whichisinthelower quartileoftheOECD.

Itallstartswithproductivity Forgetaboutgrandvisions.Think smalltostandtall.Focuson productivity.Weallknowthestats. Productivityusedtoaverage1.4%a yearinNewZealand.Thedecade averageisnow0.3%.Lacking productivitytranslatesintoan incomeproblem,whichmagnifies cost-of-livingpressures.

Theenablersarenotsexyorgrand. Theyarecompetition,innovation,AI, digitisation,qualityinfrastructure spend,redtape,andeducation.Signs arepromisinginsomeareas (education),sub-parinothers(AI embracement),flip-floppyinothers (necessaryhousingintensification) anddownrightdisappointingwhenit comestocompetitionpolicy. Therearesupposedlysome exceptionstoNewZealand’s productivitytrend.Annualaverage labourproductivitygrowthin Aucklandcitycentreoverthelast20 years(1.6%)hasbeendoublethatof therestofNewZealand(0.8%), accordingtotheJuly2025editionof theAucklandEconomicMonitor. Thecitycentrehasapparently keptthisupsince2019,withthecity centre’sproductivitypremiumover therestofNewZealandrisingfrom 21%in2004to40%in2024. Agglomerationeconomicscanwork. Ifyouwantagglomeration economicstowork,looknofurther thanhavingamajorproportionof yourpopulationaroundtheCBDor easilyaccessibletoit.Andthat requirestransportinfrastructure. MuchhopeisbeingplacedontheCity RailLinkbutAucklandsuffersfrom nothavingabroaderrapidtransport system.

Thebottomline Bewarethepromiseortheallureof magicpotions.Theytendtobesnake oil.NograndvisionforAucklandwill everworkifwedonothavea productivityandincomestoryto backitup.Getthefoundationright beforeyoubuildthehouse.

MybighopethisyearisthatNew Zealandmovestowardsthepolitical centre,goingagainstthetrendswe areseeingglobally.Withthat,the prospectofreallong-termdecisionmakingbecomesmorefeasible. ● CameronBagrieisprincipal economistatBagrieEconomics,a premierboutiqueresearchfirm.

37th
Fukuoka 205th Helsinki 38th Austin 47th
Wellingtonranked sevenplacesabove Aucklandat Australiahad
Portland 50th

AstablepartnerinWellington

Labour’s Carmel Sepuloni callsfor long-termplanto growAuckland

AflourishingAucklandis crucialtoathriving AotearoaNewZealand.

WhenIfirstcameto AucklandfromWaitaratotrainasa teacher,thecitywasintransition.

TheSkyTowerwasbeing constructed,newapartmentswere cuttingoutanewskyline,theCBD wasaconstanthustleandbustleof universitystudents,workersand tourists,andtheViaductwas transformedforthe2000America’s Cup.

Thecity’spopulationhasrapidly evolvedandbecomeincreasingly diversesince.Today,weliveina globalhub;ahotspotforinnovation, businessandworldfirsts.

FromMintInnovation’swork turninge-wasteintogoldandToku Eyes’developingAIthatdetectseye disease,totheworld’sfirsttourism hydrofoilingelectricferrydesigned andbuiltbyVessev,Aucklandisa cityofpioneers.

EveninmyownbackyardofWest AucklandI’vemetsomeamazing peopleworkingacross manufacturing,film,andengineering, reassuringmethere’snoshortageof Kiwiingenuityinourcity.

It’sthisinnovationthatLabourwill backwiththeNewZealandFuture Fund—creatingsecure,well-paidjobs andkeepingourideas,wealth,and peoplehereathome.

WhenIthinkaboutAuckland’s future,IthinkaboutacitythatIwant mykidsandmymokogrowingup in,studyingin,workingin,and contributingto.

IwantanAucklandrichwith opportunity.Acitythatinspires generationstobuildtheirfutureshere athomeratherthanfeelingtheyhave togoabroad,assomanyhavein recentyears.

It’sunacceptablethatAuckland, theeconomicengineofthenation, currentlyhasthehighest unemploymentrateinNewZealand. It’salsodishearteningthatcountless businesseshavebeenforcedtoclose upshop,hollowingoutthecity, becausethere’sbeennofix.

It’scrucialthatwelisten closelytowhatlocal communitiesaremost concernedaboutand whattheiraspirationsare forabetterlife.

Weneedasustainablelong-term planforAuckland.It’snouse choppingandchangingeverythree yearsbecauseofpoliticalideology. It’sexactlywhywe’vesaidwe’llbe sensiblewhenenteringgovernment regardinglong-termprojectsalready underway.

Weneedinfrastructurethat reflectsagrowingpopulationand addressesthechallengesmany Aucklandersfacedaily.

ThismeansensuringAuckland standsthetestoftimeandinevitable severeweatherevents.Itmeans makinglifeeasierforAucklanders andgivingthemcertaintyonmajor infrastructureacrosstransport, housing,andbigevents.

It’sahugeshamethatNational stalledconstructionworks nationwide—puttingprojectsin limboandcostingupto20,000 constructionworkerstheirjobs.This doesn’tgivecertainty,nordoesit instilanyconfidenceinagovernment thatcansensiblybackAuckland.

Weknowwhatcanhappenwhen there’sgenuinebipartisanshipon long-termprojects.TheCityRailLink isaclearexampleofthis.Aproject developedthroughsuccessive governmentsresultinginAucklandersgettinganew,moreefficientway togetaroundtownlaterthisyear. It’scrucialthatwelistencloselyto whatlocalcommunitiesaremost concernedaboutandwhattheir aspirationsareforabetterlife. Aucklanderswantacitywithwellpaidjobs,accessiblehospitals,and affordablehousing.It’swhywe’ve saidmakinganaffordableNew Zealandisournumberonepriority andannouncedpolicylikethreefree doctors’visitsayearforeveryKiwi. Sadly,whatwe’regettinginstead isafailingeconomy,withhighcostof-livingcausingpainformanywho werepromisedafix. Withtalksstillongoingforthe AucklandRegionalDeal,whathas beenpreviewedsofardoesn’tlook likemuch.Insayingthat,weshouldn’t understatetheimportanceofhaving abetterframeworkforengagement betweenAucklandCouncilandthe Government—butit’sclear Aucklandersarewantingmore. Theywanttogettoworkwithout sittingintrafficforhours,tobeable topaytheirbills,seeadoctor,access affordablehousing,andhavemoney leftoverattheendoftheweekto dosomethingnicewiththeirwha¯nau. AgloballyambitiousAucklandis onethatisambitiousforitspeople. Ta¯makiMakaurauhaseverything itneedstothrive—itjustneedsa Governmentthatbacksit.

● CarmelSepuloniisLabour’sdeputy leaderandtheparty’sspokespersonon Auckland.

Makingtherightconnection

TheEMAiscalling foraconnectedcity andsaystheassets arealreadyinplace toplugthegaps, writes BillBennett

Aucklandwantstobeagloballycompetitivecitybut struggleswitheverydayurbanbasicssuchasconnectivity,planningandliveability.Major projectsdominatepublicdebate,yet manyofthebarrierstogrowthliein smallergapsbetweenthecity’s existingassets.

GiventhatAucklandgenerates about30%ofNewZealand’sgross domesticproductandanchorsthe upperNorthIslandeconomy,closing thosegapsisanationalurgency.

AlanMcDonald,theheadofadvocacyandstrategyattheEmployers andManufacturersAssociation (EMA),sayswhilebusinessessee thosegapseveryday,“theassetsare alreadyinplace.”

HesaysAucklandhasagreat harbour,thebestuniversities,top hospitalsandanexcellentresearch base.Yetitlacksintegration.“We’ve gotabeautifulnaturalcity...but we’realsodifficulttogetaround.We don’thavegreatconnectionsbetweenbusinesshubs,theuniversity andspecialistcommunitieslikethe med-techsector.”

McDonaldsaysleveragingthese assetsforeconomicsuccessdepends lessonmega-projectsandmoreon fillinginthegapsbetweenwhatalreadyexists.ThismatterstoEMAbecauseitrepresentsfirmsemploying alargeshareoftheworkforce.Most ofitsmembersareAuckland-based. Theydependonthecity’stransport links,industriallandandresearch institutions.WhenAuckland’splanningfails,itshowsupquicklyinEMA members’productivityandinvestmentdecisions.

McDonaldsaysAuckland’simportancegoesbeyondthecityitself.Itis theanchorofthe“goldentriangle” economylinkingAuckland,Hamilton andTauranga.Ifthecityfunctions well,thebenefitsflowacrossthe widerregionandthenationaleconomy.Investmentisessential:“If you’reseriousaboutdrivingtheengineroomofyoureconomy,serious aboutattractingoverseaspeopleto comeandhelpdrivethat”.

Creatingamoreliveablecityispart ofthat.Successfulinternationalcities typicallyhaveavibrantheart.Global talentexpectstoseedenseurban environments.

AlthoughAucklandhasimproved inrecentyears,McDonaldsaysit needstodobetter.Inparticular,it needsfamily-friendlyinfrastructure. “Tobeaninternationalcityweneed morepeopletoliveinthecentre. Peopleoftentalkaboutatleastdoublingthepopulationofinner-cityAuckland.Currentlythereare38,000 peoplelivingintheareabetween SymondsStandHobsonSt.

“Ifyouchose,asafamilytolive there,youmightwanttolivearound oneoftheinner-cityparks—but wheredoyourkidsgotoschool?

“Weneedinner-cityschools— primary,intermediate,highschool— becausethatistheglueforfamilies.” Heisconcernedthatthecityoften feelsemptyaftertheworkershave gonehome.Thatweakensitsvibrancy,itsattractivenessanditssafety. “Themorepeopletherearearound, thesafertheplaceis.”

Whileintensificationisalready partofplanning,thesocialinfrastructurehasnotkeptpace.Abusier centralcitysupportsretail,hospitality andknowledgeindustriesthatdependondenseurbannetworks.

Ifyouchose,asa familytolivethere, youmightwantto livearoundoneof theinner-cityparks —butwheredo yourkidsgoto school?

“Ifwesaywewantdoublethe growth,thenlet’sputinplaceaplan thatincludesthesocialinfrastructure, suchasparksandschools.”

McDonaldsaysthecitycouldalso makebetteruseofexistingbuildings. Under-usedofficebuildingscouldbe convertedintoapartments,which wouldallowthecentralcitypopulationtoincreasewithoutlargenew developments.

“Changingbuildingregulationsso thatsomeofthoseemptieroffice blockscanbereadilyconvertedto apartmentswouldhelpunlockthat potential.”

Afewofficeconversionshave happened,thoughothershavestal-

led.Differentsafetyandbuilding standardsapplytoresidentialbuildings,whichcanmakeconversions difficultevenwherethestructureis suitable.

Planningchallengesarenotlimitedtohousing.McDonaldsayssimilar planninggapsaffectAuckland’sbusinessandindustrialareas,wherebusinesseslookingtoexpandoften struggletofindsuitablespace.

Theproblemisparticularlyacute inestablishedindustrialareassuchas WairauValleyontheNorthShore. Companiesthatwanttogrowoften struggletofindnearbyspace.

“I’vegotmemberswhosay,‘I wantedtoexpand.There’snowhere

andparks.Youcanseeaplan.You canseetheoutcome.”

Auckland,hesays,oftenlacksthat sameclarityofdirection:“Wetendto saynoforthisreasonorthatreason. Instead,weshouldbeaskinghowwe canmakethingswork.”

Planningfailurehasadirectcost. In2018,theEMAcommissioneda studythatputAuckland’scongestion billat$1.3billionayear.McDonald saystheunderlyingcauseisnotjust toomanycars,itisdecadesofindustriallanddecisionsthatforcepeople totravelfurtherthantheyshould. “Alotofthecongestionweseeis becausewehaven’tplannedwhere businessesandpeopleshouldbe located,”hesays.“Ifyoupushindustryfurtherout,peoplestillhavetoget towork.”

Theanswer,heargues,isnotalwaysanewroadoranewrailline. Itisusingwhatalreadyexistsmore intelligently.Auckland’sharboursits largelyidleasatransportcorridor. TheNorthwesternMotorwaywas widenedwithoutabusway.Meanwhile,Sydney’spublictransportnetwork—rebuiltoverageneration— offersthereliabilityAucklandisstill chasing.

McDonaldrecallsleavingameetinginMartinPlaceandreaching Sydney’sNorthShoreinseven minutes.“LasttimeItriedtogetatrain fromhereintotown,Ileftanhour beforethemeetingandwashalfan hourlate.”Thesameintegrationgap thattroublesMcDonaldabouthousingandtransportisvisibleinAuckland’sinnovationeconomy.

StandingneartheEMA’soffices,he canseetheUniversityofAuckland’s innovationprecinctandtheAucklandCityHospitalfromasinglevantagepoint.Theproximityisstriking. Theconnectionisnot.“You’vegot research,techandinnovationthere,” hesays.“Butwhere’stheconnection tothebusinesscommunities?”

Themed-techsectorisacasein point.Aucklandhasgenuineworldclassassets:themedicalschool,the hospitalandastrongresearchbase. YetMcDonaldsaystheclusterhas neverfullyintegratedwiththecommercialecosystemthatcouldscaleits workintoproductsandexports.

ThecontrastwithRocketLabis instructive.PeterBeck’scompanyhas becomeaone-firmlessoninwhat agglomerationcando.Itssupplychainshavespreadacrossthecountry’s manufacturingbaseinwaysthat eveninsidersfindhardtoquantify.

IcanexpandtoexceptIcouldgo southorIcouldgofurthernorth.”’

Insomecases,McDonaldsays, businessesarepushedtonewindustrialzonesfarfromtheirexisting operations.“There’slittleroomto expandinplaceslikeMtWellington, thenewindustrialareasareplaces likeWaiukuandWarkworth.”

Formanyfirms,relocatingfurther awayfromexistingoperationsrisks losingskilledstaffwhoarereluctant tofacelongercommutes.McDonald saysheknowsofcompaniesthat endedupmovingoperationsoverseasbecausethatisaneasieroption.

Hearguestheconsequencesare visibleacrossthecity.“Alotofthe congestionweseeisbecausewe haven’tplannedwherebusinesses andpeopleshouldbelocated.Ifyou pushindustryfurtherout,peoplestill havetogettowork.”

ForMcDonald,theseproblemsreflectabroaderplanningissue.Aucklandoftenstrugglestoconnectindividualprojectsintoaclearlongtermvision.

HepointstoSydneyasanexample ofacitythathasreshapeditscentral districtovertime.“Ifyoulookat downtownSydney,they’vereshaped everything.They’vedoneBarangaroo,they’vedonethelightrailandthe underground,”hesays.

“AsyouwalkfromtheferryterminalupGeorgeSt,therearenew squares,newbuildings,apartments

“Itfeelslikeabout50%ofthe manufacturersinthecountryare supplyingRocketLab,”McDonald says.Thecompany’scomposites work,muchofitdoneinAuckland, isworld-leading.WhatRocketLab showsisthatwhenahigh-value anchorbusinesstakesrootinacity, thebenefitsrippleoutwardfast;providedthecityhastheindustrialdepth torespond.

McDonaldkeepsreturningtoasinglepoint.Aucklanddoesnotneedto inventitsfuturefromscratch.The assetsarealreadythere.His“make themostofwhatwe’vegot”message soundssimple.Butitrequiresfresh waysofthinkingandalotofhard work.

Aucklandneedsaplanthatconnectsassetsratherthanleavingthem asislands.Itneedstocreatedensity thatsupportsgenuineagglomeration, thesocialinfrastructurethatmakes thecentreaplacefamilieswantto liveandapoliticalculturewillingto committodecisionsandseethem through.

HepointstotheViaductredevelopment.Itwasfiercelyopposedatthe time,yetnowitisadmired.“Isanyone sayingthatwasabadideanow?” Auckland’sproblemhasnever beenashortageofassets.Ithasbeen ahabitoffindingreasonsnottoact. “Wejusthavetoconnectthem,”he says.“Thepiecesarealreadythere.” ● EMAisasponsoroftheHerald’s ProjectAucklandreport.

Airlineconnections underpin Auckland’s economy,writes BillBennett

Citiescompetegloballytoattractandmaintainairline routesbecauseairconnectivityiscentraltobeingan economicallysuccessfulcity.

That’stheviewofAucklandInternationalAirportchiefcustomerofficerScottTasker.

“Thereareonlysomanyaircraft availabletoflyintheworld,”says Tasker.“Alimitedsupplyofaircraft meansairlineswillchoosetheplaces wheretheyseethebestyear-round profitability”.

Taskersaysinageographically isolatedcountrylikeNewZealand, AucklandAirport’ssalespitchisimportanttothenationaleconomy.

“Youarepitchingtoairlinesto deploya$200millionassettoyour place.Youneedtotellthemhowthey aregoingtoseerobustdemandfor passengersacrosstheyear,who thosepassengersare,whatthey’re goingtopayandwherethey’regoing tocomefrom.Thesamegoesfor cargo.

“Ourjobistomakesurewe’re movingtothetopofthelistasaircraft becomeavailable,”hesays.“Those aircraftbringhigh-valuevisitors.

“Theyenableustogetouttothe worldanddobusiness.”

ItisapitchthatAucklandAirport makesincitiesrangingfromSeoulto Singapore,GuangzhoutoDallasFort Worth.

AucklandAirporthandlesabout 75%ofNewZealand’sinternational passengermovements;roughly90% oflong-haultrafficandabout90%of

internationalaircargo.Itisalsothe country’sthird-largestportbyvalue, withimportandexportactivitytotallingroughly$41billionannually;most carriedintheholdsofpassenger aircraft.

Theairport’seconomicfootprintis estimatedat$35bperyearandprojectedtoreach$54bby2032.

Some25,000peopleworkator withintheairportprecinctacross250 businesses,makingitAuckland’s second-largestemploymenthubafter theCBD.

Aircargoisavitalpartofthe equation.WhenAucklandAirport negotiatesanewpassengerroute,it alsounlockscargocapacity.

AucklandisbiddingagainstSydney,BrisbaneandMelbourneanda dozenotherAsia-Pacificcities,forthe sameaircraftassets.

Thecity’sgeographicisolation becomesacommercialchallenge whenanairlineisweighingits options.Distancemeansmorefuel, morecrewcostsandmoreoperationalcomplexity.

TomakethecaseforAuckland, Taskerandhisteambuilddetailed

Ontheflightpathtosuccess

Youarepitchingto airlinestodeploya$200 millionassettoyour place.Youneedtotell themhowtheyaregoing toseerobustdemandfor passengersacrossthe year,whothose passengersare,what they’regoingtopayand wherethey’regoingto comefrom.

ScottTasker

pitchdocumentsforindividualairlines:passengerdemanddata,fare trends,cargovolumesandseasonal patterns.

Thevisiting-friends-and-relatives marketisdrivenbyNewZealand’s largeandgrowingcommunitiesfrom India,China,thePhilippinesandelsewhere.Ithasbecomeanincreasingly importantpartofthatpitch.New migrantstravelhomeoften,andthat demandstrengthensthecommercial caseforaroute.

Auckland’sinternationalseatcapacityisrunningabout5%belowpreCovid-19levelsona12-monthrolling basis.Australia,bycomparison,is sittingatabout105%of2019capacity.

TaskersaysAuckland’sslowerrecoveryisduetoacombinationof factors:AirNewZealand’swelldocumentedfleetchallenges,thereluctanceofsomelong-haulcarriersto returntoaremotedestinationafter shrinkingtheirnetworksduringthe pandemic,andtheslowpaceofglobal aircraftdeliveries.

PhilippineAirlineshasnotyet returned.ThaiAirwaysisonlynow planningitscomeback. Therecovery,though,hasbright spots.

CapacitybetweenNewZealand andChinaisalreadyabout5%above 2019levels.UScapacityisalsoabove pre-Covidlevels.Taskersaysthegap shouldbeclosedbyaround2028, afterwhichthefocusshiftstogrowth.

TworecentdevelopmentsillustratetheAirport’sprogress.

ThaiAirwaysissettoresumedaily servicesontheBangkok-Auckland routebeforetheendof2026.The airlinehasnotflowntoNewZealand sincethepandemic.Bangkokisa majorhubwithstrongonwardconnectionstotheUnitedKingdom,Europe,IndiaandSoutheastAsia.

Taskerestimatesthe110,000annualseatsonofferwillattractvisitors spendingabout$250mintheNew Zealandeconomy,withtheroute facilitatinganestimated$500mof trade.

Theseconddevelopmentisthe recentlaunchofChinaEastern’s Shanghai-Auckland-BuenosAires service,operatingtwiceweekly.At roughly29hours,theflightistechnicallyasingleservicewitha refuelingstopinAucklandrather thanatruenon-stop,butitisthe world’slongestcommercialflightby distance.

AucklandnowservesastheessentialwaypointbetweenNorthAsiaand SouthAmerica.LATAM,theChileanBraziliancarrier,hasrestructuredits SouthAmericannetworktogive Aucklanddedicatedcapacityonthe Santiagoroute,fourtofivetimes weekly,ratherthantreatingthecity asastop-overonSantiago-Sydney services.

NewZealandandArgentinanow havecompetingcarriersforthefirst timesinceAirNewZealandwithdrew fromtheBuenosAiresroutein2019.

Oneareathatremainsachallenge isdirectflightstoIndia.

BothAirNewZealandandAir Indiahavesignalledtheirintenttofly direct.Lastyear’sPrimeMinisterial tradedelegationtoIndiasetatarget fordirectflightsby2028.

Theproblemisaircraftavailability. Taskersayswidebodyaircraftdeliverieshavebeenslowerthanairlines anticipated.Competingforroutes requiresmorethanrelationship-building.Airlinesneedtoknowifthey committoAuckland,theinfrastructurewillbetheretosupportthem. AucklandAirportturned60in January.

Taskersaysitsfoundersshowed foresightestablishinga1500-hectare siteinSouthAuckland.Thathasgiven theairportroomtogrowinwaysthat urbanairportselsewherecannot. Theairport’scurrentinfrastructureprogrammeincludesanorthern airfieldstandsdevelopment,opened inOctober,whichaddedsignificant aircraftparkingcapacity.Ithasalso builtanewlandside-airsideroadconnectionandacargocheckpoint. Thatinvestmentconnectsdirectly tothenewcargoprecinctonManu TapuDrive.Groundhandlers MenziesAviationandSwissportare relocatingtheirterminalstocreatea moreefficientoperationwithdirect airfieldaccessandbettermotorway links.

AucklandAirportisdevelopingto amasterplandesignedtoensurethe airportdoesnotputthewronginfrastructureinthewronglocation.

Taskersays:“Wedon’twanttobe theblocker.Ifyoudon’thaveenough capacitytobringingrowthbecause youhaven’tplannedandbuiltintime, youcan’thaveaconversationwith anairlineaboutgrowing.Thetwo thingshavetoworkinconcert.” There’smoretoAucklandAirport thanplanes,passengersandcargo.Its influencereachesintolocalcommunitiesthroughinitiativessuchas theAraTrust—apartnershipthat createspathwaysforyoungSouth Aucklandschoolleaversintotheconstructionindustry,includingonthe airport’sownbuildingsites.

● AucklandAirportisasponsorofthe Herald’sProjectAucklandreport.

Pavingthewaynowfora

CommercialBay developerbacks dense,safe,24/7

futureforAuckland CBD,writes AndreaFox

ThepotentialforAucklandto createapowerhouseglobal citycentrewherepeople live,workandplay24/7is “immense”,saystheheadofCommercialBaydeveloperPrecinctProperties.

ChiefexecutiveScottPritchard saysathrivingcitycentrecan’tbejust aplacepeoplecommutetoandfrom forwork.

“Wecurrentlyhavelessthan 40,000peoplelivinginourcity centre.Weshouldhave100,000 peoplelivinginourcitycentre.

“Weshouldhaveaschoolinour citycentre.Itshouldfeellikeacommunity,aplaceyoubelongto,”he says,citingNewYork,wherethe residentsoutnumberworkersand thereisadaytimeeconomyanda night-timeeconomy.

“That’stheopportunitythat’sin frontofus.Ithinkthatiftherewas asharedvisionforwhatourcity wouldlooklikeandwhatsuccess wouldlooklike,itwouldbe100,000 peoplelivingherein10or20years.”

Whatwillittaketobringthem?

“Ithinkwe’vegottoconvince peoplethatourcityisoutstanding— andourcityisoutstanding,”Pritchard

says.“Ourcity’sgottofeellikea community.You’vegottofeelsafein thecitycentreandforittobeaplace whereyoucanenjoythecity, whetheryou’reworkingthere,living thereorsocialisingthere.

“Therearesometerrificexamples ofothercitiesaroundtheworldthat havedoneitverywell.AndIthink thepotentialforthatinAucklandis immense.

“TheAucklandisthmusisvery narrow.Idon’tthinkurbansprawlis theanswerforhousing.Greaterdensityismostcertainlytheanswerand, Ithinkifwedothatinareallywellplannedway,theAucklandcity centrecouldlookreallydifferentin another10to20years.”

NZX-listedPrecinctPropertiesis walkingitstalk.Todate,ithasdelivered$2.3billionofmixed-usedevel-

opmentsthathaveredefinedcity centres,suchastheCommercialBay andWynyardQuarterprecinctsin AucklandandtheBowenCampusin Wellington.

Well-knownasacommercial officeowneranddeveloper,thepubliclytradedcompany’sstrategyhas evolvedtoincluderesidentialand purpose-builtstudentaccommodationwhilescalingitscapitalpart-

We’vegottoconvince peoplethatourcityis outstanding—andour cityisoutstanding.Our city’sgottofeellikea community.You’vegot tofeelsafeinthecity centreandforittobea placewhereyoucan enjoythecity,whether you’reworkingthere, livingthereorsocialising there.

neringmodel.Precinctdefinesitself asalong-termowner,developerand managerofcitycentrerealestate, specialisingincityspaces.

ItsnextmajorprojectisthetransformationofAuckland’sDowntown carparksiteintoamixed-usecommercial,residential,hospitalityand hotelcommunitywithhigh-quality publicspace,whichwillintegrate withtheCommercialBayprecinct. Thecompanysaysthedevelopment,whichitexpectstobeginthis year,subjecttoconsentingandprocurementsteps,willenhanceeastwestconnectivityacrossthecityand strengthenthelinkbetweenthecity centreandwaterfront.

Oncecompleted,theDowntown ProjectisexpectedtolifttheCommercialBayworkforceby70%,from 10,000to17,000people,whilethe

PrecinctPropertiesCEOScottPritchardatCommercialBay.
ScottPritchard

powerhousecitycentre

hotelwillattractthousandsofvisitors

ayear.Precinctsaystherecently acquiredDowntownsiteisoneofthe lastmajoropportunitiestoreconnect Auckland’scommercialheartdirectly withitsharbour.

Thecompanyisnowseekingresourceconsentfortheprojectwith theEnvironmentalProtectionAuthorityunderthefast-trackconsenting pathway.

“We’rereallyexcitedaboutthe prospectsofthatproject,”Pritchard says.

“Itislarge-scale,sotheintentfor thatistoreallyleverageonthework that’sbeendonewithCommercial Bayandtoconcentratealotofour activitiesforAucklandinthesefew waterfrontblocks,rightonthewater’s edge.”

Asan“activechampionforAucklandasagloballyambitiouscity”,the companyisacheerleaderforinvestmentinthecitycentreforasimple reason,Pritchardsays.

“IthinkAucklandcould,without anydoubt,bethebestwaterfrontcity intheworld.It’sverymuchabout connectingtheHaurakiGulfandthe citycentreand,aswellasthat,creatingacommunitywithinacity.

“Indoingthat,Ithinkwe’llbegin toseetherangeofusesstarttoreally operateinharmony.

“Atthisstage,Ithinkthecityis makinggreatprogresstowardsthat, butthere’sstillahugeamountof opportunitytoreallygetallofthose usesworkinginharmony.”

PrecinctsaysasAucklandcompetesgloballyfortalent,investment andstudents,theshapeandquality ofitscitycentremattersmorethan ever.

Sowhatarethechallengesahead torealisingthevisionofathriving, vibrantcitycentrecommunity?

“Ithinkatthemomentthere’sabit ofaperceptionissuearoundthecity thatIthinkisunfounded.It’shad somechallengesinthelastfouror fiveyearsaroundthoseperceptions andtheyprincipallyrelatetosafety andcrimeandsoon,”Pritchardsays.

“Ithinktherealityisthatinthelast coupleofyears,centralgovernment agencies,localgovernmentagencies andawholebunchofotherparticipantsinthemarkethavedoneahuge amountofreallygoodworktocreate acitythat’sreallyvibrant,safeand fantastic.Sooneofthebiggestchallengesisovercomingthatperception.

“Thesecondisreallytryingtoknit thecitytogethersothatitcanleverageallitsgreatattributes.”

PritchardthinksPrecinct’srolein tryingtoshapethecityisbestevidencedbywhatithasachieved.

“CommercialBayisamixed-use developmentofofficeuse,retailuse, hospitalityuseandahotel.Inonecity blockthere’sprobably7000or8000 officeworkersand,atanygiventime, afewhundredpeoplestayingatthe hotel.Thereare120shopsandall thoseusesareworkinginharmony.

“WhenIthinkaboutthecityand rolethatPrecincthastoplay,Ithink wecandothatonabiggerscale— that’swherethesecretsauceexists.”

Precincthasaround$5billionof assets.Itownsaround$4bofthis portfolio,Pritchardsays,theremainderbeingmanaged.Whilethecompanyhasoffshorecapitalprojectpartners,asapubliclylistedentity,its makeupandownershipislargely heldbyKiwiSavermumanddad investors,hesays.

ThisyearPrecincthasreasonfor confidenceinitsmixed-useproject strategy.

Itreportsstrongmomentumin officeleasing,withfirst-halfleasing significantlyhigherthaninrecent yearsandoccupiershavingastrong preferencetobeincorePrecinct locations.Itnotesstrongoccupier demandforpremiumAucklandCBD offices,outperformingotherNewZealandmarkets,and13million-plusvisitorstoCommercialBayannually. Pritchardsaysthenotablyhigher

Top:Precinct Propertieshas plansforDova onasite between DominionRd andValleyRd, MtEden.Above: PillarsatSt Mary’sBay/ Ponsonby.Left: Purpose-built student accommodation onStanleySt. Images/suppliedby PrecinctProperties

officeleasingdemandinthefirsthalf oftheyearisduetoareversalof work-from-homepracticespostpandemic.

“Alotofbusinessesoverthelast fiveorsixyearshaveshrunktheir officefootprint,whileanumberof theirstaffwereworkingfromhome.

“Ithinkthey’verealisedproductivitytakesabighit...andsoalmost allofouroccupierswithintheprecinctportfolioaretryingtoencourage theirstaffbacktotheofficemore oftenThat’sputtingquitealotof upwardpressureonofficespaceat themoment.”Thecompanynotes strongin-officeattendancebyoccupierstaff—4.1daysaweekagainst thenationalaverageof3.3days.

“Thesecondthingisthattoget theirstaffbackintheoffice,they’re havingtorentreallyhigh-quality offices.That’ssomethingtheprecinct ismostcertainlybenefitingfrom,” Pritchardsays.

Precinct’spartinovercomingperceptionsis“todesignspacespeople wanttobein”,hesays.“They’rewell lit,they’respacious,they’resafe. Therearealotofpeoplearoundand becausetheurbanenvironmentisso good,peopleareattractedtoit.

“Themorepeoplethatareinthe urbanspaces,thesaferitis.”

Precinctalsohasanactiveresidentialpipelineofdevelopmentwith $375mofbuild-to-sellprojects—most recentbeingDovainMtEdenand PillarsinStMary’sBay/Ponsonby. ThecompanysaysitspurposebuiltstudentaccommodationstrategysupportsAuckland’seducation economy,vibrancyandlong-term CBDresilience.Themostrecentprojectsinthisclassincludea964-bed constructionat22StanleySt,dueto openin2029anda638-bedbuildat 256QueenSt,alsoopeningin2029. Bringingthevisionofapowerhouseglobalcitycentretogetherwill takemorethanPrecinct’sefforts, however.

“Thecityneedstohaveasenseof communityandanabsolutecommitmentforpeopletobesafehere,” Pritchardsays.“Weneedcontributionstothingslikeschools,sothat familiescanlivehere.

“Weneedtoleveragetheinfrastructurethat’sbeeninvestedin—the likesoftheCityRailLinkandthe InternationalConventionCentre.I thinkit’saboutprioritisingthatthis isthemostproductive4.5kminour country.Nowwewanttolayeritup withotheruses.

“Atthemomentourcitycentreis setuptobeaworkplace.Weneed tosetituptobethriving,24-7.”

● PrecinctPropertiesisasponsorof theHeraldProjectAucklandreport.

Tenprojectstomake

Tenplanned,underdevelopment,stalledor gone-quietAucklandCBD projectsareenoughtomake youcelebrate,orcry.

These10dominateconversations asmuchastheyinfluencetheeverchangingfaceofourdynamiccity centre.

Theyincludeonce-prominent planswhichhaveeithergone extremelyquietorstalled.

Aswepreparetoridethe$5.5 billionCityRailLinklaterthisyear andtakejoyinvisitingthenewNZ InternationalConventionCentre, progressemergesfromsomesites.

ThatincludesMansonsTCLM’s $650millionofficeprojectat35 GrahamStontheridgeabove FanshaweSt.

Also,oneofthe20sites,described lastyearas“dire”,duetobeing bulldozedandleft,isatlastchanging, albeitintocarparking.

MansonsTCLMisbuildingan11-leveltwin-blockproject,connectedviaacentralatriumonGrahamSt.

Newsisslowtoemergeatother siteswhereplanswereannounced twoyearsago:MalaysianResources CorporationBerhadandtheirlocal consultantsarequietoverthemuchpromotedplannedSymphonyCentre besidetheAoteaCentre.

Designchangescouldbeunder way. Yetwecanalsocelebrateaseries ofhugewinsintheCBD,likethe

buzzingCommercialBaywithitsnew PwCoffices,downtowneateriesand shops,aswellasPeterCooper’s popularBritomart.

Bossesbehindthesinglemost audaciousplannedmulti-billion dollarprojectarepushing“go”later thisyear.

Thefollowingisalistofsomeof thecitycentre’slargestprojects— planned,quiet,andotherwise.

1

MansonsTCLM’s$650m offices

ThisisNewZealand’slargest newunder-constructionsingle commercialofficeproject. YakkaConstructiondemolished theex-AucklandCouncilofficeson thisblockat35GrahamSt,leaving onlyBJBallHouse. MansonsTCLMisnowbuilding newoffices,havingwonconsentfor

an11-leveltwin-blockproject, connectedviaacentralatrium. Thedesignshowninoneplanis forabuildingtobe24,649sqm,or 2.4ha,ofindoorfloorspace.

Somelargetenantsarelookingfor newspace,includingmajortrading banks,nowinextremelydated buildings.

Oldofficesoftenlackgreenstar ratings,sothebanksfailtomeettheir commitmentstosustainabilityand theenvironment.

2

Pu¯manawaoTa¯maki PrecinctProperties’chief executiveScottPritchard vowstostartthisyearonthe twin-tower55-leveland45-level DowntownCarparkredevelopment, Pu¯manawaoTa¯maki.

Procurementdiscussionsare underwaywithseveralmain constructioncontractorsandsubcontractors,“withgoodlevelsof interest,”Pritchardsaidlastyear. Worksareexpectedtostart, “followingpre-leasingand constructionprocurement”. Precincthasappliedforfast-track consentforthemanyapartments, hotelrooms,officesandcommon areastheprojectcouldbring. OnJanuary12,itreappliedafter withdrawingitsoriginalDecember2 application.

Thedevelopmentistobethree podiumbuildings,twotowersand fourlevelsofsharedbasement. Newpublicspacesandanew lanewaynetworkaretocreatemore connectivitywithinthecitycentre. Modificationsaretobemadeto adjacentbuildingsHSBCandAonto createthatnewlanewaynetwork.

ProjectAuckland AnneGibson

youcelebrateorcry

3

FoodAlley/Yatessitetobe carparks

HongKong’sWilsonParking andSingapore’sKumfamily anditsM&LGroupisliveningupthe bulldozedAlbertStsiteoftheFood AlleyandYatesBuilding.

Workishappeningatthesite betweenFederalSt,WolfeStand AlbertSt,acrosstheroadfromtheJ. W.Marriotthotel.

“Along-vacantcentralsiteon AlbertStindowntownAucklandis setforapositivetransformation,with ownersM&LGroupandWilson Parkingpartneringtoupgradethe site,”ajointstatementsaid.

Thelevelbutemptysite,which previouslyhadabarbed-wire-topped fence,appearedinaHeraldfeature lastyear,whichchronicledthedire stateofourCBD.

Isthisthebestwecando,oneblock fromthewaterfrontandcreatecar carking?

In2024,DeputyMayorDesley Simpsonsaiditwasverysadthesite hadbeenleftinthatstateforsolong: “Aucklanddeservesbetter,”shesaid ofthe4371sqmblock.

4

NZ’stalleststudentblock Precincthasalsostartedits 638-bed$201mstudentblock intheCBD.

Iconisbuildingthat32-leveltower at256QueenSt.

Precinctaimstohavethetower finishedforthestartofthe2029 academicyear.

Iconalsobuiltanew18-level studentaccommodationbuilding with758unitsat66-77LorneStin AucklandCBD.ThatisforCedar Pacific,withUniLodgetobethe operator.LikePrecinct’sQueenSt tower,theLorneStblockwas designedbyAshtonMitchell.

LastOctober14,Precinct announceditsQueenStprojecthad started.

5

Seascape—56levels,dead Seascapeisperhapstheworst thingtohappeninourCBDin manyyears.

Wehaveonlypartialcompletion ofthis$300m56-leveltower,whose developer,ShundiCustoms,isnowin receivership.

NotuntilMay11willthereceivers releasetheirinitialreportshowing whatwentwrong.

“Whatashamblestheinnercityis. Whataneyesorethatbuildingis,”said one Herald reader.

6

Waterfrontwatershed

Again,it’sPrecinctforathird majorcityproject,thistime withOramsMarineina controversialwaterfrontWynyard Quarterscheme.

Callthisawaterfrontwatershed becauseplansarefora23-level80m tallapartmentandcarparking buildingacrosstheroadfromthe WynyardQuarter’stallestexisting apartment.

Precinct’sfast-trackapplicationfor 188BeaumontStseeksconsentfor“a markerbuildingcontaining approximately215residential apartmentswithin-builtflexibilityfor useasservicedapartments,groundfloorretailactivitiesandassociated carparking”.

Neighboursarefuming.Aresident oftheMaddenStblock,developedby WillisBond,said:“Thereisgeneral horrorandconcerninthe community.”

7

NewWorldVictoriaPark— slow Aheadcontractoristobe appointedthisyeartothe Foodstuffs(NorthIsland)NewWorld VictoriaPark,sobadlyburnedon June17thatNikaudemolishedmost ofit. NinemonthsafterthefireatNew Zealand’smostvaluableNewWorld, norebuildapplicationhasemerged,

althoughitsowner/operatorsays theyare“goingatfullpaceondesign”. ResidentsofHerneBay,StMarys Bay,CollegeHillandsurroundslost theirsupermarketandmournwhat theyseeastheslowprogress.

8

NorthWharfplans imminent

StridePropertyisleasing threeCBDwaterfrontsites fromtheAucklandCouncil,fornew hospitality/officesblocksopposite ASBNorthWharf.

CEOPhilipLittlewoodannounced plansforaredevelopmentoftwoof thethreepropertieswiththe company’sresultsinNovember. Designandconsentingis underwayfora10,500-12,500sqm premiummixed-useretailandoffice development,hesaid.

Thecombinedareaofthesiteson JellicoeSt,facingthepedestrian NorthWharfPromenadeoverlooking thesea,is3672sqm.

9

Malaysians’$450m SymphonyCentre Littlehasbeenheardofthe SymphonyCentrefor months.

Fromtop:Precinct aimstohaveNew Zealand’stallest studenttower finishedforthe startofthe2029 academicyear;the twin-tower55-level and45-level DowntownCarpark redevelopment, Pu¯manawao Ta¯maki;MRCB renovated BledisloeHouse andplanstobuild theSymphony Centreona neighbouringsite; thelong-vacant formerFoodAlley siteonAlbertStis setforapositive transformation; renovationwork takingplaceatthe StJamesTheatre.

MRCBrenovatedBledisloeHouse andplanstobuildtheSymphony Centreonaneighbouringsite. RCPdirectorandproject developmentdirectorCristean Monrealwaspreviouslyprominent onthescheme.

AlocalPRconsultantsaidsheno longerworkedonthisaccount. MonrealwenttoMRCB,which issuedanupdate.“TheSymphony Centreremainsanimportantproject forMRCBInternational.Ourteamis currentlyworkingwithourproject partnerstooptimisethedesignto furtheralignwithcurrentlocal marketandconstructionconditions. Welookforwardtoprovidingfurther updatesinduecourse.”

Thatobliquelyreferstoapossible redesigntomeetthepoormarket. TheSymphonyCentreofficeand apartmentprojectisplannedbeside theAoteaCentreonwhatwasa carparkusedfortheAuckland Council’sfleetbehindBledisloe House.Thisschemehasalsobeen citedasasignofCBDrevitalisation. Resourceconsentwasgrantedin 2023.

Sectorleadershaveempathyfor theMalaysians,sayingnowisnotthe righttimeforsuchabigscheme,given theeconomicdownturn.Few apartmentsweresoldtheresofar. Monrealdid,however,talklast yearaboutRCP’sinvolvementinthe BledisloeHouserefurbishment.

10

WhatoftheStJames Theatre?

LastFebruary,the Heraldreportedon fundingfortheStJamesTheatreon QueenSt.Itwasonceoneof Auckland’spremierconcertvenues. AucklandCouncilvotedto commit$15minfundingto restoration.

Thatfolloweda$15mcommitment fromtheGovernmentthroughthe MinistryofArts,CultureandHeritage.

RailLinkaninvestment

Ferries,busesand trainswillconnect toprovidemore frequent,easier, fasterjourneys aroundthe region,writes GrahamSkellern

Thelong-awaitedCityRail Linkthatwillchangethe waypeoplemovearound Auckland,andreducecongestion,isjustafewmonthsaway fromopening.

Thecomprehensivetestingofall aspectsofthenetworkandthetimetablebyKiwiRailandAuckland Transport(AT)isnearinganend, publicopendayswillbestaged,then thetransporttransformationthatis the$5.5billionCRLwillbeunderway inthesecondhalfofthisyear.

“TheCRLcompletelychangeshow peoplegetaround—notjustintothe citycentrebutrightacrosstheregion,”saysBarryPotter,Auckland Council’sdirectorofresilienceand infrastructure.

“Duringpeaktimes,trainswillbe comingthrougheveryfourtofive minutesinthecitycentreandbusiest partsofthenetwork,”Pottersays. “Wewillhavepeoplemovinginthe samewaytheydoinmostmajor citiesaroundtheworld.Buses,ferries andtrainswillfeedintoeachother andcreateawholeintegratedpublic transportnetwork.

“Thenetworkwilldrivedevelopmentaroundtransportnodes,housingandcommercial,anditwill changewherepeoplechoosetolive andwork.”

TheCRLcompletelychangeshow peoplegetaround—notjustintothe citycentrebutrightacrosstheregion BarryPotter,AucklandCouncildirectorofresilienceand infrastructure

Presently,Auckland’strafficcongestioniscostinganestimated$2.6 billionayearinlosttimeandproductivity.TheCRLisdesignedto providesomereliefwithmorefrequenttrainsandquickerjourneys. PottersaystheCRLprovidesa choiceandfreesuparterialroadsand motorwaysforthosewhomustdrive, includingfreightandemergency services.

Hesaysthemorepeopleusingthe railnetworkandthemorevehicles comingofftheroads,themore sustainableAucklandbecomes. “CRLismuchmorethanadynamic transportproject—it’sacity-shaping investment.”

AndyBaker,FranklinWardcouncillorandchairmanofAuckland Council’sTransportandInfrastructureDeliveryCommittee,says

ProjectAuckland GrahamSkellern

thatisshapingthecity

“whenyoulookatbigmoderncities, theyareallpremisedonhavinga well-functioning,efficientandattractivepublictransportnetworkbased onrail,generally.

“Youwillhavenewoptionsfor one-seatridesandifyoudohaveto getoffandchangetrains,it’llbe seamlesswitheasytransfersinside modernstations.Wearegettinga world-classtransportsystem.”

Bakersaystheupgradeofstation neighbourhoods,theCRLitselfand theCRL-enabledtimetablewillimprovehowthecitygrowsand competes.

“LookingatallfourCRLstation precincts,onethatisgoingtogonuts isKaranga-a-Hape.It’soneofourmost iconicplacesinthecity.Itmirrorsa lotofthefunky,cosmopolitanparts ofotherbigcities—likeFitzroyin Melbourne.

“I’mreallylookingforwardto jumpingonatraindowntheroad frommyplaceinSouthAuckland, exitthestationatMercuryLane,and headtoSt.Kevin’sArcadewithits awesomerestaurantsandtheother eclecticpartsofKarangahapeRd.”

Bakersaystherailnetworkwill openuppartsofthecitythathave beendifficulttogetto,andeven forgotten.“IntheareaIrepresent, there’sabustlingtowncentreinPukekoheandpeoplefromthecitycentre willbeabletogetoutthereeasilyand exploreotherpartsoftheregion.”

TheopeningofCRL,12yearsinthe making,meansthetrainswillpass throughtheoncedead-endWaitemataStation(formerlyBritomart)and looparoundamoreaccessiblecity centreunderground,42metresbelow streetlevelatitsdeepestpoint.

Therearetwonewstations—Te WaihorotiunearAoteaSquarewith entrancesonWellesleyStandVictoriaSt,andKaranga-a-Hapewith entrancesonBeresfordSquareand MercuryLane.BeresfordSquare,MercuryLaneandtheplazaonthe easternentrancetotheWaitemata¯ Stationhavebeenturnedintourbandesignedpublicspaces.

TheCRLconsistsoftwin3.45km railtunnelsconnectingWaitemat¯a Stationwiththere-developedMaungawhauStationinlowerMtEden.

TherenamedEastWestLinewill joinexistingstationsalongtheway andprovideadirectconnectionfrom SwansontoManukauviathecity centre.

TheSouthCityLineconnects SouthAucklandwiththecitycentre, loopingaroundthecityviathebrand newundergroundCRLstations.

Therailnetwork willopenuppartsof thecitythathave beendifficulttoget to,andeven forgotten.

AndyBaker,ChairofAuckland Council’sTransportandInfrastructure DeliveryCommittee,

Threenewstationsarebeing addedtothislinebetweenPapakura andPukekohe—Drury,Ngakoroaand Paerata—tocaterforthedevelopmentofDruryintoacitythesizeof Napierwithin20-25years,witha populationof65,000.

WhenCRLopens,travelfromHendersontomid-townTeWaihorotiu Stationwilltake35minutes,asaving of24minutesonpublictransport; fromPanmuretoKarangahapeRd21 minutes,saving14minutes;and Ellerslietothesamedestination20 minutes,saving16minutes.

There’snoneedtouseabusfrom theOta¯huhuStationtoKarangahape Rd.AndtravellingfromtheMaungawhauStationtodowntownWaitemata¯willtakejustunder10minutes

—abouthalfthecurrenttime.

Stresstestingthetimetableand frequencyhasrevealednetworkcongestionattheWiri,Ota¯huhuand Westfieldjunctions,wherefreight andpassengerservicescompetefor trackspace.WestfieldandWiricould eventuallybegrade-separated.

“We’lltweakafewthingsbeforewe runthesimulationagainintheApril schoolholidays,tohelpusfinalisea robusttimetableandprovidereliable servicesfromdayone,”AT’sdirector ofpublictransportandactivemodes, StaceyvanderPutten,toldarecent meetingofthecouncil’sTransport andInfrastructureDeliveryCommittee.

Theprojectagencieswillhave removedorimproved13levelcrossingsindifferentpartsofAuckland aheadoftheCRLopening.

PottersaysCRLwilldoublethe numberofpeopleexperiencinga publictransportjourneytimeof30 minutesorlessintothecitycentre bytrain,andthismajorinfrastructure investmentwilldeliverasignificant returnonthecouncil’s50%stakein theproject.

AThasincreaseditsall-electric trainfleetby30%from72to95threecarriagetrainstohandletheadditionalcapacity.

Aswell,ATishiringmorefrontline staff,updatingbusroutes,developing

anewoperatingtimetable,integrating thestationswiththeirneighbourhoods,andupdatingwayfindingand customerinformation.

Thefinaltimetablewillprovide16 trainsperhourineachdirection throughtheCRLandhavethecapacitytomoveupto19,000passengersanhourintothecitycentrein thepeakperiodsof7am-9amand 4pm-6.30pmduringtheworking week.

Allweekendserviceswilloperate ontheoff-peaktimetable,asitdoes today,andwillincreasefromevery 20minutestoevery15minutes.

PottersaysCRLisdesignedto carryupto54,000passengersinthe future,supportingpopulationgrowth fordecadestocome.

Movingthatmanypassengersisa long-termprospect,andreliesoninvestmentinthewidernetwork,such aslongerplatforms,extratracks, moretrainsandtraininfrastructure, andlevelcrossingremovals—some ofwhichisalreadyunderway.

ThenewCRLstationsarealldesignedwithlongplatformsforfuture nine-cartrains. Tobeginwith,thefinaltrains throughthecitycentreareexpected toruntoaround11pmfromSunday toThursday,andaround1amonFridaysandSaturdays. TheCRLstationswillcloseover-

nightafterthelasttrainforcleaning andmaintenance.Buttheywillreopenbeforethefirstmorningservice —around5amonweekdaysandjust before6amonweekends.

Thefaresandzoneswillstaythe sameafteranaverage5.1%increase earlylastmonth.Aone-waytraintrip fromPukekohetoanyCRLstation willbe$7.90,fromSwansonorPapatoetoe$6.50,andPanmure/Ota¯huhu $4.90.

AquicktripfromKingslandinto thecitycentrewillcost$3.

AndforeveryoneusinganATHop card,there’sweeklycapof$50. So,willtheCRLliveuptoexpectations?

“Peoplearelookingforwardtoit, judgingbythenumberofinquirieswe aregetting,”saysPotter.“Themost commonquestionis:‘Whendoesit open?’

“Wewillopenthedoorsinthe weeksleadinguptotheopeningfor publicviewingoftheCRLstations, andtheycanseehowitworks.”

PottersaystheCRLhasprovided alegacyofthousandsofmenand womenbringingtheirskillsandenergytomakeithappen.It’sbeenthe mostcomplex—andbiggest—transportprojectundertakeninNewZealand.

“Thepublicwillbeimpressedwith thequalityofthestationsandhow easyitistogetaround.Ithinkthey willbeveryproudofCRLanditwill becomepartoftheirlife.”

Bakersaysthecitycentreis comingaliveagain.It’sbeenthrough challengesandhardtimes—the Covidpandemicandthedisruptive CRLworks—butit’sovernow.

“Iwastalkingtoahoteloperator abouttheMilitaryTattoobeingin townandheremarkedtheyexperiencedtheirbestweekendeverin February.

“Thereare35,000peoplelivingin thecitycentre,theuniversitiesare full,theconventioncentrehasopened,andeventsaretakingplaceat WynyardQuarterandAoteaSquare.

“Eachareaofthecitycentrehas itsowntheme,suchasmid-townwith itsartsandlearningandCRLwill enablepeopletorediscoverthecity andgetthevibe,”Bakersays.

“CRLismorethanjustgetting workersintothecitycentre.Melbourne’shasbecomeatouristattractioninitsownright.CRLbringsus intolineabouthowweliveand operateasatrueinternationalcity.”

● AucklandCouncilisasponsorofthe Herald’sProjectAucklandreport.

Aninnovationstory

AucklandCouncilisgetting readytotellthestoryofits emergingcentralcityinnovationdistrictanditsexcitingopportunities.

Theshapeofthedistrictislikea koruandcanleadAucklandtobecomingatrulyinternationally-recognisedtechnologyhub,likeSydney TechCentralorToronto-Waterloo.

Thekoruisaspiralsymbolbased onanunfurlingsilverfernfrond.It representsnewlife,growth,strength andregeneration,andhopeforthe future.

Thecouncilhasn’tyetdecidedon aname/brandforitstechnologyofferingbutisevolvingaconnectedcity centreofentrepreneurialbusinesses, seedtoventurefunding,researchand commercialisation,designandengineering,andtalent.

PamFord,generalmanagerofthe council’sEconomicDevelopment Office,says,“OurroleistokeepmakingAucklandagreatplacetolive andworkandprovidequalityjobs. Alotofitisinthestorytelling,aswe havetheingredients.”

Shesaystechnologyiswhere Aucklandshinesandtherearealreadymanyexcitingcompanies acrosstheregion.

“Thesectorcontributes56%of NewZealand’stechnologygross domesticproductand65%ofearlystageinvestment.Outofthetop200 techfirms,110arebasedinAuckland, andthereare900start-ups.

“Wearetalkingaboutthepeople behindthecompanies—theseleaders,engineers,designersandentrepreneursarespecial,andwehaveto createtheconditionsforthemto thriveandattractthetalentthey need.

“Weknowfromothercitiesthatif youhaveaconcentrationofcharactersthatmakeupaninnovation ecosystem,thenit’seasierforinternationalinvestorsandtalenttotap intoandbepartofexcitingnew companiesandresearch.

ThekorubeginswithWynyard Quarter,whichin10yearshasbecomeabustlinginnovationprecinct, driving$424milliongrossdomestic productayear.ItbeganwithGridAKL asahomeforenergetictechnology anddigitalstart-upsandameeting placeforambitiousentrepreneurs.

Aucklandhasalltheingredientstotellthestoryofworld-class creativitytakingplaceintheregion,writes GrahamSkellern

AucklandCouncilisdevelopinga refreshedeconomicdevelopment strategythatfocusesonfutureindustriesandfuturejobs—thelastone waswrittenin2012.

“Wearelookingatwhatthecouncil candotoenableeconomicgrowth, forbusinessestobemoreresilient againstclimatechangeandtechnologychanges,andtobegloballyambitious,”saysFord.

“Nodoubt,therewillbeanaccelerationofnewtechnologiesinartificialintelligence,quantumcomputing,energy,androbotics.Thereare greatthingsgoingonatAUTand AucklandUniversity.

“Asaneconomicdevelopmentoffice,weneedtoconsiderthelevers ofcouncilthatcouldsupporttheinnovationsectorsandcompanies.We mightbeabletodevelopworking spacesandprecincts,workonindustrialzoningandrates,providemayoralsupportinadvocatingtoWellington,andcreateinternationalconnections.”

AucklandmayorWayneBrown hasplacedanimportanceoneconomicdevelopment.LastyearheannouncedtheAucklandInnovationand TechnologyAllianceandaleadership grouptodrivethecity’sambitionto becomeagloballycompetitiveinnovationandtechnologyhub.

“We’vegottheideas.We’vegotthe talent.Whatwe’velackedisco-ordinationandacitythattrulyenables innovationtoscale,”saidBrownatthe time.“Thisgroupisheretofixthat —backinginnovationthatdelivers realresultsforAucklandandliftsthe wholecountry.

“WhenIlaunchedthealliance,I madeitclearthatthisisn’tanother talkshop.It’sadelivery-focusedteam ofprovenAucklandleaderswho knowhowtocutthroughandget thingsdone,”Brownsaid.

Theleadershipgroupincludes AucklandTechCouncilfounderSimonBridges,AucklandUniversityvicechancellorDawnFreshwater,thefirst ChiefScienceAdvisertothePrime MinisterSirPeterGluckman,Spark chiefexecutiveJolieHodson,Tech NewZealandchiefexecutiveGraeme Muller,OutsetVenturesco-founder MatRoweandAcademyEXfounder FrancesValintine.

GridAKLwassoonsurroundedby theMediaDesignSchool,theNew ZealandofficesofGoogle,Datacom, Fonterra,MicrosoftandIBM,and mostrecently,becametheheadquartersofengineeringandconsulting servicesfirmBeca.

SoftwarecompanyMedtechGlobal,with15,000licenseduserslogging indailytoitspracticeandpatient managementsystem,hasalsotaken aWynyardQuarteraddress.

TheMigrantsinTechprogramme beganwith50peoplemeetingat GridAKLeverytwomonths.Now membershiphasgrownto1500.

“TheWynyardQuarterhasreally becomeathrivingcommunity,”says Ford. Movingfromthequarteralongthe waterfrontandlowerdowntown,the korutakesinventurecapitalfunders NZGrowthCapitalPartnersand BridgewestVentures,andreaches ParnellwiththeIcehouseandIcehouseVentures,alongwithOutset Ventures,thebirthplaceofRocket LabandLanzaTech. OntoNewmarketandGrafton,we havetheresearchhubMedtech-iQ Ta¯makiMakaurau,technologyeducatorAcademyEX,andtheAuckland officeofAsiaPacificengineering,designandadvisoryfirmAurecon.

TheUniversityofAucklandhas takenoverthe5.2hasiteformerly ownedbyLionBreweriesandis turningitintotheNewmarketInnovationPrecinct,withdevelopment plansthatwillmakethisaworld-class placeforinnovation. Furtheruniversityresearchhubs suchastheBioengineeringInstitute,

theCentreforInnovationandEntrepreneurship,andtheSpaceInstitute arelikelytomovetotheprecinct.

TheNewmarketprecincthaslargescaleengineeringandscienceresearchfacilitiesandishometomore than40early-stagecompaniesthat haveraisednearly$21mincapital.

Furtheralongthewayisanew developmentareainlowerMtEden, spurredonbytherebuiltMaungawhauStation,akeyconnectionfor theCityRailLinknetwork.

Thekoruthenloopsintomid-town andthecoreeducationcampusesof AucklandUniversityofTechnology andtheUniversityofAuckland,with theircommercialarmsAUTVentures andUniServices,whichwillbemovingtoNewmarket.

“Icanenvisionthatin10years’ timecentralAucklandwillbeinternationally-recognisedfortheinnovationandsmartcompaniescoming outofit,”saysFord.“Tobeglobally ambitious,weneedtohaveastrong innovationstorytotaketotheworld.”

Furtherafield,there’smoreinnovationatGridManukau,theFoodBowlneartheairport,theReserve Ta¯makihubinGlenInnesforlocal start-ups,andtheTePunaCreative InnovationQuarteratHenderson. FordsaystheAucklandregionhas pocketsofindustrialprecinctssuch asRosedale,Silverdale,WairauVal-

Weareanexporting nationandwewant toexportamazing goodsandservices aswellasbeingan importeroftalent andinvestment.

PamFord,generalmanagerof AucklandCouncil’sEconomic DevelopmentOffice

ley,Rosebank,Penrose,EastTa¯maki (homeofthecountry’sbiggesttechnologycompanyFisherandPaykel Healthcare)andMa¯ngerearoundthe airport.

“Theseprecinctshaveamazing firmsinvolvedwithadvancedmanufacturingandtransportandlogistics, andweareseeingmoredisruptive technologiesemerging,”saysFord. AucklandwantstorivalSydney TechCentralinAustraliaandToronto-WaterlooCorridorinCanada. TechCentralisa6kmsqprecinct neartheSydneycentralbusinessdistrict,withthehighestconcentration ofventurecapitalandtechnology businessesanywhereinAustralia,

supportingaA$42billioneconomy and100,000workers.

TheNewSouthWalesGovernmentcommittedA$38.5minits 2025-26Budgettofurtherconvert Sydney’sclusterofhigh-performing industriesandinstitutionsintoa world-class,integratedinnovation ecosystem.

BusinessesinTechCentralhave accesstomorethan160,000students and150researchinstitutesandcentresofexcellence,includingSydney University,UniversityofTechnology Sydney,Nanosciencehub,Australian CentreforRoboticsandBiomedical Accelerator.

Thatsoundsveryfamiliartothe emergingAucklandinnovationstory. Toronto-Waterlooisa105kmroad andrailcorridorlinking26,000tech companies,including5200start-ups andsome373,600employeesinhightechindustries.Theinnovationcorridoristhethird-largesttechnology clusterinNorthAmericaandcontributesC$476b($600b)totheCanadianeconomy.Thecorridorhas Canada’slargestengineeringschool, thetopthreecomputerscienceprogrammes,andsixbusinessschools. Withmorethan10.7%ofthetotal workforceemployedintech,thecorridorhasasimilartalentdensityto SiliconValleyandgreaterdensity thanNewYorkorBoston.

Theeconomicdevelopmentoffice hashadsomerecentwins.LastOctoberthecouncilhostedthefirstAucklandStartupWeek,whereinnovators, investorsandcorporatepartnersmet andconnected.Therewere32events in10venuesinthecitycentre,with 4200participants—doublethe expectednumber.

RepresentativesfromAuckland’s sistercitiesDenverandFukuokaattended.“Thestartupweekplaysan importantroleinusbeinginternationallyconnectedandrecognised asatechhub,”saysFord.

Thecouncilplanstostagethe week-longeventforthenextthree yearsatthesametimeoftheyear.

InconjunctionwiththeUniversity ofAuckland,thecouncilhasrunthe DigitalManufacturingLightprogrammetoequipsmallandmediumsizedmanufacturerswithpractical digitaltoolstoimproveproductivity andworkforcecapabilityandbuild long-termbusinessresilience.

Theprogrammecaughttheeyeof theGovernment,whichisnow fundingupto$475,000ayearover threeyearstosupportatleast180 manufacturersacrossAuckland,Waikato,NorthlandandBayofPlenty. Participatingbusinessesreceive anassessmentoftheirdigitalneeds, guidanceonselectingtheappropriate technologies,assistancewithinstallationandtrainingtosupporteffective useofthetechnologyonthefactory floor.

Businessresiliencebecameakey themefollowingthe2023AnniversaryWeekendfloods,which,accordingtoinsurancecompanyAon,causedaneconomiclossof$5.5b.

ThecouncildevelopedClimateWise,providingfreetoolsandresourcesforbusinessestopreparefor climate-relatedeventsandreduce theirrisks.Thisisbeingrolledout throughbanksandinsurancecompanies.

Fordsaysapizzabusiness,for example,lostallitsreceiptsduring theflooding,whichbecameanightmareforitstaxreturnsattheendof thefinancialyear.

ThecouncilisfosteringtheAmotai supplierdiversityprogramme,matchingMa¯oriandPasifikabusiness (thesuppliers)withlargecontractors andprojects(thebuyers).

“Amotaiprovideshugeopportunitiesforindigenoustradeconnections andopportunities,”saysFord.

McConnellDowell,whichisafoundingmemberoftheAmotainetwork, engagedlocally-ownedbusinesseson thePuhinuiStationInterchangeproject,resultinginprocurementtotalling$730,000.

McConnellDowellpartnersAmotaionallitsNewZealandprojectsand providesmentoringtoupskillbusinessesandtheiractivities.

ThecouncilwantstotakeadvantageoftheFreeTradeAgreement withIndiaandbuildstrongertechnologyrelationshipswithcitiessuchas AhmedabadandBangalore.Amayoralvisitisexpectedlaterthisyear.

“Asourmayorsays,‘thisisbusinessbetweencities’.Indiaprovidesa lotofopportunity—ithasgross domesticproductgrowthof7.8%— andwewanttoopenupnew connections,”saysFord.

“WehaveAucklandcompanies likeFisherandPaykelHealthcareand RakonbasedinIndia,soit’snotquite

newterritory.We’dliketoexplore howGridAKLcanbuildpartnerships withinnovationcentresinIndia.”

TransformingAuckland throughvitalinfrastructure totaketotheworld

vancedTechnology,whichiscurrentlyrecruitingachiefexecutive. Theinstitute,replacingCallaghan Innovation,isthecountry’sfourth publicresearchorganisationanda cornerstoneoftheGovernment’sgoal togrowahigh-tech,high-valueeconomy.Itwillconnectresearchers,industryandinvestors,andtheGovernmentisfundingmajorinvestmentsin ascienceplatformfocusedonfuture magneticandmaterialstechnologies, alongwithacceleratingartificialintelligenceresearchandcommercialisation.

Theseinitiativesaimtostrengthen NewZealand’scapabilityinadvanced technologiesandunlockneweconomicopportunitiesacrosssectorssuch ashealth,energy,transport,andthe spaceindustry,theGovernmentsays.

“Wehavenoshortageofamazing entrepreneursandincrediblenew ideas.WehavetheemergingNewmarketInnovationPrecinct,thematurityofWynyardQuarter,thenew InstituteofAdvancedTechnology, andtheopeningofCityRailLinkwill unlocknewdevelopmentareaslike Maungawhau-MtEden,”Fordsays.

“I’mthrilledtheregioniscoming outoftherecoverystage,following Covidandthefloods,andI’mlooking forwardtoourstoriesbeingtold.

FordsaysChinaisstillimportant asthecountry’slargesttradingnation andAustraliaiscriticalwithgood friendsinthesistercityofBrisbane. “We’vetoldthemtheyhavetowhip overfortheStateofOrigin(rugby league)matchnextyear.

“Wearetalkingwithothercities suchasHelsinki,whichhasavery activetechnologyandinnovation scene,abouthowtotapintoEuropeanfundingsuchasHorizonEurope thatcouldhelpAuckland.”

HorizonEuropeistheEuropean Union’skeyfundingprogrammefor researchandinnovation,witha budgetofmorethan$NZ186b,and NewZealandisanassociatemember. TheAucklandinnovationnetwork willsoonbeboostedbytheopening oftheNewZealandInstituteforAd-

“Bybeingbolderandmoreambitious,Aucklandcanlandontheinternationalstageasitdeservestobe,” saysFord.

“Weareanexportingnationand wewanttoexportamazinggoodsand servicesaswellasbeinganimporter oftalentandinvestment.”

● AucklandCouncilisasponsorofthe Herald’sProjectAucklandreport.

Photo/AucklandUniversity

Aucklandhasbonestobe

EricaLloyd looks insideAuckland’s risingdeeptech hub,from RocketLab tostellarstartups

Weallknowthefirstrule ofFightClub.Don’ttalk aboutFightClub. Thesamecanbesaidof technologyecosystems.Ifyouare onealready,you’relikelywaytoo busywithhustleandscaling awesomebusinessestobetalking aboutbeingone.

Overthepast15yearstherehas beenalotoftalkaboutecosystems hereinAuckland.Strategydecks. Panels.Workinggroups.I’vebeenon some.Lately,though,I’venoticedthe wordisbeingbandiedaboutalittle less.Ihopethismeansthatoperators aregettingonwiththedoing.

Thereisagloballydebated,though accepted,recipeforwhatittakesto buildasolidtechnologysectorand startuphub.Aucklandnowhassome ofthekeyelementsliningupnicely. Notall.Somearefixable.Someare ontheirway.Andafewstructural chasmsthatwilltaketimetobridge ifweevercan.

WhereTa¯makiMakaurauisnow Ontheticksideoftheledger,wehave realcompanies.Xero,RocketLab, Fisher&PaykelHealthcareleading thecharge.Theseareglobally

recognisedfirmswithmeaningful scale,strongexecutiontrackrecords andrealeconomiccontribution.They demonstrate,unequivocally,that globallycompetitivecompaniescan bebuiltfromAuckland.

Wehaveearly-stagecapitalthat simplydidnotexistadecadeago. IcehouseVentures,GD1,Outset, Bridgewestandmore.

NZGrowthCapitalPartners (NZGCP)sitsbehindthemasthefund offunds,committingroughly$250 millionandbackingmorethan160 companies,withafurther$100m fromtheNewZealandSuperFund lastyear.Plusaclearandstated missiontoinvest$5billioninfive years.

Auckland’stechsectorcontributes 56%ofourGDPat$18.1b.Thecity housesmorethan55%ofthe

country’stechstartups,alongsidethe highestconcentrationofangel investors,venturecapital,private equityandincubators.

DeeptechinvestorMitaliPurohit saysAucklandhascarvedouta uniqueglobalidentityasatechhub.

Youcanseethatstartingtoform. Pocketsofdensity.Space.Agritech. Fintech.Cleantech.Super-early clusterswheresomestartupssitclose tocapital,andalongsidehigh-value manufacturingcapability.

Butthereareunseenniche enterprisestuckedawayinindustrial parksofAlbany,Glenfieldand Ota¯huhudoingcrazythingswith hydrogen,carbon,plasticwaste.

Aucklandisalwayscontradictory Butthereisavibe-changeafoot.You canfeelitisthewayconversations

areshort-handed,andshared knowledgeandin-grouplanguageare tossedaboutatmeet-ups.Ongroup chats.Thereareeventsandstartup specialistmedia.

AsanAucklander,Ithinkofmy hometownasrelativelysprawly,a littlechaotic.Foroffshoreinvestors, Aucklandworksbecauseeverything isinoneplace.

Thefeedbackisconsistent.They aresurprisedbythequalityof innovationandtheproximityofit. Thatisstartingtoconvertintocapital. Throughmigrantinvestorflows, capitalhasalreadylandedinto companieslikeQuantifiPhotonics, WellumioandHectre.

Plus,hooked-upandmotivated returningKiwisarestartingtocome back.Astandoutisex-Facebook MarketplaceproductleaderBowen Pan,whoisgivingtheecosystema realshotinthearm.

It’spatchy,butit’swarmingup.The moreimportantshiftisbehavioural. Moreexchangewithoffshorehubs. Morefocusonsectorswheredistance doesn’tmatterandincreasingly whereitdoes,butisoutweighedby capabilityandanacceptancethat globalmobilityistickettothegame.

Geographybecomeslessrelevant. Capabilitybecomesthequestion. Andontheambitionfront,thereis nostructuralreasonwhyAuckland can’tcompete.

Thelimitation,aswitheverything inourcityorcountry,isscale.

OutsetVenturesbackfounders whoseambitionsaremassive.Think fusion.Theyalsohaveaflywheelin motionandanuncomplicatedask:for Aucklandtobetheplacewhere peopleliveandgrow.

Theventurecapital(VC)itselfhas

grownfivetimesbiggerinseven yearsandParnell-headquartered FutureHouseistherealdealinterms ofastartupenablerandhang-out. WithLanzaTech’sDrSean SimpsonontheboardalongsideSir PeterBeck,theVCandtheirfounders haveadirectlinktocompaniesthat havealreadyscaledglobally. LanzaTechalumnihavespunout others,WillBarker’sMintInnovation torecoverpreciousmetalfrom electronicwaste,Avertana,Ternary Kineticsandagritechstartup BioConsortia.

Onecompanybecomesseveral. Talent,capitalandexperiencecarry through.Thenextcompanystarts furtherahead.Thisishowitworks. Andthenthere’sthedrawofthe cityitself.Skinnyasashoelace drapedacross53volcaniccratersand cones,theWaitemata¯andthe Manukaupressinginoneitherside, Ta¯makiMakaurauisbreathtaking. Evenbetterfromthewater. Andslowly,finally,itisallwiring up.TheCityRailLinkhasbeen grindingalongThomastheTank Engine-slow,butit’shappening.My townisgettingflow.Becoming greener,morewalkable,more cyclable.Withmoreappealingplaces tobeandlive—ifyoucanaffordit. Urbanappealalongsideandaccess totheoutdoorsiswhatweoffer.In theglobalarm-wrestleforspecialist techtalentandinvestorcapital,ithas tobethecombination,saysAngus Blair,ofOutset.

Knowledge-basedengines WillCharleshasbeenfightingthe goodfightformorethan20yearsat UniServices.Theexecutivedirector ofinvestmentsdescribesour

aglobaldeeptechforce

ecosystemasmorebuiltthanitlooks —butnotyetscaled.

UniServicessitsatthecentreofthe UniversityofAuckland’scommercial engine,linkingresearchtoindustry, capitalandcompanycreation. Arounditisadeliberately constructedsystem:theCentreof InnovationandEntrepreneurship developscapabilityandmindset acrossstudentsandresearchers, whiletheNewmarketInnovation PrecinctandMedtechIQprovidethe physicalspacetoturnideasinto companies.

Thepipelineisnotaccidental,itis triagedandtrainedthrough.

Its$40mInventorsFundsupplies early“getgoing”capital,backing scientistsastheymovefromlabto startup.Andithasitsfingerprintson manyofthecompaniesweidentify asrealplayerstoday.

Theopportunitysetisbroadbut backed-up:chemistry,physics, engineering,energy,medtech,space, geothermal,hydrogen,infectious diseaseandAI.Theshift,Charlessays, isculturalasmuchasanything.More PhDsarenowchoosingtobuild companies,notjustpublishpapers.

Buttheconstraintisourconstant bugbear.Aucklandstartscompanies, thenstrugglestoscalethem.Thegap ishumancapital,saysCharles,and weseethisallovertheplace.

Therenotenoughpeoplehere whohavetakenacompanyfrom$5m to$50m,letaloneto$1b.

OrionHealthdid.Itwasoneof Auckland’sfirstglobally-scaledtech companies,buildinghealthdata systemsusedworldwideand creatingagenerationofexperienced operatorswhonowfeedbackintothe ecosystem.

Urbanappealalongside accesstotheoutdoorsis whatweoffer.Inthe globalarm-wrestlefor specialisttechtalentand investorcapital,ithasto bethecombination,says AngusBlair,ofOutset.

launchgeography.

IanMcCraeisbuildingagain,with AIthroughMcCraeTech.He’sclear onwhathasshiftedforhim.“Weused tobefearless,likewecouldtakeon theworld.GuyslikeJohnBrittenand BillBuckleyledtheway.”Andon whetherAucklandcanbackitselfand becomethetechcentrewehopeit can,hesays,“Thereisnoreasonwhy not.Wewillifthereisthewill.”

Theflywheel(andthescale problem)

Onthecrosssideoftheledger,itall comesbacktotheflywheel.Ormore precisely,theabsenceofit.Theflywheelisthekeytosectorcreationa laLanzaTech.Aself-reinforcingloop whereonesuccessmakesthenext onemorelikely,cheaperandfaster. RocketLabisourstand-out.Sir PeterBeckputNewZealandonthe mapinspace.Asimportantly,ithas startedtospawn.Thecompanyhas fuelledagenerationofengineersand operators.Anditdragsusallforward. Acan-dosignalthatwecandeliver deeptech,notjusttalkaboutit. Rightnow,wehaveacoupleof

TuckedawayinMount Eden’sleafysuburb whilelocalsareina white-fistedbattleover villasversusverticality, DrMalcolmSnowdonis buildingrockets.His approachisthe“shutup andbuild”schoolof engineering.

whales.Weneed10,20,100. Whatmattersisnotjustcreating thesecompanies,itistheexhaust,if youlike.Talentthathasseenscale andunderstandswhatgoodlooks likeatgloballevel. Rightnow,Aucklandis somewherebetweengenerationone andtwo.We’veprovenitcanbedone. Itdoesn’tquitefeelnormalyet.

Buildarocketnearavolcano SomeonedoingthedoingisDr MalcolmSnowdon.Heisex-Rocket

Labemployeenumbereightandmy formercolleagueatZenno Astronautics.Weworkedtogetherto bringspacetechnologybasedon high-temperaturesuperconducting magnetstomarket.

TuckedawayinMountEden’s leafysuburbwhilelocalsareina white-fistedbattleovervillasversus verticality,Snowdonisbuilding rockets.

Hisapproachisthe“shutupand build”schoolofengineering.Stellar Kineticsishiscompany,andhissmall teamarebuildingorbitallaunch vehiclesforEuropeandAsia-Pacific.

Rightnowtheyhaveacontractin placetoexportarockettoMalaysia asitdevelopsitsspaceprogramme. Othercommercialcustomersarein play.Hisfocusisspeedandcapital efficiency.Monthstolaunch,forless thanonemillioneuros,compared withprogrammesthattakemany yearsandrequirehundredsof millionsincapital.

He’llstayheretoo,Auckland worksforhim.Snowdonsails,climbs mountainsandseesnoobstaclesto growthwithaccesstostronglocal engineeringcapabilityandspace

BUSINESS REPORTS

PROJECTAUCKLAND isoneofaseriesofeightpremier BusinessReportspublishedannuallyintheNewZealandHerald.

Thesereportsarepremier,business-to-businesspublicationsprovidingcriticalsector insightsalongsiderobustinformedcontentandcommentaryaboutissuesthatmattertoNZ businesses.ThereportscanvastheviewsofCabinetMinisters,businessleaders,andbusiness organisationchiefs.

Thissitsalongsideexpertcommentaryfromrespectedthought-leadersthroughinterviews andin-deptharticleswrittenbytheHeraldBusinessReportsteam.

ThereportsaredistributedwithintheHeraldandtheeditorial contentiscarriedonlineat nzherald.co.nz/business.

Deeptechforthewin

AIiseatingsoftwareandthat’snot all,whichiswhyadeeptechfocus mattersevenmorenow.

Deeptechisscience,engineering andhardinfrastructure,thingsthat taketimetobuild,aredifficultto replicate,andcreateadeepand defendablemoat.

AndinNewZealand,wearedamn goodatit—andAucklandhasa notableconcentration.GlobaltechnologyisshiftingintoAI,quantum computing,spaceandsovereign capability.Geopoliticaluncertainty hasaccelerateddemandforhard assets.Aucklandhasthebones.

Willhesucceed?It’shighrisk— whatisn’tthesedays?He’safierce engineerandhe’salreadyhada coupleofpreviousspills.Thistime around,heisready.Snowdon’s businesswasglobalfromdayoneand hehasnointerestinwaitingaround forgovernmentprocurement.

Hisplanalignstothepracticeof anaggressiverevenue-firstdiscipline. Validatedemandwithpaying customerssoyouareutterlycertain thatwhatyouarebuildingiswhatthe marketactuallywants.

Compresstimeandcost.Shorten buildcycles,targetmonths,notyears. Drivecapitalefficiencyasa competitiveadvantage.

Snowdonhasgivenemployeesan excitingmissiontochaseandequity fromdayone.They’reincentivisedto workbeyondthereasonable,ashe does.Thisisbroadparticipation,not justreservedforthefounder.

Tomakeitwork,weabsolutely musthaveacheaper,clearersystem forEmployeeStockOptionPlans (ESOP)thatarenottangledupintax. MehranGul,aleadingthinkeron innovationoutoftheWorldEconomicForum,hasbeenclearonthis model.YestosimpleESOP.Plus backingfewercompanies,but backingthemproperly.Focuson outcomes.

Heseesthatthewaytogoisto dowhateverittakestogeneratemore startups.Byattractingthebesttalent ishowtheunicornswillemerge.And whentheydo,keepthemhereaslong aspossible,eveniftheyhavetolist offshore.Holdthem.NZGCPare alignedhere.

GulislessfazedaboutR&Dlevels butcallsforsimplicityinsystemand notesthatNewZealandhas reputationonourside.Trustcanbe ourcurrency.

Wecan’twinonscale.Wecanwin ontrust.Thisunderagrowingdistrust ofbigtechanditstrillionaire founders.Weknowwhotheyareon afirst-namebasis.Thereisacreep factorintheconcentrationofpower thathasoverreached.Wecando better,wehavedecentvaluesanda technologycommunityaligned aroundthem.Trustasacatalyst.

Whyrightnow?

NewZealandhasunderperformedin productivityandGDPperjobfora longtime.Othereconomieshave doneabetterjobconvertingscience intocommercialtechnologyand frontiercompanies.

AramaKukutai(Waikato, Maniapoto,TeAupo¯uri)isa California-basedinvestor.HecofoundedFinistereVentures,hasled andgovernedcompaniesacross SiliconValley,theEU,IsraelandNew Zealand.Herecentlyjoinedthe foundingboardoftheNZInstituteof AdvancedTechnology,partofthe Government’sscienceandtechnologyreset,which,aswearetheepicentreofthisactivity,willbebased inAuckland.Anotherwin. Hepointsoutthatwhilescience reformmaynotcapturepolitical attention,itsignalstheneedtoextract morevaluefrompublicresearch. NewZealandislaggingininvestment, valuecapture,andthecreationof high-valuejobsandcompanies.

Theconstraintisincreasinglyculturalandstructural.Toomuchbureaucracy.Toomuchfrictionbetween publicandprivatesectors.Forasmall economy,wearenotagileenough. ThereisalsoasignificantopportunitytoexpandMa¯oriparticipation inthetechsector,bothinentrepreneurshipandprivateinvestment. Thiswillbeamassivechange,given thehistoricalfocusonprimary industriesandproperty.

Itisintheair.Ta¯makiMakaurau isrising.TeRu¯nangaoNga¯tiWha¯tua nowhasCEORenataBlairatthehelm. Recentlyreturnedtohisiwiafter acorporatecareer,Blaircombineshis skillsofteaoMa¯oriwithextensive knowledgeofthebusinessworld. Technologyinvestmentsandthe decisiontoharnessAIbycontrolling theirowndatafromendtoendwill playastrategicrolehere.

Inhisownwords:“Naumaiete a¯wha¯.Runtowardsthestorm.” ● EricaLloydistheExecutive ProducerLaunchforHeraldNOW Business.Disclaimer:EricaLloydisan investorinZennoAstronauticsand advisesearly-stagecompanies.

Timetostartspending on‘thepoorcousin’

DownerNZmanagingdirectorMurrayRobertsonsays proactivemaintenanceof theinfrastructurewealreadyhaveis“oftenthepoorcousin becausethere’snoexcitingribboncutting”butitalleviatesbigspending, deliversgreatervaluetoratepayers andgoesalongwaytoimproving howinfrastructurestandsupto challenges.

Downerdesigns,buildsandmaintainsassets,infrastructureandfacilities,providingintegratedinfrastructureservicesinAustraliaandNew Zealand.

InNewZealanditservesmany infrastructuresectors,includingtransport,energyandutilities,socialinfrastructureandcitizenservices,andrail andtransitsystems.

ListedontheNewZealandand Australianstockexchanges,thecompanywasfoundedinWellingtonin 1933andisoneofthiscountry’sbiggestemployers,with8000staffworkingacross190country-widelocations.SubsidiaryHawkinsdelivers civilconstructionandinfrastructure projects.

Robertsonsaysanewinfrastructureresilienceindexreportproduced byDownerNZandNZIERshowsthe strongerthefocusonproactivemaintenance,thelessshockeffecton infrastructure.

Withinfrastructureunderpinning everypartofKiwidailylifefrom keepingthelightsonandroadsopen, toensuringcleanwaterandreliable connectivity,andwithclimateevents intensifying,thecompanywaspromptedtocommissionNZIERtoproducetheNewZealandInfrastructure ResilienceIndex.Thisprovidesa nationalbaselineforhowwellour systemscanabsorbshocksandrecoverfromstressesandwhereinvestmentwillmakethebiggestdifference.

IndexscoresshowedAuckland andNorthlandasthemostvulnerable regionsforinfrastructureresilience, meaningahighlikelihoodofsevere disruptionsintheeventofashock. ElectricitywasAuckland’sweakest linkwithlimitedlocalgenerationand frequentconnectionfaults,withroad conditiononlymoderate.

Robertsonsaysmanypeopletoil behindthescenestomaintainnetworksandensuretheystandup.

“It’soften,asIsaid,thepoorcousin inthatitdoesn’tnecessarilygetthe recognition.Butit’ssoimportantfor thebettermentofanurbanenvironmentparticularly,butalsorural.”

ProactivemaintenancecouldprotectAucklandfromthenextbigweather hit,Downer’smanagingdirectorMurrayRobertsontells AndreaFox

HebelievesNewZealand’sdeliveryofinfrastructuremaintenanceis “worldclass”.

“Wehaveahugeamountofdepth andcapabilityandgoodprogrammes.There’salwaysareasforimprovement—andIthinkthat’sacollectiveresponsibility.

“Obviouslytherearedifferent modelsthatgetputinplaceandwe movebetweendifferentcontractual modelstodeliverthat.

“There’salwaysgoingtobealevel ofcompetitionbetweenhowworkis fundedeitherfromcapitaloran operationalperspective,capexversusopex.Thewaywedelivermaintenanceservicesisseenasakeypart ofthebusiness.

“Wehavepeoplewho’vededicatedtheirentirecareerstodelivering maintenance.”

Robertsonsaysmoreregularand significantweatherimpactsinthe pastfiveyears“arestartingtoshine alightonsomeofournetworks. That’sstartedtobringthattothe attentionofthepublic.

“Whenthingsaregoingwell,no oneislookingatit.

“Asacontractortoprovideemergencyresponseinthatspace,weare seeingthere’srealconcernforcommunitiesthatarecutoffthrough

Therehastocomea time,particularlyin centreslike Auckland,where weactuallyneedto startpayingforthat infrastructureona user-paysbasisin someshapeorform.

theseevents.WesawthatinAucklandwiththefloodevents.Ibelieve it’sarealconcernandsomethingthat collectivelyneedstobeaddressed. Onapositivenote,itisbeingfocused onwithcentralgovernmenttakinga proactiverole...thereisarecognitionfortheneedforproactivemaintenance.”

AlsoclosetoRobertson’sheartis theimportanceoflocalinfrastructure servicedelivery,whichfuelsDowner NZ’sstrongfocusandinvestmentin stafftraining,apprenticeshipsand upskilling.

“Continuityofworkisreallyimportant,”hesays.“It’sgreatthatthe scaleofworknowcomingoutofNew

Zealandisattractinginterestfrom overseascontractors.That’spositive butithastobebalancedwiththe recognitionthatlocalcompaniesare goingtobeabsolutelycriticaltodeliverthatwork,todeliverthatcontinuityandthenofcoursetocontinue todeliverthatwhole-of-lifeservicein termsofmaintenance.”

Thisdeliveryrequirescontinuous traininganddevelopmentofstaff acrossthebusinessthroughoffering apprenticeships,cadetandgraduate programmestoensurecontinuityof thehumanresource.

“It’sanongoingresponsibilityfor companieslikeourselvesandFulton Hogan,whoarereallyproactivein thatspace,”Robertsonsays.

“Ifwewerenotdoingthatand thinkingwe’regoingtorelyonthe sortoffly-in,fly-outmodel,thenNew Zealandwouldbeexposed.It’sarole thatcan’tbeunderestimated.”

Robertsonhashighhopesthat NewZealandisnowsetting“thepipeline”ofinfrastructureprojectsthe sectorhaslongcalledfortocreate moreplanningcertainty.

“There’vebeenalotofreallypositiveconversationsinthelast18 monthsaroundsettingthepipeline andalsothefocusaroundabipartisan approachtokeyprojects.

“Therearealwaysgoingtobe movementsaroundthatwithpotentialchangesingovernment,butI thinkthere’sageneralsenseinthe

marketthatamatureviewneedsto betakentomakesureprojectsare well-plannedandfunded.

“Theimportanceofthatfroma deliveryperspectiveisitallowslarge employerslikeourselvestosetthose plans,setthosetrainingpathways andbringpeoplein.

“Alotofthetimeyou’reactually movingpeoplearoundwithinthe country,they’rebeingsetupand they’reformingconnectionswithin theircommunities.”

RobertsonsaysNewZealandis oftencriticisedforhavinglowproductivityacrosstheconstructionsector.“Alotofthathastodowiththe start-stopnatureofthework.Ifwe canseemorecontinuity,whether that’sinverticalconstructionorinfrastructure,thegreaterproductivitywe have.”

OnanotherNewZealandbugbear, theoften-citedyawninginfrastructurefundingdeficit,Robertsonbelievesthecountryneedstoacceptthe Crownhasonlysomuchfundingto goaround.

“Therehastocomeatime,particularlyincentreslikeAuckland,where weactuallyneedtostartpayingfor thatinfrastructureonauser-pays basisinsomeshapeorform.

“Howthatisdeterminedwillbeup tocentralgovernment.IthinkNew Zealandershavealwaysstruggled withthatapproach.ButIthinkit’s aboutrecognisingthatinfrastructure hastobefunded,thatitisprogressive. Itwilldriveaneconomicreturn.

“Weneedtohaveafairandequitablewayofpayingforthat.It’sgoing tobeacombinationofwhatthe Crown’sabletofrontupwithversus howtheuserscancontributeinsome shapeorform.”

Meanwhile,Robertsonsaysextremeweathereventscontinueto bringthebestoutintheinfrastructure servicesindustry.

“IthinkIcanspeakforother contractorswhenIsaywefindin heavyweathereventstheindustry respondsincrediblywell.Ithinkthe levelofcollaborationacrossclients andcontractorsinemergencyresponsesisfantastic.

“Whenpeoplegointothatwork theyrecogniseit’sgoingtobehard buttheyreallyenjoyitbecauseitputs everyone’sfocusonessentially connectingcommunitiesandgetting peoplemovingsafely.”

Climateriskisdefinitelygoingto changethethinkingintownand urbanplanning,Robertsonsays.

“It’sreallycallingintoquestion wherebuildingsandinfrastructure arebeinglocatedifweareseeingthat weathereventsareincreasingthe likelihoodofflooding,forexample, willfurtherexposecommunities.

“It’sdefinitelyshiningalightonkey issuesthatareharderandharderto manage.

“Thatcouldbearoundcoastlinerelatedinfrastructure.Whatwas deemedokay10yearsagomaynot bethecaseanymore.

“It’sabouthavingthosetough conversationsaroundwherewe shouldbelocatingcommunitiesand criticalassetsandkeyroadarterial networkstomakesurewearenot replicatingsomeofthechallengesof thepast.Andlearningfromwhat theseweathereventsareteachingus intermsofwhatwecanrealistically manageordecidingwehavetoactuallyacceptthatthereneedstobe achangeoflocationandplanning.”

Whileclimateriskisgettingplenty ofdiscussion,somethingthat’snot beingtalkedaboutenoughforRobertsonisthelossofpeoplefromthe infrastructureservicesector.

“NewZealandalwaysproduces qualityengineersandcontractorsbut wedoloseahugeamountoverseas. There’saparticularlyfairlyhighdraw ofpeoplegoingtoQueenslandright nowbecauseofwhat’sbeensignalled asalargeamountofworkaheadof thenextOlympics(in2032).

“Ithinkthere’salotofloyaltyand focusfrompeopleinNewZealandbut retainingkeytalentremainsareal challengeforourindustry.”

It’snotamatterofbetterpay acrosstheTasman,hesays,it’sabout startingaconversationabouthaving robustpipelinesofwork,beingable togiveassurancetheworkisthere, thatthereistrainingandacareer pathway.

“Sothereisconfidencetoremain inNewZealand,havecareersand familiesandbepartofcommunities andnotbeconcernedthatyou relocateandthenallofasudden,the workdisappearsandyou’vegotto findotheroptions.It’sgivingpeople that—itisagrowthsector.”

● DownerNewZealandisasponsor oftheHerald’sProjectAucklandreport.

Floodingin QueenStlast yearwascaused byaburstwater main.
‘Thisyear,it’sallaboutdelivery’

Takealookinside Watercare’s$13.8 billionupgradeplan

Witha$3.4billiondebt capitalraisebehindit,a bondprogrammeininternationalmarketsand newgovernanceinplace,Watercare islookingaheadtogettingonwith thecountry’sbiggestdecade-longinfrastructureprogrammes.

WatercareisnowfinanciallyseparatefromownerAucklandCouncil, givingittheabilitytoborrowmore tofundandsmoothouttheimpact ofa$13.8bspendingprogrammeover thenextdecade.Itisembarkingon 13programmestoreplaceageing pipesandequipmentandbuildnew infrastructureforthecity’sgrowth, especiallyonitsfringes.

InJulylastyear,WatercarecompletedNewZealand’slargest-ever corporatedebtcapitalraise,securing $3.4bincommittedbankdebtfacilities,followedbyafurther$400millionbondissuance.

Asyndicateofmajorbanks,includingWestpacNZ,BNZ,Commonwealth BankofAustraliaandBankofChina supportedthetransaction,following theGovernment’sLocalWaterDone Welllegislation.

WatercarechiefexecutiveJamie SinclairsaysthefinancialtransformationandnewoversightbytheCommerceCommissionallowthecompanytodeliveronitsbusinessplan.

Withthefoundationsnowinplace, “thisyearforusisallaboutdelivery” forthecompany,withan$18basset base,hesays.Around1000different projectsarebeingincorporatedinto thedifferentprogrammesenablinga moreco-ordinatedandefficientapproachtobuilding.

“Movingfromprojectstoprogrammesisprobablyoneofthemost significantchangeswewillbemaking asanorganisation,”saysSinclair.

Moresevereweather—bothrainfallanddrought—andpopulation growthisputtingmorepressureon existinginfrastructure.

Watercareisspendingonaverage $3.8madaywitharoundhalfthaton upgradingitsexistingnetworkand theremainderonnewinfrastructure.

“Ithinkeverybodywouldaccept thatwe’vegotaninfrastructuredeficitinthiscountryandcertainly waterisanexampleofthat,”hesays.

“Alotofourassetsarecoming towardstheendoftheirlives.Soit’s aboutnotignoringwhatwehave,it’s gettingoutandshowingitabitof love.”

Watercare’snetworkstretches fromWellsfordtoTuakau,servingaround1.7millionpeoplenow.Itforecastspopulationwillgrowby215,000 inthenextdecade.

Itsflagshipproject,the$1.6bCentralInterceptor,(CI)isnearingcompletionwiththetwopartsofitconnectedaroundthemiddleoftheyear.

Sinclairsaysalthoughitdoesn’tattractthesameheadlinesasprojects suchastheCityRailLinkortheNZ InternationalConventionCentre,it willbetransformationalforthecity. Ithasalreadymadeadifference. Thesouthernsectionofthemain CItunnelwentliveinFebruary2025 andWatercaresayithassofar preventedspillingofanestimated 450,000cubicmetresofcombined wastewaterorstormwater.That’sthe equivalentvolumeofa20-storey (64m)buildingcoveringEdenPark. Thetwohalvesofthe16.2kmtunnelfromMa¯ngeretoPointErinin

Watercare snapshot

● Serves1.7millionAucklanders

● NZ’slargestwaterutility

● Spendingnearly$14bover10 years(that’s$27maweek)

● 18,000kmofwaterand wastewaterpipes

● Averagehouseholdspendlast year:0.89%onwaterservices

● Totalrevenuelastyear:$1.158b, withasurplusof$82m.

Wehaveasuiteof another11programmes thatareequaltoor greaterinsizeor complexitytotheCI— that’sthesortofscale we’retalkingabout.

ducetheamountofstormwaterenteringthewastewaternetworkin someoftheoldestpartsofthecity, whichincludesWaterviewandPt ChevalierthroughtoHerneBayinthe north,downtoLynfieldandHillsboroughinthesouth.

AndSinclairsaysotherprogrammesnowunderwayorplannedare inthesameballparkandevenbigger.

“Wehaveasuiteofanother11programmesthatareequaltoorgreater insizeorcomplexitytotheCI—that’s thesortofscalewe’retalkingabout.”

Itisspendingmorethan$1bonthe upgradeofitsMa¯ngeretreatment plant,whichservesabout1.3million people;$600monitsRosedaleplant ontheNorthShore,whichwillincorporatenewsolidwasteduringtechnologyandprocess;andthecostof upgradingitsHuiawatersupplyinfrastructuremaywelltop$2b.

Oneofthebigissuesfacing Watercarewillbeexpandingwater supplytomeetgrowth.Adesalination plantisapossibility.

$876millionWaitemata¯WaterQualityImprovementProgramme,ajoint initiativebetweenWatercareand AucklandCounciltosignificantlyreducewastewateroverflowsandre-

toimproveresponsivenesstothe developers.

“Inparticular,it’sbeingclearabout whatourpolicyis,ourapproaches, sothattheycanhavesomeconfidence.

“Wearen’talwaysgoingtobeable tosatisfyeverybodyintermsofbeing abletoaddressdevelopmentthatis outofsequencewithourplan.”

Watercare’sinfrastructurecanbe inplaceforuptoacentury.

“Atthemoment,we’vegotquitea largenumberofprivateplanchanges andfast-trackapplicationsthatwill affectthewayinwhichdevelopment willhappenandweneedtoberesponsivetothat.Sothatdoescreate achallengebecauseofthelong-lived natureofourassets.”

Watercarehasofferedsupportto theownerandoperatorofMoaPoint inWellington,whereamajorfailure resultedinsewagespillingintothe sea.Sinclairsaystheincidenthas remindedpeopleoftheimportance ofinfrastructuremostdon’tthinktoo muchabout—untilsomethinggoes wrong.

“Peoplejustassumeit’sthereand itworks.Weworkreallyhardbehind thescenestomakesurethatitdoes alwayswork24/7.Butthemore peopleareawareofit,themorethey haveanunderstandingofwhatgoes intomaintainingandlookingafter thesecriticalassets.”

Sinclairsayshiscompanyiswatchingforfalloutfromthewarinthe MiddleEast.

Watercaregetschemicalsfrom, andequipmentshippedthroughthe area,anditsvehiclefleetisabigfueluser.

“Anysortofpressurearoundthat pricingisgoingtohaveanimpacton us.”

Watercare’smulti-yearbondprogrammeisnowexposedtomore globalrisk.

“There’smorevariability,moreuncertaintyinthemarket,whichhasthe potentialtopriceinmorerisk—but wehaven’tfeltthatyet.”

Underitsnewgovernancestructure,pricingisnowregulatedbythe commission,whichassessesand reportsonitsperformanceregularly.

Commissionrepresentatives attendboardmeetings “It’sanewmindsetoftransparency, whichisreallygood,”saysSinclair.“I thinkthere’sanadjustmentperiod.”

Likeotherregulatedutilities,the commissionsetsarevenuecap throughaseriesofrulesarounda returnoncapitalorreturnonequity, hesays.

“Wejustwanttomakesurethat thesettingsaresetuprightatthe beginning,becausethecosttoAucklandifwegetitwrongisquitematerial.”

Amoreco-ordinatedapproachwill reducethetimeittakesforbigprogrammestocomeon-stream.TheCI willenduptakingcloseto20years fromconcepttoopeningandSinclair saysmoretimededicatedtofrontendplanningwillreducetheduration offutureprojects.

“Havingthatintegratedprogrammewillreallyhelpbecausethenyou canco-ordinateworksalotbetter.

“It’sbeingsmarterwiththeprocurementapproach,gettingalot moredoneupfronttohelpspeedup construction.”

Workingmorecloselywithother bodies,suchasAucklandTransport, willhelpavoiddiggingtwiceonlocal projectsandcutthetimethedreaded roadconesaredeployed.

Respondingtochange Whilehousingintensificationpolicies bycentralgovernmenthavebeen fluid,Watercareworksonitsown populationprojections.Becauseof that,ithashadtowarndevelopers andbuildersthatconnectionscan’t becurrentlyguaranteedinsome areasduetopressureonwastewater plants. Sinclairsaysthereistargetedwork

InitsinitialreportlastNovember, thecommissionsaid“existingkey measuresandtargetsthatWatercare usestoinformitsstakeholdersshow itgenerallymeetsorexceedsitsperformancetargets”.

Notingwastewateroverflows,it added:“Inthecomingyearweexpect toworkwithourco-regulatorstoensureinvestmentinreducingoverflowsdeliversthebestpossiblevalue toconsumersandthatWatercare demonstratesthisinawaythatwe canallunderstand.”

Sinclairsaysthere’llbean80% reductioninoverflowswithinthe catchmentoftheCentralInterceptor and,althoughheavyraincanalways meanstormwaterentersthesystem, it’ssomethingthe1400staffareworkinghardtoimprove.

“Icanseeinthenextfewyearsa reallysignificantreductioninthe environmentalimpactscausedby ournetwork.”

Watercarewillannounceitsprices forthecomingyearinMay,afterits 7.2%riseforcurrentusersinthepast 12months.

● Watercareisasponsorofthe Herald’sProjectAucklandreport.

WatercaresmartnetworkengineerKevinAngisleadingtherolloutofsmart sensorsinthewastewaternetwork.
Acrewmemberworksonrelining6.2kmofwastewaterpipesinBeachlands andMaraetai.
ThemicrotunnelborerbreaksthroughatVictoriaStEastafterlayinganewwastewaterpipeunderQueenSt.

Therightmixforsuccess

Diversityisa productiveassetfor agloballycompetitivecity, saysgrowthexpert

AnnaKominikwantsAucklandtobeknownasacity thatprovesyoucanbuild aglobally-competitive, high-wagecitythatisalsoagreat placetolivein.

Shesaysthattoooften,thegrowth conversationgetsframedasacontest betweenbusinessinterestsandcommunitywellbeing.“Andyet,higher wages,betterpublicservices,and strongerinfrastructurearenotcasualtiesofgrowth.Theyareitspoint.”

Adirectorandleadadviserof GrowthNewZealand,KominikbelievesAuckland’sgenuinepointsof differencearecompelling.

“Itisoneofthemostethnically diversecitiesofitssizeanywhereon Earth.WehaveaMa¯orieconomy growingfasterthanthebroaderNew Zealandeconomy,representingadistinctivemodelofindigenouscapitalismthattheworldisincreasingly admiring.Andwehaveadisproportionatetrackrecordofproducing world-classcompanies.”

Kominiksaysthatconnectingall thisisAuckland’sdiversity,whichshe saysisaproductiveasset,notjusta socialvirtue.“Citiesthatunlockthe fullcreativeandeconomicpotential ofalltheirpeopleconsistently

outperformthosethatdonot.”

YetwhensetagainstgloballyambitiouspeerssuchasVancouveror Singapore,KominiksaysAucklandis stillsearchingforclarity.

“IamnotsureAucklandhasdecidedwhatitwantstobeyet.And thatindecisionhasacost,notjust economicallybutsocially.”

Citieswithaclearsenseofidentity, sheargues,buildcivicconfidence— asharedstorythatattractstalent, earnstrust,andsustainsthelongtermcommitmentthatambitious transformationrequires.

“Thatsettledsenseofcollective purposeisitselfaformofcapital,and Aucklandisstillaccumulatingit,”she says.

Therecenteconomicdatareinforcesthatchallenge.Auckland’sGDP percapitadeclinedintheyearto March2024andlikelyagainin2025 —thefirstsustainedpercapitacontractionsincetheglobalfinancial crisis.

“Thosenumbersarenotabstract fortheAucklandersforcedtomake harderchoicesaboutfood,housing, transport,andhealthcare,”shesays.

“Economicstressdoesnotstay contained—iterodesthetrust,the reciprocity,andtheeverydaycivic participationthatsupportscommunitiesandprosperitytoflourish.”

Infrastructuregapscompoundthe issue.Kominikpointstodelaysin rapidtransit,long-runninguncertaintyovertheport,andashortage ofgrowth-stagecapitalthatpushes successfulcompaniesoffshore.

Againstthatbackdrop,sheargues Aucklandneedstotreatgrowthasa systemratherthanasetofisolated fixes.

“Youcannotfixcapitalmarkets withoutfixingtalent.Youcannotre-

Iamnotsure Aucklandhas decidedwhatit wantstobeyet.And thatindecisionhas acost,notjust economically,but socially.

taintalentwithoutfixinghousing. Youcannotattractgloballyambitious founderswithouttheinfrastructure thatmakesacityworthlivingin.”

Shepointstoseveralpriorities:

● Infrastructure:“Productivecities arebuiltaroundpublictransportas

thephysicalbackbonethatmakes everythingelsepossible,”shesays, urgingdeliveryoftheCityRailLink andfasterdecisionsonthenextstage ofrapidtransit.

● Capital:Aucklandfirmsarehitting aceilingatSeriesBcapitalraising, oftenforcedoffshoretoscale. Redirectingevenasmallshareof NewZealand’s$110billionin KiwiSaverintodomesticgrowthcompanies,shesays,“wouldbetransformative”.

● TheMa¯orieconomy:“Thereisa versionofAuckland’sgrowthstory whereMa¯oricapitalandglobalinvestmentintersectingenuinelydistinctiveways,”shesays,pointingto iwiassophisticatedlong-terminvestorswithgrowinginterestintechnologyandcleanenergy.

● Skills:KominikbelievesAuckland shouldaimtobe“themostAI-literate cityintheAsia-Pacificwithinfive years”—notasatechinitiative,but asawagesandproductivitystrategy, withanimmediatefocusonupskillingtheexistingworkforce.

Underpinningitallistalent.

“First,attractglobally:fastvisaprocessing,competitiveequitycompensation,andagenuinelandingpad withrealconnectionsandearlycapitalaccess,”shesays.

“Second,stoptheoutflowbyfixing structuralsettingsaroundtax,housingandservices,thatdeterpeople fromstaying;andthird,unlockthe talentthatalreadyexistsacrossour cityandintheAucklanddiaspora.”

NewZealand’slargeoffshorepopulation,shesays,shouldbetreated asaneconomicnetworkratherthan aloss.“Attheendoftheday,wewant NewZealandtobeaplacethatour childrenwanttostayin.”

Ifthosesettingsshift,theupsideis

tangible.

Kominikdescribesa“realistic,not fantasy”Aucklandin10to15years: acityofaround2.2mpeople,better connectedbyfunctioningrapidtransit,withavibrantcentralcityand infrastructurethatlinkstheharbour, suburbsandinnovationprecincts. Itwouldhaveatechandcleantech ecosystemproducingasteadycadenceofglobally-significantcompanies,backedbydeeperdomesticcapital,alongsideaMa¯orieconomyexceeding$100bandactivelyco-investing acrossinfrastructureandindustry. Crucially,shesays,growthwould bemorewidelyfelt.“Nearlyonein fiveAucklandchildrenaregrowing upinhouseholdsexperiencingmaterialhardship,”shesays.“Every Aucklanderwhodoesnotreachtheir potentialrepresentslostprosperity— bothasanindividualandtothe community.”

Onthattrajectory,Auckland’sglobalreputationwouldfollow.

Kominiksaysthatbyaround2040, Aucklandcouldbeacitythatpeople acrosstheAsia-Pacifictalkaboutin thesamewaytheytalkaboutZurich orAmsterdamtoday.“Smallerthan thegiants,butsharper,moreliveable, andgenuinelyworld-classatthe thingsithaschosentoprioritise—a citywherethegrowthstoryandthe wellbeingstoryarethesame.”

● AnnaKominikisanindependent director,investor,adviserand innovatorwhorecentlymade Aucklandhome.SheispartofGrowth NewZealand,anon-partisangroupof passionateandexperiencedNew Zealanderspromotingafuturewhere growthmeanslastingeconomic,social andenvironmentalwellbeing,shared acrossthewholecommunity.

H

elping businesses

LearningfromSydney’sboom

Ta¯makiMakaurau

Auckland’stechstrategy setsanimportantdirection forthecity.Futureiterations couldstrengthenitsimpactby buildingmoredeliberatelyon AotearoaNewZealand’sexisting economicstrengthsandbyelevating theroleofplace,proximityand connectivityinsupportingathriving innovationeconomy.

Withmorethan11,000firmsand hometo60%ofAotearoaNew Zealand’stop200techcompanies, Aucklandalreadyhasastrongtech industry.However,toliftprosperity andunlockthehigh-valuejobsofthe future,thecityneedstocontinueto growthat.

Lookingtoothercitiescanprovide inspiration.Lookingtoothercities canprovideinspiration.Aurecon recentlybroughtJeremyGill,headof policyattheCommitteeforSydney InnovationDistrictAlliance,to Ta¯makiMakaurauAucklandtotellus moreabouthowSydneyisapplying theseprinciples.

Ourclosestneighbourisseekingto transformtheirhistoricallycoalrelianteconomytoonedrivenby techandinnovation,advanced manufacturing,cleanenergyand highereducation.Andthestrategy appearstobeworking,withSydney nowhometonearly50%of Australia’sscale-upsandtheNo1 start-upecosystemintheSouthern Hemisphere.

Amongthemanyinsightsfrom Gill,someofSydney’ssuccessshows thatAucklandneedsstronger alignmentbetweennational strengthsandregionalopportunities, andgreateremphasisontheroleof place-basedfactorsliketransport, housingandvibrantprecinctsin attractingtheskilledtalentrequired tohelpfirmsscale.

CameronLaw explainshowCRLandcleverprecinctscouldsuperchargeAuckland’stecheconomy Weshouldconsiderthe existingspatial concentrationasan opportunity,nota challenge,andplan spaceforinnovationto grow,aligningpublic transport,housingand investmentinhighqualityurban environmentswhere innovationwillactually happen.

Buildingonwhatwe’regoodat AkeylessonfromSydneyistobuild onourexistingstrengths.Anexample isAustralia’sstrategytoshiftfroman economythathastraditionally exportedmuchofitsrawmaterials offshoreforvalue-addingtoretaining moreofthatvaluedomestically— throughprocessing,manufacturing andtheenergytransition.

Toidentifyfutureopportunities forAuckland,weshouldlooktotwo areas—first,thesectorsthatare alreadyestablishedhere,andsecond, whereAotearoaNewZealand’s economyhasexistingstrengths. FinTech,HealthTech,anddigitaland creativetecharealreadythrivingin Auckland,withsignificantpotential togrowthisfurtherasidentifiedin theTechTa¯makiMakaurauStrategy. Nationally,however,AotearoaNew Zealandhasstrongcapabilitiesin agricultureandtheprimary industries,aswellrenewableenergy.

Inhispresentation,Gillchallenged ustoconsiderhowAucklandcould playacentralroleincapturingand retainingmoreofthatvaluechain locallybyfocusingonAgritech, CleanTechandresearchand development.

Anotherconsiderationistherole ourlargesteconomyplaysin deliveringonnationalobjectives. Thismeansaligningresearchand developmentprojectswithnational prioritiesandconsideringhow innovationcanhelpdrivesectors withdomesticdemand—for example,usingautomationand modernmethodsofconstructionfor housing.Connectingwithnational directionisimportant,asitdrivesus toaskhowAuckland’sindustriescan supportwidersocietalgoals,suchas equity,decarbonisation,andiwi participation.

Theeconomyconcentratesin specificplaces AsecondlessonfromSydneyisthat

Sydney’sinnovationstrategyacknowledgesthattheeconomylandsspatially,andeconomicgrowthandinnovationneedtobeintentionallyplannedfor.

Auckland.PlanChange120will enablethecitytomaximisethe potentialofCRLthrough intensificationaroundrailstations. Whilethisisapositivestepforward, simplyupzoningaroundstations won’tdeliverthebenefitswe’re lookingfor.

Wealsoneedtoensurethese locationsareappealingplacestolive, withqualityurbandesign,green spacesandamenities,aswellas allocationforaffordablehousingand homesdesignedfordifferentkindsof families,ifwearetoattracttherange ofexperiencelevelsthetechindustry willrequire.

Perhapscontroversiallyfor Ta¯makiMakaurauAuckland,Gill offeredacautionagainstpursuing housingateveryCRLstation.

CameronLaw

thetecheconomyisinherently place-based,withindustriestending toclusterinspecificlocationsclose toothertechbusinesses,andthe facilitiesandresourcestheyneedto thrive.Whenconsideringthefuture ofinnovationprecinctsinAuckland, weneedtoconsiderthisspatial context,intentionallyplanforwhere growthwilloccurandinvestin transit,housing,andplacemakingfor thoselocations.

Spatialconcentration—an opportunity,notachallenge Lookingatexistingpatternscan revealwhatdifferentindustries gravitatetowards.Sydney’sTech Centralinnovationprecinct developedaroundspecific amenities,withCamperdown’s health,educationandtechnology institutionsclusteringaroundRoyal AlbertHospitalandtheUniversityof Sydney;andtechandinnovation start-upsinEveleighandHaymarket drawntotheworld-classtertiary educationinstitutionsandtransport connectivityanchoredbyCentral Station.

Anintentionalstrategyhashelped themconnectandgrow,amplifiedby thecreationoftheInnovation DistrictAlliancetodriveresearch, attractinvestment,andprovide advocacy.

InnovationnodesexistinTa¯maki MakaurauAucklandtoo,with FinTechandSaaSbusinesses concentratinginWynyardQuarter; DeepTechinParnell;MedTechand BioTechinNewmarket,withits proximitytoAucklandHospitaland theUniversityofAuckland;andfilm

andcreativeindustriescentredin Henderson.Inthesouth,Manukau hasseveralinnovationand entrepreneurshiphubs,whileNorth HarbourishometotechandAIstartupsandMasseyUniversity.

ThecurrentTechTa¯maki MakaurauStrategyseesthespatial concentrationofAuckland’sexisting innovationhubsasachallenge. However,weseeitasanasset—with thatexistingspreadandthepost-City RailLink(CRL)rapidtransitnetwork inplacewhichaddressesthe strategy’sinclusionaspirations— enablingagglomeration,which describestheproductivity,efficiency andinnovationthatcanbeunlocked whenbusinessesandpeoplecan interactandcollaborateeasily.

Creatinginnovationecosystems Auckland’stechstrategyrightly namestechnologyinfrastructureas keytogrowingthecity’sinnovation economy.However,weshouldtake thisonestepfurtherandconsiderthe importanceofbroaderinfrastructure investmentintransport,housingand placemaking.

Asnotedabove,innovation precinctsrequireproximity—both toadiverseandskilledtalentpool andtootherprecincts.Rapidtransit isoneofthesimplestleversto increasethatproximity.

InSydney,TechCentralis anchoredbySydneyCentralStation, andthenewmetroandlightrailhave greatlyimprovedaccessintoand acrossthecentralcity.

ForAuckland,theopeningofCRL thisyearcreatesapowerful opportunitytoconnectexisting

innovationnodes,givebusinesses accesstoabroadertalentbaseand reshapelanduse.TheNewmarket InnovationPrecinct,inparticular,is connectedtotwostations— NewmarketandGrafton—thatwill improveaccesstothecentralcity, otherprecinctsandtotalent. Newmarket,however,also highlightstheopportunityin Auckland’stechstrategytoconsider thevalueofplacemaking.Sydney’s SurryHillsishometoathrivingtech industrywithtalentattractednot justtotheproximityofSydney CentralStationandTechCentralbut alsotothebars,cafesandsenseof placethatSurryHillsoffers.

TheUniversityofAucklandowns alargeparceloflandthatformsthe coreoftheproposedNewmarket InnovationPrecinct,thoughitis unclearifthereisalignmentwiththe council’surbandevelopment aspirationsfortheareabeyondthe TechTa¯makiMakaurauStrategy. IfNewmarketistobecomean innovationhub,itcouldbenefitfrom investmentinplacemaking—in appealingthirdspacessuchas hospitality,publicart;inpedestrian connectionsacrossraillinesand busyroads;andtoopenspacesin theDomainandNewmarketPark. WynyardQuarterandBritomart serveasgreatAucklandexamplesof suchplacemakingandconnectivity. Thereisanopportunityforthe strategytoholdthelargerboldvision forAucklandthatprivateandpublic interestscanalignaround. Massrapidtransitisalsoacatalyst forunlockinghousing,amajor priorityforTa¯makiMakaurau

Whilehousingiscritical,andakey factorinattractingtalent,landfor innovationprecinctsalongtherapid transitnetworkmustbepreserved fromhousingdevelopment, regardlessofwhetherthelatterisa higher-valuelanduse.Incentivesfor therightkindsofdevelopmentare leverscouncilscanusetohelpbring theirvisiontoreality.

Planningforwhereinnovation actuallyhappens

TheTechTa¯makiMakaurauStrategy isastrongfoundation,butinsights fromSydney’sexperiencesuggest thenextiterationshouldconsider NewZealand’sstrengthsand opportunities,notjustthe opportunitiesthatareemerging locallyand,ifwearetoattract industry,investmentandtalent,it shouldalsoconsiderplace.

Weshouldconsidertheexisting spatialconcentrationasan opportunity,notachallenge,and planspaceforinnovationtogrow, aligningpublictransport,housing andinvestmentinhigh-qualityurban environmentswhereinnovationwill actuallyhappen.

Lastly,GillnotedAuckland’s relativeadvantageoverSydneyin havingasimplergovernance structurewithasinglemetropolitan councilandonlytwolayersof government.

Successinbuildinginnovation precinctswillalsorequirecontinued collaborationbetweenthecouncil andtheprivatesector,something thathasbeenastrengthofAuckland todate,andwhichmustcontinue.

● CameronLawisthedirector, AucklandFutures,atAurecon. AureconisasponsoroftheHerald’s ProjectAucklandreport.

Neweraontrackwith $1.5billionoverhaul

KiwiRailCEO

PeterReidy says anewmaintenance approachwillkeep trainsmovingfor passengersand freightfollowinga mammothnetwork upgradetoprepare fortheCRL

WhenCityRailLink(CRL) openslaterthisyear,it willbesupportedbya transformedrailnetworkthatwillmeettheneedsofthe increasedservicesthenewundergroundtunnelwillbring.

EveryAucklanderknowsabout theongoingclosuresanddisruption whilewehavebroughtitupto standardinrecentyears—weareall readytoreaptherewardsofanew erafortraintravel.

Thejourneytogetthenetworkto a“steadystate”isworthreflectingon tosharethecontextforthese upgradesandwhatwewereableto deliver,withsupportfromourrail partnersAucklandTransportand CityRailLinkLtdandthefunding injectionofmorethan$2bfromthe Government(excludingCityRail Link).

TheAucklandrailnetworkwas originallybuiltforfreightandnot designedforthelevelofuse associatedwithabusymetro. Globallymostmetrosdon’tshare theirnetworkswithfreightandthe logisticsarecomplex.

ManyNewZealandersdon’trealise thatwearestillrunningamixed-use network—thisbusymetromustcoexistwithfreightservicesasthey deliverandcollectgoodsfrom AucklandPortandourSouthdown andWestfieldhubs.

Logisticallythiscreateschallenges whichonlyincreasewhenpassenger servicesbecomemorefrequent.

Oneofthewayswe’veaddressed thiscomplexityistheconstructionof the6.5kmThirdMainline—an additionaltrackthatallowsfreight andmetroservicestobypasseach otheratthebusiestpartofthe networkonthesouthernline.Hand inhandwithtrackconfigurationsat QuayParkenablingmoreeffective freightmovementsintothePortof Auckland,thisdecongestionsolution future-proofsfortheforecastedincreaseofbothfreightandpassenger journeys.

That’showinvasivetheworks havebeen—RNRaloneacross80km oftrackonthe182kmmetro.

Makingtraintravelthequickest, mostconvenientchoicehashuge

Readyingthe networkhasbeena massive undertakingbyour people—delivering aroundadecade’s worthofworkinthe pastfouryears.

socio-economicandlifestylebenefits. So,gettingaheadofthegameby future-proofingforforecasted populationgrowthinsouthern Aucklandwasano-brainer—

extendingtheelectrifiedtrackby 19kmsfromPapakuratoPukekohe hasmeanttravellersintothecityno longerhavetochangetrainsat Papakura,unlockingfaster,cleaner journeysintothecity.

Combinedwithconstructingthree newstationsonthisline—Drury, Paera¯ta¯andNga¯ko¯roa—itisagreat exampleofinfrastructurebeing developedaheadofpopulation growth,future-proofingforincreasing demandandensuringthatpublic transportnetworksarefactoredinto thebigpictureforeconomicgrowth inSouthAuckland.

Withmoreelectrictrainscomes theneedformorepower.

Anotherpartofpreparingthe networkforCRLhasbeenproviding back-uppowersupplytosupport reliability.TheWesternPowerFeed cameonlinelastyearandusesnew StaticFrequencyConverter technologytoprovidepowerfurther andmoreefficientlycomparedto existingsubstationfeeds.

Wehaveanotherpowerfeedusing thesametechnologyinthesouthdue

tobeginoperatingin2028—ensuring wehavepowerwhenweneedit, whereweneeditasdemandgrows. Readyingthenetworkhasbeena massiveundertakingbyourpeople —deliveringaroundadecade’sworth ofworkinthelastfouryears—which hascomeatacost.

Weknowthedisruptionhashad ahugeimpactontraintravellersas weclosedthenetworktoblitzitas quicklyaspossibleandcarryingout workthatcouldn’tbedeliveredwith trainsrunning.

Weacknowledgethismajor inconvenienceandthank Aucklandersfortheirpatience.

Futuremaintenance

TheadditionofCRLupliftsAuckland metrotoaworld-classnetwork standard.Tosupportthisoutcome, wewilldelivermaintenanceinanew, proactiveway,allowingservicesto runrelativelyuninterruptedand keepingmomentum,bringingback patronageandgivingpassengers long-termconfidencethattheycan relyontrainstogetthemaroundthe city.

Historically,foramultitudeof reasons,KiwiRailhasn’tbeenableto keepupwiththelevelofmaintenanceneededforthehugeincrease indemandforpassengerservices overthelastcoupleofdecades.

Thishasleftlargepartsofthe networkvulnerabletogeneralwear andtearandweatherevents—often meaningwehavehadtoenforce speedrestrictionsonthenetworkfor safety.

OurRailNetworkRebuild(RNR) programmehasaddressedthese priorityareas—rebuildingthe foundations,drainageandtrackfrom thebottomup.

We’reoftenaskedwhywecan’t keeptrainsrunningduringthese works.Inthecaseofthisprogramme, thereisoftennotrackinplacefor themtorunon.

Ournewmaintenancestrategy allowsustoleveragenewtechnology andautomationtocreateaproactive, dynamic,cyclicalmaintenance regime—segmentingthenetwork into36zones.

Thisallowsustomaintainittothe necessarystandards,whilekeeping trainsrunning.

Thisdynamicapproachisalsokey forourfreightcustomersandthe abilitytokeepthesupplychain movinginthiscomplexmixed-mode network,wherepassengerandfreight railmustcontinuetoco-exist effectively.

Tobeclear,therewillalwaysbe maintenanceneeds.Neglectingthese wouldputusrightbackwherewe started.

Butthisnewregimewillensure lengthywhole-networkshutdowns areathingofthepast,barringmajor weathereventsorcriticalfailure.This willelevateustothesamestandards ofmaintenancedeliveryasother world-classmodernmetrosand enablingAucklanderstoenjoythe truebenefitsofthenewtravel experienceCRLwillbring.

● KiwiRailisasponsoroftheHerald’s ProjectAucklandreport.

Buildingforthe nextgeneration

AotearoaNewZealandis standingatacrossroadsin infrastructure development.Population shifts,climateresilience,urban transformation,andtheaccelerating needforlow-carbonsystemsare convergingtoformadecadeof unprecedenteddemandand opportunity.

Asacompanythatdeliverssome oftheworld’smostcomplexprojects andtransformsthevisionofour clientsintoatangibleasset,Webuild seesfirsthandthatthevalueof infrastructureisnotmeasuredbythe momentconstructionends,butby thetransformationitenableslong afterthecraneshavegone.

TheconversationinNewZealand shouldbelessaboutprojectsand moreaboutwhatkindofnational legacythenextwaveof infrastructureinvestmentwillcreate. Infrastructureisnotacost.Itisan investmentincapability.Whenwe buildnewtransportcorridors,water securityassets,hospitals,orlargescalerenewableandtransmission projects,welaythefoundationsfor competitiveness.Theseassetsunlock efficiency,connectindustriesto markets,embeddigitaltechnologies, andcreateconditionsforpublicand privateinvestmenttoflourish.Acostfirstmindsetreducesmajorprojects tobudgetlines;aninvestment mindsetrecognisestheyare productiveassetswithlong-term economicreturn.

WebuildGroupisdeliveringthePerdamanProjectCeresinKarratha,WesternAustralia.Australia'slargestureaplant,itconvertsnaturalgasintofertiliser.

andintegratedprojectdata environmentsreducesrisk,improves safety,anddramaticallyincreases certainty,whicharecriticalfactorsfor complex,multi-yearprojects.

Buildingskillsforageneration

BuildingtheworkforceNewZealand needsrequiresthinkingbeyond individualprojectsandfocusingon long-termcapability.

Todelivertheupcomingpipeline spanningcomplextransport infrastructure,near-shoremarine, watermanagement,climate adaptationandcriticallifeline upgrades,thecountrymust significantlyexpandandupskillits workforce.

Infrastructure projectsmustbe investment-led, saysWebuild’s MarcoAssorati Theconversationin

Acenturyofgloballessonswith localrelevance DrawingonWebuild’sexperience acrossEurope,theAmericas,Africa andtheAsia—Pacificregion,four clearthemesemerge—eachhighly relevanttoNewZealand’s infrastructureambitions.

1.Citiesgrowintothe infrastructuretheybuild Largeurbancentresthatcommit earlytorapidtransit,resilientwater systems,andintegratedmultimodal networksavoiddecadesofcatch-up costs.Auckland’scurrentmomentum echoesglobalcity-shapingefforts wheremetros,corridors,and resilienceinfrastructurehelped unlockneweconomicpaths.

2.Resiliencemustbeengineered fromthestart Climate-drivenflooding,extreme rainfall,andrisingseasdemandanew standardforwaterandnear-shore marineinfrastructure.Globally,the mostsuccessfulsolutionsblend traditionalengineeringwithnaturebaseddesignanddata-driven planningapproachesincreasingly relevantinNewZealand’sstormimpactedregions.

3.Sustainableconstructionisno longeroptional Fromlow-carbonconcretetocircular constructionpractices,infrastructure programmesworldwideareshifting fromcarbon-intensivedeliveryto regenerativeframeworks.New Zealand’sambitiousclimatetargets makethistransitionnotjustdesirable, butessential.

4.Digitalengineeringisacatalyst, notabonus Theadoptionofdigitaltwins, advancedtunnellingcontrolsystems,

Globalexperienceshowsthis happensmosteffectivelythrough twocomplementaryapproaches: embeddingstructuredlegacy planningintoeverymajorproject, withcleartrainingpathways, knowledgetransferprogrammesand definedopportunitiesforlocalSMEs andregionalsuppliers;andpairing internationalexpertisewith deliberateglobal-to-localcapability buildingthroughexchanges, mentorshipsandsharedtechnical leadership.

Countriesthattakethisapproach developenduringexpertisethatlasts wellbeyondprojectcompletion.

Communitiesasco-authorsof infrastructure

Noreputableglobalcontractor approachesmajorprojectssolelyas technicalexercisesanymore.Around theworld,projectssucceedwhen communitieshaveownershipofthe outcomes.

TheMa¯oriconceptofkaitiakitanga —guardianshipandstewardship— alignspowerfullywithmodern infrastructureprinciples:sustainable design,culturalrespect,and environmentalguardianship.

Communitypartnershipisnota proceduralrequirementbutasource ofinsightthatstrengthensthevision oftheprojectintotangibleoutcomes.

Thesupplychainasastrategic asset Infrastructuresystemsareonlyas strongastheirsupplyecosystems. NewZealand’ssuppliers—fabricators,

manufacturers,engineeringfirms, transportoperators,andequipment specialists—haveshown extraordinaryresilience,butthe upcomingpipelinewillrequiremore scaleanddiversification.

Globalinsightshighlightthree leversthathelpsupplychainsthrive: Predictability: Multi-yearvisibility enablessupplierstoinvest confidentlyinequipment, technology,andpeople. Standardisation: Commondesign approaches,specifications,and digitalstandardsimproveefficiency andreducecosts.

AboutWebuild

Webuildisagloballeaderinthe constructionoflarge-scale, technicallycomplexinfrastructure, specialisinginsustainablemobility, hydropowerandwater management,andnext-generation greenbuildings.Withoperations spanningroughly50countries,the groupbringstogetheraworkforce ofaround95,000people representingmorethan125 nationalities.

Acrossits120-yearhistory, Webuildhasdeliveredmorethan 3700projectsworldwide,ranging frommajorrailandmetrosystems tohighways,bridges,hydropower assets,andlandmarkcivilworks.Its globalportfolioincludesover 13,600kmofraillines,nearly 900kmofmetronetworks,more than82,000kmofroadsand motorways,morethan1000kmof bridgesandviaducts,320dams andhydropowerfacilitiesand200 hospitals.

Amongthegroup’sbest-known achievementsaretheGrand EthiopianRenaissanceDam,the PanamaCanalexpansion,theLong BeachInternationalGateway BridgeinCalifornia,theSecond BosphorusBridgeinTurkiye,the SydneyMetroNorthwestskytrain structures,theKingdomCentre towerinRiyadh,andmetro systemsinCopenhagen,Paris, Milan,Naples,Rome,Doha, Thessaloniki,andRiyadh.

Innovationpartnerships: Codevelopmentofmaterials,modular systems,anddigitaltoolsaccelerates capabilityandembedsresilience locally.

TheseprinciplescansupportNew Zealand’sambitionstobuildamore self-reliant,future-readysupply chain.

Aneraofopportunityforiconic infrastructure NewZealandfacesasuiteof infrastructureopportunitiesthatwill shapethecountry’strajectory:nextgenerationtransportsolutions,water

resilienceprojects,connectivity corridors,energystorageandgrid flexibility.

Thesearenotsimplyprojects,they arenation-defininginvestmentsthat canliftproductivity,climate resilience,livability,andeconomic competitivenessfordecades.

Whatwilldeterminewhetherthe countrycapturesthisopportunityis notthescaleofinvestmentalone,but theapproach:collaboration, transparentriskallocation,cultural partnership,digitalinnovation, climate-aligneddesign,anda relentlessfocusoncapability building.

Towardamorecollaborative infrastructurefuture Acrosstheworld,themostsuccessful megaprojectsWebuildhasdelivered shareacommonecosystem:early contractorinvolvement,integrated andinterdisciplinaryteams,mature digitalenvironments,anddelivery modelsthatrewardperformance ratherthansimplyshiftrisk.These ingredientsconsistentlyunlock bettervalue,strongercertainty,and moresustainableoutcomes.

NewZealand’sshifttowardearlier collaborationisanencouragingsignal —andastrategicopportunityto embedglobalbestpracticeintothe country’snextgenerationofmajor infrastructure.Wheninfrastructureis viewednotasacosttobecontained, butasaninvestmentinnational cohesion,resilience,andlong-term economictransformation,the benefitsextendfarbeyondthe balancesheet.

ThedecadeaheadwilltestNew Zealand’scollectiveabilitytoplan, fund,anddelivermajorprojectsatthe pacerequired.Butitalsopresentsa rarechanceforthecountrytoseta newglobalbenchmarkinhowlarge, complexinfrastructurecanbedelivered—sustainably,collaboratively, andwithaclearvisiononlong-term value.IfNewZealandembracesthat mindset,theprojectsbuiltinthe comingyearswillbecomethe foundationsofthenextcentury.

● MarcoAssoratiisSeniorExecutive Vice-President,OperationsOceania, Webuild.Webuildisasponsorofthe Herald’sProjectAucklandreport.

AIwilltransform howAucklandoperates

“Aucklandgenerates terabytesofdataeveryday.Peopleare movingaround.So arevehicles.Sensorsaredetecting. CCTViscapturing.Thereareairquality,waterqualitysensorsandfootfall sensors.Hugedatasetsareconstantly beinggeneratedalloverthecityby multipleorganisations.”

SosaysSmartCitymanagingdirectorBenRansley,explainingthatthis dataneedstobeputtowork.

“Weneedtobeusingallofthat data,tointerpretit,learnfromitand, ultimately,actonitandimprovethe waythecityisrunandimprove people’squalityoflife.

“AtthisstageinAuckland’sevolution,ourcityis,fromaninformation pointofview,data-richbutinsightpoor.Eachareahasitsowninsights, butthepartsarenotjoinedup.”

Aucklandisnotunusual.Cities typicallygeneratedatafrommany separateprojects.Ineachcase,the projectaimstorecorddataandperformanumberoftaskstoimprove citizens’qualityoflifeortomake servicesoperatemoreefficiently. Theseprojectsmightincludereducingcongestion,improvingsafety, managingmunicipalassetsorstretchingrubbishcollectionbudgets.

Ransleysaysdatacollectionstartedasawaytomeasureandreport ontheprojects.Itasksquestions— arethebinsfull,istheroadcongested, howmanypeoplearewaitingatthe busstop?

Initiallyitwasusedbycitydepartmentstoaidhumandecisionmakingsuchassendingacollection truckorswitchingontrafficsigns.

Asmartcitytakesthisfurther.

Inprinciple,technologycanincreasinglytakeoverthatdecision-makingtothepointwhereitdoesn’tjust tellsomeoneawastebinisfull,but itdespatchesthecollectiontruckto dealwithitinthemostefficientway.

There’sapushtoturnbigdataintoatrulysmartcityandimprovequalityoflife

Smartcitytrafficsystemsdon’tjust measurecarspassingsensors,they adjustthesignalssothattrafficflows moresmoothly.

Ransleysaysthatrequiresaleap fromdatacollectiontoautomated decision-making.Itiswheremost citieswanttogo,butfewarethere yet.HethinksAucklandcanmakethe leap.

Hedescribesthefullyautomated smartcitymechanismas:sense, reason,act.

TheideadrawsonthewayphysicalAIisusedinadvancedmanufacturing.Insophisticatedfactories,roboticsystemsdon’tsimplyfollowfixed instructions,theyperceivewhat’s happeningateachstage,workout whattodonextandthenact.Itmay notgeteverythingrighteverytime. Whenitmakesanerror,itcanlearn fromtheexperience.

Overtime,thiskindofsystem becomes,asRansleyputsit,“awelloiledmachinethatisactinginreal timeagainsteverythingthat’sgoing on”.

Thedifferencebetweenanautomatedsmartcityandthetechnology usedtodayissignificant.Traditional IoT(InternetofThings)sensorsoperateonfixedparameterssetatinstallation:ifthebinisabove80%full, sendanalert.Thereisnoreasoning, nolearning,noadaptationtochangingcircumstances.

PhysicalAIreplacesthatstatic logicwithasystemthataccumulates contextovertimeandimprovesits responsesaccordingly.

Weneedtobeusing allofthatdata,to interpretit,learn fromitand, ultimately,actonit andimprovethe waythecityisrun andimprove people’squalityof life.
BenRansley

Ransleysaysitwouldhavebeen impracticaltodeploythatkindof intelligenceatcityscaletwoorthree yearsago.Today,largelyduetothe extraordinaryleapinAIcapability,it isnot.

“PhysicalAIissensingtheenvironment,reasoningwithit,thenacting onthattoimpactthelivingenvironmentinrealtimeortocuesomething tooccur.Itdoesn’tneedtohaveacitizen-facingimpact.Itcouldbesomethinginternaltothesystem’sfunctioning.It’slikeautonomousrobots runningafactory.”

Fornow,therearefewautomated workflowsinAuckland’ssmartcity infrastructure.TheAIoutputsthat currentlyexistactmorelikeconsultants,analystsorexperts.

SmartBeambussheltersareataste ofwhatphysicalAIcouldmeanfor Aucklanders.Thesearesolar-poweredbussheltersequippedwithchargingports.

Ransleysayswhiletheideaissimple,ittransformspeople’sexperience: “You’reoutlateatnight,yourphone batteryisdying,youwanttoget homesafely.ASmartBeamshelteris awelcomesight.Itsolvesyourimmediateproblems.

“There’sachargingfacility.The shelterislit-uptoprovideasafe waitingspaceforanyonewhofeels vulnerablegettinghomeatnight.”

HesaysAucklandTransporthas usedSmartBeamforthepastsix months.

Theshelterscollectdatathatgoes

beyondAucklandTransport’sbasic patronagenumbers:noteveryone waitingforabuscatchesone.

Theorganisationcanlearnhow longpeoplewaitatashelter,when theyarebusyandwhentheyare quiet.That’spreviouslyunavailable behaviouraldataabouthowpeople actuallyusepublictransportinfrastructure.

There’sasustainabilityanglewith peoplechargingphonesusingsolar ratherthanthegrid.

AucklandTransportiscurrently usingthebasemodelofSmartBeam withlimitedfunctionality.The featurescanbeextendedtoinclude e-bikecharging,advertisingpanels— whichcanearnrevenuetohelppay fortheinfrastructure,speakers,environmentalsensorsandfreeWi-Fi.

AnotherexampleofphysicalAIis attheRa¯Hihiflyover,whichlinks PakurangaRdtoPakurangaHighway inEastAuckland.ItopenedinSeptember.Here,SmartCity’sSmartTraf providedreal-timedataontheflyover’susefromdayone.

SmartTrafisafixedtrafficmonitoringsystemusingBluetooth trackersandtrafficradar.

Ransleysaysitdeliveredstriking numbers:itmeasuredaround18,000 city-boundvehiclesontheflyover’s firstday,risingtoaround45,000by theendofthefirstweek.Thatrapid adoptioncurveanditseffectoncongestionacrosssurroundingroads, waspresentedbytheprojectmanagerdirectlytotheTransportMinister. Thetechnologyinfluencedministerialbriefingsandactsasanindependentcheckonwhethernewinfrastructureisperformingaspromised. HesaysSmartTrafquicklyident-

ifiedthattherewerepoortraveltimes attheintersectionatthebaseofthe flyover.Afterhisteamflaggedit,the flyoverlayoutwaschanged,anafterstudyconfirmedtherewasimprovement.

SmartRadarisarelatedtechnologyusedfortransportanalytics.It replacespeoplestandingroadside withclipboardsorcontractorspaidto watchcamerafootage.

“Oneapplicationismeasuring turningmovementsatroundabouts. Thishasbeendifficultinthepast.The technologyisabletoclassifyvehicles, measuretheirspeed,flowvolumes, turningmovementsandobserve trends.“We’redeployinganumberof them,acrossvarioussiteswherethey providepreviouslyunavailableinsightonexactlywhatoccursatroundaboutsorintersectionsinamore accuratewaythanwaspossibleinthe past.”

ElsewhereSmartCityhasprovidedsensor-equippedcompacting binsdeployedintheFarNorthDistrictCouncilarea.Thecompaction mechanismiskey:binscompress wastesotheyholdroughlyseven timesthevolumeofaconventional binbeforeneedingcollection.Fewer collectionrunsmeansfewerheavy vehicletrips.

Smartbins,busshelters,andimprovedflyoverdata—individually theyaremodestimprovements.But Ransley’sargumentisthatjoinedup andpoweredbyphysicalAI,they representtheearlyarchitectureofa citythatdoesn’tjustcollectdata aboutitself,butactsonit.

● SmartCityisasponsorofthe Herald’sProjectAucklandreport.

ProjectAuckland
BillBennett

Onelinetorulethemall:Auckland mustbeatthecentreofgrowth

Centralgovernment needstoseefixing

Aucklandas investingina provenwinner,says

PennyTucker

Sometimesitfeelslike

Aucklandlocalgovernment politiciansandWellington electedmembersarepacked intoacar,drivingdownaroadof nationalsignificancewhilefighting forcontrolofthesteeringwheel.

Thecarweavesabout.Fellow vehiclesgiveitawideberth, evidentlyworriedthatthedrivers mightbeimpaired.Meanwhile,the passengerslobinsultsateachother whilemutteringfortheumpteenth time,“arewethereyet?”

Auckland’spathtoincreased globalsignificanceisnotworkingas wellasitcould.

Thedifferentcohortsofdecisionmakersneedtobeinseparatecars, committedtothesamedestination, butintheirownlanesandusinga better-manageddivisionofpowerto staythecourse.Ultimately,wewant thesameendpoint—asustainable, prosperousNewZealandinwhich ourleadcityplaysitsproperrole.

WithinourSupercitystructure, Aucklandershave,moreorless,an understandingofhowtodevelopthe sprawling,glittering,creaking,messy,

multiculturalmegalopolisthathas eclipsedeveryotherurbanentityin NewZealand.

Ourtrajectoryisincontrovertible. Afterall,inacountrysosmall,there isreallyonlyroomforonetrue gatewaythatfunctionslikeanarterial routetotherestoftheworld.One placecapableofliftingthewhole nationaleconomy.Takeabow, Auckland.

Yes,weknowthecountryhatesus forit.Yes,weseetheirgleewhenwe getextralockdowns,gridlock, resourceblocksandvarious externallyimposeddirectivesthat lookgoodonpaperbutareproperly annoyingortooexpensiveto implement.Thataside,it’snothelpful toreceivepiecemealedictsfrom Wellington.

Onegiant successstory, synonymous withdynamism andthe capacityto accommodate andsynthesise externalideas andinvestment, isthelureto catchthebiggest fish.

Likehowmanyhouseswecanor shouldbuildonWisteriaLane,or patronisingspendinglimitsthat conveythesensethatwerequire someformofallowance administeredbymorematureminds. Wecanalsodowithoutsliversof strategythatmorphcontinuallyin thewakeofourstupidlyshort electioncyclesandaresubjectto cross-partyutueverythreeyears. No.Weneedlong-termnational planningthatputsAucklandatthe centreofanyblueprintforgrowth. HowaboutWellingtondeliversa nationalportsstrategythatisbacked upbyservicinginfrastructuresuchas strongraillinks,sothatwecan removetheportfromcentral Aucklandandunlockthepotentialof thatland?

Itisajewelthatcouldbecomean internationaltalkingpointanda magnetforactivitythatdoesnot involvepushingcontainersaround whatlookslikearustyLego graveyard.Successivemayorshave promisedtodothis,andtheyhave allscuttledforcover.Why?Because localperceivedinterestsmakeittoo hardforthecitytomakeupitsmind. Ithastobenationallyco-ordinated andexecuted.

Itisalsoincentralgovernment’s lanetounlockrailcapacityfrom Aucklandoveranewharbour crossingtothenorth,andbetterfaster servicesheadingsouth,throughto Wellington.Thesouthernareasare currentlyatthemercyofwhatlooks likeafewofThomastheTank Engine’sawkwardrelatives lumberingtoandfroinapiecemeal fashion.Morepeopleandmore freightwillbeattractedtoabetter, quickeroption.

That’swhereTransportMinister ChrisBishopshouldbedirectinghis formidablebrainpower.To selectivelymisquote TheLordofthe Rings:“Onelinetorulethemall.One linetofindthem.Onelinetobring themall.”Thepiecesarepartiallyin place,butanagreedhigh-tech upgradewouldchangethefaceofthe NewZealandeconomyforever.

Third,weneedtheGovernmentto allocateusmoneyformorelocal infrastructurefixes,proportionateto oureconomicscale.Wepourinjust shyof40%ofNewZealand’stotal personaltaxrevenue,generated primarilythroughPAYEonincome, GSTongoodsandservices,and corporatetaxesonbusinessprofits.

It’smuchmorethanour33% populationshare.So,insteadofhandwringingaboutthecostoffixing Auckland,centralgovernmentneeds toseeitasinvestinginaproven winner.

NewZealand’sinternational competitivenessstrategymusthave Aucklandatitsheart,asa multifaceteddrawforglobalfirms, finance,internationalflights, research,themostdynamiclabour resourcesandatleastsome semblanceofscale.Ireland’sDublin andDenmark’sCopenhagenare examplesofwherethishasbeen donewell.

Everyonegainsasonegiant successstory,synonymouswith dynamismandthecapacityto accommodateandsynthesise externalideasandinvestment,isthe luretocatchthebiggestfish.That feedsotherplacesandmorelocalised andnicheentrepreneurship.

Readingbetweentheexpletives, ourmayoractuallyhashishandson thewheelandknowshowtostayin hislanewithaprettysoundplan,and ourdeputymayorhasthediscipline toadeptlyco-pilot.

Fornow,we’vebeenfortunateto belandedwithan“Ateam”of Wellingtonministerswhoaresmart andinfluential.Theyhavethe horsepowertodragsomeheavy artillerybehindthem.Aslongaswe don’tcrashintooneanother,it’s startingtofeellikewecouldbeinfor decentroadtrip.

● PennyTuckerisapublicandtrade policyconsultantandformerelected memberoftheOra¯keiLocalBoard.

PennyTucker

Whatanewdealmustdeliver

Thecity’sbiggest challengesrequirea structuredlongtermpartnership betweencentral andlocal government,says

TheimminentAucklandcity andregionaldealis important,overdue,andwill beworthwelcoming.Itwill markashift:anacknowledgmentthat Auckland’sbiggestchallenges— transport,housing,infrastructure, innovation,andproductivity— requireastructuredlong-term partnershipbetweencentraland localgovernmentratherthanthe cyclicalstop-startapproachthe regionhaslivedwith.

Ithasbeenalongtimecoming.The caseforcityandregionaldealshas beenonthepolicyagendasinceJune 2023,whenNationalannouncedthe policyandtheFutureforLocal Governmentreview,commissioned underLabour,alsoendorsedthe approach.Thatithastakennearly threeyearstoreachevenafirst-stage Aucklandagreementstillreflectsa countrywhoseover-centralised systemtoooftenrecogniseslocal governmentissueslateandresponds slowly.

metropolitanplatform,deeper transportandinvestmentplanning, andamorerepeatablebargaining relationshipwithcentral government.

Manchesteralsooffersawarning. Thesearrangementsaredifficult. Theydependonconstructive bargainingbetweenlocalleadersand thegovernmentoftheday,often acrosspartylinesandpolitical tensions.Successcomesfroma strongdeal-makingsysteminvolving committedinstitutions,clear responsibilities,continuitythrough politicalchange,andhard-wiring aroundfundinganddelivery.New Zealanddoesnotyethaveadeep traditionofthatkindofmetro-scale dealmaking.

Australiaalsooffersacaution.Its “citydeals”programmeshowedthe valueofstructuredagreements betweenlevelsofgovernment,but alsohowquicklytheycanloseforce whengovernmentschangeand prioritiesshift.Somedealshave enduredanddelivered—butunless themodelisbroadlyownedacross thepoliticalsystem,itriskssliding fromacentralorganisingframework tojustanotherpolicytool.

substancetochangeoutcomes.Itis easytoproduceadocumentsaying thattransport,housing, infrastructure,andinnovation matter.Everyonealreadyagreeson that.Theharderquestioniswhether thedealcontainsspecific commitments,sequencing, milestones,publicreporting,and mechanismstoforcedecisionsand resolvedisputes.Iftoomuchofitis builtaround“explore”,“investigate”, “consider”and“developajointwork programme”,theriskisobvious.

Second,bywhetherthe institutionalarchitectureisstrong enoughtoendure.Onthe Governmentside,adealneedsa capableunitthatcanco-ordinate acrossagenciesandsurvive ministerialchurn.OntheAuckland side—aswithothercitiesthatwill pursuetheirowndeals—itneedsa disciplinedregionalcounterparty abletosetpriorities,negotiate coherently,andstayalignedover time.

Theargumentforthedeal structuregoesback15yearstowhen theUKGovernmentbeganthemwith citiesandregions.Cityandregional dealsaremeanttoprovideamore durablewayforcentralandlocal governmenttoworktogether. Properlydone,theyaligncityand governmentpriorities,investment, anddecision-makinginanegotiated programmewithclearaccountability, replacingadhocbargainingwitha repeatabledeliveryframework.

Lastyear’s“Aucklandat15”event, marking15yearsofthesupercity, calledforanewAucklandagendafor

Unlessthemodelis broadlyowned acrossthepolitical system,itrisks slidingfroma centralorganising frameworktojust anotherpolicytool.

thenext15years.TheAucklanddeal couldbecomeanessentialpartofthat response,alongsidewidereffortsby theprivatesectorandpartnersto buildaclearerAucklandnarrative andamorecoherentplatformfor civicandeconomicaction.Buttodo so,itwillneedsubstance,clearer commitments,andstrongdelivery architecture.Withoutthat,itwillbe

anotherexampleofAuckland—and NewZealandmorebroadly—taking toolongtomaketoolittleoftoogreat anopportunity.

Aucklandisnotshortof experiencewithbiginstitutionalfixes orissue-specificbargainswithcentral government.Thebiggestwasthe SuperCityamalgamationin2010— amajorstate-backedrestructuring, underpinnedbyapolitical consensus,butimposedratherthan negotiated.Aucklandhasalsoseena seriesofmoretargeted“deals”in housing,transport,andmajor infrastructure.Somehavedelivered realbenefits.Somehaveaccelerated decisionsthatmightotherwisehave stalled.Buttheyhaveusuallybeen narrow,transactional,andtiedtothe politicsofthemoment.

Internationally,Greater Manchesterremainsoneofthe clearestexamplesofwhatispossible whenthecityandregionaldeal modelistakenseriously.Itscitydeal andlaterdevolutionarrangements helpedcreateastronger

BUSINESS REPORTS

Partieswillalwayshavedifferent policyandprojectpriorities.Butthese canbenegotiatedonlyifanenduring dealstructureremainsinplace.Early Oppositionresponseswere encouraging,focusingonlikely fundinggapsratherthanrejectingthe conceptoutright.

ThreeyearsofStateoftheCity reportinghavemadethecore challengesplain.Aucklandhassome enviablestrengthsbutremains, relativetointernationalpeers, constrainedbyweakproductivity,a less-developedinnovationandskills system,infrastructuregaps,transport deficits,anduneveneconomic momentum.

GivenAuckland’simportanceto thenationaleconomy,that underperformanceisnotjustalocal problem.Withoutastronger,morecoordinated,andmoresustainedeffort, thecity’sdrift—andrelativeslippage againstbetter-organisedcompetitor cities—willcontinue.

SohowshouldAucklandjudgethe dealwhenitisreleased?

First,bywhetherithasenough

Third,bywhetherthereisa credibledecision-makingand fundingframework.Adealwithout enoughauthoritytoreshape investmentchoicesandmeaningful fundingpathwayscantooeasily becomeanorganisingnarrative ratherthanadeliveryinstrument.

Aucklandshouldwelcomethata dealishappening,asshouldNew Zealandtaxpayers.AstrongerperformingAucklandbenefitsthe wholecountry.Thecityshould recognisethatamorestructured partnershipwithcentralgovernment isessential,acknowledgethe practicalwinsalreadysecuredinthe deal,andberealisticthatno negotiatedagreementgivesevery partyeverythingitwants.

Ifthisisthebeginningofamore maturemodelofurbandeliveryin NewZealand,itwilldeservestrong support.Ifitismerelyanother exampleofrecognisingthe opportunitybutstoppingshortof whatthemomentrequires,Auckland andothercitieswillcallthisout clearly.

Aucklandneedsarealdeal,nota rhetoricalone.

● MarkThomasismanagingdirector ofServiceworksandadirectorofthe CommitteeforAuckland.

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