A REPORT into Ports of Auckland’s canned automation project has found “a number of areas where systems and structures can be improved”, according to the POAL board chair.
According to local media, the report found the process of selecting vendors was badly structured, the business case presented to the board was “unsatisfactory” and problems within the team led to an unproductive culture around the project.
The automation project started in 2016 with the goal of future proofing the capacity of the port’s Fergusson Container Terminal.
However, POAL cancelled the project in June after it failed to meet expectations.
At the Auckland mayor’s request, the board agreed to an independent review of the project’s governance processes; as well as aspects of procurement and delivery.
The board appointed independent infrastructure expert Mark Binns to undertake the review.
POAL board chair Jan Dawson presented Mr Binns’ report to POAL’s sole shareholder, Auckland Council.
Ms Dawson said the report has identified a number of areas where systems and structures can be improved.
“I appreciate the insights and recommendations Mark has made. The Board accepts these suggestions, and change will be implemented,” Ms Dawson said.
She said the former leadership at Ports of Auckland undertook the automation project for the right reasons.
“The aim was to lift capacity, productivity and profitability without further port expansion or reclamation,” she said.
“The automation project was pioneering and involved new and complex technology. Its cancellation and associated write-off of capital expenditure are regrettable. But the improvements we make now will leave us better placed to consider major capital projects in the future.”
In August, the port established a new project management office to support change management and provide governance structures for large projects within the business.
