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Why Retaining Whenuapai Airport and Developing It for Commercial Use

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Why Retaining Whenuapai Airport and Developing It for Commercial Use Submission to New Zealand Defence Force on Future Use of Whenuapai Airport Land The Case for Whenuapai Airport – Why Retaining Whenuapai Airport and Developing It for Commercial Use, with Ancillary Comprehensively Planned Commercial and Industrial Development, Is the Most Logical Future Use. Waitakere City Council Enterprise Waitakere Infratil Limited Te Kawerau a Maki 1 1 Recommendation That New Zealand Defence Force recommends to Government that the Waitakere City Council/Infratil proposal to develop Whenuapai Airport for commercial use, with associated industrial and commercial development is the most logical future use of Whenuapai. Waitakere City Council Enterprise Waitakere Infratil Limited Te Kawerau a Maki 2 3 The Case for Whenuapai Airport – Why Retaining Whenuapai Airport and Developing It for Commercial Use, with Ancillary Comprehensively Planned Commercial and Industrial Development, Is the Most Logical Future Use The Crown has decided to vacate Whenuapai: Whenuapai already exists as Auckland’s second fully functioning Air force to shift to Ohakea over a 5 year period International and Domestic airport: Why destroy a value enhancing piece of Infrastructure? The Minister of Defence is required to recommend to Cabinet by the end of March 2004 the most logical future use of Whenuapai, The cost and time to upgrade is modest in commercial terms, and the process for disposal of the airbase: and well recognised by Infratil which is providing the The Government is seeking feedback on what future use or uses of development capital. the site should be: The opportunity cost to the Auckland Region of destroying New Zealand Force discussion document, October 2003. Auckland’s second and functioning Airport is considered This is the submission of Waitakere City Council and interested significant. The cost and difficulty of creating a second airport for parties: Auckland in the future, at another location, would be immense. Waitakere City passed 11 resolutions in December 2002 Whenuapai as an airport can save the Auckland Region $341million detailing its commitment to retain Whenuapai as an International in future transport costs: and Domestic airport. Auckland regional transport model used to measure. Waitakere City entered a partnership agreement with listed Whenuapai is more conveniently located for at least half of the infrastructure investor Infratil Ltd, to provide the resources and regions citizens. expertise needed to transform Whenuapai from a military to The Whenuapai land has no strategic value to Waitakere City if it Commercial Airport, with associated commercial and industrial is not a commercial airport: development. Waitakere City’s and the Regional Growth Strategy already Enterprise Waitakere is a trust established to proactively identifies other areas of land for future industrial, commercial encourage economic development within Waitakere City. and residential use. Te Kawerau A Maki is the mana whenua of Waitakere City Land becoming available at Whenuapai as a result of the The loss to Waitakere City resulting from the Air Force leaving Air Force withdrawal has no strategic benefit for the city, Whenuapai is estimated at $230 million pa including 1647 jobs and unless a commercial airport is developed. 826 families: Unused Whenuapai Airbase will be a significant liability to the NZIER report July 2003 owners and to the City, possibly for decades. Counterfactual compares it to surrounding rural residential. Waitakere City’s development corridor is planned to proceed along the edge of the Metropolitan urban limit ( which Whenuapai Potential for significant social and economic disruption to a nascent City. is well outside) and along state highway 16 to the west. If not retained as an airport the Crown or Waitakere City can not The loss is equivalent to 135% of the City Council’s annual expenditure undertake any commercial or industrial development as a public work: NZDF is Waitakere City’s largest employer A designated operational airport offers the widest range of Besides mitigating those losses, Waitakere wants to use the development options. opportunity to build a future economic generator for itself and the Waitakere City and Infratil’s proposal envisages commercial and North Western sector of the Auckland region: industrial development associated with a commercial airport. Commercial Airports become economic generators by providing enhanced connectivity to and from a defined region. The Public Works Act disposal process must be followed if Whenuapai is not retained as an airport. It could be decades The Economic Impact of the US Airport Report, 2002 before anything is able to happen on the land, which also requires demonstrates the value of airports. expensive remediation if it is not to be used as an airport. Commercial Airports attract commercial/private sector It is estimated that to dispose of the runway would require the investment removal of 46,000 truckloads of concrete. This equates to 200 Why destroy a valuable piece of infrastructure which has truck movements per day for a year. the potential to drive economic growth, improve traffic flows, There is uncertainty, delay and loss of control for the Crown and employment and assist tourism? Waitakere City if airport operations cease and the Public Works Whenuapai is situated at the center of New Zealand’s fastest Act disposal process is invoked. growing area: The North West Auckland Region is New Zealand’s fastest growing now and for the future. As many people live within a 16km radius of Whenuapai Airport (500,000) as do within the same radius of Mangere Airport. 2 3 Whenuapai as an airport can redress economic loss to the North Infratil and Waitakere City are essential partners for success: West Auckland Region and add more jobs than those being Infratil is a respected international advisor and investor in removed by the Crown: airports. BERL report 2002 Infratil has access to capital, long term commercial vision, The Economic Impact of U.S. Airports, 2002 and international experience and success at Airport Mangere will face complementary competition: development, including mixed civil and military Mangere is a long haul airport charging aircraft on a weight basis. Waitakere City has developed and implemented world class sustainable city policies and practices Whenuapai will have a different model and the ability to relieve Mangere of the low value aircraft movements. Wellington Airport’s successful rejuvenation is a model to follow: The rejuvenation of the facilities at Wellington is a testament Competition must enhance the attractiveness of the region, and New Zealand to Airlines and travellers alike. to Infratil’s skill in the successful management of Airports. Wellington Airport’s enhanced relationships with its neighbours Competition will be good for both Whenuapai’s and Mangere’s customers. highlight best practice behavior for a public/private infrastructure asset. The Whenuapai airport proposal represents a sound commercial model. The airline market is moving in the direction that Whenuapai Only Development Dollars at risk are the commercial investor’s: will take: Infratil will contribute all the development capital required. Low cost no frills air travel is a successful and profitable Waitakere’s partnership with Infratil allows the City to contribute business model capital and acquire a shareholding only if it chooses to do so. Regional short haul is strong for low cost no frills Infratil is realistic about the potential costs and capital it must provide for a successful redevelopment of Whenuapai as a Air travel is growing strongly, creating the need to build new airports and/or expand existing ones. commercial airport. The 5 year phase down is a perfect window to test the thesis: hub and spoke model increasingly complemented by point to point It’s not unusual for military and civilian activities to co-exist, with proper safeguards. Early stage positive interest from International Airlines. Any other use for the Whenuapai land could be decades away Public support for Whenuapai as an airport is high: Whether or not commercial operations can begin during the Recent region wide polls show strong public support for an airport at Whenuapai five year period, it makes sense to test the commercial airport model first, since choosing any other option involves destruction Whenuapai as an Airport provides positive assistance to the NZ of the existing airport infrastructure. Transport Strategy, the Tourism Strategy, and the Sustainable Cities programme: The 5 year period allows time to test the commercial viability. Tourism; Low cost no frills will be particularly important in driving All other options still remain open if the commercial airport traffic from New Zealand’s biggest inbound market, Australia. cannot be made to work. Tourist ventures in the north and west will benefit from an The most logical future use for Whenuapai is: airport at Whenuapai. As an Airport with ancillary surrounding Commercial/Industrial Transport; $341m benefit for no input. and Urban development. Sustainable cities; local jobs, less traffic congestion, less The best process for disposal is: environmental impacts on the region. For the Crown to act both proactively and transparently in Waitakere City’s local Iwi support Whenuapai’s redevelopment partnership with Waitakere City and Infratil to produce the as an Airport: best outcome in a timely manner. Te Kawerau A Maki, the city’s mana whenua, are strong
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