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Kaipara Water Transport Network and Wharves Feasibility Study

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Kaipara Water Transport Network and Wharves Feasibility Study Kaipara District Council Kaipara Water Transport Network & Wharves Feasibility Study / Programme Business Case Prepared by: AR & Associates + Partners Prepared for: Kaipara District Council Date: 12 May 2020 Version: 2.7 Status: Final Draft This study has been developed by AR & Associates, supported by Pure Activation, Abley Transportation, Market Economics, Resilio Studio, Visitor Solutions and Black Quay Consulting. Kaipara District Council Kaipara Water Transport Network & Wharves Feasibility Study / Programme Business Case Document Control Document Information Document ID Kaipara Water Transport Network & Wharves Feasibility Study / Programme Business Case Document owner Gavin Flynn Issue date 12 May 2020 Filename P19-144 Document History Version Issue date Changes 0.1-0.6 02 February – Draft development with updates as information provided 03 March 2020 0.6-0.9 03 March 2020 Feasibility Draft for project team review 1.0 11 March 2020 Working draft for KDC Project Steering Group 2.0- 2.1 Mid-March – Updates applied through progress of targeted studies and Early April 2020 feedback 2.2-2.4 7-22 April 2020 Minor updates to the Feasibility Study / Draft PBC for Elected Member and PSG briefing 2.5-2.7 7-12 May 2020 Updates made following consultation period and finalisation of targeted technical studies. Document Review Role Name Review Status Programme Manager Gavin Flynn Final Draft Document Sign-off Role Name Sign-off Date Senior Responsible Diane Bussey, Kaipara District May 2020 Owner/Project Executive Council Contents 1 Executive Summary ..................................................................................... 3 1.1 The case for change .......................................................................... 3 1.2 Finding a value for money solution .................................................... 4 1.3 The delivery deal ............................................................................... 6 1.4 Funding the programme .................................................................... 6 1.5 Making it happen ............................................................................... 7 2 The Strategic Case – making the Case for Change ..................................... 8 2.1 Purpose and scope of this Feasibility Study ...................................... 8 2.2 Strategic Alignment ......................................................................... 10 2.3 Background and setting ................................................................... 10 2.4 Kaipara Harbour and its history ....................................................... 11 2.5 Organisational overview .................................................................. 15 2.6 Challenges for the District ............................................................... 15 2.7 Economic context ............................................................................ 19 2.8 Transport context............................................................................. 24 2.9 Implications for Kaipara Water Transport Network and Wharves .... 29 2.10 Tourism context and opportunities................................................... 33 2.11 Social and Cultural Context ............................................................. 45 2.12 Stakeholder and Partner Engagement ............................................ 46 3 Investment Objectives, Existing Arrangements & Business Needs ............ 48 3.2 Main Risks ....................................................................................... 51 3.3 Key constraints, dependencies and assumptions ............................ 52 4 The Economic Case – Exploring the Preferred Way Forward .................... 54 4.1 Early feedback from industry, partners and stakeholders ................ 54 4.2 Longlist Options Identification .......................................................... 56 4.3 Network node location options ........................................................ 58 4.4 Longlist Options Evaluation ............................................................. 64 4.5 Programme Investment Options Development ................................ 65 4.6 Programme Investment Options Assessment ................................. 70 4.7 The Recommended Preferred Way Forward ................................... 70 4.8 Profiling the preferred option ........................................................... 71 4.9 Indicative economic impacts of the preferred option........................ 79 4.10 Preferred Programme Consultation Feedback ................................ 85 Kaipara Water Transport Network & Wharves Feasibility Study/Programme Business Case | 1 5 Commercial Case ...................................................................................... 91 5.1 Procurement Strategy ...................................................................... 91 5.2 Required services ............................................................................ 91 5.3 Market Capability ............................................................................. 92 5.4 Contract provisions .......................................................................... 93 5.5 Potential for risk sharing .................................................................. 93 5.6 Planning and Consenting Management ........................................... 93 6 Financial Case ........................................................................................... 94 6.1 Capital Cost Summary ..................................................................... 94 6.2 Financial impacts ............................................................................. 94 6.3 Current funding requirements and recommendations...................... 96 6.4 Identifying revenue streams ............................................................ 96 6.5 Funding sources .............................................................................. 97 7 Management Case ..................................................................................... 99 7.1 Programme management strategy and framework ......................... 99 7.2 Organisational change management ............................................... 99 7.3 Programme Delivery Schedule ...................................................... 101 7.4 Benefits realisation management .................................................. 102 7.5 Risk Management.......................................................................... 102 7.6 Next steps ..................................................................................... 102 8 Annexes ................................................................................................... 104 8.1 Annex 1: Benefits outline ............................................................... 105 8.2 Annex 2: ILM Issues list and activities brainstorm list .................... 107 8.3 Annex 3: Kaipara Moana Tourism Opportunities ........................... 113 8.4 Annex 4: Abley Transport Baseline and implications ..................... 114 8.5 Annex 5: Multi – Criteria Analysis Evaluation of Programme Investment Options .................................................................................. 115 8.6 Annex 6: Northland PGF Projects ................................................. 116 8.7 Annex 7: KDC Marine Asset Condition Assessments (WSP) ........ 117 8.8 Annex 8: Longlist Options Assessment ......................................... 118 8.9 Annex 9: Market Scoping Study (Market Economics) .................... 119 8.10 Annex 10: Kaipara Wharves Consenting Considerations .............. 120 8.11 Annex 11: WSP Marine Asset Assessment Pōuto Point ............... 121 8.12 Annex 12: Consultation document ................................................. 122 2 | Kaipara Water Transport Network & Wharves Feasibility Study/Programme Business Case 1 Executive Summary This Kaipara Water Transport Network and Wharves Feasibility Study and Programme Business Case (PBC) seeks approval to: • invest $4 million of Provincial Growth Fund (PGF) allocation into priority wharf developments that will form the foundation of a water transport network. • the priority wharf developments are the Dargaville Wharf pontoon & Pahi wharf renewals, new wharf at Pōuto Point, investigation of beach landing sites at Otamatea marae, Arapaoa marae and Oruawharo marae. • invest approximately $4.64 million in ongoing targeted development in marine facilities and asset management initiatives as part of a 30-year water transport network delivery programme. This PBC will support increased economic, social and environmental resilience for the district as part of the broader Kaipara Kickstart programme. It also supports the strategic direction for Northland provided by the Tai Tokerau Economic Development Action Plan, the Maori Economic Development Strategy for Northland, the district’s Long-Term Plan and numerous regional transport planning initiatives. 1.1 The case for change As a district, Kaipara is lagging behind its neighbours and it needs to generate new sustainable economic activity to bring it back to its former strength. The district has pockets of deep deprivation and its labour force (working population) is shrinking. There is a strong local desire to support initiatives that can support growth in jobs, retain youth and build local capability while nurturing the character and the health of the district. Without financially viable and commercial tourism products, well promoted attractions and efficient transport
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