$65 million of automation software and guidance systems left useless
On June 8th Ports of Auckland Ltd (POAL) announced it will scrap the automation of the Fergusson Container Terminal leaving $65 million of software and systems useless. According to the statement posted on the official POAL website, the decision was made in the best interests of the company, its stakeholders, and the New Zealand supply chain.
"Our review indicated that despite the best efforts of our team and our supplier, the project is
experiencing continuing delays to full terminal roll out, the system is not performing to expectations, and we do not have confidence in the projected timeline or cost to completion,” said Board Chair Jan Dawson.
While the $65 million software investment is a write-off, POAL believes it is not all a loss. The
infrastructure capacity upgrade work was delivered as planned. This included the new Fergusson North wharf and cranes as well as major pavement upgrades, a new truck loading area, new refrigerated container capacity and other upgrades.
Chief Executive Roger Gray stated that the decision gives them certainty about the future and allows them to focus on the core job at hand: safely providing a great se
rvice to New Zealand Importers and Exports and that it would help get the business back to the profitability level it delivered in the past.
WEIGH IN ON WHAT THIS MEANS FOR FREIGHT FORWARDERS.
It will be interesting to see whether there will be a change in the short or long-term NZ procurement services. Will it be a more attractive place to send containers to again now? Since October 2020 millions of dollars have been levied against importers and exporters due to port congestion, additional costs due to vessel diversions and not to mention delivery delays. Leave your comments.