When operating New Zealand’s leading port company, there’s bound to be a constant flux of unexpected opportunities and unforeseen challenges. As Managing Director of Ports of Auckland Limited, Jens Madsen confronts both scenarios with an optimistic, pragmatic approach, he says, “We have the vision of being the best port company in this part of the world. Our first and foremost mission is to provide a quality product to our customers while simultaneously generating strong dividends.” To achieve these goals, POAL offers a diversified range of innovative cargo handling and logistics services with a constant aim to further develop and grow.

Situated on the eastern coast of New Zealand, in between two oceans on a narrow isthmus, the city of Auckland and its trade were built around the seaport. Since the port company’s establishment in 1871, it’s evolved to become New Zealand’s largest import and container port. The major part of its business is the container business, which accounts for more than 840,000, 20-foot equivalent container units each year. The Port’s total container volumes represent 36 percent of New Zealand’s total container trade.

Apart from its container business, which has seen a quick recovery following the global recession, POAL offers a wide range of other facilities and services, including break bulk cargo and bulk businesses, vehicle imports from Asia, and a thriving cruise line segment. Diversification is a key factor to the success of POAL. Madsen says, “It’s a trend in New Zealand now. Successful companies are taking on additional risks with the aim of controlling the supply chain better, with the ultimate aim of curtailing costs from the supply chain and offering a more attractive product from the customers’ perspective.” POAL’s footprint extends over three strategically placed operational areas in the Auckland area. In addition to the main city port in Auckland, there’s a smaller port in Onehunga located 10 kilometers away, while a 15-hectare inland port sits 25 kilometers from the city. The Wiri Freight Hub is a depot that connects the seaport by rail, and offers deliveries, consolidation of cargoes and equipment to and from the major market of Sought Auckland.

Madsen says that POAL’s current strategic goals are to continue to develop and deliver quality products and services for its customers, and to continually improve the integration of internal systems to provide benefits to users. An example of this is the Port’s InterACT online information and cargo management platform. “Until quite recently, most of our operations took place inside the port gates. That has changed quite dramatically, and our port has become a player in the logistics field, meaning that we take cargo off the ships and move it,” he says. In fact, the latest addition to its portfolio is the establishment of a joint venture logistics company called CONLINXX Ltd. CONLINXX manages operations at Wiri, and assists importers and exporters in optimizing transportation methods from the seaport to their final destination, whether via road or rail. POAL utilizes its own, well-developed rail grid with four 600-meter tracks.

The port company is constantly working on improving productivity, which it defines as the ability to quickly turn ships around. Its customers, who primarily are international shipping lines, New Zealand exporters, importers and forwarders, have become very selective and undertake a rigorous selection process before committing to service providers. Madsen says, “We need to make sure that we’re offering customers the best value for their money. We’re making improvements in that area, but we need to work even smarter going forward.” To better serve its customers, POAL is implementing a new terminal management system that will eventually integrate all of the Port’s legacy systems into one platform. The new system will deliver a more streamlined and effective terminal operation, ensuring time and cost efficiencies. The first phase of the system is currently being implemented, which will focus on the move of containers up to and including the passing containers through the gate on an in-bound move.

Looking at their other services, POAL has a very substantial marine business, including pilotage, towage and lines, as well as a hydrographic department. Recently, POAL also invested in a small oil tanker in a joint venture with Pacific Basin, a world-class Hong Kong-based bulk carrier owner. The oil tanker shuttles oil between the seaport and Marsden Point, approximately 100 miles from Auckland.

With all this activity, POAL recognizes the important role that its actions have on the community and environment. It holds quarterly meetings to engage with its neighbors and other stakeholders such as environmental groups, to address concerns that range from noise to pollution. Nearly 35 percent of New Zealand’s inhabitants live in the Auckland area, and POAL wants to make sure it is a responsible neighbor. The port occupies a substantial piece of land in a large, international city and it wants to do its best to be conscientious.

Since 2007, the company has been carrying out external auditing of its greenhouse gas inventory, and has thereby been setting goals in terms of managing its impact on the environment. Its efforts have been healthy internally and for the community. “My predecessors were ahead of their time and did a fabulous job of preparing the port for what it is capable of today. They dredged 700,000 cubic meters of sand and rock, which has been recycled into terminal land reclamation.”

Going forward, Madsen says the world will see Ports of Auckland as having managed well for the present, but also for the future. “Over the last 20 years, the Ports of Auckland has enjoyed a six percent growth rate per year. So in five years, we’ll likely have grown by a further 35 to 40 percent. We’ll be even more efficient and productivity will have increased.” Madsen adds that the POAL will see larger ships entering the port, which means it will become involved with more berth deepening projects, as well as the construction of a new container berth. Additional automation and an expanded rail network will further connect New Zealand, via Ports of Auckland, efficiently and effectively to the international markets.