The value of port land

The Herald reports:

Ports of Auckland is sitting on land with a commercial value of $2.2 billion, far greater than its $76 million value for port use, says an economist.

What’s more, the value of the land will rise to $3 billion in 10 years, says freelance economist Dr Aaron Schiff.

His figures are based on converting half of 61.6ha of port land, excluding wharves, for private use, with the remainder becoming public space. Dr Schiff has challenged Ports of Auckland’s economic information in a paper written for the Committee for Auckland, an independent organisation of business leaders.

I think there is a huge opportunity cost of having prime waterfront land used as storage for logs and cars. The locations of ports made sense in the 1950s,but makes no sense in the 21st century when waterfront land is the most expensive and desirable you can get.

Imagine in Wellington if the port was primarily at Seaview – an industrial area already. The current port land could host apartment blocks for thousands of people, cafes, restaurants, shops and a huge park for walking, running and cycling. We already have a great city, but an extended waterfront which extended all the way to the Hutt Road, around the stadium would be superb.