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  "title": "Ports of Auckland's Abandoned Container-Terminal Automation",
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     "status": "cancelled",
     "outcome": "failed",
     "evidenceGrade": "media",
     "timeline": {
      "started": 2016,
      "ended": 2022
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    },
    "governance": {
     "operator": "Ports of Auckland Ltd (company wholly owned by Auckland Council); automated straddle carriers by Konecranes, terminal and equipment-control software by TBA Group",
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     "cost": "Approximately NZ$65 million written off in June 2022 (NZ$63.1 million in the FY2022 accounts); no audited total for the automation project was located",
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      "text": "In August 2016 Ports of Auckland, the company wholly owned by Auckland Council, announced it would partially automate its Fergusson Container Terminal by 2019",
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      "text": "saying capacity would rise from just over 900,000 TEU a year to 1.6-1.7 million TEU without further reclamation",
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      "supportNote": "The port's chief executive is quoted that this stage of automation would lift terminal capacity from just over 900,000 TEU to 1.6-1.7 million TEU a year, because the port could not expand through reclamation.",
      "caveat": "A planning figure, not a measurement. The equipment supplier's 2020 release gives the aim as about 1.4 million TEU a year.",
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      "text": "The first phase went live in June 2020 with 27 automated Konecranes straddle carriers supervised by TBA software.",
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      "text": "On 17 June 2021 a software fault made a container carried by an automated straddle hit a stacked container, and automated operations were paused.",
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      "supportNote": "The report quotes the port: a software fault on 17 June 2021 resulted in a container carried by an automated straddle hitting a stacked container, and the port would not continue automated operations until the risk had been investigated.",
      "caveat": "The port said no one was at risk at the time; operations later restarted under a revised four-stage plan.",
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      "text": "In June 2022 the board cancelled the project because the system was not performing to expectations",
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      "supportNote": "The board chair's statement gives continuing delays, a system not performing to expectations and no confidence in the timeline or cost to completion as the reasons for ceasing automation, after two independent expert assessments said much more money and time were needed.",
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      "text": "wrote off approximately $65 million, mainly the automation software and guidance system, and returned the terminal to fully manual operation",
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      "caveat": "The audited annual accounts later put the write-off at $63.1 million.",
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      "text": "The capacity gain did not arrive. The terminal handled 811,565 TEU in the year to June 2022, against 818,238 a year earlier and 973,722 in the year to June 2018.",
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      "supportNote": "The annual-result report gives 811,565 TEU for the year to June 2022 against 818,238 the year before; the union-commissioned report tabulates the port's volumes and gives 973,722 TEU for the year to June 2018.",
      "caveat": "These are throughput figures, not capacity; they do not by themselves show what caused the decline.",
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      "text": "For the year to June 2022 the port reported a $10.3 million loss after a $63.1 million write-off on the project, against a $45.57 million profit the year before.",
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      "supportNote": "Both reports of the annual result give a $10.3 million loss for the year to 30 June 2022, attributed to the $63.1 million write-off on the axed automation project, compared with a $45.57 million profit a year earlier.",
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      "text": "The new wharf and cranes built alongside the automation were kept.",
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      "supportNote": "The chief executive is quoted that the new infrastructure built as part of the project, such as the new wharf and cranes, provides extra capacity needed for future growth.",
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      "text": "The independent governance review the board commissioned at the council's request located the failure in procurement and oversight rather than in the machines",
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      "supportNote": "The newspaper reports that, at the council's request, the port board appointed the company director Mark Binns to review the governance of the automation decision, and that his findings concern vendor selection, the business case, contract terms, project organisation and board oversight.",
      "caveat": "That the review places the failure in governance rather than in the equipment is this entry's reading of the reported findings. The former chief executive rejects them and says the software vendor was not interviewed.",
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      "text": "the vendor selection process was not sufficiently well-structured, the chosen vendor had been working with the company as a consultant since 2012, the contract was negotiated without any adequate software performance guarantees",
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      "supportNote": "The newspaper summarises and quotes the independent review by Mark Binns: vendor selection not sufficiently well-structured, the chosen vendor working with the company as a consultant since 2012, and the contract negotiated without any adequate software performance guarantees.",
      "caveat": "The review itself, described as a short summary document, was read here through press quotation. The former chief executive and chair disputed its findings.",
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      "text": "the board did not take the steps necessary to understand the risks",
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      "supportNote": "The review is quoted that it was incumbent on the board to fully understand the risks the company was assuming, and that on balance the board did not take the steps necessary to ensure this.",
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      "text": "A council-ordered health and safety review had found in March 2021 that the automation project was unable to make a robust safety case for the automated straddles.",
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      "supportNote": "The report quotes the March 2021 health and safety review of the port, ordered by Auckland Council after a worker death, as finding that the automation project was unable to make a robust safety case for the development and operation of the automated straddles.",
      "caveat": "Quoted from a union-commissioned report; the safety review is not itself among this entry's sources. The same report says no one was hurt by the automated straddles.",
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      "text": "Public ownership did not supply the missing check: under the Port Companies Act the shareholder has limited ability to intervene, and when the decision was made an intermediary company kept the port at arm's length from council oversight",
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      "supportNote": "The mayor's statement says that under the Port Companies Act the board runs the company and the shareholder has limited ability to intervene in operational matters, and that Auckland Council Investments Ltd kept the port at arm's length from council oversight at the time of the decision.",
      "caveat": "This is the owner's own account of its limited role; a senior councillor called the council 'a lazy port owner'.",
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      "id": "src-8bb8df7aeb4df847",
      "title": "Maritime Executive — Auckland to Automate Container Terminal (13 Aug 2016)",
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       "value": "Trade-press report of the port's August 2016 announcement, quoting chief executive Tony Gibson: partial automation of the container terminal, complete in 2019, with automated straddle carriers working the truck grid and yard while stevedores keep driving between yard and cranes; capacity from just over 900,000 TEU to 1.6-1.7 million TEU a year because the port cannot expand through reclamation; around 50 stevedoring roles could go; the port's claim to be the first New Zealand port and only the third straddle-carrier terminal in the world to automate.",
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      "title": "Konecranes — Milestone Konecranes automation project goes live at Ports of Auckland (6 Nov 2020)",
      "url": "https://investors.konecranes.com/press/milestone-konecranes-automation-project-goes-live-ports-auckland-1862898",
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       "value": "The equipment supplier's release: the first phase went live in June 2020; by September 26 ships had been served by a blended fleet of 24 enhanced manual straddle carriers and 27 new automated Konecranes Noell straddle carriers, supervised through TBA's TEAMS equipment control system; it gives the capacity aim as about 900,000 to 1.4 million TEU a year. Vendor material, cited for the go-live date and fleet composition.",
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       "value": "Reports that phase one had handled over 100 ships but that speed and reliability were not yet up to expectations; that on 17 June 2021 a software fault caused a container carried by an automated straddle to hit a stacked container and the port paused automated operations; and the revised four-stage plan with a go-live judged achievable by late March 2022.",
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       "value": "Carries the port's cancellation statement verbatim: the board chair's reasons (continuing delays, the system not performing to expectations, no confidence in timeline or cost to completion), two independent expert assessments that both said much more money and time were needed, the write-off of approximately $65 million 'mainly the automation software and guidance system', the retained new wharf and cranes, and the return to fully manual operation.",
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       "value": "The sole shareholder's statement on the day of cancellation: Mayor Phil Goff calls it wasted expenditure of around $65 million, says the board is responsible under the Port Companies Act and the shareholder has limited ability to intervene, that Auckland Council Investments Ltd kept the port at arm's length at the time of the decision, and asks the board for a review of the process.",
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      "title": "interest.co.nz — Ports of Auckland has sailed into the red in the latest financial year (31 Aug 2022)",
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       "value": "Same annual result, adding container volume: 811,565 TEU in the year to June 2022 against 818,238 a year earlier.",
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      "title": "NZ Herald — Damning report on Auckland port's automation project finds multiple failures (20 Sep 2022)",
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      "title": "International Transport Workers' Federation — Lessons in Failure: Automation at the Port of Auckland (May 2023)",
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       "value": "A research report commissioned by the dockworkers' section of a global transport union federation, published by the Maritime Union of New Zealand. Cited for its quotation of the March 2021 council-ordered health and safety review ('the automation project is unable to make a robust safety case'), its statement that no one was hurt by the automated straddles, and its table of the port's container volumes, 973,722 TEU in the year to June 2018. An advocate's account; its cost estimates are not used here.",
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       "value": "Interview with former chief executive Tony Gibson, who rejects the Binns review point by point: he says the reviewer did not interview the software vendor TBA and that software performance guarantees of the kind expected do not exist in the ports industry; the article describes the review as a two-and-a-half-page summary and quotes its finding that changing the acceptance testing was 'incomprehensible'.",
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}
