Auckland Airport buys quarry near Ihumātao, gets land near proposed second runway

The investment decision said the airport was 26% New Zealand-owned, with Australians owning 29%, US interests 23% and other nationalities 22%.

The value of the deal was not disclosed but Auckland Council’s capital value (CV) rating for all the land was $79.4 million.

There were three vendors, all 100% New Zealand-owned.

The first two were Scoria Sales, and Karl Richard Moreton and Penny Louise Hughes Jones as executors of the estate of Trevor Robert Ellett.

The third was the E Ellett Rye Grass Trustee and Wynyard Wood (E Ellett Rye Grass) Trustee, as trustees of the E Ellett Rye Grass Trust.

“The land is currently operating as a combined basalt and scoria quarry, and clean fill disposal site,” the decision said.

The 81.8ha of land is just south of the Ihumātao protest site of 2016-2020 and includes the volcano Maungataketake, whose cone has been quarried. Photo / Google

It said the airport intended to develop part of the land into an industrial business park, including for air cargo and logistics uses.

Those plans would be subject to plan change and resource consents being granted, which would only happen after consultation with iwi and other stakeholders.

“The main benefits to New Zealand are likely to include capital expenditure, increased efficiencies, synergies with the airport’s development plan and job creation,” the decision added.

“Other benefits of the investment are enabling public access through the development of a coastal path, and supporting the Government’s Aviation Action Plan.”

The action plan, announced last September, said the private sector had a major role in infrastructure investment and was best-placed to lead and drive change in the sector.

“Airport planning, future-proofing and resilience are critical factors for success of the New Zealand aviation sector,” the Aviation Action Plan added.

An artist’s impression showing the proposed new northern runway, with taxiways to its south. Maungataketake (Ellett’s Mount) and its quarry can be seen just below the top left corner. Image / Auckland Airport

In the new land deal, consent was granted because the airport met investor test criteria and the investment was seen to likely benefit New Zealand.

Auckland Airport told the Herald a decision on a second runway was still years away, but the deal helped ensure surrounding land use was compatible with long-term airport operations.

They said the deal strengthened Auckland Airport’s resilience and supported future growth as travel demand increased.

The airport said the land to its northwest was offered to the open market.

A volcanic rock quarry was operating on the site and livestock were grazing.

The airport said that when the land was sold, it was zoned for future urban use, including potential residential housing.

The airport said that type of development was “generally not considered well-suited to a location near an airport”.

Auckland Airport planned to keep running the quarry for now.

“The land and quarry are also expected to play a role in supporting airport projects, primarily as a potential location for surplus fill and as a means of restoration when quarrying ceases.”

The airport said it acknowledged cultural and environmental concerns about the area.

“Given the sensitivity of the land and proximity to the coast, it is also anticipated that a significant portion of the land will be set aside and protected,” the airport said.

“Auckland Airport acknowledges the deep and enduring connection that mana whenua have with this area.”

The new airport-owned land is south of the Ihumātao site where Fletcher Building plans for housing were met with opposition. Photo / Peter Meecham

It pledged to work closely with local iwi, and said their perspectives would guide its plans.

“We are committed to honouring the cultural significance of the area and supporting long-term environmental and cultural outcomes.”

It said some land might be used for development activities in future but that was not planned for any time soon.

“The purchase price is not disclosed at this stage and remains confidential between buyer and seller.”

Land deal

The property at 290 Ihumātao Rd is a long, skinny piece of land stretching from the road and then bulging at the southeast of the quarry, with a CV of $17.75m.

Neighbouring site 292 includes most of the quarry and some of the coast and had a CV of $14.75m.

Number 296, with a CV of $17.25m, stretches from the road to the quarry edge and has no coast. It surrounds 298, a small piece of land with a CV of $1.5m.

Five out of the six pieces of land purchased in the deal. Number 367 Ihumatao Rd is to the northwest, across the road. Image / Auckland Council, modified

The land at 328 is a 30.3ha section jutting out into the Manukau. Its council valuation was $23.5m.

And 367 is a 5.6ha section at Elletts Beach, on the north side of Ihumātao Rd, with a CV of $4.675m.

Second runway

Auckland Airport has said the new northern runway will run parallel to the existing runway.

Initially planned to start operating in 2028, its opening date has been pushed back a decade.

It will be 2983m long.

That is 652m shorter than the existing runway and not long enough for a fully-laden Airbus A380 to take off from, but likely long enough for all other passenger aircraft.

The airport has said the runway project’s benefits include it being built on airport-owned land, without the need for any reclamation of the Manukau.

Auckland Airport major projects

John Weekes is a business journalist covering aviation. He previously covered consumer affairs, crime, politics and courts.

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