“The primary reason for [the deficit] is that project costs, especially around dredging, have been expensed as opposed to capitalised,” Petersen told the committee.
“You’re not creating an asset; you’re actually digging a hole.”
The council’s portion of Te Pūwaha, the port revitalisation project, includes rebuilding wharves two and three, and construction of a heavy pavement vessel hardstand.
It is the sole shareholder of the port.
Petersen’s report said an interim dredging programme was being explored, as were options to acquire or lease a barge to enable a local dredging solution.
From the early 1950s to late 1980s, the Wanganui Harbour Board operated the Wanganui dredge boat.
Consent work for long-term dredging continued, the report said.
“This includes reviewing consent coverage for potential methods and locations, maintaining relevant monitoring and hydrographic information, and addressing applicable reporting, disposal and environmental management requirements.”
Last year, Johnson Brothers was contracted to dredge the port channel to 3.0m chart datum, following the early departure of Buller District Council’s Kawatiri vessel.
Three flood events in the Taumarunui catchment between July and October last year meant the Kawatiri was unable to be safely stabilised.
Previously, an amphibious excavator operated by Murphy Civil Ltd was used at the port.
In June, Petersen said the port was reliant on specialist contractors, and dredging was one of its most significant operational risks.
“Once the current contractor completes its programme, there remains a risk that future flood events could result in rapid resilting before dredging services can be mobilised.
“It’s going to be an ongoing issue.”
The whitebait migration period runs from September 1 to October 30.
He told the committee this month that “we were at a pretty good level” after dredging in August, and there was sufficient depth for leisure boats.
“The Coastguard is another consideration because their boat is a bit bigger, and that’s something we’ve got our eye on very carefully at the moment.
“We’re running regular surveys to see what the siltation rate is.
“We need to keep it clear, and we understand that.”
Petersen’s report said the council contributed $14m in capital during the year, as well as an annual operating contribution of $300,000.
An independent review of the entire redevelopment project is ongoing.
Mike Tweed is a multimedia journalist at the Whanganui Chronicle. Since starting in March 2020, he has dabbled in everything from sport to music. At present his focus is local government, primarily Whanganui District Council.