Port records $34m half year profit

Port of Tauranga today announced a record $34.6 million half year net profit after tax.

The 22 per cent increase from 28.4million is driven by increased cargo and container volumes in core port operations and solid contributions from associate and subsidiary companies.

Container numbers at the Port of Tauranga continue to increase. Photo: File.

Revenue for the six months to December rose 14 per cent to $105.7 million, from $92.8 million in the same period last year.

“The results are a tribute to Port of Tauranga staff and service providers, who have responded quickly to the growth in demand due to the ongoing recognition of our reliability, productivity and competiveness and also to the short-term increase in demand in the wake of the industrial dispute at Ports of Auckland,” says Port chairman John Parker.

Trade volumes increased by 9.6 per cent across the Port of Tauranga during a six month period, to more than 8.5million tonnes, of which 43 per cent was containerised – up three per cent from the same period last year.

Container numbers increased 17.1 per cent to 344,081 TEUs (twenty foot equivalent units) from the same period last year while container traffic at the Tauranga terminal increased 19.4 per cent to 322,767 TEUs.

Container traffic at MetroPort Auckland, the inland port in South Auckland’s industrial sector increased by 10.8 per cent to 80, 746 TEUs on the same period last year.

John says this growth is expected to continue as the Port of Tauranga and KiwiRail have increased train capacity to and from Auckland.

“Our balance sheet remains conservatively geared with liabilities to total assets at 29.9 per cent, from 30.6 per cent at the same time last year.”

The Port of Tauranga’s board has declared a 20 per cent increase in interim dividend to 12 cents per share, from last year’s 10 cents per share. The record date for the dividend is March 9, 2012 and will be paid on March 2012.

“At this stage, we expect to post a full year after-tax earnings result in the region of $69 million to $72 million,” says John.

Port chief executive officer Mark Cairns says growth is achieved alongside improved safety performance, as the port has one of the lowest ACC claims in New Zealand history, less than half the NZ port average.

Mark says the recent draft Productivity Commission report on International Freight Transport released in January found Port of Tauranga to be the highest performing port in New Zealand in terms of container productivity.

Mark says the first stage of the 170m lengthening of the quay at the Tauranga Container Terminal, is on track for completion early in 2013.

The project will increase berthage capacity by 28 per cent and includes paving further land to provide additional container terminal area. It is the first development in a $150 million programme of investment planned for the next few years. A sixth container crane has been ordered for delivery in early 2013 and an existing crane has been retrofitted to allow two containers to be lifted at once.

Mark says the Environment Court’s recommendation to the Minister of Conservation that the port be granted consent to proceed with the associated dredging programme is being appealed, with a three day hearing set down for early April.

“In the half year, we secured six new shipping services, which is tangible recognition of our reliability and productivity,” says Mark.

“These new shipping services are expected to generate additional container volume in the current financial year and underpin volumes into the future.”