Port of Tauranga today announces another record profit for the financial year, $73.5 million for the year ended June 30.

The profit is 26 per cent up on the previous record Net Profit after Tax for 2011 of $58.4 million.

Freight diverted to Port of Tauranga because of industrial action at Ports of Auckland contributed less than a third of the increase in container traffic during the year, says chief executive Mark Cairns.

Container volumes peaked in March when Port of Tauranga transported more than 82,000 TEUs across the Sulphur Point Container Terminal - an 81 per cent increase over the March 2011 figure.

Traffic has eased since then to just under 70,000 TEUs in June, but it is still nearly 30 per cent up on the June 2011 figure.

'It is a credit to Port of Tauranga's staff and stakeholders and the can-do culture that is at the heart of our business, that we were able to respond to such a dramatic increase in container volumes,” says Mark.

'Our long-term business partner KiwiRail was pivotal to this success. At short notice, it stepped up increasing services from MetroPort in Auckland to Sulphur Point from four to six trains per day giving us capacity of up to 636 TEUs per day each way. It continues to offer this service.”
Mark says although the Ports of Auckland industrial dispute resulted in a level of container traffic that stretched the Port, it demonstrated the ease with which it can deploy the extensive latent capacity at our Sulphur Point and MetroPort container terminals in Tauranga and Auckland.

It also demonstrated our competitive freight offer and our service capability, even when we were under great pressure.

'Moreover, we are now more confident that the $180 million capital expenditure programme over the next three years expanding the port infrastructure will prepare Port of Tauranga for the next period of growth.”

The final dividend to shareholders is 27 cents a share, bringing the total dividend pay-out to 39 cents per share - up 26 per cent for the 31 cents paid in 2011.

The announcement marks the Port of Tauranga Ltd's twentieth year as a publicly listed company.

The port company first listed in 1992.

The dividend extends the Port's reputation of delivery for shareholders over two decades as a publicly listed company.

For the year to June 30, 2012, total gross shareholder return - share price increases plus dividends - was 30 per cent.

'Since listing on the New Zealand Stock Exchange main board in May 1992, Port of Tauranga has consistently delivered for shareholders, the Bay of Plenty and the upper North Island,” says chairman of directors John Parker.
'The results for the 2012 year extend that record and demonstrate the Port s capacity to serve as this country s preferred freight gateway.

'The results for the year to 30 June 2012 reflect: strong growth in freight volumes; increased earnings at our six associate companies, where net profits rose seven per cent to $13.3million, and a $13.2million revaluation in land, buildings, harbour improvements, wharves and hardstanding.”

John says these gains were partially offset by a $1.3million impairment to buildings which are to be relocated to create more space and increase productivity at both the Sulphur Point and Mount Maunganui wharves.

Over the Port's 20 history, total shareholder returns stand at an average compounding 24 per cent per annum, says John.

'Port of Tauranga has been the best performing share on the NZX over the last 15 years and with a return well ahead of the benchmark NZX50 Index.

'Group Net Profit after Tax has now increased 87 per cent since the global financial crisis started in July 2007, due to the Company diversifying revenue streams through investment in six associate companies and continued growth at its MetroPort terminal in Auckland.”

Total container volumes through the Port increased 35 per cent during the year to 796,024 TEUs, compared with 590,506 TEUs for the 2011 year.

Trade volumes rose 20 per cent to 18.5 million tonnes from 15.4 million.

Log volumes are up 11 per cent to 4.9 million tonnes from 4.4 million tonnes in 2011.

Dairy volumes are up 126 per cent to 1.33 million tonnes from 588,000 tonnes in 2011.

This is due to favourable dairy production, thanks to a cooler and wetter season, as well as Fonterra's decision to consolidate freight operations at the port at the start of the year.

Total trade rose 20 per cent to 18.5 million tonnes from 15.4 million tonnes in the same period last year.

Container traffic now represents nearly half of Port of Tauranga's total trade.

Trans-shipments or containers transferred from one ship to another at Tauranga rose 88 per cent to 2.5 million tonnes from 1.3 million tonnes a year earlier, underscoring the port's role as a New Zealand hub for international trade.

Most of the additional cargo was due to seven new shipping services introduced to Tauranga during the period, which contributed over 200,000 TEUs to the volume handled.

MetroPort the inland container handling facility in South Auckland handled a record 183,000 TEUs during the year, up 33 per cent from 138,000 TEU in 2011.

Frozen meat exports also benefited from higher commodity prices as well as consolidation of port shipping traffic at Tauranga.

Export volumes rose 38 per cent to 426,391 tonnes from 308,739 tonnes.

Imports of oil products, bulk liquids, fertilisers and animal food supplements remained steady overall, with small fluctuations in volumes.

Associate and subsidiary earnings are up seven per cent to $13.3 million, from $12.4million last year, with a particularly pleasing result from Northport, where earnings are up 21 per cent on the previous year.

This year the port company paid more than $45million in dividends and invested $39million in assets for growth and maintaining cash flow. At 30 June, debt was $186.7million - up slightly from $186.1million in June 2011.

Meanwhile, gearing the ratio of net debt to debt and equity - has reduced to 29.0 per cent from 29.3 per cent in June 2011.

In the year to June 30, Port of Tauranga invested $39million in increasing capacity at Sulphur Point the terminal and we have a further $180million capital investment programme over the next three years.

In the 2012 financial year, the port expanded its fleet of twin-lift straddle carriers by six and has ordered a further six for delivery early in 2013.

A 170 metre extension to the Sulphur Point wharves is under construction and is expected to be finished by March 2013.

This will boost berth capacity by 28 per cent.

Reconfiguration of the existing terminal and new paving has enabled a 30 per cent increase in container ground slots over the year, with a further 15 per cent currently being developed. Refrigerated container plugs have increased by 40 per cent.

Work the rail sidings now enables loading and discharging of three trains at once.

'We have also ordered two more ship-to-shore gantry cranes, taking our Sulphur Point fleet to seven,' says Mark.

'The first new crane will be commissioned in early 2013 with the second arriving in early 2014. One of the older cranes has just been modified to become twin-lift capable.”
He says early twin-lifting trials are indicating the potential for promising productivity improvements where we are achieving peak crane rates exceeding 60 moves per hour.

Port of Tauranga's application for consent to further dredge Tauranga harbour is awaiting a decision from the High Court, which is expected by October 2012.

'We acknowledge the dredging consent application has been a very challenging process for both Iwi and the Port over the last four years, but we believe that the process was conducted with the utmost respect for each other's position, says Mark.

'We acknowledge that both parties have a significant stake in this beautiful harbour and we see a number of potential projects that we could work on together in the future to generally improve its health and wellbeing.”
Mark says however, there were a number of individuals that were fundamentally opposed to any further development of the Port and as a result, the Environment Court's decision to recommend the granting of the consent was subsequently appealed to the High Court.

The Port of Tauranga annual meeting is on Thursday, October 25. The full result is available of the Port of Tauranga website. http://www.port-tauranga.co.nz/Media-Room-and-Publications/