Port of Tauranga today announced another record half year profit following growing container traffic and bulk freight volumes.

Underlying half year profit rose by 13.4 per cent to $39.2million - up from $34.6 million for the six months ended December 2012.

The Port of Tauranga has recorded a 13 per cent increase in underlying profits in the last six months.

The Net Profit After Tax is $74.2 million from $34.6 million, which includes a net gain of $35million on the sale of the port company's 50 per cent share in C3 Limited in November 2012.

In a statement the Port of Tauranga board says it considers that using underlying profit gives a better comparison of normal operations and has excluded the net gain from C3 in determining underlying profit.

Revenue increased to $118.6 million from $105.7 million for the six months - an increase of 12.2 per cent on the previous corresponding period.

'Port of Tauranga's staff and service providers have continued to deliver the reliability and productivity levels for which the Company is well recognised,” says Port of Tauranga Chairman, John Parker.

The Board declared an increased interim dividend of 20 cents per share fully imputed - up 66 per cent from the 12 cents per share for the 2012 interim dividend. The Board has decided to modify the dividend policy to increase the proportion of dividends paid as interim to approximately 45 per cent of the annual dividend. The record date for entitlement to the interim dividend is 8 March 2013 and it will be paid on 22 March 2013.

John says Port of Tauranga's capital position remains strong while gearing is conservative, with liabilities to total assets at 26.6 per cent, from 29.9 per cent at the same time last year

Trade volumes increased 10 per cent to 9.4 million tonnes from 8.5 million tonnes over the same period last year. Total exports increased 16.0 per cent to 6.4 million tonnes from 5.5 million tonnes in the previous period. Dairy volumes represented the largest increase - up 87 per cent to 935,000 tonnes. Meat exports increased 31 per cent to 184,000 tonnes. Log volumes rose 13.8 per cent to 2.649 million tonnes. Import volumes remained steady at just under three million tonnes.

Export volumes increase by 16.6 per cent, with strong growth in forestry and dairy products. Container volumes increased 25.5 per cent to 431,840 TEUs.

The trade volumes were underpinned by seven new shipping services being secured by the port in the last year.

'The results for the six months show the Port of Tauranga continuing to consolidate and strengthen its position as the pre-eminent national freight gateway and we expect container growth to continue as we further expand capacity,” says Port of Tauranga Chief Executive Mark Cairns.

Containers handled increased by 25.5 per cent to 431,840 TEUs (twenty foot equivalent units) at the end of the current period, from 344,081 TEUs in the six months to 31 December 2011.

Marks says MetroPort in South Auckland played a pivotal role in driving the growth. MetroPort traffic increased by 25.6 per cent to 101,440 TEUs, from 80,746 TEUs in the same period last year.

Port of Tauranga's container volumes have continued to grow at a greater rate than other New Zealand ports. Trans-shipped cargo volumes (cargo shipped across Port of Tauranga wharves before being shipped on to another port) grew by 48 per cent to 93,008 TEUs, underscoring our position as New Zealand's hub port.

Capital works spending totalled $33.5 million in the last half of 2012. The company is midway through a $170 million, three-year programme, which includes major expansion of the Tauranga Container Terminal.

The Terminal's berthage capacity is being increased by 28 per cent with a 170-metre wharf extension which will be completed by late March 2013. A sixth container gantry crane is to be commissioned in March 2013.

The Port hopes to begin dredging of the shipping channel later this year to cater to growing traffic at the port and the impending arrival of larger ships, says Mark.

These ships will be an enabler of growth not only for the Port of Tauranga, but also the broader national economy. New Zealand s economy desperately needs the $338 million of benefits that the New Zealand Shippers Council estimates will flow from bigger ships operating on the South East Asia trade routes.

In September, Port of Tauranga and Ports of Auckland launched a joint cargo management system, PortConnect, which creates a single interface for customers dealing with the ports independent IT systems. PortConnect gives shipping companies, importers, exporters, transporters and regulatory authorities an easy-to-use system for improving the timeliness and accuracy of cargo information.

After selling C3 Ltd, the port company bought forestry marshalling company Quality Marshalling (Mount Maunganui) Limited for $34 million, taking effect from 1 February 2013. The purchase will be reflected in the full year accounts.

Quality Marshalling, like Port of Tauranga's other subsidiaries and associates, provides wrap-around services that consolidate and develop the Port's customer supply relationships. It is New Zealand's second largest log marshalling and scaling company, with operations at Mount Maunganui, Northport, Murupara, Rotorua, Kaingaroa, Napier and Auckland.

Earnings from subsidiaries and associates rose 13.1 per cent to $7.553 million, with strong performances from Tapper Transport and Northport.

The port remains comfortable with the previous market guidance of after-tax earnings for the 12 months to 30 June 2013 in the region of $75 million to $79 million.