Port of Tauranga has produced an improved net profit of $23.072 million for the second half of 2009.
This is a two per cent increase in net profit on the corresponding period last year. This was achieved despite reduced trade, with tonnage through the port down five per cent, 6.5 million tonnes, says Chairman John Parker.

Exports grew nearly 10 per cent though with logs up by 31 per cent and dairy exports increased by 44 per cent. Container volumes were down by 18 per cent.
'The recession in 2009 prompted the consolidation of shipping lines and while that gained Port of Tauranga increased exports, we lost imports, a situation currently being addressed by management,” says John.
'The 2009 year was an extremely challenging one for the business with the global recession significantly affecting imports into New Zealand.
'Despite reduced trade, we achieved an increase in earnings, largely by cost reduction and without an increase in customer tariff rates. In the face of a nine per cent reduction in revenue, this is a very satisfactory result and a great credit to all staff.”
Directors have maintained the interim dividend payment at nine cents per share, fully imputed and payable on March 26 to shareholders of record on March 12.
Port of Tauranga Ltd has a market capitalisation of $945 million. Net borrowings at the end of calendar 2009 of $206.3 million mean the balance sheet is particularly strong, says John, with a debt to debt plus equity of 29 per cent and an interest cover of 6.2 times.
Chief executive Mark Cairns says customer service levels continued to improve over the last six months. Despite a tight focus on costs, crane productivity is up 3.5 per cent over the last quarter of 2009 to 35.3 moves per hour. Truck turn times through PTL terminals are also industry leading, with an average of 10 minute turn time at Sulphur Point, and nine minutes at MetroPort Auckland.
The port company expects the container market to remain volatile in the short term with about 10 per cent of the global container capacity remaining idle.
Forest cargoes have been trading strongly over the second half of 2009, with export volumes up more than 30 per cent on last year.
'Market indications suggest this will continue into 2010,” says Mark.
'It is difficult to accurately forecast the remaining half of this financial year, but we anticipate a gradual improvement in economic growth and at this stage we maintain our previous guidance of achieving a full year earnings result similar to last year's, which was a record.
'Our business fundamentals and relative competitive advantages remain strong – the company is well poised to be New Zealand's ‘Port for the Future'.”

Business Highlights
* Log export growth of 31 per cent and a four per cent growth in other processed forestry exports on the prior corresponding period.
* Dairy export growth of 44 per cent on the prior corresponding period.
* Improved performance by our two 50 per cent owned associate companies, C3 Limited and Northport Limited, boosted largely by increased log throughput.
* Commissioning of a new Liebherr super post-panamax gantry crane capable of serving larger vessels and lifting two 40 foot containers at once.
* Lodging of resource consent applications to dredge harbour channels to cater for the next generation vessels. A consent hearing date is scheduled for March 2010 and once these consents are secured, Tauranga will be the only New Zealand port capable of providing 14.5 metre draught at low tide. Dredging will commence in a timely manner, as and when required by market demand.
* Rollout of CargoConnect software offering our shipping customers, importers, exporters, and border agencies, access to a single web-based system to manage all cargo movements and information transfer to and from our terminals at Sulphur Point and MetroPort Auckland.
* Pacific Terminals importing seven new tanks from China to significantly expand their bulk liquids facility at the port.