The Port of Tauranga today announced an interim dividend of 21 cents per share on the strength of half yearly results showing both trade and profit increasing.

The five per cent dividend increase is on the back of Port of Tauranga Ltd's recorded net profit after tax of $39.3 million for the six months to December 2013.

Port of Tauranga.

This is compared to the underlying profit of $39.2 million for the six months to December 2012.

Group earnings before interest, taxes, depreciation and amortisation increased 5.5 per cent to $71.5 million in the six months.

Overall trade increased 5.8 per cent to 9.9 million tonnes. Exports increased 6.6 per cent to 6.8 million tonnes. Imports increased 4.1 per cent to 3.1 million tonnes.

'Port of Tauranga is very well positioned for its next phase of growth,” says Port of Tauranga chairman David Pilkington.

'We have again delivered a strong first half result, while our acquisition of a half share in PrimePort Timaru and our development of a freight hub in Rolleston, southwest of Christchurch, opens a new frontier of opportunities.

'These investments coupled with the emerging strength of the New Zealand economy and strong international demand for the country's agricultural and forestry exports will continue to drive increases in cargo volumes across our wharves.”

The dividend is reflecting this confidence, says David. The record date for entitlement to the interim dividend is March 7, and it will be paid March 21, 2014.

The Port attributes the growth in trade volumes to increases in bulk exports such as logs and bulk imports of dairy feed supplements and fertiliser. This is balanced by an 11.8 per cent decrease in the number of containers handled to 381,038 TEUs (twenty foot equivalent units) from 431,878 TEUs in the comparative period.

The decline reflects a 17.5 per cent fall in dairy exports over the comparative period. The port expects dairy volumes to be greater than last year for the full year ended 30 June 2014.

'Port of Tauranga has turned in another strong performance notwithstanding the loss of a major import call whilst continuing to invest in significant further infrastructure and strategic acquisitions to extend our freight catchment nationwide,” says Port of Tauranga CEO Mark Cairns.

Port of Tauranga has purchased a 50 per cent share of PrimePort Timaru and is taking over their container terminal operations.

'By developing Timaru into a feeder port, South Island importers and exporters will benefit from the freight savings and efficiencies offered by larger ships and the greater number of services calling at the Port of Tauranga,” says Mark.

A new Liebherr gantry crane, the seventh in the Tauranga Container Terminal fleet, is being assembled for commissioning in March.

Sulphur Point terminal set an Australasian record in productivity in the three months to 30 September 2013 (as measured by the Ministry of Transport), achieving an average net crane rate of 37.1 moves per hour, well ahead of the national average of 33.7 moves per hour, says the Port.

The improvement has continued into 2014 with a record average net crane of 39.4 moves per hour achieved over January 2014.

Port of Tauranga has ordered two new 74 tonne bollard pull tug boats for delivery early in 2015.

The dredging project, to widen and deepen the shipping channels in Tauranga Harbour for larger ships, is in the final planning stages and work is expected to commence in the next financial year, says Mark.

Quality Marshalling's loss of the Mount log marshalling contract represents a setback, but the company remains confident in the ability of this business to contribute satisfactorily in the future and sees several areas where innovation can play a key role in delivering benefits to customers.

Northport's first half with earnings are up 4 per cent on trade volumes increasing 7.6 per cent.

Port of Tauranga subsidiary - Tapper Transport Limited - bought the assets of Mount Maunganui-based Priority Logistics Group, in July 2013 enabling Tapper Transport to expand into the Bay of Plenty market.

MetroBox, the Group's Auckland-based container storage, handling and maintenance company, is expanding and has established a new business partnership with Specialised Container Services, which operates an 11 hectare site in Mangere. The facility will now be run jointly with MetroBox's Southdown site, adjacent to the MetroPort inland port.

The MetroPort site has also been significantly expanded with the purchase of the adjacent 6.8 hectare Gateside Industrial Park. The property includes three large industrial warehouses, an office building and more than two hectares of land.

The Group overall is well positioned to capitalise on the ongoing trends of growing cargo volumes and increasing average size of vessels. Trade volumes are expected to improve over the second half of the year and provided there are no significant market changes, we expect to achieve full year earnings for the 12 months ended 30 June 2014 in the region of $77 million to $81 million, says Mark.