Ports of Auckland profit lifts
It has been a tough year for containers but booming construction in Auckland and a high number of vehicles rolling into the country have helped Ports of Auckland stay in ‘‘good health’’.
The port announced an after-tax profit of $84 million on Tuesday, up $21m on last year.
This was despite revenue for the year to June 30 being down $7.2m, to $211.1m, making for what chief executive Tony Gibson described as a ‘‘tough year’’.
‘‘We continue to make significant economic and social contributions to Auckland and New Zealand, despite operating in a difficult market environment,’’ he said.
‘‘That we have been able to deliver a strong result in current conditions is a sign that our company is in good health.’’
Gibson pointed to two factors which had made for a difficult market.
Container volumes dropped, as did exports of bulk goods such as iron sand, to volumes which were expected to be similar for the next year.
Gibson said ship construction was ahead of trade growth, which had led to a ‘‘significant reorganisation’’ of shipping services – 12 of the top 30 ports in the world have had reduced volumes this year.
‘‘In New Zealand, the changes have resulted in volume leaving Auckland.
‘‘The situation is expected to continue.’’
Auckland’s booming construction sector and increased vehicle imports had partially offset the drop, however, Gibson said.
Furthermore, the port was working to become the first in New Zealand to automate its container terminal, which was part of a bigger build to cater for larger ships.
This would increase capacity and reduce costs, ‘‘making us even more competitive’’, he said.
Freight hubs in Wiri, South Auckland and Mt Maunganui were under construction, while consent was being sought for another in Waikato.
‘‘There are many changes happening in our industry and it is an exciting time to be part of it. We look forward to the years ahead.’’