Port wrestles cargo volumes off key rival
New Zealand’s largest port, Port of Tauranga, has picked up container trade diverted from Auckland but didn’t benefit significantly from its investment in PrimePort of Timaru.
Congestion at Ports of Auckland caused by an accident and an automation project helped boost the number of containers through Tauranga by 49 per cent to 11,875 in the six months to the end of December 2018.
Port of Tauranga chief executive Mark Cairns said seven ships had been diverted to Tauranga, and he expected the congestion at Auckland to continue.
To cope with a surge in log and fresh produce exports, Port of Tauranga is buying a new crane and reorganising its port space.
While there was more freight through Tauranga in the period, the port company’s earnings from its investment in Timaru’s PrimePort were lower due to fewer containers, and to port maintenance.
Port of Tauranga Ltd invested $21 million in 2013 to buy half of PrimePort, and set up an inland freight depot at Rolleston over the road from Lyttelton Port’s depot to divert more trade to Timaru.
‘‘It’s running a bit behind schedule there, but we’ve just opened a new warehouse to consolidate space,’’ Cairns said.
Meanwhile, apple exports through the port soared 65 per cent in the six months compared with the same period a year earlier.
Cairns said this was an example of the changes to shipping. A smaller vessel that might previously have taken the apples to overseas destinations had trans-shipped them from Nelson to a larger vessel at Tauranga.
Log and sawn timber exports through Tauranga were up 11 per cent and 9 per cent respectively as more forests were harvested and demand from China fuelled record international prices.
Kiwifruit volumes jumped 30 per cent, as more kiwifruit was moved in refrigerated containers.
Frozen meat exports were also up, by 17 per cent, and dairy exports were steady.
Imports of oil products, fertilisers, chemicals and bulk liquids remained steady or decreased slightly, while salt and grain imports increased 15.5 per cent and 7.3 per cent respectively.
Trade was up 8.8 per cent overall, which lifted profit after tax 4 per cent to $49m for the six months, on turnover of $152m.
49% six-month surge in container numbers to 11,875 30% increase in kiwifruit volumes 8.8% increase in overall trade 4% rise in after-tax profit to $49 million
Tauranga’s advantage was its ability to accommodate bigger ships, Cairns said. A ninth container crane has been ordered for delivery in 2020 and preparations were under way to extend the container terminal quay by up to 385 metres by converting portowned land south of the existing quay.
The company was looking at options for increasing container storage, Cairns said.
‘‘We also have the capacity to increase train frequency in future as required. Rail is Port of Tauranga’s preferred mode of cargo transfer due to its environmental benefits and to avoid contributing to road congestion, which is an ongoing concern for Tauranga residents.’’
Oji Fibre Solutions, a major manufacturer of kraft pulps, container board and packaging products, has committed to sending most of its import and export cargo volumes via Port of Tauranga for the next decade.