Port of Tau­ranga posts record $100m profit

Fiji Sun - - Sunbiz -

The New Zealand’s big­gest port has re­ported a record profit on surg­ing cargo vol­umes and earned a credit rat­ing up­grade into the bar­gain.

The Port of Tau­ranga had a net profit of NZ$100.6 mil­lion (FJ $139.328m) for the year ended June, at the top of the com­pany’s fore­cast range, com­pared with NZ $94.3m the year be­fore.

Chief ex­ec­u­tive Mark Cairns said the port was reap­ing the ben­e­fits from its ma­jor up­grade and dredg­ing pro­gramme of sev­eral years ago which had es­tab­lished it as the coun­try’s pre­mier cargo hub.

The com­pany also ex­panded its Christchur­ch in­land freight hub to han­dle dairy ex­ports from West­land Milk.

De­vel­op­ment

“De­vel­op­ment of the group’s net­work of ports, in­land freight hubs and lo­gis­tics ser­vices, en­sures im­porters and ex­porters in key cargo-pro­duc­ing ar­eas through­out the coun­try can ac­cess the ef­fi­cien­cies of­fered by big­ger ships.” Rev­enue in­creased 10.4 per cent to NZ $313.3m as the port han­dled 1.2m con­tain­ers, a third of which were tran­shipped to or from other ports in the coun­try. Over­all cargo vol­umes rose 10 per cent rise to 26.9m tonnes. Mr Cairns said the rest of the coun­try could ac­cess fast, big ship ser­vices that only call in Tau­ranga through coastal ship­ping link­ing Ti­maru, Napier, Nel­son or Welling­ton.

The port has an in­land fa­cil­ity in south Auck­land, which gath­ers and rails freight to Tau­ranga, and has just signed a deal with Tainui to de­velop a sim­i­lar fa­cil­ity in Waikato.

The com­pany also ex­panded its Christchur­ch in­land freight hub to han­dle dairy ex­ports from West­land Milk. Port of Tau­ranga has half shares in the port of Ti­maru and Whang rei-based North­port, as well as stakes in steve­dor­ing, lo­gis­tics and ware­hous­ing.

Cargo vol­umes

Mr Cairns said so far there were no signs that cargo vol­umes in and out of the coun­try were be­ing af­fected by the con­tin­u­ing trade dis­pute be­tween the US and China, al­though it was keep­ing a close watch on what was oc­cur­ring.

Sim­i­larly log ex­ports in re­cent months have been strong, de­spite re­ports of a slump in prices and sales to China.

The com­pany’s full year div­i­dend has in­creased by nearly five per cent to 13.3 cents a share, while it is also pay­ing a spe­cial div­i­dend of five cents a share as it pays back un­needed cash, al­though it plans to re­duce the spe­cial div­i­dend to 2.5 cents for the next four years.

Ratings agency Stan­dard and Poors pro­vided some ic­ing to the earn­ings cake by rais­ing the port’s credit rat­ing to A- from BBB+.

Cargo vol­umes at Port of Tau­ranga rose 10 per cent to 26.9 mil­lion tonne, and the port han­dled 1.2 mil­lion con­tain­ers

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