Ports of Auckland plans big spend-up

Ports of Auckland has signalled a “significant” increase in capital expenditure after reporting a steady first-half net profit of $29.2 million for the first half of its financial year.

The Auckland Council-owned ports company said its group revenue came to $120.6m in the six months to December 31, up 9.1 per cent on the prior corresponding period.

The dividend payable to the council came to $23.8m, down from $25.3m a year earlier.

Capital expenditure in the six months rose to $70.7m from $44.9m.

Ports of Auckland said there would be significant capital expenditure to increase capacity at the Waitemata¯ seaport and to develop freight hubs in South Auckland and Waikato, and a corresponding increase in debt.

In the six months, container volume — in twenty-foot equivalent units — came to 508,262, up 3 per cent on the year-earlier figure.

Total general cargo volume of

3.412m tonnes was up 4.7 per cent. Car volume came to 148,879 units, up 2.1 per cent.

There were 42 cruise ship calls, up

50 per cent on the year-ago figure, the rise reflecting an increase in “spring” cruises in September and October.

Ports of Auckland chief executive Tony Gibson said the first half was one of growth.

“Ongoing growth in the Auckland region’s economy and population has led to steady growth in all the cargo types we handle,” he said in a statement.

“This growth looks set to continue into the second half of the year, with a strong result in January and good volumes forecast for February.”

The first-half profit was down a touch from $29.27m reported in the previous corresponding period as the company embarked on an investment programme to become “future-fit”.

“We are focused on smart growth, with a heavy focus on technology, innovation and sustainability in addition to more traditional infrastructure investments like wharves and cranes,” Gibson said.

“While Auckland Council and the Government are looking at relocating Auckland’s port over the next few decades, in the interim additional investment is needed so the port can handle the increased demand for freight that will come from this population growth.”

Since balance data, the discovery of brown marmorated stink bugs on some car carrying ships had created logistical problems at the port.

Spokesman Matt Ball said increased precautions for those ships that had berthed meant they were in the port for 30 days, compared with the normal turnaround time of 12 to 24 hours.

“So we are having to do some juggling around the berths,” he said. In the meantime, the supply of new and used cars, plus heavy machinery, was banking up on wharves in Japan, which meant still more congestion was likely in the coming weeks and months.

While the port itself was not badly affected, Ball said companies further down the supply chain were feeling the effects of disrupted supply.

This week, a fourth cargo ship was ordered to leave New Zealand waters following the discovery of stink bugs.

The Glovis Caravel was ordered to leave New Zealand after the crew reported finding nearly 600 stink bugs, 12 of them alive, while the vessel was anchored near Auckland, the Ministry for Primary Industries said.

Stink bugs are a big threat to the horticulture industry, and NZIER said this week that a successful incursion could shave billions of dollars off New Zealand’s GDP in the years ahead.

A2 executives cash in

A2 Milk executives enjoyed a combined $36.6 million payday after cashing in on a surging share price since the milk marketer’s news last week that first-half profit had more than doubled and it had signed a deal with Fonterra. Share sales in the four days since the February 21 announcement included $18.5m sold by departing chief executive Geoff Babidge. Five of six senior executives and one director sold down their a2 holdings between February 22 and 26. The transactions included on-market purchases and cashing up of partly paid shares.

Residential consents rise

Residential building consents edged higher in January as permits for new houses, apartments and townhouses made up for a decline in retirement unit applications. Seasonally adjusted consents increased 0.2 per cent in January to 2445, with new permits for houses rising 3.7 per cent to 1715, ending five months of declines. New residential permits rose 3.7 per cent in the year ended January 31 to 31,251, led by a 34 per cent gain in apartment consents and a 9.8 per cent gain in townhouses, flats and units.

Confidence gains

Consumer confidence gained in February, continuing a recovery and bolstering the composite gauge after weak business confidence results. The ANZ Roy Morgan consumer confidence index rose to 127.7 last month from 126.9 in January. The current conditions index fell four points to 127.3 while the future conditions index gained four to 128. Of the 1000 respondents, a net 21 per cent saw good economic times in the coming year, unchanged from January. The five-year outlook rose seven points, with a net 29 per cent seeing good times. A net 15 per cent felt they and their families were better off financially than at this time last year, from net 16 per cent in January, and a net 34 per cent expect to be better off a year from now, up from 29 per cent. ANZ chief economist Sharon Zollner attributed the “robust” confidence to the tight labour market. Friday, Mar 2, 2018