Strong port profits despite cyclone influence

 
    
Strong port profits despite cyclone influence

Strong export demand and a rebound in imports have delivered a strong profit for the Port of Tauranga - the country's biggest port.

Company Chair, Julia Hoare, says the port is benefiting from emerging signs of economic recovery: "While the domestic economy remains sluggish, we are seeing what we hope are the early signs of a recovery, particularly in bulk imports and most export categories."

Cargo volumes rose 7 percent after last year's downturn, with exports lifted by the dairy and kiwifruit trade, although the previous year's surge in log exports because of cyclone damage faded.

Imports rose 15 percent boosted by Genesis Energy's build-up of coal reserves for the Huntly power station, while improved agriculture production prompted more fertiliser and stock feed imports.

Overall container volumes also increased, with more ships using the port to tranship cargo.

Chief Executive, Leonard Sampson, says a diversified business and cost controls also helped the result: "We are preparing for future growth and even greater resilience through our investments in infrastructure for capacity."

Meanwhile, the company has suspended its bid to get final Environment Court approval for a new container berth and is instead applying for approval under the fast track laws.

"Given the urgency of the project, to protect the interests of New Zealand importers and exporters, we are preparing an application under the new legislation."

Port of Tauranga has also joined a consortium to take control of Northport near Whangarei. It already has interests in the Port of Timaru and stevedoring and logistics concerns. 

Key numbers for the six months ended December compared with a year ago:

- Net profit $60.2m vs $47.2m

- Revenue $225m vs $200m

- Cargo vols 12.4m tonnes vs 11.6m tonnes

- Forecast FY earnings $115m-$125m vs actual $90.8m

- Interim dividend 7 cents per share vs 6 cps

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