Port of Tauranga posts record result
New Zealand's international freight gateway Port of Tauranga has today reported another record annual result as it reaps the rewards of its twenty-year investment programme to extend its freight catchment across the country, said in the company's press release.
Revenue rose 7% from $227.2 million to $244.1 million. Underlying Group Net Profit After Tax rose 5% from $73.5 million to a new record of $77.2 million, reflecting cost containment and strong growth in containers and bulk cargo shipped across Port of Tauranga's wharves. Reported net profit after tax rose 52% to $112.1 million from $73.5 million a year earlier, lifted by strong earnings from associate companies and a $38.2 million profit on the sale of our 50% share in freight logistics company C3 Limited.
Operational Highlights
Total freight transported across the Port grew 3% from 18.5 million tonnes to 19.1 million tonnes with growth in exports - particularly in dairy products and logs - more than offsetting a decline in import tonnages.
Port of Tauranga also consolidated its position as the country's largest container port. Container volumes grew 7% from 796,095 TEU to 848,384 TEU even though the prior year's figures included traffic diverted to Port of Tauranga during Ports of Auckland's industrial unrest.
"Trans-shipped containers - those that pass across Port of Tauranga's gates before being shipped onto another destination - rose 12% from 118,666 to 133,122. The strength of these trans-shipments underscores the pivotal role Port of Tauranga occupies in the New Zealand supply chain as a freight hub," Mr Cairns said.
"Over the last year, we invested $68 million in our infrastructure to accommodate the growing traffic volumes. We finished the $30 million expansion of Sulphur Point, extending the berth length by nearly a third and creating sufficient space for three large container vessels.
"We have paved an additional 4.1 hectares of container storage land lifting ground slot capacity by 30% and refrigerated container slots by 60%. We commissioned a sixth container crane and ordered a seventh for delivery early in 2014.
"In March we also won government approval to commence the long-awaited harbour dredging project, to ready the port for bigger ships. Detailed design work has been completed and consultation with local Iwi is underway to manage any potential impacts on the harbour."
Mr Cairns said: "The first stage of dredging, due to start in 2014, is estimated to cost $40 million to $50 million and will make Port of Tauranga the first port in New Zealand capable of hosting container ships with a capacity of 5,000 to 6,000 TEU.
"We are looking forward to the arrival of these new ships, which have lower operating costs and will enhance the competitiveness of New Zealand exporters and importers by lowering freight costs. "Our recent investment in PrimePort Timaru and the expansion of our MetroPort facility will ensure these savings are available to more New Zealand importers and exporters."
Freight Highlights
Freight volumes were driven by strong increases in log, dairy products and meat exports.
Dairy exports rose 27% to 1.6 million tonnes due to the consolidation of Fonterra traffic at Port of Tauranga. Log exports, driven by high international log prices, were up 14% to 5.6 million tonnes.
These volume gains offset falls in kiwifruit, steel and other forestry product exports, fertiliser and grain imports. Kiwifruit volumes fell 8% to 704,000 tonnes due to the effects of the PSA virus, while fertiliser imports fell, reflecting constrained rural sector spending and the drought.
Other forestry product exports were down slightly due to increases in domestic demand as well as reduced supply from some manufacturers.
About Port of Tauranga
Port of Tauranga is New Zealand's largest port by volume of cargo and New Zealand's international freight gateway. It operates wharves at Sulphur Point and Mount Maunganui, as well as MetroPort, a rail-linked inland port in Auckland reflecting its strategic objective to become New Zealand's hub for international freight traffic.