New Zealand: Port of Tauranga Posts Another Record Result

Port of Tauranga today announced another record half year profit as it grew container traffic and bulk freight volumes, consolidating its position as the pre-eminent national freight gateway.

Net Profit After Tax increased to $74.2 million from $34.6 million. This included a net gain of $35.0 million on the sale of our 50% share in C3 Limited in November 2012.

Underlying half year profit (which excludes the gain on sale of C3 Limited) rose by 13.4% to $39.2 million – up from $34.6 million, for the six months ended December 2012.

Revenue increased to $118.6 million from $105.7 million for the six months – an increase of 12.2% on the previous corresponding period.

Port of Tauranga Chairman, John Parker, said: “Port of Tauranga’s staff and service providers have continued to deliver the reliability and productivity levels for which the Company is well recognised.”

Port of Tauranga’s container volumes have continued to grow at a greater rate than other New Zealand ports. Trans-shipped cargo volumes (cargo shipped across Port of Tauranga wharves before being shipped on to another port) grew by 48% to 93,008 TEUs, underscoring the position as New Zealand’s hub port.

Port of Tauranga Chief Executive, Mark Cairns, said: “The results for the six months show the Port of Tauranga continuing to consolidate and strengthen its position as the pre-eminent national freight gateway and we expect container growth to continue as we further expand capacity.”

Investment

In order to retain its competitive position, the Port is focused on further improving systems to manage growth including pursuing the extensive port capacity expansion programme.

Capital works spending totalled $33.5 million in the last half of 2012. The Company is midway through a $170 million, three-year programme, which includes major expansion of the Tauranga Container Terminal.

The Terminal’s berthage capacity is being increased by 28% with a 170-metre wharf extension which will be completed by late March 2013. A sixth container gantry crane is to be commissioned in March 2013.

The Port hopes to begin dredging of the shipping channel later this year to cater to growing traffic at the port and the impending arrival of larger ships. These ships will be an enabler of growth not only for the Port of Tauranga, but also the broader national economy. New Zealand’s economy desperately needs the $338 million of benefits that the New Zealand Shippers’ Council estimates will flow from bigger ships operating on the South East Asia trade routes.

Meanwhile, in September, Port of Tauranga and Ports of Auckland launched a joint cargo management system, PortConnect, which creates a single interface for customers dealing with the ports’ independent IT systems. PortConnect gives shipping companies, importers, exporters, transporters and regulatory authorities an easy-to-use system for improving the timeliness and accuracy of cargo information.

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Press Release, February 21, 2013