Wellington’s CentrePort has finalised $667.2 million in Kaikoura Earthquake insurance claims and recorded $14.7m net profit after tax (NPAT) for its FY20 financial year.
This was down 16.4% compared to $17.6m NPAT the previous year. Its total income was up 115% to $157m compared to $73m the previous year.
A dividend of $5m was paid to shareholders compared to $4m last year.
Chairman Lachie Johnston says the 2016 Kaikoura Earthquake claims were concluded in October last year and this was a major highlight.
“It’s a watershed moment for CentrePort. Finalising the insurance claims has provided surety to progress our regeneration. It allows us to move from planning to implementation.
“The planning to deliver a 21st century logistics supply chain asset designed with the assistance of international and New Zealand experts, was adopted by the board and relayed to shareholders.
“Our regeneration approach is based on the pillars of customer, community, our people, and the environment. These guide the strategic framework for the various projects underway or in planning. CentrePort is in a sound position to continue that momentum,” Johnstone says.
Major initiatives progressed during the year included:
– Expansion and upgrading of the Waingawa log hub, significantly increasing capacity.
– Commencement of the enhanced rail onto port project to increase capacity/throughput.
– Continuation of the enhancement of the port entrance.
– Realignment of the log and container yards.
– Investment in electric cargo movement equipment and infrastructure.
– Ongoing resilience works on major assets including Thorndon Container Wharf and the Seaview fuel facility.
– Removal of the former BNZ building with 95% of materials by weight recycled.
Chief executive Derek Nind says enhancing health and safety remained the primary focus of operations.
“We saw continued growth in ownership of health safety by our people. Through good systems and practice we were well placed to tackle health and safety challenges, including COVID-19.
“Operationally it was a difficult year. In addition to ongoing constraints as regeneration works continued, there were the impacts of the pandemic. However, our people showed great resilience and I’m proud the way the port ensured the continuation of essential services for customers and the community,” Nind says.
“The log trade was the most significantly affected by the COVID alert level constraints. After a period of sustained growth for several years, volumes were down 11%.
“With logging not classed as an essential service under level 4 lockdown, a month’s volume was effectively lost. COVID-related consequences also impacted on petroleum and vehicle volumes.
“Overall container volumes held relatively steady, but the pandemic contributed to curbing growth. A boost for the future was the start of the ANZEX shipping service to North Asian ports in June, complementing the other three existing shipping services.
“While CentrePort achieved a new record number of cruise ship visits, the season was curtailed by the pandemic. The ongoing ban on foreign cruise visits to New Zealand Port has created high uncertainty around this trade for the coming year and we are forecasting zero visits.
“Good progress on environmental sustainability was made, including the $15m investment partnership with New Zealand Green Investment Finance (NZGIF). CentrePort was proud to be chosen as NZGIF’s first investment partner and the facility will help the introduction of electric container movement vehicles which is part of our carbon reduction strategy.
“The Waste Management Programme which has operated since 2017 was expanded to process waste demolition materials from external organisations including the Wellington City Council. Sixty five thousand tonnes of concrete has been recycled under the programme.
“The global pandemic presents ongoing challenges and uncertainty. Despite this, CentrePort is well placed to continue its regeneration and continue to deliver service and value to the central New Zealand economy,” Nind says.
