Port Nelson is reporting a net profit after tax of $9.3 million for its 2023 financial year result, down $2.7m from the year prior.
The port, jointly owned by Nelson City Council and Tasman District Council, delivered $4m in dividends for the community.
Revenue was up $9m for the year to $85.8m on the back of 3.2 million tonnes of cargo which was up 2.5%.
Chief executive Hugh Morrison says he is pleased the port was able to provide its forecasted dividend amidst tightening export markets and supply chain challenges.
“A record volume of apple and wine exports helped offset what has been difficult trading conditions for imports and exports of fish, sawn timber and general cargo.
“Log exports also had a slow start to the year however, the sector recovered to return to forecasted volumes ahead of a market slowdown in June,” Morrison says.
The port faced strong cost pressures during the year with fuel, interest, payroll and insurance costs.
Meanwhile, it has also initiated a long-term strategic plan for the period out to 2030, and commenced an infrastructure master plan, looking ahead 30 years.
Consultation with stakeholders for the master plan has forecasted potential need to accommodate at least a 50% annual increase in cargo over 30 years. This will be driven by growth in apples, kiwifruit, wine, timber and seafood.
Further engagement will be sought with internal and external stakeholders in the 2024 financial year including iwi before the plan’s finalisation.
Looking ahead, the port anticipates ongoing trading challenges for exporters over much of the 2024 financial year but expects improvements in container shipping schedule reliability.
