Port Nelson has posted net profit after tax of $15.3 million on the back of strong cargo growth for the financial year.
Cargo volume continued to increase with 3.9 million cargo tonnes passing across the wharves which was up on the previous record of 3.6 million tonnes set in 2018.
Container throughput was down slightly to 119,074 twenty-foot equivalent units (TEUs) compared to 121,483 the previous year.
This was due to a change in shipping services resulting in fewer empty containers transhipped through Nelson. However, the weekly Pacifica coastal service has introduced a larger vessel to absorb transhipment export volumes.
Container visits for Maersk’s Northern Star service and CMA CGM’s PAD service returned to the region for the peak pip fruit season through winter. Exporter utilisation of all shipping services was strong, the company says.
Apple exports remained consistent with previous year’s volumes however drought conditions impacted crops causing these to remain below expected growth forecasts for the financial year.
Overseas demand for premium New Zealand wine continues to stay healthy, and the resulting growth in dry goods imports and wine exports through Port Nelson enabled the expansion of QuayConnect, the Port’s third-party logistics wine distribution and storage business.
Port Nelson is working to make more efficient use of its log storage yards including the recently reclaimed Calwell Slipway area, the Graham Street plot and further investigation into other opportunities.
Ahead of receiving larger vessels, Port Nelson continued to make significant investments including the new Huria Matenga II, a Damen 2411 tug with 70-tonne bollard pull capacity, the $20million redevelopment of Main Wharf North, recently awarded to contractor McDonnell Dowell, and innovative technologies to improve port safety and operational sustainability and productivity.
The port announced an additional $800,000 dividend payment to shareholders on top of the full-year declared dividend of $5.5 million.
Port Nelson chair Phil Lough says he is “cautiously optimistic” about the next few years as export log prices have cooled recently, shipping lines continue to seek efficiencies, and the labour market remains tight.
After 15 years of service, Martin Byrne resigned as chief executive in July and has been replaced by Hugh Morrison. Hugh Morrison commenced at Port Nelson on September 9.
