New Zealand’s largest port reported record cargo volumes and increased profits for the year to June 30, 2019.
Port of Tauranga’s transhipment increased 11.2%, handling more than 26.9 million tonnes of cargo, an increase of 10.2% in volume.
Containerised cargo grew 4.2% to more than 1.2 million TEUs1 and Group net profit after tax passed the $100 million milestone for the first time, increasing 6.7% on last year’s profit of $94.3 million to $100.6 million.
The port’s transhipment’s 11.2% increase makes up for 32% of all container traffic and has been growing significantly since 2016 after a $350 million capacity expansion programme to accommodate for bigger container ships.
Log export volumes increased 12.5% to 7.1 million tonnes. Exports increased 11.2% to 17.1 million tonnes and imports increased 8.4% to 9.8 million tonnes.
Annual revenue was $313.3 million, a 10.4% increase. Final dividend of 7.3 cents per share brings the full year dividend to 13.3 cents per share, increasing 4.7% on the previous year.
Port of Tauranga chair David Pilkington says the results are evidence of the port’s success in becoming New Zealand’s major international hub port.
Pilkington says Port of Tauranga’s long-term agreements with key customers give it the assurance to plan ahead for increases in cargo growth.
New Zealand shippers can access fast and big ship services that only call in Tauranga by using the sea links between Tauranga and Timaru, Napier, Nelson or Wellington.
“Having the necessary infrastructure is one thing, but it is also vital to have the relationships to ensure we have the freight volume to attract the big ship services,” Pilkington says.
Port of Tauranga chief executive Mark Cairns says the number of containers transferred by rail to and from the port’s inland freight hub, MetroPort Auckland, increased 4.2% this year.
The port’s partnership with Tainui Group Holdings will support the development of the Ruakura Inland Port in Hamilton, midway between Tauranga and MetroPort Auckland.
“This will help Waikato-based importers and exporters unlock the significant efficiencies to be gained by being directly linked by rail to the big ship services calling at Tauranga,” Cairns says.
“The availability of rail and coastal shipping to consolidate cargo at Port of Tauranga, and the efficiency of the big ship services, means we can also offer a lower carbon supply chain to our customers.”
Port of Tauranga is planning for the next stage of growth, in response to customer demand.
