The Bluff port’s servicing of record log volumes, and a substantial increase in exported wood chips as well, were highlighted to shareholders by chairman Rex Chapman at the annual meeting yesterday.
Chapman says that over the last 10 years cargo had increased 50% from two million tonnes to three million tonnes, reports Amber-Leigh Woolf in Stuff.
This was partially caused by positive regional economic growth, Chapman is quoted as saying.
“South Port has responded well to that growth by matching the volume lift with the appropriate resources to service it.”
However, as predicted at about the same time last year, inbound stock food volumes decreased by about 25%, directly as a result of the low dairy pay-out, reports Stuff.
“Costs are being contained, overall productivity has increased and the company is making better use of its fixed infrastructure.”
The port opened its new, $4.5 million intermodal freight centre (IFC) in Invercargill last month, targeting containerised imports. Port and transport operator neutral, it is accessible by Port Chalmers and Port of Lyttelton by rail.
Chapman says that given the relatively small size of New Zealand ports, collaboration between ports which are not in competition with each other will increase “and that is a very welcome trend, especially for a smaller port like ours”.
Net profit for the year to June 30 increased to $8.7 million. Cargo and revenue increases both clocked in at 7%. However the company is warning increased maintenance costs will have an impact on earnings in the current financial year, reducing profit by around 15%.
Small container ships to service smaller NZ ports
Reflecting on the pressure being placed on shipping company economics by the proliferation of very large container vessels, capable of carrying between 12,000 and 19,000 containers, Chapman says smaller vessels are being displaced on major trade routes and that current “all-time low box rates cannot be sustained”.
He points out that it appears inevitable that this scenario will lead to further shipping line failures, the scrapping of ships before the end of their productive life and further consolidation of shipping lines and/or services, according to BusinessDesk.
“Vessels in the 4500teu (twenty foot container) class currently service the New Zealand market and the abundance of these vessels is likely to mean, in the medium term, that the larger-sized container vessels will not call at New Zealand ports or will do so less frequently,” says Chapman.
“This is likely to mean that, for the foreseeable future, there will be a continuation of international container shipping calls at a range of New Zealand ports, including South Port.”
