The port of Tauranga. Photo: Mike Scott
The country's biggest port, Tauranga, has reported a strong rebound in profit as cargo volumes rose but says the economy is missing out on hundreds of millions of dollars because of delays in getting approval for its expansion.
Key numbers for the 12 months ended June compared with a year ago:
- Net profit $173.4m vs $90.8 m (includes gain $49m from asset sale)
- Underlying profit $126m vs $102.7m
- Revenue $464.7m vs $417.4m
- Cargo (tonnes): 25.3m vs 23.6m
- Final dividend 9.7 cents per share vs 8.7 cps
The company said strong kiwifruit, meat and dairy exports drove the 7 percent rise in cargo, while coal, fertiliser, and stock feed boosted imports.
It said the port's productivity was being hampered by not enough capacity to handle rising cargo volumes and disrupted shipping schedules.
"Our constrained berth capacity also impacts productivity as we are unable to provide flexibility for vessels arriving outside their booked window.
"Only 55 percent of vessels arrived at Tauranga on their agreed schedule, challenging our ability to efficiently manage container yard congestion and impacting crane operations," it said in a statement
Its various subsidiaries and investments, including Primeport at Timaru and the Ruakura Inland Port, reported improved earnings.
The company had a one off gain of $49 million from the consolidation of port assets in Northland, in which it sold its stake in Northport.
The Tauranga port. Photo: Alex Cairns
Fast track turns into slow lane
Board chairperson Julia Hoare voiced frustration at a new legal obstacle to its long awaited container expansion, with a High Court judicial review ruling that the port's fast track application was deficient because of a drafting error, delaying its progress.
"The ongoing delays in obtaining a resource consent for the Stella Passage development are extremely frustrating and are reaching crisis point as the port is forced to turn away shipping services due to a lack of berth capacity.
"It is very frustrating that in the midst of significant interest from international container lines, we are unable to support new trade opportunities because we don't have the berth space," Hoare said.
She said the port had had to turn away a new shipping service to the Americas that would have offered local exporters and importers between $65m and $90m in savings.
Hoare said a report showed the new container wharf and associated facilities could deliver $485m to $749m million in annual economic earnings by 2032.
"It is the New Zealand economy and all New Zealanders that suffer. This is critical infrastructure essential for efficient two-way trade for New Zealand."
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