Port of Tauranga, New Zealand's main export gateway, has been waiting more than seven years for resource consent for expansion. Photo / Alex Cairns
Port of Tauranga, New Zealand's main export gateway, has been waiting more than seven years for resource consent for expansion. Photo / Alex Cairns
Port of Tauranga has put on hold its Environment Court application for a long-planned infrastructure project to focus on an alternative pathway via new fast-track legislation.
Announcing a 27.4% lift in group net profit after tax for the half year to end December, New Zealand’s main export gatewaysaid an interim decision from the court on part of the extension project was appealed by three parties, and the urgent need of a resource consent for improvements dictated the new approach.
“The application in the Environment Court is on hold pending an application under the new Fast-track Approvals Act,” chief executive Leonard Sampson said.
“Given the urgency of the project, to protect the interest of New Zealand importers are exporters, we are preparing an application under the new legislation.”
The NZX-listed port company waited more than five years to get an application to the stage of a hearing in the Environment Court after Beehive knockbacks and hearing delays.
The port, New Zealand’s biggest and busiest, has run out of container capacity, a situation it warned of two years ago.
The company in December received a second interim decision from the court confirming consent would be granted for part of the container terminal expansion and associated works project, subject to revised conditions.
It now expected underlying group earnings of between $115m and $125m for the 2025 financial year, compared with underlying group profit of $102.7m in 2024.
The annual results will be announced on August 29.
The port recorded 690 ship visits during the half year, compared with 674 in HY24.
Imports totalled 4.4 million tonnes, up nearly 15%, and exports at 8 million tonnes, lifted 3%.
Log exports fell 10.5% while direct dairy exports recorded a 1.2% increase.
Subsidiary and associate company earnings were steady with a 1% increase.
The port company said its plan to buy out minority shareholders in Marsden Maritime Holdings (MMH) with consortium partners Northland Regional Council and Tupu Tonu-Ngapuhi Investment Fund was now subject to community consultation with Northland ratepayers and a shareholder vote.
The proposal would merge the Northport and MMH businesses, in which Port of Tauranga would own 50%.
Meanwhile S&P Global Ratings said the port’s acquisition of the 50% stake could enhance its competitive position.
“PoT will get access to MMH’s land and property portfolio, and have better control over Northport ....”, it said in a research note.
“PoT’s (A-/Stable/A-2) results ... benefited from an increase in tariffs. This allowed the port to pass on some of the inflationary pressures on operating costs and compensate for marginally weaker volumes. We expect the port’s ratio of funds from operations to debt to remain at 25%-26% over the next couple of years. Our forecast incorporates about NZ$40 million in capital outlay for the MMH acquisition,” S&P said.
It anticipated that subdued export demand, particularly from China’s ailing construction and property segment, could rein in export volumes at the port over the next year or so.
