Port of Tauranga releases interim results

Port of Tauranga, New Zealand's largest port, today reported good progress reinforcing its position as New Zealand's pre-eminent freight gateway and a financial result for the six months to 31 December 2013 in line with the same period in the prior year.

Port of Tauranga Chairman David Pilkington said the company was very well positioned for its next phase of growth.

"We have again delivered a strong first half result, while our acquisition of a half share in PrimePort Timaru and our development of a freight hub in Rolleston, southwest of Christchurch, opens a new frontier of opportunities.

"These investments coupled with the emerging strength of the New Zealand economy and strong international demand for the country's agricultural and forestry exports will continue to drive increases in cargo volumes across our wharves."

To view the interim accounts, click here.

Reflecting this confidence, the Board has resolved to pay an interim dividend of 21 cents per share, up 5 per cent, on the prior comparative period. The record date for entitlement to the interim dividend is 7 March and it will be paid 21 March 2014.

Port of Tauranga Chief Executive Mark Cairns said the company had turned in another strong performance.

"Notwithstanding the loss of a major import call whilst continuing to invest in significant further infrastructure and strategic acquisitions to extend our freight catchment nationwide."

Total imports increased by 4.1 per cent to nearly 3.1 million tonnes from 3.0 million tonnes in the prior year.

Total exports rose 6.6 per cent to 6.8 million tonnes from 6.4 million tonnes in the comparative period.

Port of Tauranga has established a South Island presence acquiring a 50 per cent share of PrimePort Timaru and taking over their Container Terminal operations.

"By developing Timaru into a feeder port, South Island importers and exporters will benefit from the freight savings and efficiencies offered by larger ships and the greater number of services calling at the Port of Tauranga" Mr Cairns said.

In addition to the South Island investment, Port of Tauranga continues to make significant investment in infrastructure and assets to accommodate cargo growth and the trend towards larger vessels.

A new Liebherr gantry crane, the seventh in the Tauranga Container Terminal fleet, is currently being assembled and will be commissioned in March. The Terminal set an Australasian record in productivity in the three months to 30 September 2013 (as measured by the Ministry of Transport), achieving an average net crane rate of 37.1 moves per hour, well ahead of the national average of 33.7 moves per hour.

This improvement in productivity has continued into 2014 with a record average net crane of 39.4 moves per hour being achieved over January 2014.

Port of Tauranga has ordered two new 74 tonne bollard pull tug boats for delivery early in 2015.

"Meanwhile, our dredging project, to widen and deepen the shipping channels in Tauranga Harbour for larger ships, is in the final planning stages and work is expected to commence in the next financial year."

Highlights
Net Profit After Tax of $39.3 million for the six months to December 2013
Group EBITDA increased 5.5 per cent to $71.5 million
Overall trade increased 5.8 per cent to 9.9 million tonnes
Exports increased 6.6 per cent to 6.8 million tonnes
Imports increased 4.1 per cent to 3.1 million tonnes
Major expansion into the South Island announced
Interim dividend increased 5 per cent to 21 cents per share.