Port of Tauranga is not anticipating any cruise ship visits this summer - or the next.
The port's chief executive Mark Cairns made the announcement at his final annual meeting of shareholders on Friday.
In his speech, Cairns said despite the premature and sudden end to the summer cruiseship season, due to Covid-19 the port still hosted 106 passenger vessels - just 10 fewer than last season.
"However, we are not budgeting for any cruise ship visits this summer or even the following.
"While this doesn't represent a significant amount of marine revenue for the port, it is around $100 million of cash receipts that will not be going into the regional economy."
However, Cairns was confident the port was well placed to weather whatever Covid challenges were thrown at it next.
Port of Tauranga on Friday reported flat earnings in the first quarter of the financial year, as Covid-19 continues to impact supply chain efficiency and the global economy.
From July 1 to September 30 this year, the Port of Tauranga handled nearly 6.4 million tonnes of cargo, a 5 per cent decrease on the same period last year.
Containerised cargo fell by 8 per cent to 287,670 TEUs. Imports were the same as for the first quarter last year, and exports were down 8 per cent.
Log exports were performing in line with forecasts of 6.2m tonnes for the full year but remain vulnerable to variable international demand.
Dairy product exports decreased by about 12 per cent compared with the same period last year, which the port believed was due to seasonal variations. Kiwifruit exports increased by 9 per cent for the quarter.
Cairns told the company's annual meeting of shareholders that the unaudited group net profit after tax for the first quarter was $21.5m, compared with $21.7m in the previous corresponding period.
"Based on the first quarter's performance, and notwithstanding any significant market changes, we expect full-year earnings to be between $86m and $93m."
Cairns said the Port of Tauranga was still planning for long-term cargo growth.
"Port of Tauranga is a long-run infrastructure company and we will continue to pursue capacity expansion and greater efficiencies, to avoid the bottlenecks and congestion currently being experienced in the Upper North Island supply chain," he said.
"We have a demonstrable track record and a very strong A- credit rating renewed last month by Standard & Poors.
"We believe we are well placed to weather whatever the Covid-19 storm throws at us next."
David Pilkington and Mark Cairns. Photo / File
In his speech, Port of Tauranga chairman David Pilkington said the Port of Tauranga remained New Zealand's largest and most productive port.
"We offer the most reliable, most efficient and lowest-carbon-emission supply chain for international shippers.
"We now handle around 32 per cent of all New Zealand cargo, including 37 per cent of New Zealand exports and 41 per cent of all shipping containers."
Tauranga Chamber of Commerce chief executive Matt Cowley. Photo / George Novak
Tauranga Chamber of Commerce chief executive Matt Cowley said the pandemic had impacted every business and the port was no different.
"Despite being at the mercy of international supply chains and global markets, the port has still produced a stable result compared to the airline industry.
"The local [commerce] chambers across NZ would like to see the country's ports work closely together to drive export growth for NZ Inc."
Priority One chief executive Nigel Tutt said the port was a "huge economic asset" to this region and New Zealand.
"This is a great result in highly uncertain and variable times and shows not only the strength of the Port of Tauranga, but the industries that it supports."
Priority One chief executive Nigel Tutt. Photo / File
Cairns' last annual meeting
Pilkington also paid tribute to Mark Cairns as it was his last annual meeting of Port of Tauranga shareholders.
Cairns will retire in June next year after 15 years with the port. The port's chief operating officer Leonard Sampson has been named chief executive designate in anticipation of Cairns' retirement.
"Mark has kept the company strongly focused on future opportunities and planning for the future.
"He has also led the company to an industry-leading safety record and the highest productivity rates in Australasia."
Port of Tauranga chief executive Mark Cairns. Photo / File
Wrapping up his speech, Cairns reflected on his last 15 years with the company.
"I feel hugely privileged to have been given the opportunity to lead such a fantastic team of people and I look back with immense pride at what we have been able to achieve.
"We have grown Port of Tauranga from a small regional bulk export port, into the largest and most successful port in the country.
"Port of Tauranga is in excellent shape and I am excited to watch where it goes next."
