Cargo record helps profit boost

WELLINGTON - CentrePort, the Wellington port company, has recorded a 48 per cent increase in profit in the half-year to December.

The result reflects growth in cargo volumes and more tenancies on port land.

In the six months to December, CentrePort made a profit of $4.35 million, up from $2.94 million for the half-year to December 1998.

Earnings before interest and tax were $6.81 million, up from $5.3 million.

Cargo volumes through the port reached a record 4.6 million tonnes in the six-month period, up 10 per cent. Container volumes were up 12 per cent.

CentrePort chief executive Ken Harris said growth in cargo volumes was stronger than expected.

However, they had been flatter since December and he did not expect the same pace of growth in the second half.

The company was also able to increase revenue from leasing out property within the port.

Mr Harris said most of the port's 47ha of space was now leased to third parties.

New tenants included telecommunications and pay television operator Saturn, which is to move to the port from its Petone base.

Wellington police were also negotiating a tenancy for the wharf police.

Mr Harris said he expected the port to pay a dividend to its two shareholders, the Wellington Regional Council and the Manawatu-Wanganui Regional Council, but the amount had not yet been decided.

In the last full year, CentrePort paid $8.2 million back to its main shareholder, the Wellington Regional Council, a major factor in the council's decision not to sell its stake in the company.

CentrePort chairman Nigel Gould said he was pleased with the result as it reflected the port's continued growth.

The company is spending $10 million this financial year on redeveloping the port. - NZPA