Coal, container growth lift port profit by 30pc

By YOKE HAR LEE

Robust growth in container volumes and a revival in the coal market helped lift the Lyttelton Port Company's half-year net profit by 30.38 per cent to $7.08 million.

The company chairman, Dr Brent Layton, told the Business Herald that product categories improved across the board and tonnage grew from additional transtasman business.

"The outlook is good for the year but we are still having plenty of pressure in terms of pricing (from competing ports). Even shipping lines are pretty competitive and that is putting pressure on our pricing," he said.

The port's revenue for the half-year to December 31 rose 14 per cent to $28.26 million.

Earnings per share was 7 cents, against 5.3c the same period last year.

The port is to reward its 280 employees with 500 shares each for their contribution to the company and a fully-imputed dividend of 3.5c will be paid to shareholders on March 31.

The port is keen on securing a contract with Solid Energy for coal exports, which rose 96 per cent during the six months to 694,200 tonnes.

Dr Layton said the port had been under Solid Energy pressure for some time to provide a more competitive price structure.

Total container volumes rose 8 per cent to 81,300 TEUs (twenty-foot equivalent) while the container terminal volume was up 12 per cent to 56,500 TEUs.

Car volumes rose 27 per cent to 21,324 vehicles but ship visits were down 3 per cent to 744 calls. Bulk fuel tonnage rose 15 per cent to 533,100 tonnes.