Containers help push Tauranga profits up

By DANIEL RIORDAN

Port of Tauranga has continued the stream of green across the nation's wharves, lifting its net profit 9 per cent to a record $19.65 million, compared with the previous year's $18.09 million.

The June-year result was obtained with a 14 per cent rise in cargo volumes, including a 110 per cent boost to high-value container volumes, which came after shipping line ANZDL moved its New Zealand port of call from Auckland to Tauranga, using Tauranga's Metroport inland port in South Auckland.

Tauranga's result follows recent similarly strong results from other listed port companies - Ports of Auckland up 30 per cent and Lyttelton Port Company up 13 per cent. Wellington's CentrePort, which is unlisted, is also expecting a good year.

Tauranga chief executive Jon Mayson attributed most of his company's record performance to Metroport.

"Despite scepticism from a lot of people Metroport has worked," he said. "ANZDL, the major customer through Metroport, has increased its market share tremendously."

ANZDL moved 95,000 TEUs (20 foot equivalents) of the 236,000 TEUs that passed through Tauranga.

When it shifted its business from Ports of Auckland a year ago, it was expected to win about 50,000 TEUs.

Mr Mayson said the increase reflected the shipping line's ability after the move to win new Bay of Plenty and Waikato customers from the dairy, meat, timber, and pulp and paper industry.

Tauranga was still looking at expanding the ANZDL/Metroport operations from a weekend service to seven days a week.

Without Metroport, the company's performance would have been merely steady, Mr Mayson acknowledged.

Tauranga's throughput in its traditional cargo mainstay of logs remained relatively static.

Dairy volumes were up 48 per cent, helped by the greater container traffic - although they would have risen anyway after the Dairy Board's decision to ship its products through the nearest appropriate regional port.

This worked in Tauranga's favour against rival Auckland.

The company declared a final dividend of 14 cents a share (payable on November 3), for a total dividend of 22 cents a share, compared with 18cps the previous year. All dividends are fully imputed.

Tauranga's shares closed 4c up at 530c after the result.