Foreign exchange pressures expected to hit Nelson port

1.00pm

Port Nelson has recorded a half-year net profit of almost $3 million for the six months ending December 31 -- 12 per cent more than forecast.

But chief executive Martin Byrne said foreign exchange pressures on the region's exporters and planned capital expenditure projects at the port meant the company expected to post a 12-month result similar to that of last year.

Port Nelson, which is jointly owned by Nelson city and Tasman district councils, recorded a full-year pre-tax profit of $8.3 million in 2003.

According to the figures, 19,632 containers crossed the port's wharves in the six months, down 2 per cent on the same period last year.

Mr Byrne said cargo was 5 per cent up on last year but export volumes were beginning to taper off as local exporters grappled with the high New Zealand dollar. This was likely to become more pronounced during the second six-month period, he said.

The average size of vessels visiting Port Nelson had increased and shipping tonnage remained steady.

But Mr Byrne said the number of vessels visiting the port was down 9 per cent.

This reflected a change in coastal shipping patterns with fewer calls at the port from domestic shipping companies, he said.

The sale of the Four Seasons building on Haven Rd boosted the port company's revenues in the first six months by $516,000.

But Mr Byrne said two significant capital expenditure projects were planned this year.

One was the construction of parameter fences and security gates to meet strict new international port security requirements by July 1 at a cost of about $600,000.

A new loading ramp would also be built between Brunt Quay and Main Wharf. The project would be completed this year and cost about $1.4 million, Mr Byrne said.

The port earned $12.72 million with a net profit of $2.89 million in the six months to December 31. The company's operating costs were 1 per cent down on the same period last year, Mr Byrne said.

"Predictions are that we'll be pretty close to last year, but you just never know."

Mr Byrne said fruit exports were now in full swing and the season was shaping up as one of the best in three or four years.

Meanwhile, processed timber exports continued strongly and as did imported fuel and cars.

- NZPA