Metroport has winning way

By YOKE HAR LEE

A sharp lift in container volumes from its inland port in Auckland contributed to a 39 per cent jump in Port of Tauranga's operating profit to $14.15 million for the half-year ended December 31.

But net profit rose only 6.2 per cent to $9.50 million because of a $5.1 million rise in operating costs, mainly attributed to rail links for Metroport on the Manukau Harbour.

"We expect the second half to be as good as the first. We will be chugging along happily," chief executive Jon Mayson told the Business Herald.

He said the port's most immediate challenge was to control costs, work on incremental cargo volumes and to secure new customers.

Mr Mayson said the company was continuing talks with potential customers for Metroport, which helped lift total container volumes by 124 per cent to more than 100,000 TEUs (20 ft equivalent units).

Commenting on progress in securing new Metroport customers, he said: "We still have got some work to do. We are consolidating our relationship with Tranz Rail, including their being able to meet our demand for a seven-day service. It will take time - but Rome was not built in a day."

Port of Tauranga's revenue rose 31.7 per cent to $34.12 million. Earnings per share was 12.4c against 11.7c in the last corresponding period.

The company announced an interim dividend of 8c and a special dividend of 16c, both fully imputed, to be paid on March 24. In the first half of 1999, the interim dividend was 5c, topped with a 20c special dividend.

Chairman Fraser McKenzie attributed the port's positive results to its new customers.

Metroport customer ANZDL - with its fixed-day weekly services to the United States, Australia and the Pacific Islands - had stimulated export and import volumes.

And although Tauranga's fortunes have traditionally been tied to log volumes, first-half figures grew only 5 per cent compared with the dairy industry's robust growth.

Its half-year share of North Island dairy volumes rose 31 per cent to 271,000 tonnes after the Dairy Board allocated it increased trade. In the last financial year, its share was 371,000 tonnes.

Mr Mayson said log volumes had been flat because of higher local demand by the pulp industry as prices had risen. The price of logs had been good but log export growth had not been significant.