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Port of Tauranga has shrugged off global financial troubles by increasing trade and posting a record annual profit of more than $40 million - double the profits of its Auckland rival.
The port company today announced a net profit of $42.117 million for the year ending June 30, 2008 - an increase of $2.782 million on the previous year.
John Parker, Port of Tauranga's chairman, said the latest solid result reflected the long-term stability of the company in a volatile economy.
There has been considerable turmoil in the global environment, and the port's performance should be seen as a clear demonstration of its resilience.
The port's growth has been spurred by a 25 per cent increase in container traffic to 582,072 TEUs (20-foot equivalents), and total trade across the Mount Maunganui and Sulphur Point wharves jumped 7 per cent to 13.525 million tonnes - a rise of 877,125 tonnes.
Port of Tauranga - with its south Auckland inland MetroPort now handling 170,000 TEUs - has experienced growth of 620 per cent in container volumes over the past 10 years.
Total operating revenue in the last financial year was ahead 14.8 per cent - with logs (up 5 per cent), timber (up 14 per cent) and paper products (up 9 per cent) exports all increasing.
Port of Tauranga chief executive Mark Cairns said the lift in forestry exports was encouraging, and there was an increasing trend in exporting logs in containers.
"We can expect double digit growth in log exports over the next financial year based on the last quarter [business]," said Cairns.
Cairns said Port of Tauranga continued to lead the New Zealand market in terms of trade volume, efficiency and profitability. Latest Statistics NZ figures showed the port handled 52 per cent more international cargo than the nearest competitor and 241 per cent more export cargo.
"Public concern and interest often focuses on the wins and losses of significant contracts," said Cairns, "but this interest sometimes generates more heat than light, over-dramatising the importance of the natural ebb and flow of cargoes.
When unveiling Ports of Auckland's annual financial results last week, managing director Jens Madsen made a surprise announcement when he raised the possibility of the company buying Tauranga's container business.
Previous merger talks between the ports failed last year.
Tauranga pulled out blaming Ports of Auckland owner Auckland Regional Holdings, who later withdrew support for a merger, saying it did not align with its long-term strategic approach.
In March, Madsen said the port's shareholder had made a clear decision on the merger and he did not expect it to return to the agenda.
Madsen said the rationale for change in the upper North Island was still strong.
Ports of Auckland saw profits fall 67 per cent last year, to $21.1 million, though last year's results were inflated by one-off profits from its property portfolio.
Tauranga's port is the biggest in the country based on volume, although Auckland is ahead on containers, handling 841,000 TEUs in a year.
The Tauranga port company has not yet seen a proposal from Auckland - but Tauranga still believes a full merger between the country's two biggest ports makes sense.
Company directors have declared a fully imputed final dividend of 16 cents a share, following an interim payment of 9c a share, which is a 13.6 per cent increase over the 2007 dividend.
- NZPA/ HERALD ONLINE
