Ports of Auckland posts 5pc profit gain

By CHRIS DANIELS

Profit is up at Ports of Auckland, thanks to more ships, more containers and lower costs.

The company's profit after tax of $46.5 million for the year to June 30 was up 5 per cent on the previous year.

Chairman Neville Darrow said the result was pleasing, as it was earned from a 5 per cent jump in container volumes at the port and a 12 per cent rise in other cargo.

Container volumes grew by 26,000 TEUs (20ft equivalent units) to 593,000 units.

Operating revenue rose 3 per cent to $141.5 million, as costs for the same period fell by 2 per cent.

The company will pay shareholders a final dividend of 17.5c a share, which represents 75 per cent of the company's after-tax profits.

More than $132 million was returned to Ports of Auckland shareholders in March, with the cancellation of one share in five.

Vehicle imports coming through the port increased by more than 20,000, with a total of 166,700 vehicles arriving.

Other improvements reported by the company include a 30 per cent rise in the transhipment of TEUs to 50,000 units, around 8 per cent of the total containers handled.

Ports of Auckland said this showed the increased use of Auckland as a hub port by some of the big shipping lines.

Transhipment is when containers are taken off ships at a port, then picked up by another ship, rather than by a truck or train.

Performance of the Ports of Auckland, which accounts for about a third of New Zealand's exports and two-thirds of imports, is widely regarded as a guide to the economy.

Chief executive Geoff Vazey said the coming year was "likely to be challenging in an economic climate that is showing few signs of growth.

"However Ports of Auckland is well-placed to continue along a steady path, with established operating efficiencies in place and with strong competitive advantages.

"We anticipate improved container volume growth in the year ahead."

Ports of Auckland is preparing for the widespread introduction of new, bigger container ships towards the end of the year.

P&O Nedlloyd is introducing seven Albatross-class container ships as part of a new, fixed-day, weekly service, linking New Zealand with Europe via the Panama Canal and then on to the east coast of North America.

Three similarly sized sister ships, owned by Contship Containerlines, will also call.

The new ships can carry up to 4100 TEUs compared with the 2700 TEU capacity of the ships they are replacing. Up to 1300 of the 4100 containers can be reefers (refrigerated containers).

The big ships will make fewer visits but carry more cargo. They are faster and will knock about five to six days off the 25 to 26-day voyage to North America.

The pending arrival of the new ships has prompted Ports of Auckland to extend its wharf, spend $18.5 million on two giant cranes and increase the draughts at berth, along with deepening the harbour's shipping channel at a cost of $20 million.

It has also improved its computer systems and set up inland ports to speed up turnaround times.

* Record volumes have pushed Lyttelton Port Company's annual net profit up 19.4 per cent.

The company has reported a profit of $16.3 million for the year to June 30, compared to $13.6 million previously.

Revenue was up 6 per cent to a record $61.9 million, compared with $58.2 million, and operating cash flow was up 31 per cent from $15.9 million to $20.8 million.

Company chairman Brent Layton said the cut-throat port sector had cost Lyttelton some business and the port would have to improve its prices and service to remain competitive.

The company will pay a final ordinary dividend of 7.25c a share, bringing its annual dividend to 11c, against 10.25c previously.

Managing director David Viles said the loss of the Maersk Sealand contract would put pressure on profitability in the coming year.

He said a 15-year coal deal with Solid Energy had been the year's highlight.

The deal would give the port a long-term agreement and a stable income stream.

He said this and the consequent upgrade would double the company's annual coal volume over the next four to five years.

- NZPA