Roger Gray, Port of Auckland chief executive. Photo / Dean Purcell
When new chief executive Roger Gray arrived in March last year, he decided it was back to the basics for Port of Auckland (POA).
“We want to be a port that exchanges cargo safely and efficiently, not be a digital business [referring to the failed automation project]. We will not be distracted by non-core activities.
“We have a clear strategy for improving our organisation — financially for our owner, operationally for our customers, improved engagement with our community, and improved safety and engagement for our people,” Gray said.
Between 2018 and 2022, three port workers were killed in accidents on the job. Gray introduced a three-year “Regaining Our Mana” plan and has already seen big results.
Port of Auckland restored berth windows, welcomed cruise ships back (140 visits and 250,000 passengers this season), and renewed a partnership with its four unions who participate, even lead, in problem-solving and operational improvements.
The port company introduced salaries for shift workers and dynamic rostering to improve efficiency.
Financially, the port company’s revenue increased 20.7 per cent to $320.2 million for the 12 months ending June, and net debt was reduced by more than $42m.
Net profit was $40.45m compared with a loss of $10.27m in the previous year and the dividend to its 100 per cent owner Auckland Council nearly doubled to $30m. The container terminal went from loss-making to break-even.
Port of Auckland has been named winner of the Most Improved Performance category in the Deloitte Top 200 awards.
Deloitte Top 200 judge Hinerangi Raumati-Tu’ua said Port of Auckland has shown a remarkable turnaround in profitability and operations.
“By establishing effective strategies, the port has improved its financials, union relationships, health and safety practices, and operational performance. The port has also collaborated with the union to implement the country’s first stevedoring practice,” she said.
Gray said the target is to deliver $1m a week (a total of $52m) in dividends within three years.
“I’m committed to turning the port around, making sure the containers are moved effectively through the terminal and into the warehouses within two days. We are improving the workplace in terms of culture and safety,” he said.
The port company employs more than 750 people with 25 per cent being Pasifika and 10 per cent Māori and Asian. “We acknowledge the diversity and inclusion,” Gray said. “We’ve kicked off a literacy programme since English is not the first language for some staff.”
The port has introduced ka pai awards, staff sponsorships, cultural days and lunches with the board of directors. It has created a better working environment through open plan design, new facilities and better access to operations including marine portacom right at the berth.
It is creating career paths, not just jobs, and started in-house leadership programmes and coaching sessions.
There have been environmental initiatives including emission and waste reductions, establishing the Waitematā Healthy Harbour Trust with $100,000 annual funding, and the replanting of 35ha at South Head near the Manukau Harbour into native forest.
“We have also taken significant action in managing noise from the port that might impact our local community,” said Gray.
“We operate at the edge of the central business district, and we respect that privilege of being there. I don’t see the port moving for a number of decades and we have an important part to play in the Auckland and Northland economy.
“We have been more transparent and have a better working relationship with Auckland Council. We are working with council not against it. We are more open on issues facing the port with media and our community.
“We wanted to regain the respect from customers, council, community, media and our own people,” said Gray. “I’m feeling very buoyant about our numbers this year — we are ahead of budget year to date.”
Finalist: Westland Milk Products
It was a proud moment for the South Island West Coast. One of its mainstays, Westland Milk Products, became a billion-dollar company and its butter — sourced from the lush pastures beneath the Southern Alps — flies onto the shelves of Costco stores in the United States.
Hokitika-based Westland Milk passed $1 billion in revenue for the first time in its 85-year history, earning $1.04b (a 27 per cent increase) for the 12 months ending last December. And the dairy company, owned by Chinese Yili Group, is on track to repeat the feat this year.
Westland Milk posted a profit of $39m, a $120m turnaround from the previous year, and paid a record $9.40 per kg of milk solids to its 400 farmer/suppliers, contributing $535m into the West Coast and Canterbury economies.
It continues to pay farmers a 10c premium above the forecast Fonterra farmgate milk price.
Richard Wyeth, chief executive of Westland Milk, said the company’s strategy of focusing on high-value sales, leveraging off the West Coast’s reputation as a source of premium dairy products and ingredients was now paying dividends.
“Having the support of Yili has enabled us to invest in our people and the infrastructure needed to increase production and sales of value-added products,” he said.
Raumati-Tu’ua said Westland Milk crafts premium butter, dairy powders and nutritional products from Southern Alps-sourced milk, blending innovation with tradition for superior nourishment.
Westland Milk is doubling its butter production to take advantage of opportunities in the US, as well as in Australia and New Zealand.
Its butter brand Westgold has a strong reputation, and it is also sold under Costco’s customer brand.
Westland Milk invested $40m to increase its butter manufacturing capacity at Hokitika and it bought Waikato-based Canary Foods to increase its international reach.
Canary, which exports 75 per cent of its dairy products, has developed a world-first compostable, individually-sized butter squeeze pack in response to consumer demands for ethically responsible packaging and global calls for an end to single-use plastics.
Westland Milk is building a $70m lactoferrin plant, opening next year, and will increase production of the high-value protein for infant milk formula by 50 tonnes. The company will become one of the largest lactoferrin suppliers in the world.
Employing 640 people, Westland Milk pays 45 per cent of the wages on the West Coast and produces 14 per cent of the region’s gross domestic product.
Wyeth said last year’s financial result “definitely provided us with a lot of incentive and now we are focused on maintaining that momentum as much as possible. We are starting to see a recovery in China which is pleasing.
“People are getting more comfortable of going out and spending money following the Covid restrictions. Our team in China sees the market being reasonably stable over the coming 12 months with balanced supply and demand.“
Finalist: Sky TV
Over the past year or so, Sky Network Television has worked diligently to enhance the viewing experience for customers — and it’s paying dividends.
Sophie Moloney, chief executive of Sky TV, said: “We got back to focusing on what the customers valued, and this translated into a return to revenue growth after a lengthy period of decline”.
The television network launched the new Sky Box and Sky Pod, introduced apps such as Sky Sport Now, gained programming rights for Formula One motor racing and English Premier League soccer, renewed partnerships with World Rugby and Warner Bros. Discovery, and migrated 18,000 Vodafone TV users.
“We’ve grown our portfolio of products and brought the favourite apps into our screen ecosystem to make it easier for customers to find content and enjoy their viewing,” said Moloney.
“New Zealanders love watching on apps and on demand.”
In a move to improve customer services, Sky TV outsourced its call centre operation and increased capacity by 40 per cent, with 200 people offshore in the Philippines and 100 in New Zealand.
“We weren’t able to answer calls before, and customer care is really important to us,” said Moloney.
Sky Advertising revenue grew 9 per cent share in a market that declined 5 per cent in total spend. Sky Business also returned to revenue growth — “delivering amazing sporting moments for viewers in hotels, motels, clubs and pubs around the country”, Moloney said.
For the year to June, Sky TV’s revenue grew 2.4 per cent to $754.1m and net profit was $51m, down 18 per cent.
Customer numbers reached 1.015 million, with 515,00 using Sky boxes and nearly 470,000 streaming. Sky Sport Now was up 37 per cent to 150,000 customers and Neon up 8 per cent to 318,000.
Raumati-Tu’ua said Sky has revolutionised New Zealand’s television viewing, offering an extensive array of sports, entertainment, and digital services.
“With My Sky and with streaming options like Sky Go and Neon, viewers enjoy unparalleled access across devices. Sky is a pillar of Kiwi entertainment and culture,” she said.
“Despite intense competition in the streaming sports market, Sky has shown its ability to adapt and thrive in a competitive market.”
Raumati-Tu’ua said Sky TV remained optimistic and ambitious for the future, projecting a profit range of $45m-$55m and aiming to increase revenue to $765m-$795m this financial year. It is also hoping to double its dividend payout (to 30c a share) within three years.
Moloney said the new products, organisational changes and outsourcing to specialist partners had transformed the way Sky operated.
“We have become more efficient and effective in delivering to customers, and we have put out three-year targets to show confidence in our plan to invest in a new Sky experience,” she said.
· The Most Improved Performance Award is sponsored by BusinessNZ.
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