Embattled Ports of Auckland posts loss but vows to improve

Ports of Auckland says it's starting to rebuild trust and performance. Photo / Michael Craig

Ports of Auckland has recorded a net loss of $10.3 million for the 2022 financial year, a direct result of the write-off of its disastrous foray into container terminal automation.

The Auckland Council-owned port this year abandoned the six-year project to partially automate the terminal earlier after a string of implementation delays and failures, with a resultant write-off of $63.1m in costs.

Last financial year, the port company posted a $45.57m net profit after tax.

It has posted a before income tax loss of $21.39m for the year to June 30, on revenue of $265.2m, up 17.2 per cent on FY21.

The port will pay its council shareholder a final dividend of 8.2c per share, giving a total dividend for the year of 9.7c per share or $14.2m. Last year's full dividend was 2.5c per share.

Operating costs increased by 12.9 per cent. Group operating profit before tax, excluding impairments, revaluations and share in investments, was $27.4m, up 32.8 per cent on FY21.

On the outlook for FY23, a commitment to lift productivity and performance would deliver a net profit after tax, excluding investment property revaluations, of $35m, the company said.

The port has undergone top level changes over the past year, with a new chair, a largely new board of directors and new chief executive.

The company said during the year it had "started to rebuild the foundations of the Ports of Auckland's future as a safe, customer-focused and profitable organisation".

"We have reset our strategic direction and are very clear on our focus on core business and delivery. Our new strategy Regaining our Mana, and the key pillars that support it are designed to lift our performance significantly, deliver a reasonable return to our owner, Auckland Council, and rebuild trust with Aucklanders," it said in a statement.

The port company has been dogged by serious health and safety issues, attracting 45 recommendations for improvement in a March 2021 independent safety report commissioned by the council.

It said recommendations in two "complex" areas, fatigue management and training, remained to be implemented. They would be completed by the end of FY23.

The port said it continued to be the largest gateway for New Zealand's imports, handling more than 10.8 million tonnes, up 8 per cent on FY21, across containers, bulk cargoes and vehicles.

However, container volumes dipped slightly with total TEUs (twenty-foot equivalent boxes) down 0.8 per cent to 811,565 compared to 818,238 last year.

Heavy vehicle and car trade volumes rose 1.8 per cent on the previous year. Dwell time on the port was maintained at 2.07 days per vehicle.

Total breakbulk volume, including cars, increased by 9.4 per cent to 7.29m tonnes, compared to 6.66m in FY21.

The company said most imports were destined for customers within the wider Auckland region, so the carbon footprint of onshore delivery to end users was reduced. The port had developed a carbon calculator to allow customers to understand the environmental cost of shipping a container within the North Island.

In June the port took ownership of the world's first electric ship-handling tug, with the same strength as its strongest diesel tug and entirely emissions-free.

Total emissions fell 8.3 per cent.