The newest tenant to Marsden is the sawmill Resource Enterprises Ltd, which was commissioned in July with a visit from Economic Development Minister Steven Joyce. Photo / Matt Johnson/ NRC
The newest tenant to Marsden is the sawmill Resource Enterprises Ltd, which was commissioned in July with a visit from Economic Development Minister Steven Joyce. Photo / Matt Johnson/ NRC
A new cargo storage warehouse at Marsden will help Northport deal with its increase in on-port log storage, which has already given the company a lift in revenue this year.
Marsden Maritime Holdings (MMH) recorded a net surplus of $8.390 million for the year ended 30 June, 2015. This was up slightly on the previous year's result of $8.334 million.
The strong performance, according to MMH chairman Sir John Goulter, "was underpinned by the strong financial performance of its investment in Northport."
He said overall cargo volumes were down by approximately 3 per cent at 3,183,000 tonnes from last year.
MMH was established in 1988 as Northland Port Corporation and is owned by Northland Regional Council (53.61 per cent); Ports of Auckland (19.9 per cent); individual and institutional investors (26.49 per cent). MMH owns 50 per cent of Northport Ltd, while Port of Tauranga owns the other 50 per cent.
Northport handled 2,460,000 tonnes of logs during the year, which was similar to the previous year's numbers.
However, an increase in storage revenues from higher volumes of cargo stored on-port throughout the year has allowed the company to improve earnings.
MMH was due to start construction of a large bulk warehouse shortly to boost cargo flows through Northport. The Marsden warehouse would be built by the first quarter of 2016 and leased to "a major international bulk commodities trading entity".
MMH chief executive Graham Wallace said the company had achieved a substantial lift in occupancy levels at the Marsden Cove marina and commercial complex.
MMH bought the 1100sqm commercial complex from Hopper Developments for $6.95 million in 2014, borrowing $5.5 million to do so. The complex now has 13 units, all leased.
Further growth for MMH, said Wallace, would come through the construction of a haul-out facility at the 230-berth Marsden Cove Marina.
He said additional industrial tenancies had also accounted for the improved performance for MMH.
However, its 340-herd dairy farm at Marsden had seen a significant drop in revenue, reflecting the sour dip in milk prices by Fonterra.
He said MMH had recognised a whopping $10 million reduction in the estimated value of the farm land holdings.
"This is simply reflective of the amount of undeveloped industrial and commercially zoned land now on the market locally. It has not impacted upon our industrial development block as its value continues to be underpinned by its prime location immediately adjacent to the port."
TENANTS
Meanwhile, Wallace said MMH had no interest in acquiring the 83 hectare Marsden City next door belonging to developer Oliver Scott under North Holdings Development, NH Infrastructure and North Holdings Investment, which was put on the market for sale by tender after companies behind the scheme were put into receivership in May. Tenders closed on August 27.
Sections of the stormwater and wastewater systems on the development had failed, causing pipes and manhole covers to slump.
Whangarei ratepayers would have to pick up the $5.4 million bill to repair the infrastructure subsidence as Whangarei District Council was attempting to recoup the money from the scheme's designers and builders through the courts.
Northport's overall cargo is down 3 per cent, while the number of logs being handled has remained virtually unchanged
The latest tenant to arrive at the Marsden Point was Resource Enterprises Ltd (REL), a new sawmill located on a 2 ha site.
REL takes industrial grade logs and exports the flitch (slabs of timber cut from the tree trunk) to Saudi Arabia
According to Northland Inc, the mill is expected to employ around 20 people under full production and have an estimated economic impact of approximately $20 million.
The regional economic agency recently stated that the company's use of containers for shipping the flitch was instrumental in Northport decision to buy a new $5 million crane for handling containers.
The new German-made mobile harbour crane will allow Northport to load container ships that would then transport the containers from Marsden Point to other New Zealand ports or directly overseas. The crane would also be used to handle bulk goods.
