Port sees increase in profit

There has been a small increase in Ports of Auckland's net profits, on the back of difficult trading conditions, the NZ Herald reports. Despite container volumes falling 6.7 per cent to 907,099 twenty foot equivalent units (TEU), the port’s underlying net profit rose by $1 million to $70.6 million for the financial year ended 30 June 2016. Net profit after tax was up $21 million from last year, to $84m, while revenue was down $7.2 million to $211.1 million. Light commercial vehicle volumes rose to 248,065 units, up 1.7 per cent. Imports of cars, light commercial vehicles and “high and heavy” vehicles increased, with a 5.5 per cent drop in bulk volumes to keep the total fall in bulk and break-bulk volumes to 2.2 per cent. Chief executive Tony Gibson says he expects similar volumes in the current financial year. “We thought it was going to be a tough year, and so it proved, but we still increased profit and dividend.” Gibson says 12 of the world’s top 30 ports have reduced volume reductions this years, following difficulties faced by the container industry. Ship construction is currently outstripping trade growth and “the resulting overcapacity has led to a significant reorganisation of shipping services internationally, which is also affecting ports.” In New Zealand, he says that changes have meant that the port has lost market share to other ports including Tauranga, which reported a 12.1 per cent lift in container volumes to just over 950,000 TEUs. Gibson says the situation is expected to continue this year. Shipping capacity is forecasted to increase by 4.6 per cent.