Profits up at the Port of Tauranga
The Port of Tauranga has reported a $3.3 million profit increase in the second half of 2016 following an increase in container volumes. The port also announced it is on track to become the first in the country to transport more than one million containers across its wharves in a single year. Revenue for the six months ending December 2016 rose 2.8 per cent to $125.3 million, and net profit increased 8.5 per cent to $41.9 million. Port of Tauranga said that given the strong result in the first half 2016, they are expecting earnings for the 12 months to June 2017 to be around $83 million. This is dependent on steady market conditions. Chief Executive Mark Cairns said the harbour dredging programme is making Tauranga more attractive for larger container ships. “We are consolidating our position as the port of choice for international shipping lines, with ship visits in the six-month period rising four per cent to 774 from 741 in the same period last year,” he said. “With bigger ships calling at Tauranga, we are handling significantly larger volumes of cargo per shipment.” Export volumes increased 9 per cent to 7.1 million tonnes, and import volumes grew 7 per cent to 3.9 million tonnes. The biggest export growth was logs, which increased 21 per cent to nearly 3 million tonnes compared to the previous corresponding period. Kiwifruit volumes also increased 16 per cent to 477,000 tonnes, and dairy products were up four per cent to 1,088,000 tonnes. Some imports increased; oil and fertiliser imports both rose 10 per cent in volume. Dry chemicals and bulk liquids were both up 13 per cent, and cement imports increased 5 per cent. Other markets were less fruitful, with frozen meat exports decreasing 25 per cent and onions by 23 per cent. Some dairy-related markets fell. Food supplement imports for the dairy industry decreased 10 per cent, and grain volumes dropped almost 20 per cent. The Port of Tauranga Board has declared an interim dividend of five cents per share as a result of the profit growth. Shareholders registered on March 10 will receive a payment on March 24.
