Cars boost port’s profits

The number of cars handled by Ports of Auckland increased to 207,591 in the year to June 30 from 170,835 in the previous reporting period, an increase of 22 per cent. Bulk and break-bulk volumes went up to 5,679,325 tonnes, or 26 per cent compared, while ship calls increased from 1,463 to 1,541 – an increase of 5.3 per cent. The company’s improved results reflect increases in labour productivity and volumes across all operations. Trading profit before income tax was $73.5 million, up 65.5 per cent from $44.1m. Net profit after tax of $74m is 90 per cent up on last year’s result of $38.9m. The declared dividend for the financial year is $66.6m – up by 126 per cent from $29.5m. Chief executive Tony Gibson says: “Container volumes recovered and the volume of non-containerised freight increased to record levels. Productivity has been increasing since restructuring started in 2011 and has hit new highs this year. This has been the key to our success right across the port, enabling us to smoothly handle record numbers of cars, containers and other freight. “While the past year has been good, the year ahead will be challenging. The growth in container volumes was a one-off as we recovered from a low base and we will lose volume after Maersk moved a service away from Auckland. “This year we will be making strategic capital investments. These include a new tug, straddles and crane, a longer container wharf and a new truck grid.” The port isbuilding supply-chain partnerships to deliver greater efficiency and cost savings for customers, with its joint venture with Napier Port and Icepak for an inland port in Palmerston North being one example. The inland port at Wiri is also being developed. “The future is reasonably positive,” adds Gibson. “Auckland is growing and so is its freight demand. At the same time, competition in the port sector is growing and pressure from shipping companies on pricing is becoming more intense. “Investments we make now will boost efficiency and we have more smart investment planned. With correct planning, and a focus on efficiency and productivity, the business has much potential.”

AT-A-GLANCE PORT DEVELOPMENTS

Ports of Aucklandhandled 968,741 TEUs compared to 818,819 TEUs in the previous financial year, a rise of 18.3 per cent for it to remain as the country’s largest container port. It recently took delivery of two new eco-straddles with four more due later this year. These are more fuel efficient and equipped with driver-assist technology to improve productivity. Work on a 50-metre extension of the container wharf starts on September with completion due in late 2015. It will allow the handling of two next-generation container ships at the same time. A new container crane will be ordered for the longer wharf. A new truck grid is under construction and due for completion in late 2014. It’s larger than the old one and will allow more trucks to be processed faster. A new tug was delivered this month and will enter service in September. More powerful, it will assist with the handling of larger ships