Port posts profits jump
Port of Tauranga has reported a strong rebound after its net profit rose to $173.4 million in 2024/25 compared with $90.8m in the previous period.
The jump included a gain of $49m from asset sales, with underlying profit amounting to $126m versus $102.7m, while revenue increased to $464.7m from $417.4m.
Total cargo came in at 25.3 million tonnes, up from 23.6 million, and a final dividend of 9.7 cents per share was declared – a one-cent increase.
Strong kiwifruit, meat and dairy exports drove the seven per cent rise in cargo, while coal, fertiliser and stock feed boosted imports.
The one-off gain of $49m came from consolidating assets in Northland, in which the company sold its stake in Northport. Subsidiaries and investments, such as Ruakura Inland Port and Primeport in Timaru, posted improved earnings.
However, the Port of Tauranga says the economy is missing out on hundreds of millions of dollars because of delays in getting approval for its expansion plans.
The port’s productivity is currently being hampered by insufficient capacity to handle rising cargo volumes and disrupted shipping schedules.
“Our constrained berth capacity also impacts productivity as we’re unable to provide flexibility for vessels arriving outside their booked windows,” says the port in a statement.
“Only 55 per cent of vessels arrived on their agreed schedule, challenging our ability to efficiently manage container-yard congestion and impacting crane operations.”
Board chairperson Julia Hoare is frustrated by new legal obstacles to its long-awaited container expansion, with judicial review at the high court ruling the fast-track application to be deficient because of a drafting error.
She says: “Ongoing delays in obtaining a resource consent for Stella Passage are reaching crisis point as the port is forced to turn away services due to a lack of capacity.
“It’s frustrating that in the midst of significant interest from international container lines that we’re unable to support new trade opportunities because we don’t have the berth space.”
Hoare adds Tauranga was forced to scotch a new shipping service to the Americas that would have offered local exporters and importers savings of $65-$90m, while the new container wharf and associated facilities could deliver $485m-$749m in annual economic earnings by 2032.
