Port told to lift its game

Ports of Auckland (POAL) has been told by Auckland Council to make improvements after failing to meet performance targets or produce a dividend for the city in its half-year results.

Phil Goff, Auckland mayor, says senior figures at the port had acknowledged the need to lift their game in a number of areas, including health and safety, recruitment and training, and implementing automation at the site.

He adds POAL has also committed to improve its communication with the council.

The company met with the Council Controlled Organisation Oversight Committee (CCO) behind closed doors on March 23 to discuss its underperformance. 

A POAL spokesman says the meeting went well and all the matters discussed with the committee are already in progress, reports the NBR.

The council-owned port’s profit for the six months to December 31 was $13.6 million, compared with $17.2m in the previous first half. 

The port handled 416,232 containers and 104,224 cars during the half as total cargo volume dropped four per cent to 3.15m tonnes.

It failed to meet the majority of its performance measure targets during the half-year and recorded four lost time injuries in the second quarter, against an annual target of zero.

Bill Cashmore, committee chairman and deputy mayor, says the relationship between the council and POAL needs to improve.

He adds the committee was told productivity at the port had started to lift and more improvement was forecast over the coming months.

A key to a turnaround in fortunes at the port, which is currently beset by a supply chain logjam, is an automation project that is likely to be fully rolled out and operational by mid-June.

Cashmore notes the council is also missing the dividends usually paid by the port. The dividend for the 2020 financial year was $4.9m, and the previous year POAL opted against paying a final dividend but payments for the year still totalled $18.6m.