Port’s cargo volumes jump

Port of Tauranga has reported increased cargo volumes in the first quarter of the 2025 financial year. 

In the three months to September 30, total trade increased by 7.6 per cent in volume compared to the same period last year to 6.2 million tonnes. Container volumes jumped by 17 per cent to 292,860 TEUs.

Chief executive Leonard Sampson told shareholders at the company’s annual meeting that the port has continued to demonstrate resilience through its diversity of cargo and income streams. 

“After a sharp drop in cargo volumes this time last year, we’re pleased to see some recovery. 

“Import volumes reflected slightly stronger domestic consumption by increasing 6.8 per cent in volume to two million tonnes for the quarter. Exports increased 8.1 per cent in volume to 4.2m tonnes. 

“We are cautiously optimistic that the second half of the financial year will see slow improvement in cargo volumes after a particularly challenging 2024 financial year.

“However, global disruption, low international commodity prices and the nascent domestic economic recovery are expected to continue to impact the port for many months to come.” 

Based on the first quarter’s results, and notwithstanding any significant changes to market conditions, Port of Tauranga expects full-year underlying net profit after tax to be in the range of $110m to $120.

“Looking to the year ahead,” adds Sampson, “the current economic conditions and operating environment are complex and challenging, but our scale and diversity continues to hold us in good stead. 

“We continue to see the impacts of softer commodity prices, as well as escalating geopolitical instability, trade tensions and ongoing conflicts in the Red Sea. 

“With the exception of kiwifruit, a number of key export commodities are forecasted to be relatively flat in volume over the next five years after a decade of pre-Covid growth.

“However, the forecasted population increases in the Upper North Island over the next two decades represent a significant opportunity for growth in imported cargoes. 

“To support this growth in population, we must have all three ports – Tauranga, Northport and Auckland – operating at maximum efficiency, supported by a network of rail-enabled inland ports to create a resilient sustainable upper North Island supply chain.

“We remain confident in our ability to deliver sustainable financial results over the long-term due to our people, operational resilience, and diversity of cargo and income streams.”

Reviewing past year

Sampson says the company’s second half to its 2023/24 financial saw a marked turnaround with cargo volumes bouncing back – despite the economic downturn reducing demand for imports and challenging export commodity prices. 

“Despite these fluctuations in cargo volumes and only three per cent of container vessels are arriving on schedule, our continuous focus on operational performance has seen positive improvements in service delivery.

“Productivity improved with container moves per crane, per hour – increasing by 7.9 per cent to just over 30 moves per hour. This compares with the national average of 25 and the average of the top five Australian ports of 24. 

“Over the past year, imports were the most impacted by the economic downturn with lower domestic consumption reducing imports 13.4 per cent to 7.8m tonnes. Exports overall remained steady, increasing 0.9 per cent to 15.8m tonnes. Container volumes decreased 2.5 per cent to 1.15m TEUs. 

“Log exports increased 7.5 per cent in volume to reach the second highest year on record at 6.7m tonnes.”

Sampson said this was due to around one million tonnes related to Cyclone Gabrielle with forests in the Central North Island damaged and exported earlier than planned. 

Direct dairy exports decreased 3.4 per cent in volume with softer production in the North Island and challenging commodity prices. This also affected dairy-sector inputs with fertiliser and stock feed imports decreasing by 16.7 and 17.2 per cent respectively. 

There were several changes to coastal-shipping services throughout the year which resulted in transhipment volume decreasing 12.1 per cent. 

Kiwifruit bounced back following a challenging 2023 season with volumes for the financial year, which spans part of two growing seasons, seeing an 8.5 per cent increase in volume for the 12 months to June. 

Total vessel visits were 1,427, five fewer than the previous year and 109 of those were cruise ships, which was close to the record of 116 visits prior to the pandemic. 

Sampson says: “We remain New Zealand’s largest port, handling 32 per cent of total imports and exports by volume and value. 

“Importantly, however, as an export trading nation we facilitate just under half of all of New Zealand’s total export trade by value at 47 per cent.

“A year on from its official opening, we are pleased with the progress of the Ruakura Inland Port. Trains are running to and from Port of Tauranga and MetroPort in Auckland now call daily at the Ruakura inland port. 

“Earthworks are under way on stage two, creating an empty container depot adjacent to the inland port facility. This is a development in the growth of the inland port, which is on track to handle around 25,000 TEUs in 2025. 

“Back in Tauranga, we are assessing fast-track legislation as an option to speed up the Stella Passage consenting process. This port development is regionally and nationally important, and is particularly urgent at the Sulphur Point container terminal as we reach the current limits of our existing berth capacity. 

“While we wait for consents, we are continuing to pursue plans to introduce a level of automation into the container terminal following the berth extension. 

“Despite this project being delayed, we have developed the electrical infrastructure and are close to vendor selection. 

“Our automation involves fully electric, rail-mounted gantry cranes that will work with hybrid or electric straddles running between the container yard and ship-side. 

“We have recently taken delivery of a new container crane, which – weather permitting – will be assembled and operational by the end of the year. 

“As part of our ongoing investment in decarbonisation, we have added an additional four hybrid straddle carriers. The hybrid straddles are around 25 per cent more fuel efficient than the current diesel electric models in our fleet.” 

Port of Tauranga has just published its first climate-related disclosures report under the mandatory reporting regime for listed companies. It reviews risk-management systems, discusses the specific climate-related risks and opportunities, and outlines current greenhouse gas (GHG) emissions. 

“Our total scope one and two emissions – those we directly control – reduced 3.9 per cent over the year and when we take into account scope three emissions – those we do not directly control – from our chartered MetroPort trains and waste to landfill, we achieved a 13.5 per cent decrease,” says Sampson.

“While total emissions reduction is a priority, we also focus on our emissions intensity or GHG per cargo tonne. We will be doing significant work this year in further developing our metrics and targets to better define the scope three emissions boundaries.

“Our pursuit of the ‘big ships’ strategy has a positive impact on the national emissions profile. Larger, more efficient vessels can produce significantly fewer GHG emissions per container.”