New Zealand’s Port of Tauranga is set for growth following an increase in profit and volume for the year to 30 June 2014.
The port recorded a 5.5% increase in Group EBITDA to NZ$1.42.5m as an increase in bulk cargo transported across its wharves offset a temporary decline in container volumes. Total cargo volumes rose 3.5% to more than 19.7 million tonnes, while reported net profit after tax fell 30.2% to NZ$78.3m.
“The 2014 financial year represents a watershed for Port of Tauranga,” said David Pilkington, chairman. “We successfully executed a number of further strategic building blocks during the year, and we are now reaping the benefits.”
During the year, the port took a 50% stake in PrimePort Timaru and took control of its container terminal – a move which is said to deliver greater choice of cost-effective routes to South Island importers and exporters. Container volumes have already increased and a new harbour mobile crane has been ordered to handle the greater volumes.
Port of Tauranga also established an intermodal freight hub on the 15 hectares of industrial land it acquired in Rolleston, south of Christchurch. Modelled on the MetroPort Auckland operation, the hub is due to open in early 2015, and will allow importers to efficiently access the Christchurch domestic market. The port says it will eventually provide capacity for up to 100,000 teu per year.
On top of this, the port also struck an alliance with freight management and logistics provider Kotahi, which will deliver up to 1.8 million export teu to the port over the next 10 years.
“These strategic initiatives, combined with the significant investments we have made in prior years, have put in place a platform for long term growth and will deliver significant gains for importers and exporters across the country,” added Mr Pilkington.
The port says it now has the “certainty” to invest in the infrastructure needed to accommodate the next generation of 6,500 teu ships and to do so in a way that will “deliver efficiencies for New Zealand shippers and appropriate returns to shareholders”.
“We expect cargo volumes to increase in the coming year, reflecting the agreement with Kotahi, the investments we are making in our freight handling infrastructure across the country and the return of the Maersk Line’s Southern Star service to the Port of Tauranga this month,” concluded Mark Cairns, chief executive.
