Oji Fibre Solutions & Port of Tauranga Renew Long Term Operating Agreement

Oji Fibre Solutions and Port of Tauranga have today confirmed their long term relationship has been extended with the renewal of their Operating Agreement for a further 10 years.

Oji Fibre Solutions is New Zealand’s major manufacturer of market kraft pulps, container board and packaging products. The company has committed to consolidating the majority of its import and export cargo volumes through Port of Tauranga for the next decade.

The agreement reflects the long and productive relationship between the two companies, dating back to the 1950s.

Murray Horne, General Manager of Oji Fibre Solutions’ logistics arm Lodestar, says the renewed agreement enables the continuation of operational synergies across the export supply chain for Oji and their associated forest products export customers.

“We continue to focus on facilitating an optimal supply chain solution for our pulp and paper mills based in the central North Island and Eastern Bay of Plenty. By utilising the infrastructure at the port, and the rail and road links to our production facilities, we deliver the most logical solution for our business” he says.

Oji leases a purpose-built, 22,000 m2 warehouse at Port of Tauranga’s container terminal. The shed was constructed by Port of Tauranga for Oji in 2017 to enable improvements in quality and greater flexibility around product storage, handling and packing.

Port of Tauranga Chief Executive, Mark Cairns, says the agreement strengthens a mutually beneficial strategic partnership and assists both companies to continue building their businesses.

“Partnerships of this nature allow both parties to plan rationally for the long-term. We value the faith that Oji continues to place in Port of Tauranga as its port for the future,” said Mr Cairns.

For further information, please contact:

Mark Cairns
Chief Executive
Port of Tauranga Limited
Ph 07 572 8829


Philip Millichamp
Group Manager – Environment & External relations
Oji Fibre Solutions (NZ) LimitedSwir
Ph 07 885 5629

Nga Matarae Scholarship 2019

The Trustees of Ngā Mātarae Charitable Trust are pleased to offer the Ngā Mātarae Scholarship Programme.

The Trust is a partnership between the Port and Tauranga Iwi with the primary purpose to promote the wellbeing of Te Awanui Tauranga Harbour.

Applicants intending to undertake study in a discipline that will benefit the wellbeing of the harbour and who are descendants of Tauranga Moana iwi (Ngāti Ranginui, Ngāi Te Rangi and Ngāti Pūkenga) are invited to apply.

Applications closed at midday on Wednesday 23 January 2019.

For full details, click on the link below:

Scholarship Application & Whakapapa Form

Port of Tauranga Investor Day – 13 November 2018

The attached presentation was prepared for the Port of Tauranga Investor Day held in Tauranga on Tuesday 13 November 2018.

Investor Day Presentation

New Zealand’s International Hub Port Sees Strong Cargo Growth in First Quarter of Financial Year

Port of Tauranga today reported first quarter trade volumes grew 8.3% on the same period last year.

From 1 July 2018 to 30 September 2018, the Port handled more than 6.6 million tonnes of cargo.

The increase was driven by log exports, which were 14.7% higher compared with the previous corresponding period, and transhipped containers, which increased 11.4% in volume.

Dairy exports decreased due to seasonal fluctuations and were 7.1% less than the same time last year.

Overall container numbers increased 0.7% for the three month period, to just under 296,000 TEU (twenty foot equivalent units).

Port of Tauranga Chief Executive, Mark Cairns, told the Company’s Annual Meeting of Shareholders today that the unaudited Group Net Profit After Tax for the first quarter was up 4.6% on the previous corresponding period.

“Based on the first quarter’s performance, and notwithstanding any significant market changes, we expect full year earnings to be between $96 million and $101 million,” said Mr Cairns. This compares with a record Net Profit After Tax of $93.4 million for the year ended June 2018.

Mr Cairns says the Port is now looking to the next stage of cargo growth and has ordered a ninth container crane for delivery in 2020. It also intends to extend its container berths south of the existing wharves on existing port-owned land.

Of its 190 hectares in landholdings, Port of Tauranga has approximately 40 hectares of land still available to accommodate cargo growth.

For further details, contact:

Mark Cairns
Chief Executive
Port of Tauranga Limited
Ph: 07 572 8829


Chair Review
Chief Executive Review
Meeting Results



Cargo Growth Produces Record Year for Port of Tauranga


Port of Tauranga’s hub port strategy is gaining momentum, with growing cargo volumes and increased transhipment driving record results in the year to 30 June 2018.

New Zealand’s largest, fastest growing and most productive port saw container volumes increase 8.9% to nearly 1.2 million TEUs[1], while overall cargo volumes increased 10.2% to almost 24.5 million tonnes.


  • Group Net Profit After Tax increases 13.0% to $94.3 million
  • Annual container throughput increases 8.9% to almost 1.2 million TEUs
  • Transhipment increases 23.3%, making up a quarter of all container traffic
  • Log volumes increase 14.3% to 6.3 million tonnes
  • Exports increase 8.2% to 15.4 million tonnes, while imports grow 13.7% to 9 million tonnes
  • Subsidiary and Associate earnings increase 11.9% to $16.4 million
  • Annual revenue increases 10.9% to $283.7 million
  • Asset valuation increases by $226.0 million
  • Final dividend of 7.0 cents per share brings the total ordinary dividend to 12.7 cents per share, an increase of 13.4% on the previous year. In addition, a special dividend of 5.0 cents per share will be paid.

 New Zealand’s busiest port, Port of Tauranga Limited (NZX:POT) today announced record annual earnings as freight volumes continue to increase and shippers utilise its hub port status.

Group Net Profit After Tax for the year to 30 June 2018 increased 13.0% to $94.3 million.

Good performance from our subsidiary and associate companies saw earnings lift 11.9% to $16.4 million.

The results were lifted by increased volumes across all major cargo categories, including export logs (up 14.3% in volume) and dairy products (up 4.0%).

Transhipment, where containers are transferred from one service to another at Tauranga, has grown 23.3% in the past year, demonstrating the entrenchment of the ‘hub and feeder port’ model in New Zealand.

“This growth is a direct result of Port of Tauranga’s six year investment in building capacity to accommodate larger vessels,” says Port of Tauranga’s Chair, David Pilkington.

“We completed our capacity expansion programme in 2016 and the effects were almost immediate. We are seeing larger container vessels, as well as larger bulk cargo and passenger ships,” he said.

With the fast container service connections between Tauranga and North Asia, North America and South America, shippers in Australia and New Zealand have increasingly been using Tauranga as a hub port. Containers transhipped from other New Zealand ports grew 54.7% compared with the previous year. The Port now handles 40% of all containers in New Zealand.

New Zealand’s importers and exporters are within easy reach of Port of Tauranga’s national network of ports, inland freight hubs and logistics services. The Group has interests in Northport in Whangarei and PrimePort Timaru, as well as operating inland ports at Auckland and Rolleston near Christchurch.


The Company today announced a further special dividend of 5.0 cents per share as part of its ongoing plan to return up to $140 million to shareholders. This is the third year of a four-year capital restructure plan.

Directors have also declared a final ordinary dividend of 7.0 cents per share, taking total ordinary dividends to 12.7 cents per share, a 13.4% increase on the previous year. The record date for entitlements is 21 September 2018 and the payment date is 5 October 2018.

Shareholders have received an annual equivalent return of 22.4% since the Company listed in May 1992.

Cargo trends

Imports increased 13.7% to 9.0 million tonnes and exports increased 8.2% to 15.4 million tonnes for the year ended 30 June 2018. Total ship visits increased 5.8%.

Log exports increased 14.3% to 6.3 million tonnes. Sawn timber exports also increased 10.3% in volume. Forestry products are still fetching record prices internationally.

Dairy product exports increased 4.0% to 2.3 million tonnes. Imports of dairy industry food supplements increased 18.2%, and fertiliser imports increased 16.4%, reflecting a strong sector.

Other primary product sectors also fared well, with frozen meat exports increasing 11.3%, and apples increasing 20.9%.

Cement imports increased 18.9% while steel exports increased 25%.

Oil product imports increased 9.3% and other bulk liquids increased 39.9%.

The number of cars and other vehicles imported at Port of Tauranga doubled compared with the previous year.

Whilst kiwifruit volumes were down 5.8% due to a seasonal drop in green kiwifruit, an increasing proportion of kiwifruit are being shipped via refrigerated container. The number of TEUs increased 27.6% compared with the previous year.

Operational developments

Port of Tauranga Chief Executive, Mark Cairns, said a ninth container crane had been ordered for delivery in 2020.

Port of Tauranga’s container terminal now has 2,634 refrigerated container (reefer) connection points, which are supplemented in the peak season with 12 generators each supplying power to 35 containers.

“We believe we have the largest reefer capacity in Australasia demonstrating the significance of the volumes we are handling,” said Mr Cairns.

The Port also opened a new purpose-built coolstore at Mount Maunganui to handle kiwifruit and other chilled cargoes.

The Port maintained its industry-leading record for productivity, with a net crane rate for the year to 30 June 2018 of 35.5 moves per hour (compared with the reported national average of 33.5 moves per hour and Australian rate of 28.9 moves per hour).

Our people and their safety

Mr Cairns said the injury frequency rate among the Company’s staff reduced by 2% to 5.6 per million hours worked, whilst the Company’s contractor injury frequency rate reduced nearly 70% to 9.3 per million hours worked.

The Company has launched a wellbeing programme for all Port of Tauranga employees.

Care for the environment

Port of Tauranga has appointed an Environmental Manager and is making use of technology to reduce carbon emissions and improve energy efficiency, including introducing electric vehicles where possible.

Stormwater management is a current priority, and infrastructure improvements continue as a long-running resource consent application for the Mount Maunganui wharves is dealt with via an independent commissioner.

The Company has also undertaken a comprehensive, independent carbon emissions audit to set targets for future reductions in emissions.

We continue to support forestry industry efforts to reduce the amount of methyl bromide used at the port ahead of the 2020 deadline for 100% recapture of the fumigant. We are encouraging exporters to de-bark logs prior to arrival at the wharves to reduce the need for fumigation.

Sector and industrial relations issues

Port of Tauranga is proud of its industrial relations track record and works hard to maintain productive employment relationships with our staff and unions.  It is salient that more than 90% of our staff are shareholders in the Company.

The Company has made a submission opposing certain aspects of the Employment Relations Amendment Bill.

“Specifically, we believe the repeal of the ability for employers to opt out of Multi Employer Collective Agreement (MECA) negotiations breaches international conventions,” said Mr Cairns.

“We believe this aspect of the Bill will see a lowest common denominator outcome and will most certainly decrease productivity in the Port sector.”

Port of Tauranga continues to be concerned about the impact on New Zealand’s land transport network of further sub-economic investments being made or contemplated by other New Zealand Ports. This is not just an issue for the sector, but the economy as a whole.

capital investments are properly justified.  Port of Tauranga seeks a minimum return of 8.5% after tax on major capital investments;” said Mr Cairns.


Port of Tauranga has commenced planning for the next stage of capacity expansion.

The Company has approximately 40 hectares of undeveloped, port-zoned land available for future expansion. There are options to extend the quay length on both sides of the harbour, using Port-owned land south of the existing berths.

Port of Tauranga operates in a complex environment with many factors outside its immediate control.

“We have implemented the policies, processes and practices we need to deliver superior customer service, economic benefit to our communities and strong returns to our shareholders,” said Mr Cairns.

“We expect cargo growth to continue in the next year across most categories, and particularly containerised cargo,” he said.

Guidance on full year earnings will be provided at the Annual Shareholder Meeting on 17 October 2018.

 For further details, please contact:

Mark Cairns, Chief Executive
Port of Tauranga Limited
Mob: 021 978 887

David Pilkington, Chair
Port of Tauranga Limited
Mob: 021 609 635


[1] Twenty Foot Equivalent Units, a standard measure of shipping containers

Presentation to Analysts

Tauranga Container Terminal Re-opens After Fire

Port of Tauranga’s container terminal at Sulphur Point has reopened following a large fire in a workshop and adjacent offices.

Fire and Emergency New Zealand crews were called to the port late this morning after the fire broke out. Crews quickly contained the fire to the two buildings. The terminal was temporarily closed to traffic to allow firefighters to work.

No one was injured in the blaze but the buildings were extensively damaged. The cause at this stage is undetermined, and investigations are under way.

Port of Tauranga Chief Executive, Mark Cairns, says the emergency crews and port staff involved did an outstanding job of containing the large fire.

“We are very relieved that no one was hurt.”

Port of Tauranga Announces Change to the Board of Directors

The Chair of Port of Tauranga Limited, David Pilkington, today announced the appointment of a new Director, Alison Andrew, effective 1 April 2018.

Alison is currently Chief Executive of Transpower, having joined in 2014. She has held a number of senior executive roles across various industry sectors, most recently as Global Head of Chemicals for Orica PLC. She has also been a Director for Genesis Energy. Prior to those roles, she held a number of senior roles at Fonterra Cooperative Group and across the Fletcher Challenge Group in Energy, Forests and Paper. Alison has a MBA from Warwick University, and studied Engineering (Chemicals and Materials) at Auckland University.

David Pilkington said “We are extremely pleased to welcome Alison to the Board and believe her vast range of business expertise will add strength to our Board.”

Alison Andrew replaces Bill Baylis who retired on 19 December 2017.

Port of Tauranga Hub Port Role Intensifies


Port of Tauranga continues to grow as an international hub port, resulting in increased trade volumes and profits for the first half of the 2018 financial year.


  • Revenue for the six months to 31 December 2017 increased 12.8% to $141.4 million and net profit rose 12.6% to $47.1 million.
  • Total trade increased from 11.0 million tonnes to 12.5 million tonnes for the period, a 13.4% increase.
  • Container volumes grew 15.8% to 590,803 TEUs (twenty foot equivalent units).
  • Transhipped TEUs increased by 47.6% in number.
  • Imports increased 20.7% from 3.9 million tonnes to 4.7 million tonnes.
  • Exports grew 9.4% from 7.1 million tonnes to 7.7 million tonnes, with a large increase in log exports (up 12.5%).
  • Interim dividend of 5.7 cents per share, up 14% on the previous period’s dividend.

Port of Tauranga today announced a half year Net Profit After Tax of $47.1 million, a 12.6% increase on the same period last year, following strong growth in most cargoes.

Half year trade volumes grew 13.4% to 12.5 million tonnes, contributing to a 12.8% increase in revenue to $141.4 million for the six months ending December 2017.

Transhipment volumes, where containers are transferred from one service to another, was up 47.6% on the same period last year when measured by TEUs (twenty foot equivalent units).

Port of Tauranga Chair, David Pilkington, said the impressive results demonstrated the continued consolidation of a “hub and spoke” port network in New Zealand.

“Tauranga serves as a hub for New Zealand shippers looking to quickly and efficiently move cargo to and from North Asia, and South America via big ship services,” said Mr Pilkington.

“Tauranga is the only New Zealand port able to accommodate the larger container ships on these international services.”

Port of Tauranga Chief Executive, Mark Cairns, said the transhipment figures showed just how much New Zealand shippers had come to utilise Tauranga as an international cargo hub.

Growth had accelerated following the September 2016 completion of a major dredging project that was the culmination of a $350 million expansion programme.

“We are delighted by the amount of transhipment occurring from other New Zealand ports, with transhipment volumes having more than trebled for the six month period – the largest increases occurring from the South Island ports and Napier,” said Mr Cairns.

Bulk cargoes are also increasing in volume. Mr Cairns said export growth had been driven by logs, which were in high demand by China and attracting record prices.

Imported cargoes grew significantly, with strong growth in oil products, and grain and feed supplements for the dairy industry.

MetroPort Auckland handled 8.4% more TEUs over the six months, compared with the previous corresponding period. The number of trains between MetroPort and the Tauranga Container Terminal has been increased from 78 to 86 per week to handle the growing volumes.

“We have the capacity to increase train frequency in future as we still have plenty of headroom on the route between Auckland, Hamilton and Tauranga. KiwiRail’s work to build passing loops in recent years has future-proofed our rail capacity,” said Mr Cairns.

Mr Cairns said the Company was now looking to the next phase of growth and scoping the people, plant and processes required to maximise productivity within the Port’s existing footprint. Of its 190 hectares of land, the Port has approximately 40 hectares of land still available for cargo growth.

“We can handle up to three million TEUs annually without any further reclamation, which has been been confirmed in the recent Ernst Young Port Future Study[1]” said Mr Cairns.

“We consider all evidence points to the trend to larger vessels continuing and even accelerating. Port of Tauranga is the only port in New Zealand able to accommodate the big ships and their cargoes.”

The Company has consistently delivered on a strategy of sustainable long term value creation for shareholders.  We recognise that long term value creation necessitates ongoing efforts to enhance our environmental performance as stewards of our natural environment and also recognition of our societal responsibility in how we manage the relationships that we have with our employees, our suppliers and the impacts of our business on the broader community in which we operate.

Cargo Trends
Log exports are buoyant on the back of strong demand from China and record prices for top quality logs. Volumes increased 12.5% to 3.3 million tonnes for the six month period.

Other forestry-related exports increased slightly, rising 2.6% to 1.1 million tonnes.

Dairy product exports increased 2.8%, while meat exports rose 17.3% in volume. Steel exports increased 40.9%.

In imports, grain and feed supplements for the dairy industry increased 34.7%. Bulk fertiliser imports grew 3.1% in volume.

Imports of oil products increased 13.5% for the six month period. There were also increases in dry chemicals, bulk liquids and cement.

Cars and other imported vehicles are a growing category for Port of Tauranga, with volumes increasing significantly as compared with the first half of the 2017 financial year.

The total number of containers handled increased 15.8% to 590,803 TEUs.

Ship visits increased to 890 – 15.0% more than the previous corresponding period.

Subsidiary / Associate Companies
PrimePort Timaru had a strong first half on the back of bulk cargo growth, seeing a 36.1% increase in net profit.

Northport’s trade volumes continue to grow.

Recently acquired contracts in new cargoes are starting to bear fruit for Quality Marshalling, with earnings up 28.3% on the previous corresponding period.

Coda Group’s profit declined compared with the previous corresponding period largely due to lower income from reduced empty container handling.

Port of Tauranga is on track to handle in excess of 1.2 million TEUs in the year ending 30 June 2018.

Given the strong trading conditions, Port of Tauranga is raising its earnings guidance to between $92 million and $96 million for the 12 months to June 2018. This compares with the Net Profit After Tax of $83.4 million for the year ended 30 June 2017.

For further details, contact:

Mark Cairns
Chief Executive
Port of Tauranga Limited
Ph: 07 572 8829

Presentation to Analysts

Interim Accounts

About Port of Tauranga:
Port of Tauranga, headquartered in the Bay of Plenty, is New Zealand’s largest port and international freight gateway. It operates wharves in Tauranga, Mount Maunganui and Timaru, as well as MetroPort Auckland, a rail-linked inland port in South Auckland and MetroPort Christchurch, an intermodal freight hub in Rolleston. The Port of Tauranga Group includes: Quality Marshalling (100% ownership), a cargo services company; Coda (50% ownership), a freight logistics group; Northport (50% ownership), the deep water commercial port in Whangarei; PrimePort Timaru (50% ownership), the commercial port in Timaru; Timaru Container Terminal (50.1% ownership), which leases and operates the terminal at Timaru; and PortConnect (50% ownership), an online cargo management system. For more information, please visit www.port-tauranga.co.nz.

[1] Ernst Young (June 2016).  “Consultant’s Report to the Port Future Study”.

Port of Tauranga Announces Retirement of Director

The Chair of Port of Tauranga Limited, David Pilkington, today announced the retirement of Director, Bill Baylis.

David noted that Bill joined the Board in 2006 and during his 11 years as a director has made a very strong contribution to the outstanding growth that the Port has enjoyed over that time.

Nga Matarae Scholarship 2018

The Trustees of Ngā Mātarae Charitable Trust are pleased to offer the Ngā Mātarae Scholarship Programme.

The Trust is a partnership between the Port and Tauranga Iwi with the primary purpose to promote the wellbeing of Te Awanui Tauranga Harbour.

Applicants intending to undertake study in a discipline that will benefit the wellbeing of the harbour and who are descendants of Tauranga Moana iwi (Ngāti Ranginui, Ngāi Te Rangi and Ngāti Pūkenga) are invited to apply.

 Applications closed at midday on Wednesday 24 January 2018