Cargo Growth Produces Record Year for Port of Tauranga

FINANCIAL RESULTS FOR THE YEAR TO 30 JUNE 2018

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.

Highlights:

  • 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.

Dividends

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.

Outlook

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

FINANCIAL RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2017

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.

Highlights

  • 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.

Outlook
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
http://www.port-tauranga.co.nz/category/current-news/

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

 

 

Port of Tauranga Limited Announces Change to the Board of Directors

The Chair of Port of Tauranga Limited, David Pilkington, today announced the appointment of a new Director, Robert McLeod.

Rob joined the Board of Quayside Holdings Limited in November 2016. Rob is currently on the Board of Sanford Group, and has been a past Board Member of ANZ National Bank, Tainui Group Holdings, Sky City Entertainment Group and Telecom. Rob was Oceania (Australia, New Zealand and Pacific Islands) CEO / Managing Partner for the international accounting practice of Ernst & Young and more latterly as Ernst & Young New Zealand Chair, a position from which he retired on 31 December 2015.

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

Rob McLeod replaces Quayside representative Michael Smith who retires, with effect from 31 October 2017.
David Pilkington said “Michael has made an excellent contribution to the Board over his 16 year term.”

For further details, contact:
David Pilkington
Chair
Ph:  021 609 635

Port of Tauranga Sees Strong Quarterly Growth on Back of Increase in Trade

Port of Tauranga today reported first quarter trade volume growth of 15% on the previous corresponding period.

Overall container numbers grew 26%, due to a significant increase in transhipment (containers transferred from one ship to another at Tauranga) in the three months to 30 September 2017. Log volumes increased by 13% compared with the same period last year.

Port of Tauranga Chairman, David Pilkington, says the first quarter results are further proof that Tauranga has cemented its role as New Zealand’s hub port.

“The trend to larger ships, and those ships making Tauranga their only Australasian call, has led to a significant increase in transhipment,” he says.

“Transhipment of cargo from other New Zealand ports to Tauranga has quadrupled in the past year.”

The largest container vessels to ever visit New Zealand have been able to call at Tauranga since the September 2016 completion of a major dredging project and $350 million expansion programme.

Mr Pilkington says the (unaudited) Group Net Profit After Tax is up 15% on the prior corresponding period.

“Based on the first quarter’s performance, and notwithstanding any significant market changes, we expect full year earnings to be between $88 and $92 million,” Mr Pilkington says. This compares with Net Profit After Tax of $83.4 million for the year ended 30 June 2017.

Port of Tauranga Chief Executive, Mark Cairns, says the Port has ample headroom to handle increasing volumes. Of its 190 hectares of land, the Port has approximately 40 hectares of land still available for cargo growth.

“This will allow us to handle around three million TEUs (twenty foot equivalent units) without any further reclamation,” he says.

For further details, please contact:

Mark Cairns, Chief Executive

Port of Tauranga Limited

Ph: 07 572 8829

http://www.port-tauranga.co.nz/category/current-news/

Chairman’s Address Chief Executive’s Address Annual Meeting Presentation

 

A Year of Records for Port of Tauranga

FINANCIAL RESULTS FOR THE YEAR TO 30 JUNE 2017

Port of Tauranga is confirmed as New Zealand’s largest, fastest growing and most productive port as container volumes increase 13.8% to a record of nearly 1.1 million TEU[1]; ships with a capacity of between 7,500 and 11,500 TEUs calling weekly following channel deepening

Highlights:

  • Annual container volumes exceed one million TEUs – a first for a New Zealand port
  • Total trade increases 10.3% to a record 22.2 million tonnes
  • Net Profit After Tax for the year to 30 June 2017 rises 7.9% to $83.4 million
  • Annual revenue rises 4.2% to $255.9 million
  • Port of Tauranga becomes the only New Zealand port to be “big ship capable”
  • Exports increased 8.0% to 14.2 million tonnes, while imports grew 13.7% to 8.0 million tonnes
  • A final ordinary dividend of 6.2 cents per share brings the total ordinary dividend to 11.2 cents per share – a 5.7% increase on the previous year.  In addition, a special dividend of 5 cents per share will be paid, bringing the total dividends for the year to 16.2 cents per share.

New Zealand’s busiest port, Port of Tauranga Limited (NZX.POT), today announced record annual earnings as freight volumes increased across all major cargoes.

Net Profit After Tax for the year to 30 June 2017 rose 7.9% to $83.4 million, from $77.3 million the previous year. The result was lifted by a 13.8% increase in container volumes to a record 1,085,987 TEU, as well as growth in log, dairy products and oil imports.  Subsidiary and Associate companies performed well with NPAT up 4.8% to $14.645 million.

Annual revenue rose 4.2% to $255.9 million, up from $245.5 million, while EBITDA increased 6.4%, from $143.2 million last year to $152.4 million this year.

Port land was revalued during the year increasing by $63 million reflecting the increase in land values over the last two years.

Port of Tauranga Chair, David Pilkington, said the results were a satisfying culmination to the Company’s $350 million expansion programme, which included a major harbour dredging project to widen and deepen shipping channels to accommodate larger ships.

“It’s been a monumental year,” Mr Pilkington said. “The successful completion of our dredging project in September was a turning point, as bigger vessels were able to call in New Zealand for the first time.”

“As soon as the dredging was finished, larger vessels were introduced on Tauranga-only port calls,” he said.

Vessels with nominal capacities of between 7,500 and 11,500 TEU now regularly call on a weekly basis, compared to a pre-dredging maximum of 4,500 TEU ships.

“These large vessels are providing New Zealand importers and exporters with very fast, direct and economic services to North Asia and beyond. As Port of Tauranga is the only Australasian port of call on these services, it is an efficient trans-shipping option for Australian exporters,” Mr Pilkington said.

As well as larger container vessels, the Port is also seeing larger bulk cargo and passenger ships. The giant cruise ship Ovation of the Seas – at 347 metres long and 50 metres high – made its first visit on Boxing Day 2016 and made two further calls, bringing nearly 4,900 tourists each time to the Bay of Plenty.

Capital Restructure and Dividends

Port of Tauranga’s five-for-one share split in October has achieved its objective of enhancing liquidity, with daily share trades increasing 45% and total shareholder numbers increasing 14%.

The Company today announced a further special dividend of 5 cents per share as part of its ongoing four year plan to return up to $140 million to shareholders. This follows a special dividend of $34 million, or 25 cents per share (pre share split), paid on 7 October 2016.

Directors have also declared a final ordinary dividend of 6.2 cents per share, taking total ordinary dividends to 11.2 cents per share, a 5.7% increase on the previous year. Total ordinary and special dividends will be 16.2 cents per share.  The record date for entitlements is 22 September 2017 and the payment date is 6 October 2017.

Dividends, coupled with the Company’s strong share price appreciation, have lifted total returns to shareholders to 18.7% over the year. They extend a record of the Company delivering a compound annual average return to shareholders of 18.3% over the last decade.

Industry Structure

Port of Tauranga believes the move to larger vessels will be accelerated by the ongoing restructuring in the shipping line sector.

“A hierarchy of fewer hub ports, supported by second-tier feeder ports connected by coastal shipping, is unquestionably the way of the future for New Zealand,” said Mr Pilkington.

“The sums of capital required to accommodate bigger ships, the aggregation of sufficient cargo, as well as the transport infrastructure to move it, is clearly not affordable across all of New Zealand’s current container ports,” he said.

Cargo trends

New services from Maersk, Hamburg Sud and Seatrade, and the larger vessels being utilised by the shipping lines, have had a significant impact on cargo volumes in the year to 30 June 2017. Exports grew 8.0% to 14.2 million tonnes and imports increased 13.7% to 8.0 million tonnes, with strong growth in all the largest cargo categories.

Export log volumes increased 20.1% to 5.5 million tonnes and dairy exports increased 4.9% overall.

The trend to larger ships calling only in Tauranga is reflected in the amount of containers which were trans-shipped (transferred from one ship to another), an increase of 31.0% to 245,896 TEUs.

Port of Tauranga Chief Executive, Mark Cairns, said this was evidence of the inevitable paradigm shift towards a hub and feeder port network in New Zealand.

Operational Developments

Mr Cairns said the Port’s relationships with major shippers such as Oji Fibre Solutions, Kotahi, Zespri International and Tauranga Kiwifruit Logistics had given the Company the confidence necessary to commit to ongoing investment in capacity.

In the past year, Port of Tauranga has commissioned two new Liebherr ship-to-shore gantry cranes and retired Crane #1 after 37 years of reliable service. The Tauranga Container Terminal now has an eight crane fleet and three berth operation, giving it unrivalled berth window flexibility and crane intensity options.

The container terminal has been reconfigured to expand the available container storage and handling space. In April, Oji Fibre Solutions moved into our new, purpose-built 22,000 m2 warehouse. Removing Oji’s old shed created space for a further 820 container ground slots right next to the berths.

The terminal now has capacity of more than 6,500 ground slots, with refrigerated container connections now at more than 2,300.

Mr Cairns said the Port maintained its industry-leading record for productivity. The “net crane rate”[1] for the year increased to 36.2 moves per hour, and the ship rate increased to 89.1 moves per hour – well ahead of New Zealand peers. The average ship rate is also 59% ahead of the average of five of Australia’s largest container terminals.[2]

Over the past two years, the number of trains running between Tauranga and the inland port MetroPort Auckland has increased from 54 to 78 per week, with the number of containers transferred by rail increasing 64%.  We are currently working with KiwiRail to further increase the frequency of trains to cater for expected growth.

In the South Island, the Timaru Container Terminal handled another new record of 84,946 TEUs – more than four times the volumes in the 2014 financial year, when Port of Tauranga took over operations.

Outlook

Port of Tauranga expects that cargo and earnings growth will continue.

Mr Cairns said there is still ample capacity to handle increasing volume, with considerable scope to expand within the Port’s current footprint. There are approximately 40 hectares of undeveloped, port-zoned land available for future expansion.

Port of Tauranga remains in a strong financial position, with net debt as at 30 June 2017 standing at $374.8 million, compared with $308.4 million at the same time a year ago. Gearing, as measured by net debt to net debt and equity, was 28.7% at year end.

“Our focus now is to continue to optimise productivity, remove waste from the supply chain and work with our partners to plan ahead,” Mr Cairns said.

Guidance on full year earnings will be provided at the Annual Shareholder Meeting on 19 October 2017.

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

Presentation to Analysts

 

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.

Appendix: Non-GAAP profit reporting measures

Port of Tauranga’s standard measure of profit prepared under New Zealand GAAP is net profit. The Company has used the non-GAAP profit measure of EBITDA when discussing financial performance in this document.

The Directors and management believe this measure provides useful information as they are used internally to evaluate the performance of the group. Non-GAAP profit measures are not prepared in accordance with NZ IFRS (New Zealand International Financial Reporting Standards) and are not uniformly defined, therefore the non-GAAP profit measures reported in this document may not be comparable with those that other companies report and should not be viewed in isolation or considered as a substitute for measures reported by Port of Tauranga in accordance with NZ IFRS.

[1] Ministry of Transport Quarterly Container Handling Statistics.
[2] Australian Department of Infrastructure and Regional Development.
[3] Twenty foot equivalent units.

Port of Tauranga Receives National Biosecurity Award

Port of Tauranga is honoured to receive the inaugural Industry Award in the national Biosecurity Awards announced last night.  The Awards recognise leadership in support of New Zealand biosecurity.

Awards judge Dr John Hellstrom, MPI Director-General Martyn Dunne, Port of Tauranga Chief Executive Mark Cairns and Minister for Primary Industries Nathan Guy​

Port of Tauranga is New Zealand’s largest and fastest-growing port, handling more than 22 million tonnes of import and export cargo annually. In the past year, the Port processed more than a million TEUs (twenty foot equivalent units) of containerised cargo, the first port in New Zealand to do so.

Biosecurity is an integral part of the Port’s operations and is a joint effort. Port of Tauranga works with importers and exporters, service providers, the Ministry for Primary Industries, New Zealand Customs Service and the Bay of Plenty Regional Council.

In 2014, industry representatives Kiwifruit Vine Health and Port of Tauranga launched a partnership focused on achieving operational biosecurity excellence at the Port. It included an awareness programme for staff.

“It’s about everyone doing their bit and working together to protect New Zealand’s environment and primary industries from unwanted biosecurity risks,” says Port of Tauranga Chief Executive Mark Cairns.

“By having a heightened awareness of what to look for in day-to-day operations, all staff within the port community can play a part in keeping unwanted pests out of port operations.”

A target pest has been the Brown Marmorated Stink Bug, which likes to hitchhike on containers and has the potential to impact significantly on horticulture sectors. Another risk was cruise passengers disembarking with fresh produce that could be hosting fruit flies.

Port of Tauranga would like to acknowledge its partners in the initiative: