WELLINGTON: Port of Tauranga’s annual profit growth has slowed to 1 percent as log export volumes declined – leaving total export volumes unchanged.
Profit was $79.1 million in the 12 months ended June 30, from $78.3m a year earlier, the company said on Thursday. Operating revenue rose to $268.5m from $266.5m and profit met the guidance it gave in February.
New Zealand’s biggest port for commodity exports has extended its reach across the nation, aiming to become the pre-eminent hub serving what is expected to be fewer visits by larger ships in the future.
It will soon deepen the Tauranga harbour channel to allow the next generation of 6500 TEU (20-foot equivalent unit) ships. In the latest year, the number of containers crossing Tauranga’s wharves rose 12 percent to 851,106 TEUs.
Total export volumes were unchanged at 13.3m tonnes. Strong rises in dairy, meat, kiwifruit and general freight were offset by falls in logs, sawn timber, apples, onions and steel. Imports rose 8 percent to 6.9m tonnes, driven by a 55 percent jump in cement to 165,503 tonnes, which the company said reflected the strength of the local construction industry.
Car volumes more than doubled to 11,607 units. General cargo rose 22 percent to 3.2m tonnes, although imports of grain fell 13 percent, bulk liquids dropped 6 percent and coal imports tumbled almost 100 percent.
Chief executive Mark Cairns says trade volumes are expected to be slightly higher in 2016 with log exports recovering and an increase in kiwifruit and container trade. However, with the low dairy payout, fertiliser and dairy food supplement volumes are expected to decrease.
Port of Tauranga expects dredging on the Tauranga harbour to start in October and it expects to have the infrastructure in place to handle 6500 TEU ships in late 2016. Container volumes are forecast to exceed 1m TEUs in 2017.
