Ports of Auckland port handled more containers, and the division broke even compared with a $25m loss the previous year. Photo: RNZ / Kymberlee Fernandes
A turnaround in container traffic and higher prices have delivered a vastly improved half year profit for the Ports of Auckland, a higher dividend payout, and increased full year profit forecast.
The Auckland Council owned business has reported an underlying profit of $20.8 million for the six months ended December compared with $14.8m the year before, leading to a seven fold increase in the interim dividend to $15m.
Port company chair Jan Dawson said it was making progress and getting results from its recovery strategy.
"We are very happy with the progress against our three-year strategy and the concentration on safety, customers, efficient operations and financial performance. After the disruption of the last few years, our half year results show this focus is paying dividends."
The port handled more containers, and the division broke even compared with a $25m loss the previous year, with an expectation it make a full year profit.
It has also changed the payments for stevedores, brought in differential prices to control when containers are brought into the port, and is bringing back guaranteed windows when ships will dock, which were disrupted by Covid.
The port now expected an underlying full year profit of $42m-$45m, up more than a quarter on the previous year, and a total dividend of $30m compared with $14.8m.
Chief executive Roger Gray said the port was working with freight companies and KiwiRail to resolve supply chain disruptions and generally improve use of the port while minimising disruption to the city.
"We are ready to play our part in resuming 'normal' trade activity. Although, as we have seen in other industries such as aviation, that is no easy task."
The port has resource consent to dredge channels to allow it to handle bigger container ships.
In recent years the port company tried and failed in an automation project, and was investigated for health and safety after the deaths of several workers.
Auckland mayor Wayne Brown singled out the port shortly after being elected, demanding better financial performance, shifting where imported cars are stored, and greater public access to the waterfront.