Port of Tauranga has lifted its half year profit despite flat cargo volumes and higher costs.
Port of Tauranga ships and harbo. (File photo) Photo: 123RF
The country's biggest port increased its profit in the face of supply chain disruptions, as it handled more containers, dairy and kiwifruit exports, which offset a slide in log traffic.
The diversity of the port's trade allowed it to post a near 17 percent rise in revenue, but costs grew slightly faster because of higher energy, transport, and labour costs.
The company said its broad range of cargo and long term freight agreements with big customers had delivered the improved performance.
Chief executive Leonard Sampson said the port had 30 fewer ships calling but disruption was not as bad as the year before, and increased rail services had eased a build up of empty containers.
"Importers and exporters have been very cooperative in helping us improve terminal productivity by ensuring the terminal is not congested by cargo in storage for excessive periods."
He said congestion and disruption was likely to continue through much of the year but he hoped it would ease in the final quarter.
Sampson said there had been a noticeable change in behaviour with importers shifting away from "just in time" develiveries and building up inventories of products to ensure supply to customers.
Direct container traffic had increased, but the number being transhipped through the port fell by more than a fifth.
Company chair David Pilkington voiced frustration at the time being taken for port to get approval for a new container berth, which was submitted but rejected as a "shovel ready project".
"The Resource Management Act processes fail to recognise the critical nature of this infrastructure project and the government's unwillingness to expedite the resource consent is very disappointing."
The port has now applied direct to the Environment Court and is waiting for a hearing date, but Sampson said at current growth in container traffic the facility would be at capacity in three years, which could result in ships being turned away.
The company forecast full year earnings between $103m to $110m compared with last year's $104m, which Sampson said reflected uncertainty over disruptions, and possible impacts from the Omicron outbreak.