The country's biggest port has suffered a hit to its profits as the Covid-19 pandemic reduced cargo volumes and shipping.
Port of Tauranga Photo: RNZ / Joanne O'Brien
The Port of Tauranga's net profit for the June year is $90 million compared with just over $100 million a year earlier.
Revenue fell by just under 4 percent to $302m as cargo volumes fell about 8 percent, and the number of ships calling were down about 10 percent.
Log exports in particular were severely disrupted by the pandemic, but the port handled marginally more containers.
The port is the country's premier shipping hub - handling overseas imports and exports which it tranships to other ports around the country - and that had left the port wide open to the effects of the pandemic.
Chief executive Mark Cairns said the diversity of cargo it handled gave it some resilience to cope with the downturn, which was likely to be felt for some time.
"We expect cargo volumes to slowly recover over the next three years, with dairy product and kiwifruit exports likely to be the strongest performers in terms of growth."
However, the port had recently brought in a ninth container crane and plans to add another container berth.
"We take a long-term, strategic view of our infrastructure investment to ensure we can provide importers and exporters with the facilities they will need in the future," Cairns said.
"Our track record means we have a strong credit rating and we believe we are well placed to weather the Covid-19 storm."
The company has a series of inland freight hubs, which are connected to the port by rail, and is currently developing a new one near Hamilton in partnership with Tainui Holdings.
It also has stakes in the Port of Timaru and Northport in Whangārei. It has largely stayed out of the debate on shifting Ports of Auckland, but Cairns has previously been critical about some port projects in recent years as not being economically viable or justifying the investment.
Cairns said the company did not need to strengthen its balance sheet, although it was looking at a possible bond issue, and any capital spending was being carefully scrutinised .
Ratings agency S&P Global last year upgraded the company's credit rating to A- from BBB+.
However, one sign of the company's caution was a decision to trim its final dividend and suspend the payment of a special dividend due for the next three years.