The Port of Tauranga increased its profit in the face of supply chain disruptions and steady cargo volumes, as it expressed frustration with planning delays on an expansion.
The Port of Tauranga has been trying to get planning consent to build another berth since 2019, but a hearing on the matter has now been pushed out until next year. Photo: Linda McKie / 123RF
Key numbers for the year ended June compared to a year ago:
- Net profit $111.3m vs $102.4m
- Revenue $375.3m vs $338.3m
- Cargo (tonnes): 25.6m vs 25.7m
- Final dividend 8.2 cents a share vs 7.5 cps
Company chair Julia Hoare said two-thirds of the ships calling were off schedule and that, along with other disruptions, was hitting business.
"Supply chain disruption continues to have a massive impact on our ability to deliver an efficient service for importers and exporters. We have done our best to incentivise smooth cargo flows and the financial results reflect that."
"There are still operational delays globally and in other parts of the New Zealand supply chain, and continued labour shortages remain challenging, impacting our ability to respond to increased demand."
Hoare said the port would be able to handle more ships and cargo if it was able to build another berth, but it had been trying since 2019 to get planning consent through various channels and would not now get a hearing until early next year.
"It is incredibly frustrating after years of consultation and planning to be still 'on hold'. Had we not had these delays, we would be finishing construction now."
The various delays are estimated to have added $20m to the cost of the project, originally budgeted at $68m.
Last month, a consent hearing for the 180-metre extension and associated dredging of 1.8 million tonnes was again delayed due to a Covid-19 outbreak.
Tauranga iwi have also voiced opposition and threatened legal and direct action.
Chief executive Leonard Sampson said the broad range of cargo and long-term freight agreements with big customers had underpinned the company's earnings as it coped with significant shipping and trade disruptions.
"We are looking forward to a longer-term solution in the form of additional capacity at the container terminal, and soon at the Ruakura Inland Port."
Cargo volumes were fractionally lower than the previous year, with a 3 percent rise in containers handled, but falls in bulk cargoes. Export volumes were down 2.5 percent, with falls in dairy, meat and logs, but a rise in kiwifruit volumes, while imports increased 3 percent - in part because of cargo diverted from Auckland.
The company said in the near term it was hoping for greater reliability in vessel schedules, but high costs, increasing interest rates and reduced consumer demand were likely to affect some cargo volumes, and political issues including the Ukraine war and China's Covid-19 elimination strategy were likely to weigh on supply chains.
Meanwhile, the Northland-based Marsden Maritime Holdings, which Port of Tauranga has an indirect interest in through its stake in Northport, reported a reduced full-year profit of $13.1m compared with $14.3m a year ago.
Its bulk cargo volumes fell, but it handled more containers because of Auckland's congestion, with improved land values, lease and marina income also supporting earnings.