Port of Tauranga has seen a "reasonably positive" start to the year in its July-September first quarter 2016/17, chief executive Mark Cairns told the company's annual general meeting in Tauranga on Thursday.
Provided there were no significant changes to market conditions, the port expected to achieve full year earnings in the range of $79 million to $83 million, he said. The port reported a net profit after tax (NPAT) of $77.3 million for the year ending June 2016, down 2.4 per cent on the previous corresponding period.
In the first quarter, parent net profit after tax (NPAT) was up 10 per cent and group NPAT was up six per cent on the prior corresponding period. Overall trade was up five per cent, log volumes up 16 per cent, dairy volumes up 12 per cent and container volumes up 3 per cent.
"No matter the fluctuations in individual cargoes, we believe our diverse product mix, income sources and locations will protect us somewhat," he said. "We also believe our long-term freight agreements with major exporters give us some certainty to our planning and infrastructure investment."
The port expects to handle more than 1 million TEU's in the full year ending June 2017, and is predicting that log exports will recover to 2015 levels.