The Port of Tauranga has posted a 2021 financial year profit. Photo / NZME
Business leaders in the region have commended the Port of Tauranga for its ''stellar performance'' and being an ''economic engine'' following its 2021 financial year results.
The country's largest port yesterday posted a net after-tax profit of $102.4m, an increase of 15.5 per cent despite major supply chain issues that have choked freight movements globally.
Group revenue rose 12 per cent to $338m while parent company revenue increased 8.9 per cent to $323.5m. The port would pay a final dividend of 7.5c per share, giving an ordinary dividend for the year of 13.5 cps.
The financial report shows costs lifted nearly 15 per cent due to congestion effects. While total trade increased 3.8 per cent on FY20 to 25.7m tonnes, container volumes fell 4.1 per cent to 1.2m TEUs.
Between September last year and June 2021, 106 fewer container vessels visited as a result of shipping disruption.
Imports increased four per cent to 9.4m tonnes and exports lifted 3.6 per cent to 16.3m tonnes while log exports increased by 14.3 per cent and kiwifruit jumped by 10 per cent.
Priority One chief executive Nigel Tutt said the port had done a stellar job over the last year in very trying circumstances and it should be very proud of this result.
''The port means a lot to this community, with thousands employed on or around it and lots of spillover into other industries. They also play a big role in New Zealand's economy, providing a stable and efficient gateway to the rest of the world.'
''This has been especially important over the last year with a difficult shipping market and the need to pick up demand from their competitors.''
Zespri chief global supply officer Alastair Hulbert said the port ''plays a crucial role in helping us get our fruit to market by connecting us with our global markets''.
''We work closely with the Port, where we ship around 80 percent of all New Zealand-grown kiwifruit each season. We're proud to have strong relationships across the supply chain, both on and off the water, which have been even more important this season due to the challenges associated with Covid.''
Kiwifruit production in New Zealand was growing strongly with more orchards coming into production and stronger yields as Zespri focused on meeting increasing demand for its fruit around the world, he said.
Hancock Forest Management NZ Ltd general manager Kerry Ellem said the increased volumes of logs year were a reflection of strong demand in offshore markets.
''China came out of Covid quite well and their sawmills and their requirements increased dramatically through the last half of last year and the first part of this year.''
''Prices increased significantly therefore a lot of people were supplying as much as they could especially smaller growers to the port.''
Tauranga Chamber of Commerce chief executive Matt Cowley said the port's results were a great sign.
''It means our exporters have been able to get their products to market. It's reflective of a strong primary sector which has has kept producing despite labour shortages and Covid restrictions.''
The port ensures Tauranga remains a critical part New Zealand's economic engine, he said.
''The port enables Tauranga to be NZ's export gateway to the world. We are known for our logistics expertise. Most local businesses either directly, or indirectly, benefit from the success of the port.
''The Port is majority owned by regional council ratepayers, meaning the community benefits from the port's financial success.''
Chair David Pilkington said the results were pleasing, considering the supply chain challenges of the past year.
"As the world continues to grapple with the devastating effects of the pandemic, there has been major disruption in international supply chains. Constrained capacity in parts of the New Zealand supply chain, especially at Ports of Auckland, has exacerbated delays and restricted our ability to adapt quickly to the needs of importers and exporters," he said.
"International shipping capacity is in hot demand and costs for shippers have skyrocketed."
New chief executive Leonard Sampson, who took over from Mark Cairns in June, said it had been "a very tough operating year".
The result was a good reward for a great effort by all involved, and reflected the benefit of the company's diversified earning sources and cargoes, he said.
Subsidiary and associate earnings lifted 46 per cent to $18.6m.
Supply chain congestion was unlikely to be resolved until vessels could return to schedule and "Ports of Auckland is back operating at full capacity," Sampson said.
This highlighted the need for the Tauranga port to expand its capacity to meet future demand.
The port had applied for resource consent for a $68.5m project to extend container berths to the south of existing wharves.
It was also pursuing plans to automate some of the container storage at the terminal to increase our capacity within the current land footprint.
''Our capability will be further extended with the opening of the inland port at the Ruakura Superhub near Hamilton in mid-2022."
The inland port is a joint development project with Tainui Group Holdings, the commercial arm of Waikato-Tainui. - Additional reporting Andrea Fox
Port of Tauranga Cargo Trends 2021 Financial Year
* Container numbers were 4.1% fewer at 1.2 million TEUs.
* Imports increased 4 % to 9.4 million tonnes, exports increased 3.6% to 16.3 million tonnes.
* Log export volumes increased 14.3% to 6.3 million tonnes.
* Sawn timber and wood panel exports decreased 12.4% in volume.
* Dairy product exports decreased 1.9% to just over 2.3 million tonnes.
* Kiwifruit exports increased 10.1% in volume.
* Oil product imports increased 11.6% in volume, and cement imports increased 42.4% in volume, reflecting the strength in the local economy.
* Fertiliser imports decreased 16.9% in volume, grain volumes decreased 8.9% and protein and stock feed imports decreased 10.4%.
* Coal imports increased significantly as a result of lower hydro energy production and declining gas production.
The development in Te Tumu is set to house 15,500 people when completed.