Port chief to set sail with solid profit on horizon

Jon Mayson

The hunt is on for a new Port of Tauranga chief executive after confirmation from the incumbent, Jon Mayson, that he will retire late this year after 33 years with the company.

The news came with the port's interim result announcement showing a 7 per cent rise in net profit to $15.8 million for the six months to December 31.

Chairman John Parker said Mayson, who has been chief executive since January 1997, had created a "strong and proven" management team.

"His successor will inherit an organisation in solid shape with the strategic direction and partnerships necessary for its continued success and profitable growth," Parker said.

The transition from Mayson to his successor would be a planned affair and would take place once a "full and rigorous" selection process had been worked through.

Mayson said he would step down around Christmas and would be interested in remaining on the port's board if asked to.

"I've had nine years as chief executive and I'm pretty proud of what's been achieved," he said. "I'm retiring with an open mind about what I may do with my time but there's plenty out there."

The port's higher profit came as an increase in bulk imports and container volumes offset a fall in log exports.

Revenue for the period was up 8.8 per cent at $78.4 million while operating profit rose 5.5 per cent to $36.3 million.

The company announced a 7c a share dividend.

Parker said the result reflected higher volumes of bulk imports such as coal, as well as gains in container traffic and increased non-forestry exports.

"Total trade through the port was a record 6.6 million tonnes," he said.

"Container volume, at 222,000 TEUs [20ft equivalent units], was also a record."

Container volumes were particularly strong in December, with an increasing number passing through the company's MetroPort operation in Auckland.

Log exports for the half were 30 per cent lower and wood chip exports 61 per cent lower, pushing total exports through the port down by 7 per cent to 3.8 million tonnes.

But imports were up 31 per cent, with coal imports 54 per cent higher at 455,000 tonnes.

Parker said the higher level of coal imports was set to continue under the 15-year contract the company had secured with Genesis Energy to handle up to 1 million tonnes a year.

The result and the investments made during the half were consistent with the port's long-term planned approach to the business.

"We have always invested for the medium and long-term and are confident that in the forestry area there will be a return to higher volumes.

"Our present approach in this area is to reduce our costs and lift our efficiencies."

Parker said prospects for this half were good, but unknowns included a pending decision on whether future exports of dairy product would be shipped from Tauranga or Auckland.

Port of Tauranga shares fell 8c to close at $5.50 yesterday.