Port profits up as activity grows

The Port of Napier continues to report impressive growth with quarterly results showing increased profit and volume.

A 10.5 per cent rise in net profit before tax was recorded in the quarter to December 31, at $2.758 million compared to $2.496 million for the same period last year.

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Quarterly tonnage increased more than 10 per cent, from 829,900 tonnes to 913,500 tonnes.

Container throughput also increased.

Port of Napier chief executive Garth Cowie said: "On a rolling 12 month throughput basis, the container terminal is now handling 191,174 TEUs (20ft equivalent unit) compared to the 180,285 TEUs 12 months ago, a 6 per cent increase."

The quarterly report announcement comes on the heels of a strong annual result with record profit and volumes from the Hawke's Bay Regional Council-owned port.

Mr Cowie said the port was working aggressively to secure long-term growth in a volatile environment.

"There are a number of concerns such as the financial plight of the international container shipping lines, the resilience in the log trade to the high US/NZ dollar cross rate and the likelihood of some flow-on benefits, at least in the short term, from the industrial disruption in the upper North Island."

The December quarterly result was achieved prior to Fonterra and shipping line decisions to redirect dairy exports through Tauranga and Napier.

A recent productivity report showed Napier performing below other ports, judged in the number of containers handled per hour by crane.

Mr Cowie said the port's performance went beyond the scope of that simple statistic.

"The port was already moving on a number of initiatives to lift overall crane and vessel loading rates, as identified in the draft Productivity Commission Report but noted that real productivity was more than just the speed of loading containers.

"The Port is justifiably proud of its achievements with its positive EVA (Economic Value Added) calculations over the recent past which were also highlighted by the Productivity Commission Report."