Congestion complaints mar port's record profit

STRETCHED: High demand on port facilities in March led to congestion.

Napier Port has recorded a record half-year profit but is not celebrating.

Amid complaints of poor service, the council-owned port recorded a net after-tax profit of $7.716 million, 51 per cent up on the same time last year.

Napier Port chairman Jim Scotland said normally the port would be "buoyant" over such a result.

"It was achieved under trying circumstances during March for our staff and suppliers, trucking firms, exporters and shipping lines alike," he said.

Chief executive Garth Cowie said severe constraints led to congestion, inefficiencies and additional costs in March, the busiest month of the year.

"Many factors, some unforeseen, combined to produce higher than forecast pressure on terminal facilities."

The unexpectedly strong demand, exacerbated by an early apple season and new export regulations, led to complaints from exporters after long delays causing some fruit to miss scheduled shipping.

"Ultimately the port did not have sufficient space or physical resources to handle the volumes in the manner our customers expected," Mr Cowie said.

"While the issues were addressed quickly and April returned to normality, the focus is now on increasing container terminal capacity, to avoid any recurrence next year and in the future."

He said March was the busiest month of the year.

"Containerised throughput this year was 25 per cent higher than March 2013 and 19 per cent above the previous monthly record."

The port has a $150 million 10-year capital expenditure plan to lift capacity.

Mr Cowie said a new empty container depot in Pandora's Thames St should be ready by the end of the year and a booking system to regulate truck flows was under investigation with express lanes for electronically pre-advised containers, part of the plan.

Mr Scotland said total half-year cargo tonnage grew by 11.4 per cent more than 2013. Non-containerised throughput or general cargo increased by 13 per cent - logs in particular as well as wood pulp. The number of containers handled rose 16 per cent.

"A combination of increased general cargo volumes and higher container throughput saw earnings before interest, depreciation and amortisation lift 32 per cent to $16.206 million," he said.

Mr Cowie thanked port staff for their "huge effort, commitment and goodwill" to achieve "an outstanding result in difficult circumstances".