Napier Port share float gets council go-ahead

The Hawke's Bay Regional Council has voted to partly float shares in Napier Port. Photo / File

The Hawke's Bay Regional Council has voted to go ahead with a minority share float of Napier Port in order to fund the port's growth.

Councillors voted to continue work on a minority share float on the condition that any float provided for local participation, and between 33-45 per cent of the Port was floated.

Any final decisions on a share offer will be made in the New Year following the completion of more detailed work, the council said in a statement.

Pending final decisions, the shares will trade on the NZX.

Regional Council chair Rex Graham said that a minority share float was the most effective way to secure the port's future.

"Under this model, outside capital will fund the port's growth, but we will retain majority ownership and control of it. We will also avoid taking on significantly more debt to fund the Port which would ultimately cost ratepayers," he said.

"While there is plenty of work to be done to consider the details of a minority share float, this is an important decision that provides clarity for ratepayers, the Port, and the work of the Regional Council," he said.

The port this week another record profit this year as the amount of cargo handled also hit a record.

Net profit lifted 5.4 per cent to $17.6 million in the year ended September 30 on a 5.8 per cent increase in revenue to $91.7m, its annual report shows.

The port handled a record 5.1 million tonnes of cargo, with log exports lifting 35 percent to a record 2.2 million tonnes. A total of 266,006 containers or twenty-foot equivalent units passed through the port's container terminal, and the port's onsite packing operation handled a record 51,126 TEU containers.

Apple exports exceeded 23,000 TEU containers for the first time, while fertiliser, cement and oil imports remained relatively steady.