Tauranga port in a 'healthy position'

Chairman Fraser McKenzie told shareholders at a special meeting on Wednesday that container traffic remains strong, currently running 23% ahead of the same time last year, and that performance levels are well ahead of budget right across the board.

"Of course, economists' predictions for the health of the world economy over the next year remain generally gloomy.

"It is not a time for bold forecasts. The port is, however, tracking well above its monthly budget expectations - and this provides a healthy position from which to enter the second half of our reporting period."

Wednesday's special meeting was held to consider a proposal to return $67 million of surplus capital to shareholders by cancelling one in every eight shares and paying $7 for each cancelled share. The proposal was approved.

Mr McKenzie told shareholders that the capital return will restructure the company's balance sheet by replacing surplus capital with interest-bearing debt.

"This will result in a more efficient financial structure that will enhance our ability to gain the best possible return on funds used in the port's ongoing business activities," he says.

The port recently announced its intention to buy cargo business Owens Services B.O.P. Limited and is currently awaiting a decision on the purchase by the Commerce Commission.

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