Container rise boosts Ports of Auckland interim profit

By NZPA

Monday 3rd March 2008

Non-listed Ports of Auckland has announced a 19% rise in interim net profit, due largely to a big rise in container volumes.

The company posted a December half profit of $12.6 million after tax, compared to $10.6 million the year before.

POA managing director Jens Madsen said the relatively satisfactory result reflected a 20% increase in total TEU container volumes over the six months.

"Shipping line and service changes have impacted volume flows for many New Zealand ports, some of which have benefited Auckland during the six-month period under review," Madsen said.

"While such changes have been and still are the norm of the shipping industry, we expect the current volatility to remain throughout 2008."

Container volumes for the period were 427,867 TEU (standard 20-foot container equivalents) with full import and full export container volumes up 9% and 7% respectively.

There was significant growth in trans-shipment volumes as more cargo was hubbed over the Port of Auckland.

Breakbulk, or non-containerised, cargo volumes were down 13% to 1.878 million tonnes, largely due to the transfer of Wynyard bulk cargo wharf to its shareholder, Auckland Regional Holdings, last April.

Port operations, which includes all cargo operations and marine services, made an adjusted earnings before interest and tax (EBIT) rise to $29.5 million, up $2.4 million or 9% on the previous period.

The result included a deferred tax credit of $1.5 million due to the completion of the property transfer and sale.

It also includes associate earnings due to an improved performance and special dividend from the port's 19.9% stake in Northland Port Corporation.

Debt levels at December 31 were at similar levels to the previous year, $360.3 million.

The port paid a dividend of $9,534,000 to Auckland Regional Holdings last month.

The company said it was investigating future capacity and capability options, including the possibility of higher container terminal stacking operations.

Similar measures are being considered to increase capacity for breakbulk cargo, as well as a rail connection between the seaport and Wiri Inland Port, and further reclamations within the existing port.

Madsen called on all New Zealand ports to support the Government's aim to halve carbon dioxide emissions by 2040.

Domestic transport currently comprise 42% of the country's emissions.

Through logical transport infrastructure investment, increased international hubbing, coastal feedering and the use of inland ports, more sustainable and efficient supply chains could be developed, Madsen said.

"It would be unfortunate to see some ports continue to support and maintain irrational supply chains that include unnecessary container moves to the detriment of the environment and which add cost to the supply chain."

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