Port of Tauranga Announces Robust Half Year Result
March 2010

The timings of the Port of Tauranga’s six-month result gives an interesting comparison to the Ports of Auckland’s, coming as it does only a couple of weeks apart.

The Port of Tauranga has produced an improved net profit of $23.072 million for the second half of 2009, whereas Auckland’s net income rose to $13.9 million in the six months ended December 31.

Tauranga’s increase was only 2% on the corresponding period last year, but the key thing is that the port achieved it in a year when the global financial crisis saw tonnage through the port drop 5% to 6.5 million tonnes. Container volumes were down by 18%.

However the diversity of Tauranga’s business provided the port with a safety net. Exports grew nearly 10%, particularly logs up 31%, and dairy up 44%. In addition, the port maintained a tight grip on costs and increased productivity returns.

Crane productivity was up 3.5% over the last quarter of 2009, to 35.3 moves per hour. Truck turn times through the terminals were an average of 10 minutes at Sulphur Point and nine minutes at MetroPort.

Deeper analysis of the report shows the port is well-positioned to invest in expansion, if needed (such as for larger vessels). It has a market capitalisation of $945 million and net borrowings at the end of calendar 2009 of $206.3 million, leaving a lean debt to debt plus equity ratio of 29%.

A consent hearing date is scheduled soon on resource consent applications to dredge harbour channels to cater for the next generation vessels. Once these consents are secured, Tauranga will be looking to advance its case as the only New Zealand port capable of providing 14.5 metres draught at low tide. Dredging will commence when required by market demand.

The knowledge of this provides another stirring of the pot in the competitive battle with Auckland. The Shippers’ Council is currently working on an analysis of the benefits of introducing bigger ships to NZ, which is expected to intensify the debate.

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