Napier Port invests $34 million for more growth
Napier Port today reported its annual operating results for the year ending 30 September 2015, highlighted by significant investments and positioning for its future.
The port’s investment for the year included the purchase and delivery of two Terex mobile harbour cranes; the commissioning of an off-port empty container depot; introducing a vehicle booking system; maintenance and capital dredging; building the port’s new main office; purchasing New Zealand’s first mobile harbour crane simulator; establishing a new inland port freight hub in Palmerston North; and paving the main log yard (6.5 hectares).
Napier Port Chairman Alasdair MacLeod said, “This year’s results were pleasing. With a spend of $34 million required to help build terminal capacity, we expected some impact on the bottom line.”
“The investments made throughout the year have resulted in increased productivity. Trucks are being processed faster and more containers loaded per hour during the peak export season — from summer through autumn when pipfruit is exported and when demand for space is at a premium,” he said.
Reported net profit after tax for the 12 months declined marginally to $12.9 million, down from the previous year’s record result of $13.4 million. The result reflects the significant investments throughout the year and the extra people employed.
During the year the port also processed a record 16.5 percent increase in container volumes, handling 256,438 TEUs (twenty-foot equivalent units) cementing its position as the largest port in central New Zealand and the fourth largest container terminal in New Zealand.
Revenue during the year increased by 7.6 percent to $72.1 million off the back of strong container growth.
Overall cargo volumes were flat at 4.1 million tonnes with non-containerised volume falling due to tougher market conditions in China for logs, timber and pulp exports, and increased containerisation of pulp.
Napier Port Chief Executive Garth Cowie said, “This year we processed for the first time ever more than a quarter of a million TEUs. This was achieved despite the significant loss of dairy volume due to the rearrangement of the supply chain by Fonterra.”
“Against this environment of investment and growth, we also improved our health and safety performance with no lost-time injuries. This is a huge credit to all our staff,” said Mr Cowie.
“Looking ahead to the next financial year we expect to see an increase in apple volumes and water exports, which should help offset the further loss we expect from the dairy sector,” Mr Cowie said.
“We will be targeting higher crane rates and vessel rates to deliver the service outcomes our customers need and maintain our relevance.”
- $34 million invested throughout the year to build terminal capacity and productivity
- Revenue up 7.6 percent to $72.1 million
- Container volumes up 16.5 percent
- Staff numbers increased by 33 FTEs
- No lost time injuries